Government rules out reviving Northern HS2 leg in action to curb rising costs of Phase 1 of the route

The Government has restated it will not revive the cancelled Northern leg of HS2 from Birmingham to Manchester as it looks to curb rising costs of Phase 1 of the high-speed rail route from London Euston to Birmingham.

In announcing measures to bring costs of delivering HS2 under control, the Department for Transport (DfT) confirmed its primary focus would be on delivery of the route to Birmingham at the lowest reasonable cost. Rumours had circulated that Phase 2a of HS2 from Birmingham to Crewe would be revived; however, this has now been ruled out by this latest announcement. A joint plan by the Greater Manchester and West Midlands Mayors for a new rail route for between the two city-regions is now the best placed alternative for improving rail connectivity in the region.

Transport Secretary, Louise Haigh, warned costs had been allowed to spiral out of control, blaming poor project management, inflation and poor performance within the supply chain and has subsequently launched an independent review to ensure that the costs for HS2 are brought under control. The Government is also reinstating ministerial oversight of the project to ensure greater accountability.

Transport Secretary Louise Haigh said:

“One of my first jobs as Transport Secretary has been to urgently review the position I have inherited on HS2.?? 

“It has long been clear that the costs of HS2 have been allowed to spiral out of control, but since becoming Transport Secretary I have seen up close the scale of failure in project delivery – and it’s dire.

“Taxpayers have a right to expect HS2 is delivered efficiently and I won’t stand for anything less. ? 

“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.? It’s high time we make sure lessons are learnt and the mistakes of HS2 are never repeated again.”

The Major Transport Projects Governance and Assurance Review will be led by senior infrastructure delivery advisor, James Stewart, and will present recommendations back to the Government this winter.  

It will investigate the oversight of major transport infrastructure projects, including the effectiveness of forecasting and reporting of cost, schedule and benefits, as well as actions to deliver cost efficiencies. The review will primarily draw on experiences of HS2 to date to ensure recommendations and learnings are applied to its delivery as well as to future projects. 

Separately, the incentives of the main HS2 contractors are also being reviewed, which could lead to some contracts being renegotiated or amended.