Source · Select Committees · Public Accounts Committee
Recommendation 28
28
Accepted
Ensure Department and HS2 Ltd secure necessary skills for successful programme delivery.
Recommendation
The Public Accounts Committee has repeatedly raised concerns over whether the Department and HS2 Ltd have had the necessary skills and capability to deliver HS2 successfully. In 2020 the previous Committee cautioned that it was not yet convinced that the Department and HS2 Ltd had the skills and capability they needed either then, now or in the future.46 “In 2013 and 2016, previous Public Accounts Committees identified the challenges the Department has faced in securing the skills it needs for High Speed Two as well as its wider programme portfolio. A lack of capability continues to be an issue [ … ], it still has gaps in key areas such as risk management and assurance, project management and project controls.[ … ]Both organisations will need to ensure that they secure the right skills, at the right time, as the programme progresses.”
Government Response Summary
The government accepts the recommendation, detailing that the new HS2 Ltd CEO has commenced a comprehensive change programme to enhance skills and capabilities, made executive leadership changes, and the department is undertaking parallel activity. A new Chair is being appointed to review board capability and gaps, leading to recruitment, and new KPIs and a performance-related pay scheme are being introduced.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2026 5.2 The new CEO of HS2 Ltd started in post in December 2024. He has commenced, as 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. 5.3 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. 5.4 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. 5.5 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.