Select Committee · Public Accounts Committee

HS2: Update following the Northern leg cancellation

Status: Closed Opened: 31 Oct 2024 Closed: 16 May 2025 8 recommendations 43 conclusions 1 report

In October 2023, the Government announced the cancellation of Phase 2 of the High Speed 2 (HS2) railway from the West Midlands to Manchester, as well as a smaller HS2 station in London Euston. Following this announcement, the Department for Transport (DfT) and DfT’s arm’s-length body HS2 Ltd began work to understand the implications for …

Reports

1 report
Title HC No. Published Items Response
10th Report - HS2: Update following the Northern leg cancel… HC 357 28 Feb 2025 51 Responded

Recommendations & Conclusions

51 items
2 Conclusion 10th Report - HS2: Update following the… Accepted

Publish agreed HS2 cost estimate methodology and update programme costs regularly

The Department and HS2 Ltd’s failure to work together effectively is starkly illustrated by them not being able to agree how much HS2 will cost. The Department and HS2 Ltd have still not agreed on how much it will cost to complete Phase 1. They are yet to reach agreement …

Government response. The government agrees, stating it is finalizing the cost estimating methodology with HS2 Ltd over the summer and will fully implement it as part of the program reset in 2026. It commits to providing a further update to the Committee …
HM Treasury
3 Conclusion 10th Report - HS2: Update following the… Rejected

Report progress on HS2 contract renegotiations and plans for achieving cost savings

HS2 Ltd’s construction contracts are unacceptable to the public purse and it is imperative that HS2 Ltd deliver on its assurances to us that it can renegotiate these and deliver significant cost savings. The terms and operation of these contracts provide extremely poor value for money. HS2 Ltd did not …

Government response. The government disagrees with the specific recommendations, stating that due to ongoing, commercially sensitive negotiations and a programme reset, they cannot provide details on savings or commit to writing to the committee by the specified deadline. Updates will be provided …
HM Treasury
4 Recommendation 10th Report - HS2: Update following the… Deferred

Assess new nature restoration fund's impact using HS2 bat tunnel case study

HS2 Ltd’s efforts to reduce the environmental impact of HS2 are not delivering value for money, with the c.£100 million cost of a protective ‘bat tunnel’ more than doubling the cost of that section of railway alone. The Committee does not consider that the right balance has been struck between …

Government response. The government agrees to provide a final response by early 2026, after proposed Planning and Infrastructure Bill measures are finalised, regarding how the Nature Restoration Fund would have impacted the bat tunnel case study. They are already working with DEFRA …
HM Treasury
5 Conclusion 10th Report - HS2: Update following the… Accepted

Address HS2 leadership and capability gaps to ensure successful programme delivery

The Department and HS2 Ltd do not have the skills and capabilities needed to successfully deliver the programme. The Public Accounts Committee has repeatedly raised concerns over the Department and HS2 Ltd having the skills and capability they need. Following the cancellation of Phase 2, HS2 Ltd now needs to …

Government response. The government is undertaking a comprehensive change programme to reshape HS2 Ltd's organisation, including executive leadership changes, appointing a new Chair to review board capability, and commencing recruitment for identified gaps. Key performance indicators for 2025-26 are being agreed and …
HM Treasury
6 Conclusion 10th Report - HS2: Update following the… Accepted

Update Parliament on HS2 Euston progress, funding, risk management, and costs

The Department’s plans for Euston carry huge risks given the uncertainties about its scope, cost, funding, schedule and delivery model. In the 2024 Autumn budget, the government confirmed that HS2 would terminate at London Euston rather than Old Oak Common in West London, but the scope of the work needed …

Government response. The government agrees to include an update on Euston's progress in its six-monthly report to Parliament in Summer 2025, covering the delivery model, private financing, risk management, and cost figures. They are also responding to a separate committee letter regarding …
HM Treasury
7 Conclusion 10th Report - HS2: Update following the… Accepted

Slow progress on HS2 land and property disposal decisions post-Phase 2 cancellation

Things are moving too slowly on making decisions on the disposal of land and property purchased as part of the programme. The Department has yet to determine what land and property can be disposed of following the cancellation of Phase 2, and what land it will retain ownership of for …

Government response. The government agrees with the recommendation, is undertaking a review of the Phase 2 land portfolio including identifying Crichel Down properties, and will write to the Committee to confirm next steps for a disposal programme. This information, along with approaches …
HM Treasury
8 Conclusion 10th Report - HS2: Update following the… Accepted

Require the Department to report on lessons learned and their practical implementation to the Committee.

