Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Accepted
Address HS2 leadership and capability gaps to ensure successful programme delivery
Conclusion
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 reinforce its capability, such as in commercial management, and focus its culture on the singular purpose of delivering Phase 1 for the lowest feasible cost. The company now has new leadership in Mark Wild, who brings experience of delivering Crossrail and is tasked with delivering the programme’s reset. There are also likely to be changes in advance of the reset to how the Department engages with HS2 Ltd as well as how it organises itself internally following the conclusion of the Major Transport Project Governance and Assurance Review. However, we are not convinced that the Department has sufficiently considered how it could bring fresh thinking to its own leadership of HS2, or whether it has the right skills and capabilities in place to lead the programme effectively and credibly. 6 recommendation The Department should, alongside the reset of the programme, set out how gaps in skills and capabilities, such as in leadership and other key areas, will be addressed to secure the successful delivery of HS2. This should include the performance measures or indicators that leaders will be reviewed against.
Government Response Summary
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 will be published, alongside a new performance-related pay scheme for senior leaders.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. part of the reset, a comprehensive change programme to reshape the organisation so that it has the skills and capabilities needed to deliver HS2. The reset programme is expected to conclude in 2026. The new CEO has made some early changes to the Executive leadership team to help drive the reset work. Parallel activity is being undertaken by the department to ensure it has the right structures, skills and capabilities in place. A new Chair is being appointed to succeed the previous Chair of HS2 Ltd who departed on 31 March 2025. An early priority for the new Chair will be to review board capability and capacity and make recommendations to the department drawing from a wide range of evidence, including the Major Projects Governance and Assurance Review. The department will commence a recruitment exercise to fill identified gaps in the Board’s capability, which will be undertaken in line with the requirements in the Governance Code on Public Appointments. Key performance indicators for 2025-26 are being agreed by the department. Performance against these will be published in HS2 Ltd’s Annual Report and Accounts and are the principal means by which organisation-wide performance will be assessed. HS2 Ltd is also introducing a new performance-related pay scheme to incentivise its most senior leaders, which will be directly linked to HS2 delivery to time and budget.