Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
Treasury now supports private sector funding for Euston station and wider development.
Conclusion
The Department confirmed to us that “At the moment we are expecting the private sector to fund the station and all the development. The benefit for developers comes from the commercial housing development.”44 It confirmed that this included looking for private funding to cover the whole cost of running from Old Oak Common to Euston.45 We noted that the Treasury had previously rejected the idea of Euston being privately funded; the Department replied that the Treasury stance had changed and that “They are now very supportive of us seeking private sector-led investment.”46 The Department told us that the expectation is that a development corporation will be set up to take the Euston plans forward, but that there are different sorts and it would be working with DLUHC and the Treasury “to develop the best possible plan to secure the ambition for Euston.”47
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.