Over the last decade the Department and HS2 Ltd have repeatedly said they are learning lessons but there is little evidence that lessons have been applied effectively and mistakes avoided. Since 2013, the Department and HS2 Ltd have told the Committee that they have been learning lessons. This has included …

Government response. The government agrees to work with HM Treasury and NISTA to identify and apply key lessons from the HS2 programme during the reset, incorporating findings from the Major Transport Projects Governance and Assurance Review. They will write to the Committee …
HM Treasury
1 Conclusion 10th Report - HS2: Update following the… Accepted

Committee examines current state of HS2 programme with Department and HS2 Ltd.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Transport (the Department) and High Speed Two Limited (HS2 Ltd) on the current state of the High Speed Two (HS2) programme.1 The Department is the programme’s sponsor, responsible for funding and …

Government response. The government agrees, stating that work is underway to improve oversight and financial control of HS2, including resetting contracts, launching an independent review, reinstating ministerial oversight, and commissioning a comprehensive review by the new HS2 Ltd CEO. Updates on this …
HM Treasury
9 Conclusion 10th Report - HS2: Update following the… Accepted

HS2 programme reset to take until mid-2026 for assured contractual baseline.

We were told by HS2 Ltd that it would take time to implement the changes needed as part of the programme’s fundamental reset, with all of 2025 needed to ensure the organisation’s activities are all orientated towards delivering Phase 1. HS2 Ltd estimated that the reset would not be complete, …

Government response. The government agrees with the committee's observation, stating that work is well underway to improve HS2's oversight and financial control, including making clear that HS2 Ltd and suppliers must reset contracts, launching an independent review, and reinstating ministerial oversight. The …
HM Treasury
10 Conclusion 10th Report - HS2: Update following the… Accepted

Department and HS2 Ltd disagree on total programme cost estimates and methodology.

The Department and HS2 Ltd still disagree on the estimated total costs for completing the programme. Despite using the same data, the Department and HS2 Ltd told us that estimates differ because they disagree over a range of technical factors relating to the methodology used for the estimates and assumptions …

Government response. The government agrees with the recommendation, stating it has commissioned a comprehensive review of the programme and agreed areas of cost estimation with HS2 Ltd. It is working to finalise the cost estimating methodology over the summer and implement it …
HM Treasury
11 Conclusion 10th Report - HS2: Update following the… Accepted

Department and HS2 Ltd are working to agree cost estimation methodology with Treasury.

Both the Department and HS2 Ltd told us that they were working together to reach an agreed methodology including drawing on third–party technical advice on cost estimation and, to ensure that the underpinning assumptions of future estimates are agreed, establishing an oversight group with HM Treasury representation.18 The Department expressed …

Government response. The government agrees with the recommendation, outlining steps to finalise and implement an agreed cost estimating methodology with HS2 Ltd, including a comprehensive review and collaboration with NISTA and HM Treasury, by Spring 2026.
HM Treasury
12 Conclusion 10th Report - HS2: Update following the… Deferred

HS2 Ltd's latest Phase 1 cost estimate significantly exceeds prior figures and funding envelope.

Prior to the October 2023 announcement, HS2 Ltd estimated that the total costs of Phase 1 would be £49 billion to £57 billion. The Department’s estimate was lower, at £45 billion to £54 billion but still above the funding envelope of £44.6 billion set in 2019. These estimates were all …

Government response. The government agrees with the 'recommendation' and commits to finalizing a cost estimating methodology over the summer, with full implementation as part of the programme reset in 2026, following a comprehensive review by the HS2 Ltd CEO.
HM Treasury
13 Conclusion 10th Report - HS2: Update following the… Deferred

HS2 cost estimates in 2019 prices are unsatisfactory, projected to reach £80 billion.

