Government told to stop dithering over HS2 Euston tunnel start date

Aaron Morby 9 months ago
Share

Spending watchdog MPs have called on the Government to urgently take a decision on the start date for the last remaining phase one tunnel drive to Euston station.

In a highly critical report published this morning, the Public Accounts Committee warned that there are still huge uncertainties over key areas of the project that threatened to continue to see costs soar.

The MPs said that the decision to axe the second phase of HS2 meant the project now offers very poor value for money to the taxpayer, and the Department and HS2 Ltd could not set out what the final benefits of the project would be.

The report warns that the Department of Transport must take a decision soon on funding the tunnelling from Old Oak Common to Euston to avoid incurring much greater costs from stopping and restarting work. 

It also raised concerns that the Government has failed to set out a plausible proposal on how its expects to attract private sector investment to deliver Euston station and the final tunnel drive from Old Oak Common.

The Government has redirected £6.5bn of expenditure away from Euston, and the Department of Transport is now looking for private funding to cover the costs of the re-scoped Euston station and the over-site development.

It recommended the Government must develop plans for a range of private investment scenarios, including different levels of public finance, as part of its consideration of how to progress with the station at Euston.

Dame Meg Hillier MP, Chair of the Committee, said: “The decision to cancel HS2’s Northern leg was a watershed moment that raises urgent and unanswered questions, laid out in our report.

“HS2 is the biggest ticket item by value on the Government’s books for infrastructure projects.

“As such, it was crying out for a steady hand at the tiller from the start.

“But, here we are after over a decade of our warnings on HS2’s management and spiralling costs – locked into the costly completion of a curtailed rump of a project and many unanswered questions and risks still attached to delivery of even this curtailed project.”

The MPs are also concerned about the uncertainty of the cost impact on the final project bill of the complex challenge of connecting HS2 to the West Coast Mainline.

A spokesperson for HS2 Ltd said: “We’ve been clear about our cost challenges, which have been compounded by significant levels of inflation.

“HS2 Ltd is now under new leadership and implementing changes across the programme aimed at controlling costs and learning the lessons of the past.”

 

Latest news

Skanska signs £197m deal for Mayfair offices job

South Molton job consists of two big office buildings
19 hours ago

Cost of fixing unsafe cladding soars to over £16bn

Watchdog urges new 'hard target date' to complete all recladding works
20 hours ago

Scottish Water opens bidding on £800m framework

Innovative ceramic membrane water treatment works programme
20 hours ago

Carbon capture concrete hits London sites

Neustark and Aggregate Industries launch new technology to UK market
19 hours ago

Six win £300m cladding retrofit deal

Major social landlord Riverside Group to reclad 22 towers
20 hours ago

Winchmore lands brickwork package on Graham £80m academy

Alkerden Academy is one of the largest schools to be built in the region
20 hours ago

Construction firms blast “true cost of Budget”

Firms fear tax hikes will lead to reduced hours and job cuts for staff
4 days ago

Steel bridge specialist sold to staff

Nusteel Structures Group becomes industry's latest Employee Owned Trust
4 days ago

Ex-Lendlease chief to lead Euston housing regeneration

Bek Seeley to head Euston Housing Delivery Group
4 days ago

Ardmore lands Kensington hotel revamp

Contractor to transform former Kensington Holiday Inn
4 days ago

RED wins £35m brace of projects in Bristol

Works include student halls and major facade fire safety remediation
4 days ago

Wates starts £300m Gartree super prison job

Early works start on 1,700-prison place job next to existing prison
5 days ago

Five road schemes worth £1.3bn axed

Still no decision on £1.5bn A66 upgrade or £9bn Lower Thames Crossing
5 days ago

Budget: Chancellor to fund HS2 tunnels to Euston

Schools and hospitals get extra £1.85bn cash injection to tackle work backlog
6 days ago

Skills card changes will mean fewer labourers

CSCS wants to cut the numbers with 500,000 labourer cards currently in circulation
5 days ago

Wates hires former ISG fit-out chief to lead new team

Lee Phillips to head up new London office fit-out arm
6 days ago

Major London offices to student rooms scheme approved

65 Fleet Street office block to be converted to 850-student rooms
5 days ago

M Group Services buys MEICA contractor BGEN

Warrington-based engineering contractor employs 1500 staff
5 days ago

VINCI Construction swoops for FM Conway

Conway family sells £580m turnover Kent-based highways contractor
6 days ago

United Living bolts on property upkeep firm Pilon

Deal to buy £40m turnover social housing property services contractor
6 days ago

Sheffield facade specialist bought by Swedish firm

Building envelope giant Fasadgruppen makes first UK acquisition
6 days ago

Nexus buys Coleman Construction & Utilities for £5.4m

Nexus moves into civils with acquisition of East Sussex contractor
6 days ago

Councils get £68m to clear brownfield sites

Site renovation work will clear way for 5,200 new homes
6 days ago

Private investor buys Midlands contractor MCS

Deal values £100m revenue building contractor at £22m
6 days ago

Willmott Dixon to build Oxford net zero council HQ

Work to start next year on net zero office upgrade as Old County Hall sold off
6 days ago

Phoenix subbies get pay less notices after ISG failure

Building services specialist tells suppliers they won't be getting paid
7 days ago

Midgard confirmed on £60m Golden Lane office contract

Main works will create 120,000 sq ft of prime office space on historic site
7 days ago

Van Elle buys Scottish specialist Albion Drilling for £3.5m

Acquisition builds capability in Scotland's booming energy sector
7 days ago

French PM and cost consultant Artelia buys Pick Everard

Artelia UK operations swell to nearly 1000 staff after bolting on UK consultant
7 days ago

Go-ahead for West London 58-storey resi skyscraper

North Acton scheme at Old Oak Common to form gateway to emerging cluster
1 week ago

Contractor services