Source · Select Committees · Public Accounts Committee
Recommendation 9
9
Accepted
HS2 programme reset to take until mid-2026 for assured contractual baseline.
Conclusion
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, with an “assured contractualised baseline” that can be properly measured against, until mid–2026. The Department also explained that the reset will include a re–evaluation and refreshing of the business case and a revised benefit–cost ratio.15 Revising cost estimates
Government Response Summary
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 CEO has been commissioned to undertake a comprehensive review, and updates will be provided in the next six-monthly report and a letter before summer recess.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Target implementation date: Summer 2025 Following the former Secretary of State’s written ministerial statement on 20 October 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.