We expressed to the Department how unsatisfactory we found it that the cost estimates for completing the programme are still in 2019 prices. The Department agreed, telling us that it expects that any funding agreed at the spending review will be in current prices. It also explained that this will …

Government response. The government agrees with the 'recommendation' and has commissioned a comprehensive review of the programme and its cost position, aiming to inform a programme reset in 2026. They are finalizing a cost estimating methodology, with full implementation planned as part …
HM Treasury
14 Conclusion 10th Report - HS2: Update following the… Deferred

HM Treasury to challenge HS2 revised costs before final programme budget agreement.

The Department confirmed that as well as agreeing a revised cost for the programme with HS2 Ltd, there will also be challenge from HM Treasury before a revised budget for the programme can be set. It told us that HM Treasury is already closely engaged and an important step in …

Government response. The government agrees with the 'recommendation' and is commissioning a comprehensive review of the programme, including its cost position, to inform a reset in 2026. They are finalizing a cost estimating methodology with HM Treasury advice over the summer, to …
HM Treasury
15 Conclusion 10th Report - HS2: Update following the… Deferred

Department manages HS2 via annual funding despite need for long-term profile.

The Department emphasised the need for a long–term spending profile for the completion of HS2, acknowledging to us that agreeing annual budget settlements was really poor for long–term infrastructure delivery.26 20 C&AG’s Report, para 4.6 and 4.7; Department for Transport, HS2 6 monthly report to Parliament: October 2020, 13 October …

Government response. The government agrees with the 'recommendation' and has commissioned a comprehensive review of the programme and its cost position, aiming to inform a programme reset in 2026. They are finalizing a cost estimating methodology, with full implementation planned as part …
HM Treasury
16 Conclusion 10th Report - HS2: Update following the… Deferred

HS2 Ltd revised Phase 1 construction contracts in 2020, increasing its liability for cost overruns.

In July 2017, HS2 Ltd let contracts with four joint venture companies for the main civil construction work on Phase 1. However, in 2020, once the cost of building the railway became clearer, it revised the terms of the contracts in an attempt to ensure an affordable programme at that …

Government response. The government "disagrees with the committee's recommendation" but "agrees with the substance," stating that contract renegotiations are ongoing and subsumed into a wider program reset, and further updates will be provided later.
HM Treasury
17 Recommendation 10th Report - HS2: Update following the… Deferred

Previous Public Accounts Committee warned HS2 Ltd about managing revised contracts and cost risks.

However, the previous Public Accounts Committee was clear on the risk of these changes and that HS2 Ltd needed to closely manage these contracts. In its May 2020 report it warned that: “Now that it is bearing more of the risk of cost increases, HS2 Ltd also needs to ensure …

Government response. The government states it disagrees with the recommendation but agrees with its substance, needing more time for an update as commercial renegotiations are subsumed into a complete programme reset by the HS2 Ltd CEO. HS2 Ltd will apply robust contract …
HM Treasury
18 Conclusion 10th Report - HS2: Update following the… Deferred

HS2 Ltd acknowledges suboptimal contract risk management contributed to a £6 billion cost increase.

HS2 Ltd acknowledged that it has not managed these contract risks in an optimal or coherent way.30 In September 2023, HS2 Ltd estimated that the forecast cost of main civil construction work alone had increased by £6 billion (2019 prices) since 2020.31 27 Q 35; Department for Transport, HS2 6-monthly …

Government response. The government disagrees with the committee's observation but agrees with its substance, explaining that HS2 Ltd is undergoing a complete programme reset, including commercial renegotiations, and will provide further updates as the commercially sensitive work concludes.
HM Treasury
19 Conclusion 10th Report - HS2: Update following the… Deferred

HS2 Ltd is seeking to renegotiate unproductive civil construction contracts for better risk allocation.

