HS2 chief’s £46k bonus for budget control

THE HS2 chief executive’s £46,000 bonus was linked to “control” of the highspeed line’s spiralling finances, it has emerged, despite the scheme’s estimated cost almost doubling to more than £100billion.

Mark Thurston, the highest-earning government official, received the payment on top of his £605,350 salary last year. He has now revealed that the “key” criteria for the bonus included “annual control of our budget” and managing the scheme’s schedule – which has slipped by up to seven years.

Last night Lord Berkeley, who was deputy chairman of Boris Johnson’s review of the scheme, described the payment as “totally inappropriate”, based on the information that has since emerged about the scheme’s costs and expected delays.

Steve Baker, a member of the Treasury select committee and a former minister, called for Mr Thurston to pay the money back or give it to charity.

The Y-shaped line, which is due to run from London to Birmingham and then on to Leeds and Manchester, was given the go-ahead by Mr Johnson last month despite concerns about its costs and management. The bonus was paid to Mr Thurston in the 2018-19 financial year for his performance in 2017-18.

In the same period as the payment, HS2 Ltd, the government-owned firm run by Mr Thurston, warned ministers of “significant forecast cost increases and schedule delays”.

Mr Johnson has since said that the scheme is likely to cost more than £100billion, despite HS2 Ltd and Theresa May’s government maintaining that it was on target to meet its £56billion budget.

Following a “stock-take” by Allan Cook, the new chairman of the firm, Grant Shapps, the Transport Secretary, also revealed that the line may not be fully open until 2040 – seven years behind its official schedule.

Lord Berkeley said: “Mark Thurston has not kept control of the programme or the budget, which changed significantly last year. This bonus is totally inappropriate.”

Mr Baker said: “On the face of it this bonus is ludicrous. HS2 is vastly too expensive, late, and running out of control. I think for decency’s sake the chief executive could consider paying his bonus back or giving it to charity.”

The criteria for Mr Thurston’s bonus emerged during a session of the Commons public accounts committee. Questioned about the circumstances of the payment, Mr Thurston said: “It gets agreed by the chairman in the remco [remuneration committee]. The five key points include the annual control of our budget, managing the annual milestones and schedule that we have to deliver, and health and safety.”

An HS2 Ltd spokesman said: “Since Mark Thurston became CEO, HS2 Ltd has not operated outside of its annual budget. The company recently completed a robust project cost estimate, which provided total clarity to ministers as to how much the project will cost.

“The Government took this new cost detail into account when deciding to go ahead with the project.”