Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Accepted
HS2 Ltd spent £634 million acquiring land for cancelled Phase 2 sections.
Conclusion
HS2 Ltd told us it had spent £3.6 billion on land and property for Phase 1, and believed it had acquired more than 95% of the land it would require for Phase 1. It had spent £634 million on acquiring land and property for the HS2 phases that have now been scrapped – £273 million on Phase 2a, plus £201 million on 2b, plus £160 million on the eastern leg to Leeds.54
Government Response Summary
The government states it is developing a programme for selling land no longer required for Phase 2 and will share the plan by summer 2024, committing to ensuring value for money and considering affected parties' interests.
Government Response
Accepted
HM Government
Accepted
5.1 The government disagrees with the Committee’s recommendation. 5.2 The department is not yet able to share its plan with the Committee but will do so by summer 2024. The department is developing the programme for selling land acquired for Phase 2 that is no longer required and it will take some time to ensure this programme is properly set up. 5.3 The programme will ensure it both delivers value for money for the taxpayer and considers the interests of those who have been affected, and local communities more generally; for example, the government will ensure the programme does not disrupt local property markets. 5.4 The government recognises that achieving value for money will require considering both financial considerations, in particular the sale price achieved and the cost of managing properties in the interim, and wider factors, including acting in accordance with broader government policy considerations such as in relation to housing and economic development. 5.5 The government recognises the particular concerns of owners who have had land compulsorily acquired which is no longer needed and will look to expedite work relating to this land as the disposals programme is developed, acting in accordance with the Crichel Down Rules. 5.6 Although there have been only a small number of land and property sales on Phase 1 so far, lessons learnt will be applied as the much larger Phase 2 programme is developed. The department will draw on relevant expertise across government.