Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Accepted
Department acknowledges unaffordable Euston station plans, shifts to stripped-back, privately funded development.
Conclusion
In July 2023 we reported on how the Department’s previous plans for the HS2 station at Euston had proved to be unrealistic and unaffordable.42 Alongside the October 2023 cancellation of HS2 phases 2, the Department acknowledged that previous plans for the station had been unaffordable, and announced that the station design would be stripped back to focus on delivering a station that works and can be open as soon as possible. The Department announced that it “will deliver a new Euston Quarter to provide much-needed homes”, appoint a development company (separate from HS2 Ltd) to manage delivery of the project, leverage private sector investment, and by so doing release £6.5 billion (2023 prices) of previously planned expenditure.43
Government Response Summary
The government agrees with the committee's observation, confirming its ambition to deliver HS2 to Euston and create a transformed Euston Quarter by using alternative funding and maximizing private investment, with work currently underway to develop funding packages and financing mechanisms by Summer 2024.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2024 4.2 The government’s ambition remains to make the best use of funding from alternative sources to enable the delivery of HS2 to Euston and the creation of a transformed Euston Quarter. 4.3 Work is currently underway to develop funding packages and financing mechanisms that best meet the objectives of the Euston Quarter while delivering value for money for the taxpayer. The approach aims to use private sector discipline and maximise the level of private investment to deliver the descoped transport infrastructure at a lower cost alongside more ambitious housing and regeneration opportunities. 4.4 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2024 4.5 As set out in the Network North command paper of 4 October 2023, the government remains committed to delivering HS2 between Birmingham and Euston as planned. 4.6 The government’s ambition is to make best use of funding from alternative sources to enable the delivery of HS2 to Euston. The government continues to define and develop a range of development models and financing mechanisms to best meet the objectives of the Euston Quarter while delivering value for money for the taxpayer. 4.7 This includes the consideration of options to pay for the section of HS2 from Old Oak Common to Euston. The department and HS2 Ltd are currently working on these options with preparatory works continuing in the meantime ahead of the commencement of tunnelling.