A
revised


business
case
for
completing
Phase
1
of
HS2
will
not
be
ready
before
next
year,
the
Department
for
Transport
has
warned.

The
project’s
recently-appointed
chief
executive
Mark
Wild
had
previously
conceded
that
‘the
programme
is
in
a
very
serious
situation
that
requires
a
fundamental
reset
to
enable
it
to
be
delivered
to
the
lowest
feasible
cost’.

In
a
letter
to
the
chairman
of
the
Public
Accounts
Committee
Sir
Geoffrey
Clifton-Brown,
DfT
permanent
secretary
Dame
Bernadette
Kelly
says
the
new
business
case
for
the
London-Birmingham
section
will
not
be
available
until
‘early
2026’.
She
continues:
‘Officials
and
HS2
Ltd
have
prepared
plans
to
remediate
the
works
started
on
the
former
Phase
2a
section
and
part
of
2b,
subject
to
decisions
on
the
overall
policy approach.
Therefore,
while
this
work
is
ongoing,
the
Department
has
been
unable
to
meet
the
Spring
2024
target
implementation
date.’

In
its
latest
report,
the
Committee
had
said
the
problems
of
delay
and
cost
overruns
on
HS2
were
risking
damage
to
the
country’s
reputation.
Sir
Geoffrey
had
commented:
‘We
are
sceptical
of
Government’s
ability
to
successfully
deliver
even
a
curtailed
scheme,
one
which
we
already
know
will
on
its
face
bring
very
poor
value
for
money.
The
question
has
instead
become:
what
possible
benefit
can
the
Government
now
salvage
for
the
taxpayer?’

The
Committee
had
reported
that
the
cost
of
HS2
is
now
expected
to
be
‘close
to
£80
billion’, 
continuing
that
it
was
‘not
convinced
that
DfT
has
sufficiently
considered
how
it
can
bring
fresh
thinking
to
its
own
leadership
of
HS2,
or
whether
it
has
the
right
skills
and
capabilitie
to
lead
the
programme
effectively
and
credibly’.

Ms
Kelly’s
letter
is
dated
27
February
but
has
only
now
been
published.

She
says:
‘Before
producing
an
updated
business
case,
the
programme
needs
to
be
reset
and the
Secretary
of
State
has
tasked
the
new
Chief
Executive
of
HS2
Ltd,
Mark
Wild,
to review
the
remaining
scope,
the
cost
and
schedule
needed
to
complete
phase
1
and advise
the
government
on
what
is
required.
The
department
is
planning
to
publish an
updated
programme
business
case
in
early
2026
after
an
agreed
cost
estimate
is produced
following
the
programme
reset.
The
updated
programme
business
case will
include
information
related
to
the
benefits
realisation
and
evaluation.’

Ms
Kelly
adds
‘HS2
Ltd
is
also
continuing
to
work
with
the
principal suppliers
to
ensure
focus
on
the
cost-effective
delivery
of
the
remainder
of
the
civil works.
The
Department
will
provide
an
update
on
that
work
in
forthcoming
reports
to Parliament,
subject
to
commercially
sensitive
details.’

She
concludes:
‘Throughout
2024,
HS2
Ltd
undertook
a
comprehensive
change
programme
to
reshape
the
organisation
to
deliver
the
revised
programme.
However
as
mentioned above
the
department
has
commissioned
Mark
Wild
to
undertake
a
comprehensive
review
of
the
project,
including
capability.
The
outcome
of
this
review
may
result
in
further
changes,
which
the
Department
will
provide
details
on
in
any
subsequent
parliamentary
reports.’

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