Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
Department's HS2 reports commenced, identifying an early £0.4 billion Euston cost pressure.
Recommendation
In response to our May 2020 recommendation on the lack of transparency on the HS2 programme, the Department began providing six-monthly reports to Parliament on progress, including on costs.44 The Department published its first update in October 2020 and, on Euston, reported that design work was indicating a ‘cost pressure’ or overspend 37 Q 34; C&AG’s Report, para 12 38 Committee of Public Accounts, Oral evidence, High Speed 2: 2022 Spring Update, HC 51,16 May 2022; Q92 39 Q 109; C&AG’s Report, paras 12, 2.21 40 Qq 34, 109; C&AG’s Report, para 13 41 Qq 34–35 42 Qq 9, 25; C&AG’s Report, paras 2.2 and 2.5 43 Q 9, 25 44 Committee of Public Accounts, High Speed 2: Spring 2020 update, Third Report of Session 2019–21, HC 84, 17 May 2020, para 1; Written statement to Parliament, HS2 6 monthly report to Parliament: October 2020, 13 October 2020 14 HS2 Euston against its budget. HS2 Ltd reported this to be ‘in the order of £0.4 billion’ and that further ongoing work might potentially identify further pressures. However, the Department also stated that work was underway to address these pressures.45
Government Response Summary
The government agrees, noting it transparently disclosed the significant £4.8 billion revised cost estimate to Parliament via the National Audit Office when it became available, and reaffirms its commitment to upholding transparency in the HS2 programme.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2023 5.2 The HS2 Parliamentary report published in October 2022 set out HS2 Ltd.’s assessment of a £0.4 billion pressure for Euston station above its £2.6 billion budget, which was aligned with the range against which it had incentivised Mace Dragados to deliver the single-stage design, which was £2.6-£3.6 billion. Information regarding the significant additional pressure from the £4.8 billion revised estimate only became available in January 2023. In advance of the subsequent Parliamentary Report, which was published in June 2023, the department disclosed this transparently to Parliament through the National Audit Office. 5.3 The department is committed to upholding transparency in the HS2 programme.