The HS2 project reset has brought updated cost estimates and revised delivery dates. The UK Government is resetting the high-speed rail programme. Ministers described the earlier handling as “years of mismanagement.” This is reported by the railway transport news portal Railway Supply.

HS2 project reset raises costs and opening dates
Photo: HS2 Ltd

Transport Secretary Heidi Alexander said the Government wants to bring the railway into service “as quickly as possible and at the lowest reasonable cost.” Also, the Government aims to simplify the project.

HS2 was first costed in 2012. The full planned network linked London, Birmingham, Manchester and Leeds. It was estimated at 32 billion GBP to 37.5 billion GBP. The reduced scheme is now forecast at 87.7 billion GBP and 102.7 billion GBP.

The Government said roughly two-thirds of the increase relates to missing work from the initial project scope. It also cited underestimation and delivery issues. Inflation accounts for the remaining third.

HS2 costs and timetable revised

Mark Wild, Chief Executive of HS2 Ltd, said:

I recognise this will be unwelcome news for local communities and taxpayers, and I share in their disappointment that it will take longer and cost more to bring HS2 into service.

Resetting HS2 was the only way to regain control of the project. We have turned a corner in the last 12 months with significantly improved levels of productivity, helping us to deliver major milestones ahead of schedule. We’re also progressing with plans to bring HS2 into line with other high-speed railways in Europe – further reducing the project’s complexity without compromising on benefits.

Better journeys, more capacity on the network, and economic growth are all vital to the country’s future prosperity, and that’s exactly what we will deliver. Driven by the hard work of 31,000 people on the ground, HS2 is finally getting back on track.

Operating speed reduced

The HS2 project reset includes a lower operating speed. HS2 trains will operate at 320km/h (200mph). The earlier planned speed was 360km/h (225mph). Ministers said this would align HS2 with high-speed rail services in Europe and Japan. They also said it could cut costs by as much as 2.5 billion GBP. Also, it could shorten delivery time by at least one year.

Revised delivery timeframes for HS2

The first passenger services are now expected to begin between 2036 and 2039. They will run between Old Oak Common in west London and Birmingham Curzon Street.

The full route includes London Euston and a connection to the West Coast Main Line. It is expected to be completed between 2040 and 2043.

The reset is being led by the senior team behind the Elizabeth Line project. According to ministers, HS2 completed six major construction milestones ahead of schedule over the past year. Also, around 300 back-office roles have been removed as part of efforts to reduce costs.

Cancellation assessment

A new Government assessment concluded that cancelling HS2 could cost a similar amount to completing the scheme. It also said cancellation would remove the expected transport and economic benefits.

Transport Secretary, Heidi Alexander, said:

Taxpayers, passengers and communities along the route have been let down by years of mismanagement on HS2.

I share their anger about the waste and mess, but I am proud that this Government has worked with HS2’s new senior team to get this project off life support and on the road to recovery.

We will get the job done but we will also take every opportunity to save time and money in the process, getting a grip on delivery, controlling costs, and stripping out the complexity that’s plagued the project in the past.

We can and must build big infrastructure projects in Britain. But we also need competent people in charge of them. This is the same team that delivered the Elizabeth Line. We have done it before, we will do it again.

Funding and economic forecasts

The Government said HS2 is expected to add 20 billion GBP to the economy over the next decade. That forecast relates to areas around its stations and depots.

In addition, development connected with Euston is forecast separately. It could generate a further 41 billion GBP over the next 30 years.

More than 6,100 contracts have been awarded to UK companies for project delivery. Over half of those contracts have gone to small and medium-sized enterprises.

Funding for the HS2 reset will come from the Department for Transport’s current Spending Review settlement. Future funding beyond 2029-30 will be considered in later spending reviews.

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