HS2 is £7bn over budget and at least one year late

THE £ 55billion HS2 rail project is billions over budget and will come in at least 12 months late, a report said yesterday.

Its first phase linking London to the West Midlands will not be finished until december 2027, while phase two from the West Midlands to Manchester and Leeds is over budget by £7billion and ‘volatile’, the audit by MPs said.

They warned that ministers had failed to set out realistic estimates of the likely cost and a timetable for construction of the High Speed 2 rail link.

The members of the Commons public accounts committee said the department for Transport’s timetable was ‘overly ambitious’.

They also raised doubts over the dfT’s claim that it had found savings of up to £9billion in the £28.5billion budget for phase two, questioning if they could be made ‘without adversely affecting the benefits of the programme’.

HS2 was thrown into turmoil at the weekend after its chief executive quit weeks before a crucial decision by MPs.

Simon Kirby, whose £750,000 salary made him Britain’s highest- paid civil servant, was poached by rolls-royce.

It leaves Europe’s largest infrastructure project without a leader shortly before it is expected to be given the goahead by the Commons.

The cost has rocketed from £40billion to £55billion before the project even begins, while some estimates predict it could soar to £80billion.

The long-delayed announcement on the exact route of HS2 is now due in the autumn.

Labour MP Meg Hillier, who chairs the committee, said: ‘The Government has promised significant benefits to taxpayers in return for their investment in HS2, expected to run to more than £55billion.

‘despite this, Parliament and the public are still in the dark about crucial details – not least when the railway will open, how much it is expected to cost and precisely where it will go.’

She claimed that the ‘uncertainty enveloping a project on which strong and stable leadership is vital’ was made worse by the departure of Mr Kirby, adding: ‘Government must explain its intentions and the basis for its decisions in a transparent manner.

‘The public must be confident the grand vision for HS2 does not blind the Government to the finer points which have implications for many people’s lives now and in the decades to come.

‘Local authorities must know central Government’s intentions to ensure they can plan effectively for regeneration and maximise the potential for growth near HS2 stations.’

a department for Transport spokesman said: ‘The Government is fully committed to HS2 and the project is on time and on budget.

‘We are keeping a tough grip on costs, and pressing ahead with plans for phase two, with further details due to be announced this autumn.

‘ Improving regional infrastructure is vital in supporting regional growth and building an economy that works for everyone. HS2 is a key part of this, and will be the backbone of our national rail network.’

Tory MP Michael Fabricant said: ‘The National audit Office now shows what we all suspected – the costs of HS2 are now getting out of hand.

‘I accept there is rail congestion between London and the Midlands and we need an additional line. But engineers have suggested alternative routes which are cheaper and less damaging to the environment.

‘I hope Theresa May puts the brakes on HS2 and calls for a total rethink of the project.’