Report says Phase 2 cancellation makes HS2 ‘poor value’

THE House of Commons Public Accounts Committee has published a report calling on the Government to answer questions raised by its decision to cancel the construction of Phase 2 of HS2 between the West Midlands and Manchester. The report concludes that only building Phase 1 from Euston to Birmingham (HS2 trains originating or terminating north of Birmingham will use a connection at Handsacre in

Staffordshire to leave or join the West Coast Main Line for the rest of their journey) represents “very poor value for money to the taxpayer”.

It adds that neither the Department for Transport nor HS2 Ltd knows what the final benefits will be, or what impact Phase 2 cancellation will have on the rest of the programme.

In addition to addressing these factors and giving an updated cost for the project, the committee recommends that the DfT develops a range of private investment scenarios, including varying levels of public finance, as part of its considerations regarding progress with HS2’s Euston terminus. To protect best value for the taxpayer, it says the department should also “decide soon” how it will proceed with tunnelling between Old Oak Common and Euston.

The committee has requested that the DfT and HS2 Ltd report to it regarding details of their plan for the disposal of land and property acquired for the construction of Phase 2. On the subject of ‘Network North’ transport projects (which the DfT has said will receive money that had been earmarked for the cancelled leg of HS2), the committee has asked for an updated list of projects, delivery timescales and value for money assurances.