Politics

Officials’ failure to grasp the complexity of HS2 have led to project’s rocketing ‘£106billion’ bill, report claims


BUNGLING officials’ failure to grasp the complexity of HS2 have led to the project’s rocketing bill, a report says.

The high-speed rail line will cost billions more than first promised and open much later — if it ever does.

 HS2 was initially expected to cost between £65billion and £88billion but it's now expected to be closer to £106billion
HS2 was initially expected to cost between £65billion and £88billion but it’s now expected to be closer to £106billionCredit: PA:Press Association

Department for Transport cost forecasts in 2015 have all risen save that for buying trains and officials were warned in 2013 the original 2026 opening date was wildly optimistic.

Ministers underestimated risks to taxpayers’ cash, the National Audit Office report says.

Estimates have since rocketed with plans for longer underground tunnels and soundproofing barriers along the line.

Half the costs of the London to Birmingham leg were guessed at because there were no contracts agreed with construction firms on which to base them.

HS2 Ltd — the company set up to run the project — also miscalculated a contingency fund.

The total cost for HS2 in 2015 was put at between £65billion and £88billion, but it is now expected to be closer to £106billion, a separate report shows.

Gareth Davies, of the NAO, said the DfT and HS2 Ltd had “important lessons to learn”.

He said both must “provide realistic assessments of costs and completion dates as the programme develops, recognising the many risks to the successful delivery of the railway”.

The TaxPayers’ Alliance said costs had “spiralled out of control” and urged PM Boris Johnson to scrap HS2 for alternative transport projects “that will benefit the whole country”.

HS2 Ltd said it had revised its costings and schedule. The DfT said it was already acting on the report’s recommendations.

 Officials’ failure to grasp the complexity of HS2 have led to the project’s rocketing bill, a report has said

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Officials’ failure to grasp the complexity of HS2 have led to the project’s rocketing bill, a report has saidCredit: PA:Press Association
Boris Johnson orders fresh review into HS2 and ‘could scrap £100bn rail line’ later this year as costs spiral







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