The UK Secretary of State for Transport, Louise Haigh, has unveiled a series of measures aimed at bringing the spiralling costs of the High Speed 2 (HS2) rail project under control. These initiatives include an independent review of governance and potential renegotiation of contractor agreements.
James Stewart, a seasoned infrastructure adviser, will lead the Major Transport Projects Governance & Assurance Review, which will investigate project oversight, assess the effectiveness of forecasting and reporting and examine cost efficiency measures. It will draw on experiences from HS2 to inform recommendations for future projects.
In addition to the governance review, the government is reviewing incentives for main HS2 contractors, which may result in contract renegotiations or amendments. To further enhance oversight, regular meetings will be held with the Transport Secretary, Rail Minister, and Chief Secretary to the Treasury to challenge delivery and remove obstacles.
Mark Wild, former CEO of Crossrail, will take over as HS2 Ltd’s Chief Executive. He will be tasked with assessing the current position on cost, schedule and culture while providing an action plan for cost-effective delivery.
To ensure transparency and accountability, the government will continue publishing six-monthly progress reports on HS2.
Haigh expressed concern over the extent of project delivery failure, saying, “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.” She emphasised the need for efficient delivery and learning from past mistakes, adding, “It’s high time we make sure lessons are learnt and the mistakes of HS2 are never repeated again.”
These measures represent a significant shift in the government’s approach to managing the HS2 project, with a clear focus on cost control, accountability and improved project governance.