HS2 independent review launched in bid to get 'spiralling costs' back on track

Transport Secretary Louise Haigh has announced a number of measures to get HS2 plans back on track due to "spiralling costs".

Ms Haigh said her immediate priority was delivering the high speed link between London and Birmingham at the lowest, most reasonable cost.

Over the years, the cost of Phase One has soared, due to what the new government has described as " poor project management, inflation and poor performance from the supply chain, without sufficient explanation of what is to be done to deliver to budget."

In response, the Secretary of State has launched an independent review to ensure lessons are learned to support action and to ensure that the costs for HS2 are brought under control.

The Government has been clear it is not resurrecting Phase 2 of HS2, which was cancelled under the previous administration. The Government said it recognised concerns about connectivity between Birmingham and Manchester but its primary focus now was the safe delivery of HS2 between Birmingham and London at the lowest reasonable cost, and the Secretary of State has made this objective clear to HS2 Ltd.

To achieve this, the Government is also reinstating ministerial oversight of the project to ensure greater accountability. This will see regular meetings starting immediately, where both the Transport Secretary and Rail Minister, Lord Hendy, alongside the Chief Secretary to the Treasury, will challenge delivery and remove obstacles to securing the full benefits of the railway more cost effectively.

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The route was originally scheduled to connect London, Birmingham, Manchester and Leeds, but was scaled back by the previous Conservative government who scrapped 'Phase 2'.

'Phase 2a' was to connect the West Midlands to Crewe, whilst 'Phase 2b' was from Crewe to Manchester.

The government has insisted it has no plans to resurrect Phase 2 of HS2.

Addressing the review, Ms 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."