HS2 Ltd told us that it is now seeking to renegotiate these contracts.32 It considers that the current contracts are unproductive and that reset provides the opportunity for a fair allocation of risk and an opportunity to find different ways of commercially incentivising the outcomes that it wants, rather than …

Government response. The government states it disagrees with the recommendation but agrees with its substance, needing more time for an update. Commercial renegotiations are ongoing and subsumed into a complete programme reset by HS2 Ltd's new CEO, with robust contract management applied …
HM Treasury
20 Conclusion 10th Report - HS2: Update following the… Deferred

Major HS2 contractors willing to renegotiate terms for future infrastructure programme opportunities.

We challenged HS2 Ltd on the feasibility of renegotiating existing contacts to deliver significant cost savings given the lack of incentives for the contractors to change terms. It told us that all major contractors have expressed willingness to discuss and work through a renegotiation as there was recognition from the …

Government response. The government "disagrees with the committee's recommendation" but "agrees with the substance," explaining that contract renegotiations are ongoing and highly commercially sensitive, forming part of a wider programme reset, with further updates promised in future six-monthly reports.
HM Treasury
21 Conclusion 10th Report - HS2: Update following the… Deferred

Committee concerned about contract renegotiation impact on HS2's small and medium enterprises.

We expressed our concern to HS2 Ltd for the potential for the large main contractors to pass any financial consequences of contract renegotiations down the supply chain to the small and medium–sized enterprises, of which HS2 Ltd told us there were around 2,400, who may find it more difficult to …

Government response. The government states it disagrees with the recommendation but agrees with its substance, deferring a full update until ongoing commercial renegotiations, which are subsumed into a broader programme reset, are complete. HS2 Ltd will apply robust contract management in the …
HM Treasury
22 Recommendation 10th Report - HS2: Update following the… Deferred

Ensure environmental legislation requirements do not disproportionately increase major public infrastructure project costs.

We challenged the Department on the balance in legislation that needs to be taken between meeting environmental obligations and costs, raising the example of the £100 million cost of a protective ‘bat tunnel’.36 In order to mitigate HS2’s impact on nearby bat habitats, the Sheephouse Wood Bat Protection Structure is …

Government response. The government agrees with the recommendation and intends to provide a preliminary response by Summer 2025. A final response is deferred until early 2026, pending the finalisation and Royal Assent of proposed measures in the Planning and Infrastructure Bill.
HM Treasury
23 Conclusion 10th Report - HS2: Update following the… Deferred

HS2 Ltd concluded £95m bat tunnel was most efficient option after considering 15 alternatives.

HS2 Ltd confirmed that it was its decision to build the structure and not one required by Natural England. However, the Department and HS2 Ltd told us that, despite its cost, that they had concluded the ‘tunnel’ structure was the most efficient and appropriate way to protect the bats out …

Government response. The government agrees with the observation but defers a final response until early 2026, pending the finalisation and understanding of measures in the Planning and Infrastructure Bill, while committing to a preliminary response by July 2025.
HM Treasury
24 Conclusion 10th Report - HS2: Update following the… Deferred

Department and HS2 Ltd recognise need for improved balance between environmental compliance and cost.

The Department strongly agreed, however, about how the balance between compliance and cost should be considered when delivering national infrastructure in the future.41 HS2 Ltd also recognised that it was a complex issue and a sensitive area, telling us that the structure needed local planning permission from Buckinghamshire Council which …

Government response. The government agrees but will provide a preliminary response by July 2025, with a final response by early 2026, as the full assessment depends on proposed measures in the Planning and Infrastructure Bill which are not yet finalized or received …
HM Treasury
25 Conclusion 10th Report - HS2: Update following the… Deferred

Bat protection structure increased specific railway section costs from £73 million to £168 million.

In follow–up evidence, the Department confirmed that the total cost of building the structure will be £95 million (in 2019 prices). The Department also reported that the cost of building that section of the railway, irrespective of any mitigation works, would have been £73 million, meaning that the bat structure …

Government response. The government agrees with the committee's observation and commits to a preliminary response by July 2025, with a final response by early 2026 after proposed measures in the Planning and Infrastructure Bill are finalised and Royal Assent received.
HM Treasury
26 Conclusion 10th Report - HS2: Update following the… Deferred

HS2 Ltd fails to monitor total spending on environmental mitigation schemes.

