Source · Select Committees · Public Accounts Committee
Recommendation 4
4
We are increasingly concerned that the Department and HS2 Ltd do not yet know how...
Conclusion
We are increasingly concerned that the Department and HS2 Ltd do not yet know how they will turn the benefits promised from High Speed 2 into a reality, including what additional investments will be needed or how these will be funded. The Department claims that High Speed 2 is a catalyst for investment, jobs and growth but also acknowledges that it needs to focus on making sure that the programme achieves what is intended. The Department needs to turn those intentions into a plan that brings together local authorities, the private sector and other Departments. There are some examples of the Department encouraging private sector investment, such as £50 million announced in the Budget for development around the Birmingham Interchange station, and the programme’s promise of regional job creation. However, despite hearing that pockets of activity to realise benefits is happening, we are concerned the Department does not yet have an integrated programme to delivering these benefits. We are disappointed to hear that local jobs are not being created in the numbers expected. Realising the benefits for the Midlands and the North is dependent on removing the uncertainty around the outcome of the integrated rail plan. Recommendation: The Department and HS2 Ltd should write to the Committee within three months, describing their strategy to identify, monitor and evaluate the benefits of the programme. The Committee will monitor what progress has been made against this when we next revisit High Speed 2.
Government Response
Acknowledged
HM Government
Acknowledged
4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 The department wrote to the Committee in November 2021 setting out its benefits approach for the HS2 programme and stated that they are committed to maximising benefits and minimising negative impacts. This includes maximising positive outcomes; from increasing rail capacity and connectivity to reducing carbon emissions and delivering on jobs and skills, but also mitigating disbenefits including road disruption during construction. 4.3 HS2 Ltd will publish, and share with stakeholders, its first bi-annual Benefits Update. This publication will build on the data shared in the third HS2 6-monthly report to Parliament and highlight through case studies the strong work being undertaken on benefits. 4.4 HS2 Ltd has a strategy to identify, monitor and evaluate the core benefits funded and within scope of the programme and has implemented ‘Benefits Baselines’ for each of its phases, linked to the strategic and economic objectives in the relevant business cases. The department and HS2 Ltd are working towards the publication of a joint Benefits Management and Evaluation Strategy next year. In addition to the benefits directly arising from the work on the programme the department is focused on maximising wider benefits catalysed by HS2. The department is working with other government departments as their support and collaboration is needed to unlock these opportunities, via regular engagement and through appropriate governance. 4.5 HS2 offers a major opportunity to catalyse local regeneration, supporting the government’s Levelling-up agenda. A devolved approach has been taken to regeneration at HS2 station places, with local government leading and central government in support. The department is working closely with the Department for Levelling Up, Housing and Communities, to determine how central government can help local places make the most of HS2.