Billions being wasted on HS2 delays, says watchdog

DELAYS in linking up HS2 and Euston could end up wasting taxpayers’ money, with a platform design already ballooning billions of pounds over budget, Britain’s spending watchdog has warned.

The Government has sought to stem rising costs by delaying various parts of the beleaguered high-speed route, including, most recently, the construction of the Birmingham-to-crewe leg, which will be pushed back by two years.

Ministers hope this pause will let the initial services between Old Oak Common in west London and Birmingham Curzon Street to be prioritised. The changes will mean HS2 services do not stop at Euston for years to come, with passengers expected to instead travel for half an hour on the Elizabeth Line.

Now, the National Audit Office (NAO) has warned that, while the postponement may put the Euston work on a “more stable footing”, the deferral of spending to manage inflationary pressures “will lead to additional costs and higher spend overall for the [project]”.

It said the latest estimate by HS2 Ltd set the cost for the 10-year platform design at Euston at £4.8billion, more than £2billion over budget. The report by the NAO said: “A successful reset will need DFT and HS2 Ltd to have a clear understanding of the costs, risks and benefits of their chosen design for the HS2 station within the wider Euston programme, supported by a realistic budget, clear and effective governance and integration [arrangements].”

The NAO said that it has not yet been shown that “the conditions are in place to secure value for money”.

The report found that by the end of December 2022, HS2 Ltd had spent more than £2 billion on the HS2 Euston station and its approaches, covering design, land and preparation works. Gareth Davies, the head of the NAO, said: “Government is once again having to revise plans for Euston HS2.

“Clearly, the 2020 reset of the station design has not succeeded.”

Dame Meg Hillier, Labour MP and chairman of the Committee of Public Accounts, said: “Attempts to reset the High Speed 2 Euston Station have failed. It is still unaffordable.”

A Department for Transport spokesman said: “We will consider the recommendations by the National Audit Office and will respond in due course.”