Source · Select Committees · Public Accounts Committee
Recommendation 29
29
Accepted
HS2 Ltd shifts focus to railway systems and operational capability.
Conclusion
HS2 Ltd also acknowledged in evidence to the previous Committee in November 2023 that it that it needed to think about its capacity and capability throughout the company to deliver the task ahead.47 While HS2 Ltd’s focus in recent years has been on civil engineering, it has been 44 Q17; Letter from HS2 Ltd dated 10 January 2025 45 Ministry of Housing, Communities and Local Government and Department for Environment, Food & Rural Affairs, Planning proposals to unblock vital infrastructure and drive nature’s recovery, 22 January 2025 46 Committee of Public Accounts, High Speed 2: Spring 2020 update, Third Report of Session 2019–21, HC 84, 17 May 2020 47 Committee of Public Accounts, HS2 and Euston, Tenth Report of Session 2023–24, HC 67, 7 February 2024 17 shifting its focus to the delivery of railway systems, bringing the railway into operation and managing how it will integrate with the wider railway network. HS2 Ltd began making changes to its organisation in January 2024, including establishing a new role of Chief Railway Officer, with responsibility for integration and focusing programme decisions on how to best deliver the railway, rather than individual component projects.48
Government Response Summary
The government agrees with the committee's observation, detailing that the new CEO has commenced a comprehensive change programme to reshape HS2 Ltd's capabilities, with a reset program expected to conclude in 2026. Parallel departmental activity, a new Chair appointment to review board capabilities, and new KPIs and performance-related pay are also being implemented.
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.