The
National
Audit
Office
is
warning
that
HS2
Ltd
and
the
Department
for
Transport
cannot
complete
the
high
speed
train
terminus
at
London
Euston
within
the
existing
budget
of
£2.6
billion,
and
that
the
estimated
cost
now
stands
at
£4.8
billion.

A
new
NAO
report
is
also
warning
that
budget
pressures
have
been
worsened
by
inflation,
which
is
affecting
the
DfT’s
capital
programme.
It
says
the
department
will
need
to
manage
this
‘closely’.

The
size
of
the
HS2
station
at
Euston
was
reduced
from
11
platforms
to
10
in
November
2020,
but
it
still
exceeded
the
budget
by
£1
billion.

At
the
end
of
December
2022,
HS2
Ltd
had
spent
£0.5
billion
on
HS2
Euston,
along
with
a
further
£1.5
billion
on
land
purchases
and
preparatory
works
for
the
station
and
its
approaches.
This
money
was
taken
from
the
wider
HS2
Phase
One
budget
rather
than
the
Euston
budget.

The
report
also
says
that
the
revised
HS2
Euston
design
addressed
previous
issues
concerning
the
design
and
construction
of
the
station
but
it
did
not
solve
the
challenge
of
designing
it
within
the
budget.

Transport
secretary
Mark
Harper
announced
earlier
this
month
that
work
on
HS2
north
of
Birmingham
was
being
paused
for
two
years,
but
the
NAO
says
DfT
and
HS2
Ltd
will
also
pause
the
work
at
HS2
Euston
for
two
years
as
well,
while
they
look
again
at
how
to
achieve
an
affordable
design
that
provides
value
for
money.
As
a
result
of
this
pause
there
will
be
additional
costs
and
overall
expenditure
could
increase.

The
report
concludes
that
the
DfT’s
and
HS2
Ltd’s
attempt
to
‘reset
the
programme’
since
2020
has
not
succeeded,
and
that
‘further
action
is
now
required
to
develop
an
affordable
and
viable
station’.

The
head
of
the
NAO
Gareth
Davies
said:
‘Government
is
once
again
having
to
revise
plans
for
Euston
HS2.
Clearly,
the
2020
reset
of
the
station
design
has
not
succeeded.
DfT
and
HS2
Ltd
have
not
been
able
to
develop
an
affordable
scope
that
is
integrated
with
other
activity
at
Euston,
despite
their
focus
on
costs
and
governance
since
2020.
Recent
high
inflation
has
added
to
the
challenge.

‘The
March
2023
announcement
by
the
transport
secretary
pausing
new
construction
work
should
now
give
DfT
and
HS2
Ltd
the
necessary
time
to
put
the
HS2
Euston
project
on
a
more
realistic
and
stable
footing.
However,
the
deferral
of
spending
to
manage
inflationary
pressures
will
lead
to
additional
costs
and
potentially
a
more
expensive
project
overall,
and
that
will
need
to
be
managed
closely.’

Meg
Hillier,
who
chairs
the
Commons
Public
Accounts
Committee
added:
‘Attempts
to
reset
the
High
Speed
2
Euston
station
have
failed.
It
is
still
unaffordable
and
no
further
forward
than
it
was
three
years
ago.

‘Today’s
NAO
report
show
that
the
redesigned
station
would
have
cost
nearly
double
what
was
budgeted.
The
delays
to
fix
this
will
be
felt
not
only
by
the
taxpayer,
but
will
continue
to
disrupt
people
and
businesses
around
Euston.

‘Department
for
Transport
and
High
Speed
Two
Ltd
have
wasted
enough
time
and
money.
They
must
get
Euston
right
next
time
or
risk
squandering
what
benefits
remain.’