The
Government


has
dismissed
reports
that
construction
of
HS2
could
be
going
ahead
between
the
West
Midlands
and
Crewe,
and
is
launching
an
independent
review
of
the
costs
of
Phase
1
between
London
and
Birmingham
with
the
intention
of
learning
lessons
from
the
troubled
history
of
the
high
speed
line.

Former
London
Underground
managing
director
and
Crossrail
CEO
Mark
Wild
has
been
named
as
the
new
chief
executive
of
HS2
Ltd,
while
some
of
the
construction
contracts
are
to
be
reviewed
and
could
be
amended.

Transport
secretary
Louise
Haigh
said
the
extent
of
the
challenge
inherited
on
HS2
has
become
clear,
with
‘costs
being
allowed
to
spiral
out
of
control
and
failure
to
deliver
to
budget’.

The
Government
is
attributing
the
soaring
costs
of
HS2
to
’poor
project
management,
inflation
and
poor
performance
from
the
supply
chain,
without
sufficient
explanation
of
what
is
to
be
done
to
deliver
to
budget’.

It
has
also
made
it
clear
that
it
will
not
be
reversing
last
year’s
decision
to
cancel
Phases
2A
and
2B,
although
it
‘recognises
concerns
about
connectivity
between
Birmingham
and
Manchester’.
Even
so,
ministers
say
the
primary
focus
is
now
the
completion
of
HS2
Phase
1
between
London
and
Birmingham
‘at
the
lowest
reasonable
cost’.

The
Government
is
also
reinstating
ministerial
oversight
of
the
project
to
ensure
greater
accountability.
This
will
involve
regular
meetings
from
now
on,
where
both
the
transport
secretary
and
rail
minister
Lord
Hendy
will
be
joined
by
the
chief
secretary
to
the
Treasury.
They
plan
to
‘challenge
and
remove
obstacles
to
securing
the
full
benefits
of
the
railway
more
cost
effectively’.

Transport
secretary
Louise
Haigh
said:
‘One
of
my
first
jobs
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.’

The
independent
Major
Transport
Projects
Governance
and
Assurance
Review
will
be
led
by
senior
infrastructure
delivery
advisor
James
Stewart,
and
will
make
recommendations
to
the
Government
this
winter.

It
will
investigate
the
oversight
of
major
transport
infrastructure
projects,
including
the
effectiveness
of
forecasting
and
reporting
of
cost,
schedule
and
benefits,
as
well
as
ways
to
make
savings.