Contractors Advocate for Reviving HS2’s Northern Leg
Contractors involved in the HS2 project are calling on government ministers to reconsider and revive the northern leg of the high-speed rail line, specifically extending it to Crewe. The High Speed Rail Group (HSRG), representing these contractors, has shifted its focus from pushing for the full original route between Birmingham and Manchester—previously scrapped by Prime Minister Rishi Sunak in October 2023—to advocating for the realization of phase 2a, which is designed to connect the West Midlands to Crewe. They argue that this step is crucial for harnessing the long-term benefits of the high-speed rail line.
This plea follows alarming warnings from a group of MPs indicating that the projected costs for constructing HS2 between London and the West Midlands could soar to approximately £80 billion. The Public Accounts Committee (PAC) has criticized HS2 as a prime example of “how not to run a major project,” emphasizing that HS2 and transport officials “must not waste” the latest opportunity to reset the initiative.
Mark Wild, who recently assumed the role of chief executive at HS2 Ltd in December 2024, stated that the project is currently “in a very serious situation that requires a fundamental reset.” Meanwhile, Labour leader Sir Keir Starmer has previously remarked that resurrecting the troubled project north of Birmingham would be “impossible.” However, he faces mounting pressure from Labour MPs and Andy Burnham, the mayor of Greater Manchester, to propose viable alternatives aimed at enhancing transportation in the North.
In a recent submission to the Treasury, the HSRG acknowledged the need for a “reset” of the HS2 project. They are advocating for the revival of the West Midlands to Crewe leg and have proposed an extension plan for London Euston, which includes six platforms, to avert future capacity constraints.
Government Land Sale Pause and Future Plans
In October, the Government halted the sale of land previously acquired for HS2’s northern leg while exploring alternatives to the scheme. The HSRG has urged that this freeze on land sales should continue and that any potential land acquisitions between the West Midlands and Crewe should be finalized without delay.
Dyan Perry, chair of the HSRG, expressed to The i Paper: “HS2 is at a crossroads. If delivered correctly, it will unlock national transport capacity, generate a multi-billion pound return to the Treasury, drive economic growth across the UK, and enhance regional connectivity. However, if cut short, the Government risks wasting substantial investments made thus far, ultimately short-changing the national account and squandering HS2’s far-reaching socio-economic benefits.”
Perry further added, “HS2 has already stimulated significant investment in the UK’s supply chain, workforce skills, and infrastructure expertise, to name just a few benefits. To secure the long-term advantages of a modern, high-speed rail network, we strongly urge the Government to adopt our recommendations and take decisive action to restore financial control and accelerate delivery.”
The Treasury was approached for a comment regarding these developments.
Public Accounts Committee Report Findings
In a scathing report by the PAC, MPs noted that the Department for Transport (DfT) has “failed in its oversight and financial control” of HS2, highlighting a “reputational risk to the UK” due to the project’s ongoing issues. The PAC pointed out that HS2 Ltd, the government-owned company responsible for constructing the high-speed railway, and the DfT have “failed to work together effectively.” This disunity is “starkly illustrated” by their ongoing disagreements over the cost estimates for building the line from London to the West Midlands.
According to the DfT’s estimate from November 2023, costs were projected to be between £45 billion and £54 billion, while HS2 Ltd’s latest estimate in June 2024 ranged from £54 billion to £66 billion. All these figures were calculated in 2019 prices, and once adjusted for inflation, the total cost could be nearing £80 billion, as indicated in the report.
The PAC concluded, “The department and HS2 Ltd must not waste this latest opportunity to reset the programme properly, learning lessons from past mistakes and maximizing what value they can extract for the taxpayer from this enormous investment.”
In response, a DfT spokesperson stated, “The continuously climbing costs of HS2 are completely unacceptable. That is why the Government acted swiftly to regain control of the project by introducing new leadership at HS2 Ltd, directing the company to initiate a reset of its culture, schedule, and costs, and reinstating robust ministerial oversight.”