HS2 Ltd does not monitor how much in total it spends on environmental mitigation. For example, we asked HS2 Ltd how much it was spending on wildlife migration schemes such as for the great crested newt at Halse Copse. In its follow–up letter, HS2 Ltd told us that it was …

Government response. The government agrees with the conclusion but defers a final response until early 2026, pending the finalisation and Royal Assent of the Planning and Infrastructure Bill and a full understanding of its measures, which would inform a re-assessment of this …
HM Treasury
27 Conclusion 10th Report - HS2: Update following the… Deferred

Government plans new Nature Restoration Fund for simplified infrastructure environmental obligations.

In January 2025, the government announced that it will look to change how infrastructure projects meet their environmental obligations as part of its forthcoming Planning and Infrastructure Bill. It set out that this would include a Nature Restoration Fund which will pool contributions from developers to fund larger strategic interventions …

Government response. The government agrees with the conclusion but defers a final response until early 2026, pending the finalisation and Royal Assent of the Planning and Infrastructure Bill and a full understanding of its proposed measures.
HM Treasury
28 Recommendation 10th Report - HS2: Update following the… Accepted

Ensure Department and HS2 Ltd secure necessary skills for successful programme delivery.

The Public Accounts Committee has repeatedly raised concerns over whether the Department and HS2 Ltd have had the necessary skills and capability to deliver HS2 successfully. In 2020 the previous Committee cautioned that it was not yet convinced that the Department and HS2 Ltd had the skills and capability they …

Government response. The government accepts the recommendation, detailing that the new HS2 Ltd CEO has commenced a comprehensive change programme to enhance skills and capabilities, made executive leadership changes, and the department is undertaking parallel activity. A new Chair is being appointed …
HM Treasury
29 Conclusion 10th Report - HS2: Update following the… Accepted

HS2 Ltd shifts focus to railway systems and operational capability.

HS2 Ltd also acknowledged in evidence to the previous Committee in November 2023 that it that it needed to think about its capacity and capability throughout the company to deliver the task ahead.47 While HS2 Ltd’s focus in recent years has been on civil engineering, it has been 44 Q17; …

Government response. The government agrees with the committee's observation, detailing that the new CEO has commenced a comprehensive change programme to reshape HS2 Ltd's capabilities, with a reset program expected to conclude in 2026. Parallel departmental activity, a new Chair appointment to …
HM Treasury
30 Conclusion 10th Report - HS2: Update following the… Accepted

New HS2 Ltd CEO to reinforce capability, reduce costs, and focus on Phase 1 delivery.

HS2 Ltd now has new leadership, with Mark Wild appointed as the new Chief Executive Officer and taking up the role in December 2024. He brings his experience of delivering Crossrail into operation and is tasked with delivering the programme’s reset.49 He told us that the three things that he …

Government response. The government agrees with the committee's observation, detailing that the new CEO has commenced a comprehensive change programme, made executive leadership changes, and a new Chair is being appointed to review board capability and fill gaps. New KPIs and a …
HM Treasury
31 Conclusion 10th Report - HS2: Update following the… Acknowledged

Expanded Euston programme scope includes commercial development, housing, and station redevelopments.

In the October 2023 announcement, the government at the time set out that the HS2 station itself would be planned to be smaller, reflecting the lower number of train services expected to operate following the cancellation of Phase 2. However, the scope of the Euston programme would now be larger, …

Government response. The government agrees with the committee’s observation and will provide an update on progress concerning the Euston programme in its next six-monthly report to Parliament, expected in Summer 2025.
HM Treasury
32 Conclusion 10th Report - HS2: Update following the… Acknowledged

Department pursues holistic Euston approach, progressing new delivery company and corporation models.

