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Ministers to oversee HS2 build as costs 'spiral' | Ministers to oversee HS2 build as costs 'spiral' |
(32 minutes later) | |
Ministers are to take a direct role in overseeing the building of the HS2 rail line to try to "get a grip" on the rising cost of the high speed route between London and Birmingham. | |
Transport Secretary Louise Haigh said it had long been clear that the cost of HS2, which could reach £65bn, had been allowed to "spiral out of control". | Transport Secretary Louise Haigh said it had long been clear that the cost of HS2, which could reach £65bn, had been allowed to "spiral out of control". |
She said she had now seen "up close" the "scale of failure", which she described as "dire". | She said she had now seen "up close" the "scale of failure", which she described as "dire". |
"I have promised to work fast and fix things and that's exactly why I have announced urgent measures to get a grip on HS2’s costs and ensure taxpayers’ money is put to good use," Haigh said. | "I have promised to work fast and fix things and that's exactly why I have announced urgent measures to get a grip on HS2’s costs and ensure taxpayers’ money is put to good use," Haigh said. |
The government also confirmed it will not reinstate previous plans to run the high-speed line to Crewe and Manchester, which were scrapped under the previous Conservative government. | The government also confirmed it will not reinstate previous plans to run the high-speed line to Crewe and Manchester, which were scrapped under the previous Conservative government. |
A spokesperson for HS2 Ltd said: “We welcome the Secretary of State's priorities for HS2 Ltd and are committed to working with the new Government to improve delivery." | A spokesperson for HS2 Ltd said: “We welcome the Secretary of State's priorities for HS2 Ltd and are committed to working with the new Government to improve delivery." |
Adding: "HS2 Ltd recognises that there are many lessons to be learned from delivery to date and, under new leadership, are actively implementing the changes within our control to stablise costs." | Adding: "HS2 Ltd recognises that there are many lessons to be learned from delivery to date and, under new leadership, are actively implementing the changes within our control to stablise costs." |
The new ministerial oversight of the project intends to ensure "greater accountability". | The new ministerial oversight of the project intends to ensure "greater accountability". |
It will involve regular meetings featuring the transport secretary and Rail Minister Lord Hendy, alongside the Chief Secretary to the Treasury. | It will involve regular meetings featuring the transport secretary and Rail Minister Lord Hendy, alongside the Chief Secretary to the Treasury. |
The government says these meetings will aim to "challenge delivery and remove obstacles" with the intention of finding cost-effective solutions. | The government says these meetings will aim to "challenge delivery and remove obstacles" with the intention of finding cost-effective solutions. |
An independent review of the project by a former chief executive of Crossrail, James Stewart, has also been commissioned. | An independent review of the project by a former chief executive of Crossrail, James Stewart, has also been commissioned. |
HS2 Ltd said that it looks forward to the "recommendations" of Mr Stewart. | HS2 Ltd said that it looks forward to the "recommendations" of Mr Stewart. |
In January, the boss of HS2 Ltd estimated that the total cost of HS2 could rise, saying a hike in the cost of materials such as concrete and steel have added £8bn to £10bn to the project's budget. | In January, the boss of HS2 Ltd estimated that the total cost of HS2 could rise, saying a hike in the cost of materials such as concrete and steel have added £8bn to £10bn to the project's budget. |
HS2 Ltd executive chairman Sir Jon Thompson had previously warned that Phase 1 could cost as much as £66.6bn, against a budget of £44.6bn, using 2019 prices. | HS2 Ltd executive chairman Sir Jon Thompson had previously warned that Phase 1 could cost as much as £66.6bn, against a budget of £44.6bn, using 2019 prices. |
The government says that the cost had "soared" because of factors including "poor project management, inflation and poor performance from the supply chain". | The government says that the cost had "soared" because of factors including "poor project management, inflation and poor performance from the supply chain". |