Final nail in the coffin for HS2 Northern phase

Transport secretary Louise Haigh dispelled rumours that the Birmingham-to-Crewe route of the high-speed rail line will be reinstated – and instead called for an “urgent review” of the project’s spiralling costs.

Last week reports were circling concerning the renewal of the project’s cancelled second phase, specifically Phase 2a, the leg between Birmingham and Crewe.

This has prompted the government to publicly double down on its refusal to explore HS2’s Northern leg. “The government has been clear it is not resurrecting Phase 2 of HS2”, a press release said.

The government said it understands concerns regarding connectivity between Birmingham and Manchester, but that its primary focus must now be the delivery of Phase 1 between London and Birmingham.

The decision suggests the region’s connectivity will rest heavily on the Midlands-North West rail plans put forward by Metro Mayors Andy Burnham and Richard Parker in September.

In July, the Greater Manchester Combined Authority also announced plans to expand the Bee Network with eight new routes stretching further out from the city centre.

HS2 heartbreak continues

Haigh has sent a letter to the chair of HS2 Ltd which highlighted the need for collective responsibility to turn the ever-growing costs around, having seen up close “the scale of failure in project delivery”, which she labelled as “dire”.

Haigh said: “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 taxpayer’s money is put to good use,” she continued.

The Major Transport Projects Governance and Assurance Review, to be led by senior infrastructure delivery advisor James Stewart, will present its recommendations to the government in the winter.

The review will focus on the effectiveness of the government’s sponsorship and oversight model, corporate governance within HS2 Ltd, the procurement and management of main works civil contracts, as well as the effectiveness of various levels of assurance for the programme.

Drawing from prior experiences of HS2, the review will delve into the usefulness of forecasting and reporting costs, schedules, and benefits – and will consider potential cost-saving measures.

In addition, the project’s many contractors will have their agreements reconsidered, with some being renegotiated or amended.

Phase one of HS2’s development has been blighted by poor planning, inflationary pressures, and inefficient supply chains – explaining the reluctance of the government to commit to the project’s Northern leg.

HS2’s management is to be taken over by former Crossrail head, Mark Wild, who will become chief executive.

Mark Wild also has experience as managing director for the London Underground.

Wild will be required to provide the secretary of state with a cost-effective budget and realistic scheduling.

The government will continue to publish bi-annual reports on the project’s progress.

Haigh finished: “It’s high time we make sure lessons are learnt and the mistakes of HS2 are never repeated again.”