The Department told us that the new approach to Euston is now a holistic one, seeking to build consensus between stakeholders and as a unified delivery rather than the ineffective attempts of the past to try to solve each part separately and hope that they fit together.55 The Department expects …

Government response. The government agrees with the conclusion and will provide an update on progress on Euston in its next six-monthly report to Parliament, expected in Summer 2025.
HM Treasury
33 Conclusion 10th Report - HS2: Update following the… Deferred

Department defends new Euston delivery body necessity due to project complexity and private investment.

We challenged the Department over the necessity and added risk of establishing an additional delivery body to oversee the works at Euston and its surroundings. The Department recognised that setting up new organisations is far more complex and difficult than is often thought, and that its experience with HS2 Ltd …

Government response. The government agrees with the committee's recommendation and commits to providing an update on progress at Euston in its next six-monthly report to Parliament, expected in Summer 2025.
HM Treasury
34 Conclusion 10th Report - HS2: Update following the… Acknowledged

Department stresses need for correct financial incentives in new Euston delivery company.

The Department also pointed to the need to get the financial incentives right in the new delivery company, including what the shareholding and financial participation would be between the different bodies, so that people consider the collective interest, not just their own interests. The Department reasoned that having that in …

Government response. The government agrees with the conclusion and will provide an update on progress on Euston, which implicitly covers aspects of the new delivery company, in its next six-monthly report to Parliament in Summer 2025.
HM Treasury
35 Conclusion 10th Report - HS2: Update following the… Acknowledged

Department anticipates mixed funding for Euston station, including significant private investment.

We also challenged the Department on the likelihood of obtaining the more than £6 billion that the station at Euston is estimated to cost from the private sector. The Department suggested that the funding for Euston would likely be a mix of four components: private financing of the HS2 station; …

Government response. The government agrees with the conclusion and will provide an update on progress on Euston, including potentially on funding, in its next six-monthly report to Parliament in Summer 2025.
HM Treasury
36 Conclusion 10th Report - HS2: Update following the… Accepted

Euston tunneling confirmed, but completion date for HS2 services remains unknown.

In the 2024 Autumn Budget, the government confirmed that HS2 would terminate at Euston, announcing that it would fund the work to tunnel from Old Oak Common in west London to Euston.61 The previous Public Accounts 57 Qq 78–80 58 Q 47 59 Ibid 60 Qq 45–46 61 HM Treasury, …

Government response. The government agrees with the committee's observation and commits to providing an update on progress at Euston in its next six-monthly report to Parliament in Summer 2025, and is also responding to a specific letter about the Euston tunnelling schedule.
HM Treasury
37 Conclusion 10th Report - HS2: Update following the… Accepted

Euston works will cause over a decade of disruption to local communities

The Department acknowledged that establishing a clearer plan for the works at Euston and implementing it will take over a decade and that there will be continued disruption to local businesses and communities at Euston. The Department committed to provide transparency and engagement with local residents on its plan.65 62 …

Government response. The government agrees with the committee's observation that it committed to transparency and engagement, and states it will provide an update on progress on Euston in its six-monthly report to Parliament in Summer 2025, as well as responding to a …
HM Treasury
38 Conclusion 10th Report - HS2: Update following the… Accepted

HS2 Ltd spent £592 million on land for cancelled Phase 2 route

Up to the end of March 2024, HS2 Ltd had spent £3.7 billion on buying land and property along the HS2 route, of which £592 million relates to the cancelled Phase 2.66 The types of land and property include agricultural, commercial and residential, with HS2 Ltd purchasing around a thousand …

Government response. The government responds to the perceived recommendation by stating that preparatory work for a Phase 2 land disposal programme is underway, which includes a review of the land portfolio and identification of Crichel Down properties. It commits to providing updates …
HM Treasury
39 Recommendation 10th Report - HS2: Update following the… Accepted

Department developing programme for disposing of HS2 surplus land and property

In February 2024, the previous Public Accounts Committee stressed the need for the Department and HS2 Ltd to develop a strategy for the disposal of land and property, and to balance the need for value for money for the taxpayer with the needs of those who have been affected. The …

