Select Committee · Public Accounts Committee

HS2 and Euston: Recall

Status: Closed Opened: 31 Jul 2023 Closed: 3 Apr 2024 3 recommendations 29 conclusions 1 report

In July 2023, the Committee reported that the Department for Transport (DfT) does not know what it is trying to achieve with the High Speed 2 station at Euston, despite spending over eight years planning and designing it. Construction work at Euston was paused for two years in March 2023. The Committee has called on …

Clear

Reports

1 report
Title HC No. Published Items Response
Tenth Report - HS2 and Euston HC 67 7 Feb 2024 32 Responded

Recommendations & Conclusions

7 items
4 Conclusion Tenth Report - HS2 and Euston Acknowledged

Require Department to develop private investment plans for Euston and decide on tunnelling

Developing Euston is dependent on attracting private finance to pay for it, but the Department does not yet have any plan for how to do so and has to make investment decisions soon to protect long-term value for money. Despite the intention to scale back the station itself compared with …

Government response. The government agrees and is continuing to define and develop a range of development models and financing mechanisms for Euston, including options for funding the tunnelling from Old Oak Common. Preparatory works are ongoing, but no specific plans or decisions …
HM Treasury
16 Conclusion Tenth Report - HS2 and Euston Acknowledged

No final decisions made on HS2 operational train services for Phase 1.

The Department’s November 2023 update to Parliament stated that “No decisions have been made on the train service that will run when HS2 is operational.”33 The Department told us it had developed “an outline train specification that sets out an assumed service”, but before bringing it into service there would …

Government response. The Department restates its position that no decisions have been made on the train service that will run when HS2 is operational and that final decisions will take account of economic conditions and demand at the time.
HM Treasury
20 Conclusion Tenth Report - HS2 and Euston Acknowledged

HS2 Ltd faces capacity challenges and struggles with recruitment in overheated market.

Notwithstanding the Board and Director level changes referenced above, HS2 Ltd also acknowledged that it needed to think about its capacity and capability throughout to deliver the task ahead. It told us it was going through that process and highlighted three areas it needed to address: more people to focus …

Government response. The government agrees with the committee's observation that HS2 Ltd needs to address its capacity and capability, stating it is supporting HS2 Ltd's comprehensive change programme to ensure the right skills are in place, with an update expected by Spring …
HM Treasury
25 Conclusion Tenth Report - HS2 and Euston Acknowledged

Realising Euston's private sector funding requires greater certainty and a coherent market proposition.

We raised the issue that private sector involvement and finding would be dependent on there being greater certainty on dealing with issues in and around Euston. The state of the general property market in the area and how much infrastructure the public sector provides will be critical factors in how …

Government response. The government agrees with the committee's observation on the need for certainty regarding Euston to attract private sector involvement, stating that work is underway to develop funding packages and financing mechanisms to maximize private investment for the Euston Quarter, with …
HM Treasury
30 Conclusion Tenth Report - HS2 and Euston Acknowledged

£36 billion HS2 savings to be reinvested across UK regions

The Department has said that the decision not to proceed with HS2 phases 2a, 2b and East will unlock £36 billion (2023 prices) and that “every penny of the £19.8 billion committed to the Northern leg of HS2 will be reinvested in the North; every penny of the £9.6 billion …

Government response. The government agrees with the committee's observation that the Network North funds will be reinvested. They state that progress will be reported for individual schemes as they mature, covering funding, location, and timescales, and that all schemes will undergo business …
HM Treasury
31 Conclusion Tenth Report - HS2 and Euston Acknowledged

Network North projects funded by HS2 savings require individual business case approvals

In its Network North paper the Department described a number of road and rail projects to be included in what will be funded from the £36 billion, subject to approval of business cases.62 The Department told us that these “alternative investments” ranged from specific projects like Northern Powerhouse Rail to …

Government response. The government agrees with the committee's description of the Network North projects and funding distribution. They reiterate that progress will be reported on individual schemes as they mature and that all will undergo business case approval and formal governance.
HM Treasury
32 Conclusion Tenth Report - HS2 and Euston Acknowledged

No comprehensive profiled list of projects funded by redirected HS2 savings exists

The Department told us it had already announced separately how some of this funding will be redirected.67 For example, on 23 October it announced a £150 million reallocation of HS2 funding to support bus services.68 It also announced additional funds for mayoral combined authorities to be provided through City Region …

Government response. The government agrees with the committee's points on funding redirection and previous announcements. They confirm that progress will be reported against individual Network North schemes as they mature, covering funding, location, and timescales, with all schemes subject to business case …
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
16 Nov 2023 Alan Over · Department for Transport, Dame Bernadette Kelly DCB · Department for Transport, Dr Nick Bisson · Department for Transport, Sir Jon Thompson KCB · High Speed Two (HS2) Ltd View ↗

Correspondence

5 letters
DateDirectionTitle
10 Jan 2024 Correspondence from Sir Jon Thompson, Executive Chair, High Speed Two (HS2) Ltd…
10 Jan 2024 Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department …
16 Nov 2023 Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department …
16 Nov 2023 Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department …
16 Nov 2023 Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department …