View
comments
Ministers are to take charge of the HS2 rail project after costs have been 'allowed to spiral out of control'.
Transport Secretary Louise Haigh described the state of the expensive infrastructure scheme as 'dire' and she promised to 'work fast and fix things'.
Latest estimates indicate the line from London to Birmingham - the only surviving part of the original scheme linking the capital to the north - could run at more than £20 billion over budget.
Yesterday it was announced that ministers would take direct control of the high-speed rail project with regular meetings and an independent review would be held into major transport projects to learn lessons for future schemes.
The new Transport Secretary has recently come under fire for 'caving in' to rail unions by agreeing to inflation-busting pay deals which will cost taxpayers billions.
Transport Secretary Louise Haigh (pictured) described the state of the expensive infrastructure scheme as 'dire' and she promised to 'work fast and fix things'
In a report published last month, a coalition of private sector organisations led by former HS2 Ltd chairman Sir David Higgins described an alternative new line between Lichfield, Staffordshire and High Legh, Cheshire, connecting with the proposed east-west Northern Powerhouse Rail, as a 'golden opportunity'
She insists her intervention in HS2 will bring the over-budget project 'back on track'.
Ms Haigh, Rail Minister Lord Hendy and the Chief Secretary to the Treasury Darren Jones will 'ensure greater accountability' with regular meetings with HS2 bosses.
Ms Haigh said: 'It has long been clear that the costs of HS2 have been allowed to spiral out of control, but since becoming Transport Secretary I have seen up close the scale of failure in project delivery - and it's dire.
'Taxpayers have a right to expect HS2 is delivered efficiently and I won't stand for anything less.
'I have promised to work fast and fix things and that's exactly why I have announced urgent measures to get a grip on HS2's costs and ensure taxpayers' money is put to good use. It's high time we make sure lessons are learnt and the mistakes of HS2 are never repeated again.'
Any move to change the debt calculation would raise concerns after government borrowing hit 100 per cent of GDP for the first time since 1961
Questions over the future of Euston station were raised when Rishi Sunak cancelled the Birmingham to Manchester section of the HS2 scheme last year
Rishi Sunak cancelled Phase 2 of the HS2, linking Birmingham with Manchester, due to the huge cost of the line. The link to Leeds was also axed by the Tory government.
The Labour government has said it will not reinstate the Manchester link.
It is not clear exactly how much the project will end up costing taxpayers.
HS2 Ltd executive chairman Sir Jon Thompson has warned the estimated cost for Phase 1 had soared to as much as £66.6bn, against a budget of £44.6bn, using 2019 prices.
A new chief executive will soon take over at HS2 and will be responsible for 'resetting the project,' the Department for Transport said.
