The National Audit Office (NAO) has released a report on HS2, following the cancellation of Phase 2.
In October 2023, the government announced major revisions to the HS2 programme, including the cancellation of Phase 2 and the downsizing of the HS2 station at London Euston.
These decisions were driven by the escalating costs of Phase 1, delays in the project timeline, and shifts in travel patterns following the COVID-19 pandemic.
Following this announcement, DfT and HS2 Ltd have worked to fully assess the programme’s new direction. This included confirming the revised scope of Phase 1, strategising the closure of Phase 2, and planning the delivery and funding for the scaled-down Euston station.
In light of these changes, NAO’s latest report examines whether DfT and HS2 Ltd are effectively managing their response to protect and maximise value for money and passenger benefits.
The report emphasises the need for DfT and HS2 Ltd to successfully reset the programme to avoid repeating past failures and to maximise its value.
To do so, they need to be clear on the programme’s desired outcomes, agree a realistic budget and re-establish control so that risks and costs can be managed effectively.
Key points noted in the report include:
- HS2 Ltd estimates that closing down Phase 2 will take three years to complete at a cost of up to 100 million GBP
- DfT’s plans for resetting Euston station and surrounding wider development are at an early stage; it has not yet decided on its scope, funding, or governance
- HS2 Ltd has recently made organisational changes that aim to refocus it on delivery of the Phase 1 railway
- DfT and HS2 Ltd have different views on how much it will cost to complete the programme
- DfT and HS2 Ltd are developing plans to address the issues that have led to significant cost increases
- DfT is not yet clear how it will maximise the benefits of the new scope and how it will achieve them
- DfT will not be able to address capacity issues on the West Coast Main Line north of Birmingham through its revised programme scope
Responding to this assessment, the UK’s High Speed Rail Group has released an official statement.
“This National Audit Office (NAO) report makes clear the plan the incoming Labour government is inheriting – a truncated HS2, and a West Coast Main Line operating at capacity - is not going to help grow the national economy, nor is it going to allow train performance on the West Coast to return to acceptable levels.
“A line which fails to reach central London, and which worsens the bottleneck north of Birmingham is an inheritance that needs amendment.
“High-speed rail is essential to increasing capacity across our transport networks. Yet this report shows that current plans would cause the West Coast Main Line to be full up within a decade. What’s needed is extra capacity, not new bottlenecks.
“Most of the suggested alternatives to delivering phase 2a – the link between the West Midlands and Crewe - will take longer to implement, and add risk and uncertainty, which are the enemies of efficient major project delivery. And no plan can be considered final until the line reaches Euston.
“Done properly, high speed rail can stimulate growth in our regional economies. Sadly, as this NAO report demonstrates, the current plan falls far short of this objective.”