Government response. The government agrees with the recommendation and states that preparatory work is underway for a Phase 2 land disposal programme, including a portfolio review and identification of Crichel Down properties. It commits to providing updates on next steps to the …
HM Treasury
40 Conclusion 10th Report - HS2: Update following the… Deferred

Full disposal of HS2 surplus land dependent on future rail strategy decisions

However, the Department told us that overall decisions need to be made on future rail investment first. It explained that the government’s long– term strategy being developed for strategic rail investment, including on improvements to rail connectivity in the north of England, may affect what land is bought or sold …

Government response. The government agrees with the conclusion, stating that preparatory work for a Phase 2 land disposal programme is underway, and it will include its approach to addressing future West Coast Main Line capacity and northern rail connectivity in a future …
HM Treasury
41 Recommendation 10th Report - HS2: Update following the… Accepted

Committee urges sympathetic handling of property offers back to former HS2 owners

We pressed the Department to ensure that wherever possible, properties should be offered back to the persons from whom they were purchased, and that requests from people who would like to move back into their former homes be handled sympathetically, given that it can take years for cases to be …

Government response. The government agrees with the recommendation and states that preparatory work is underway for a Phase 2 land disposal programme, which includes identifying Crichel Down properties. It commits to confirming next steps to the Committee and providing updates in future …
HM Treasury
42 Conclusion 10th Report - HS2: Update following the… Accepted

Department must balance Crichel Down rules with human impact in property disposal

The Department told us that it is obliged to secure value for money for the taxpayer and to follow the Crichel Down rules, which require government departments to offer surplus land back to the previous owner at the current market value. However, the Department acknowledged that the rules need to …

Government response. The government agrees and is undertaking a review of the Phase 2 land portfolio, including identification of Crichel Down properties, as part of a disposal programme. They will write to the Committee with next steps and include updates in a …
HM Treasury
43 Conclusion 10th Report - HS2: Update following the… Deferred

Phase 2 cancellation limits HS2 capacity benefits to London-Birmingham route

The HS2 programme was originally intended to improve capacity on the West Coast Main Line. However, with the cancellation of Phase 2, the revised programme will only address capacity between London and Birmingham. The Department is exploring options to run longer HS2 trains north of Birmingham, but this would require …

Government response. The government agrees with the 'recommendation'. While preparatory work on a Phase 2 land disposal programme is underway, they will include their approach to addressing future West Coast Main Line capacity issues and northern rail connectivity in a future six-monthly …
HM Treasury
44 Conclusion 10th Report - HS2: Update following the… Deferred

West Coast Main Line capacity challenge expected by late 2030s due to HS2 changes

The Department acknowledged the capacity challenge on the West Coast Main Line as a consequence of not building Phase 2, estimating that it will reach capacity by the late 2030s. These capacity concerns were also raised with us in evidence from Manchester City Council, Transport for Greater Manchester and the …

Government response. The government agrees with the conclusion, stating it will include its approach to addressing future West Coast Main Line capacity issues and northern rail connectivity in a future six-monthly report, following the outcome of the spending review.
HM Treasury
45 Conclusion 10th Report - HS2: Update following the… Not Addressed

East-west rail connectivity in the North now considered as series of programmes

The Department told us it is also carrying out development work on how to improve the east–west rail connectivity in the north of England. It said that this may well now be considered as a series of programmes and choices “rather than a big totemic thing” as originally envisaged by …

Government response. The government provides a boilerplate response focused on land disposal for Phase 2, which does not address the committee's observation regarding east-west rail connectivity in the north of England.
HM Treasury
46 Conclusion 10th Report - HS2: Update following the… Accepted

Department and HS2 Ltd claim continuous learning from major project experiences

Since 2013, the Department and HS2 Ltd have told the Public Accounts Committee that they have been learning lessons from other major programmes to apply to how they are managing the HS2 programme. For example, in 2019, the Department and the Infrastructure and Projects Authority published a ‘Lessons for the …

Government response. The government agrees with the committee's observation, committing to learning and implementing lessons from the HS2 programme reset and transformation, taking into account future review findings, and sharing lessons across government. The department will write to the Committee outlining key …
HM Treasury
47 Recommendation 10th Report - HS2: Update following the… Deferred

