Source · Select Committees · Public Accounts Committee
Recommendation 1
1
Accepted
HS2 programme repeatedly plagued by escalating costs and lack of transparency
Conclusion
This Committee has reported regularly on progress with the High Speed 2 programme over the last decade. Our first report was in 2013 and even at that early stage we were warning about an emerging pattern of costs increasing, benefits decreasing, and the apparent lack of the necessary commercial expertise to oversee the programme. We continued to report our concerns over the years, for example being critical about the lack of transparency over increasing costs, about some of the decisions taken by management, and about engagement with the people, communities and businesses near the route. Our most recent report before this one was in July 2023, and focused on the proposed High Speed 2 station at Euston. Amongst other things we noted that the budget for Euston had proved completely unrealistic even before considering the impact of inflation, and that Parliament had again not had the transparency it needed on the likelihood of cost increases.1
Government Response Summary
The government states it will incorporate the benefits management and evaluation strategy into the programme’s updated business case. It also commits to continuing public reporting on the realisation of HS2 benefits through its six-monthly reports to Parliament.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. the programme’s updated business case. The updated business case will capture and outline the process of benefits management and realisation for the programme. In a letter to the Committee dated 1 December 2021, the department indicated it would work with HS2 Ltd to publish a joint benefits management and evaluation strategy. The department will incorporate the information from this strategy within the updated programme business case, instead of publishing a separate document. Beyond the updated business case, the department and HS2 Ltd will also continue to report publicly on the realisation of HS2 benefits, including through the department’s six- monthly reports to Parliament.