A report by the Infrastructure and Projects Authority (IPA), responsible for overseeing major government projects, has deemed the HS2 programme to be unachievable
Both the first phase and phase 2a of the high-speed rail programme received the worst possible rating on the report.
“Successful delivery of the project appears to be unachievable. There are major issues with project definition, schedule, budget, quality and/or benefits delivery, which at this stage do not appear to be manageable or resolvable. The project may need re-scoping and/or its overall viability reassessed,” said the IPA report.
HS2’s rating was assigned before the government made significant changes based on the Oakervee Review, which assessed whether HS2 should continue. The previous rating was given when the project’s phases were not evaluated separately.
Delays and overspending led to a poor rating
HS2 has gone through a difficult time over recent months, which contributed to the red ratings and the project undergone major revisions. In March, the Department for Transport (DfT) revealed delays in phase 2a and the construction of the £4.8bn Euston terminus due to increasing costs.
A Public Accounts Committee inquiry found significant cost fluctuations of 30% to 40% for raw materials in the HS2 project. The Treasury has advised the DfT to manage the increased costs caused by inflation within their existing budgets.
However, the DfT and Treasury were unable to reach a solution that adheres the project’s promise of value for money.
Concerns have been raised about how the Government will address the impact of high inflation on the HS2 programme. The PAC investigation highlighted the varying costs of raw materials for the project.
In response to this, DfT decided to review the design for Euston and explore potential collaborations with private sector partners for its delivery. These developments also counted against HS2 in the IPA’s rating.
“The DfT needs to be much clearer to Parliament and the public that the revised budget it sets is realistic and the station design it approves is affordable and deliverable.” commented a spokesperson for the House of Commons.
The HS2 programme will continue under new management
On July 13th, Mark Thurston announced he would be stepping down as CEO of HS2 after leading the organisation for six and a half years. He joined HS2 in March 2017, after the organization received Royal Assent for Phase One of the project, which allowed them to begin construction.
During Thurston’s time as CEO, HS2 faced several challenges and setbacks, resulting in multiple delays. The original completion date of 2026 has been extended to a new timeframe between 2029 and 2033.
The scheduled line between Birmingham, Crewe, and Manchester will undergo a rephasing with delays of two years.
As a result, the opening of the Crewe line will be pushed back to 2036, and Manchester’s to 2043. Critics have consistently argued that HS2’s cost has already exceeded expectations and is plagued by ongoing delays.
Sir Jon Thompson taking has taken over from Thurston as interim chief executive.
“HS2 is now hitting peak construction, with work intensifying and huge civil engineering structures taking shape along phase one of the route,” said a spokesperson for HS2.
“Our priority is to maintain the fantastic momentum already underway to ensure the initial high-speed services – connecting Old Oak Common and Birmingham Curzon Street – are operational by the current target of the early 2030s,” they added.
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