Department and HS2 Ltd repeatedly fail to embed crucial lessons from major projects

However, the Committee has needed to recommend repeatedly that the Department and HS2 Ltd improve the degree they reflect on past or current experiences and implement any lessons. In 2020, the previous Committee made clear its dissatisfaction: 80 “Given the repeated emergence of issues across the Department’s major programmes, we …

Government response. The government commits to learning lessons and has identified key lessons, aiming to implement them during the HS2 programme reset. It will write to the Committee outlining key areas of lessons and provide further updates in the next Parliamentary report …
HM Treasury
48 Recommendation 10th Report - HS2: Update following the… Deferred

HS2 Euston exemplifies department's failure to learn from past major rail projects

The previous Public Accounts Committee also concluded in its 2023 report on HS2 Euston that it was another example of the Department making the same mistakes and failing to learn lessons from its management of other major rail programmes, highlighting the need for more work on cost estimation, the treatment …

Government response. The government commits to learning lessons and has identified key lessons, aiming to implement them during the HS2 programme reset. It will write to the Committee outlining key areas of lessons and provide further updates in the next Parliamentary report …
HM Treasury
49 Conclusion 10th Report - HS2: Update following the… Accepted

Department continues to 'mine' lessons from HS2 programme with other bodies

The Department told us that, together with HS2 Ltd, it has worked with HM Treasury and the Infrastructure and Projects Authority to consider all the lessons to date from the HS2 programme but is continuing to ‘mine’ the lessons learned from HS2. The Department also expects the Major Transport Project …

Government response. The government agrees with the conclusion, committing to identify and apply lessons from the HS2 program during the program reset and transformation of HS2 Ltd. It will outline key lessons to the Committee and provide updates in future Parliamentary reports.
HM Treasury
50 Conclusion 10th Report - HS2: Update following the… Accepted

Clear project scope definition essential to prevent cost escalation in infrastructure plans

The Department reflected that a key lesson from the experience of HS2, and which needs to inform all the Department’s future infrastructure plans, is that the Department needs to be very clear when it sets out on a large project what it is there to achieve. Changing the scope significantly …

Government response. The government agrees with the conclusion, committing to identify and apply lessons from the HS2 program during the program reset and transformation of HS2 Ltd. It will outline key lessons to the Committee and provide updates in future Parliamentary reports.
HM Treasury
51 Conclusion 10th Report - HS2: Update following the… Accepted

Incremental delivery of infrastructure projects offers better control and earlier benefits

The Department also suggested to us that the delivery of infrastructure has been too focused on “grand projects or big schemes that are binary—you do them or you don’t do them” as opposed to setting a long–term intent and delivering it in smaller incremental stages. The Department explained that in …

Government response. The government agrees with the conclusion, committing to identify and apply lessons from the HS2 program regarding project delivery approaches during the program reset and transformation of HS2 Ltd. It will outline key lessons to the Committee and provide updates …
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
19 Dec 2024 Alan Foster · HS2 Ltd, Alan Over · Department for Transport, Dame Bernadette Kelly DCB · Department for Transport, Mark Wild · HS2 Ltd View ↗

Correspondence

15 letters
DateDirectionTitle
4 Sep 2025 To cttee Letter from the Permanent Secretary of the Department for Transport and High Sp…
9 Jul 2025 To cttee Letter from the Permanent Secretary of the Department of Transport and the Chi…
8 Jul 2025 To cttee Letter from the Permanent Secretary of the Department for Transport and the Chi…
3 Jul 2025 From cttee Letter to the Permanent Secretary of the Department for Transport relating to t…
30 Jun 2025 From cttee Letter to the Permanent Secretary of the Department for Transport relating to t…
26 Jun 2025 To cttee Letter from the Interim Permanent Secretary of the Department for Transport and…
9 Jun 2025 From cttee Letter to the Permanent Secretary of the Department for Transport relating to t…
19 May 2025 To cttee Letter from the Permanent Secretary of the Department for Transport relating to…
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