Source · Select Committees · Public Accounts Committee
Recommendation 25
25
Acknowledged
Realising Euston's private sector funding requires greater certainty and a coherent market proposition.
Conclusion
We raised the issue that private sector involvement and finding would be dependent on there being greater certainty on dealing with issues in and around Euston. The state of the general property market in the area and how much infrastructure the public sector provides will be critical factors in how much the private sector will pay for the whole site. The Department said it had started to discuss with Treasury Colleagues, the IPA and DLUHC how to start turning this into a proposition that would allow it to have a deeper engagement with the market in order to ensure and test appetite. It said that both the Secretary of State and the Chancellor have had conversations with developers who have said that in principle they can see lots of attractions.52 But the Department recognised that there was a lot of work to do if the ambition of private sector funding is to be realised, noting that “We need to have a coherent and plausible position to interface sensibly with the private sector.”53 Land and property disposal
Government Response Summary
The government agrees with the committee's observation on the need for certainty regarding Euston to attract private sector involvement, stating that work is underway to develop funding packages and financing mechanisms to maximize private investment for the Euston Quarter, with a target for Summer 2024.
Government Response
Acknowledged
HM Government
Acknowledged
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.