Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Acknowledged
HS2 Ltd faces capacity challenges and struggles with recruitment in overheated market.
Conclusion
Notwithstanding the Board and Director level changes referenced above, HS2 Ltd also acknowledged that it needed to think about its capacity and capability throughout to deliver the task ahead. It told us it was going through that process and highlighted three areas it needed to address: more people to focus on railway systems; more skills to bear 33 HS2 6-monthly report to Parliament: November 2023 34 Qq 64–66 35 Q 61; Department for Transport: NETWORK NORTH: TRANSFORMING BRITISH TRANSPORT, CP 946, October 2023 (page 18) 36 Qq 70, 71 37 Q 61 38 Qq 114, 115 39 Q 119 HS2 and Euston 15 down on finances, getting the right information from the supply chain and whether it was on time, on schedule, and meeting quality standards; and more skills on managing and mitigating financial risk.40 On recruitment and retention, HS2 Ltd told us that there was a significant attraction for people to work on HS2”, but that it was a competitive recruitment market, particularly for good contract managers. Although HS2 has some flexibility in what pay it can offer, it told us that it was exposed to an overheated market and people would therefore leave, especially when being offered double or even triple their current salaries.41 Euston
Government Response Summary
The government agrees with the committee's observation that HS2 Ltd needs to address its capacity and capability, stating it is supporting HS2 Ltd's comprehensive change programme to ensure the right skills are in place, with an update expected by Spring 2024.
Government Response
Acknowledged
HM Government
Acknowledged
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.