Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
Cancellation of HS2 Phase 2 impacts other interdependent projects, lacking business cases.
Conclusion
We asked the Department about the impact of cancelling HS2 Phases 2 on other projects that would have had existing business cases dependent in part on Phases 2a or 2b. The Department highlighted the interdependency between 2b and Northern Powerhouse Rail and said that it would be some time before it had a business case for the revised scope of that. It said that while some of the programmes within Network North were well established, it did not yet have a business case for some of the others.38
Government Response Summary
The government acknowledges the interdependencies and the need for business cases, detailing ongoing work to amend safeguarding directions for former HS2 phases to allow for Northern Powerhouse Rail, with amendments expected by summer 2024. It also describes plans for orderly closedown activities and future updates.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2024 3.2 The government is progressing its plan to implement amendments to Phase 1 of the HS2 programme, and to progress the closedown of the remaining phases. 3.3 The department is working through options to enhance the railway junction between HS2 infrastructure and the existing West Coast Main Line at Handsacre, near Lichfield, to improve the connection for passengers and freight customers. The department is also undertaking a review of HS2 infrastructure in delivery to ensure that the government is bearing down on costs and only delivering what is essential. 3.4 Following the government's decision to cancel HS2 Phase 2, the department and HS2 Ltd have started to bring the work on Phase 2a, Phase 2b Western Leg and HS2 East to a stop in an orderly, safe, respectful, and efficient way whilst ensuring value for money. Safeguarding directions on Phase 2a were lifted on 18 January 2024 and Phase 2b safeguarding (covering the former Western and Eastern Legs) will be amended by summer 2024, to allow for any safeguarding needed for Northern Powerhouse Rail. HS2 Ltd is developing detailed plans that will set out the scope of work for closedown activities, including remediation works to be undertaken and thereafter provide the costs and key milestones to complete the closedown of Phase 2a, Phase 2b Western Leg and HS2 East. 3.5 The department will provide an update in its next six-monthly report to Parliament. 3.6 The government agrees with the Committee’s recommendation. Target implementation date: during 2024 3.7 As set out in its November 2023 report to Parliament, the department is supporting the HS2 Ltd Executive Chair in delivering a comprehensive change programme in HS2 Ltd so that it is well placed to deliver the revised programme. A key part of this is ensuring the right skills and capability are in place. 3.8 The department will provide an update in its next six-monthly report to Parliament.