STORY
The government has announced what it calls a “bold reset plan” for HS2 following years of what the Transport Secretary described as mismanagement and spiralling costs. Heidi Alexander said the project had been plagued by poor oversight, ministerial detachment, and unsustainable cost inflation, with Phase 1 alone now projected to cost £66 billion, a staggering rise of £37 billion over its original estimate. The new measures are based on the findings of the James Stewart review, which painted a bleak picture of HS2’s governance and financial control, effectively accusing the project of becoming a runaway train with no one at the brakes.
Among the most immediate changes, Alexander confirmed the appointment of new leadership at HS2 Ltd, with Mike Brown, formerly of Transport for London, stepping in as Chair, and Mark Wild, known for reviving the Elizabeth Line, taking over as CEO. Wild wasted no time in declaring that the current cost, scope, and schedule of the project are unsustainable, and that a fundamental overhaul is necessary to deliver any meaningful value to taxpayers. New financial restrictions will be placed on HS2 Ltd, with ministers now required to sign off on major decisions. In an effort to realign incentives, contractors working on the project will only benefit financially when they help reduce costs, a move the Department for Transport says will protect the public purse.
One key development is the confirmation of funding for the tunnel connecting Old Oak Common to Euston, meaning the central London station link, long the subject of political wrangling, will finally be taken forward. Although a final design is still being developed, the Transport Secretary said this part of the line was “essential” and would now move ahead. The government also committed to learning from what it diplomatically calls “structural issues” in the way Whitehall handles major infrastructure projects, with Cabinet Office involvement planned to avoid a repeat of the HS2 fiasco in future schemes.