HS2 prices ‘spiral uncontrolled’ as ministers pressured to step in

Ministers are stepping in to get a grip on the spiralling cost of HS2, the Transport Secretary has said.

Louise Haigh blasted the “dire” handling of the high speed rail project, which has been beset by delays and rocketing costs, and expressed alarm at the “scale of the failure”.

She has ordered an independent review of the planned route between London and Birmingham after the Government struggled to get clarity over whether the overspend on the project was £10billion or £20billion. There have been warnings the overall price tag could exceed £65billion.

Rishi Sunak last year cancelled the northern leg from Birmingham to Manchester, as well as the connection to Leeds.

Ms Haigh said: “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.”

Ms Haigh added: “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.”

Ms Haigh said she will hold regular meetings with HS2 alongside Rail Minister Lord Hendy and Darren Jones, chief secretary to the Treasury, to monitor spending and progress.

The review, by James Stewart, a former Infrastructure UK boss who worked on the Crossrail project in London, will present its findings this winter. Some contracts could be renegotiated or amended as part of the process, the Department for Transport warned.

The Transport Secretary also confirmed she won’t resurrect plans for the route north of Birmingham. But she recently suggested that HS2 will run to Euston after all, after Mr Sunak decided to halt the line at Old Oak Common in west London to save cash.

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. We also fully support James Stewart’s governance review and look forward to his recommendations.

“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 stabilise costs. HS2 is a complex project of strategic importance to the UK’s rail network, which will not only provide better journeys, more services and fewer delays for rail passengers, but will unlock economic growth and tackle regional inequality.”