Source · Select Committees · Public Accounts Committee
Recommendation 1
1
Accepted
Committee examines current state of HS2 programme with Department and HS2 Ltd.
Conclusion
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 overseeing delivery. HS2 Ltd, an arm’s–length body of the department, is responsible for delivering an operational railway.2
Government Response Summary
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 work and a detailed plan for programme reset will be provided to Parliament and the Committee.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. 2024, work is well underway within the Department for Transport to improve the oversight and financial control of the HS2 programme. The government has taken swift action to bring the cost and delivery of HS2 back under control. This includes making clear that HS2 Ltd and its suppliers must reset their contracts so that they deliver the best possible value for taxpayers, launching an independent review to ensure the project’s past mistakes are not repeated, and reinstating robust ministerial oversight of the project through the Ministerial Task Force. The department has made it clear to the new HS2 Ltd CEO that alongside safety, cost control must be a central focus to HS2 Ltd. The Secretary of State has commissioned the CEO to undertake a comprehensive review of the programme, including HS2’s current cost position and the current capability and culture of HS2 Ltd, and make recommendations to inform the reset. The department expects to provide an update on this work in its next 6- monthly report to Parliament. The department will write to the Committee before summer recess to outline the steps taken to improve oversight and financial control of the programme and a more detailed plan for programme reset. Further updates will be provided through the department’s future six- monthly reports to Parliament on HS2.