Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Costs of HS2 'vastly underestimated', whistleblower says

‘I’m not worried about overspending, I’m confident we’ve got a budget we can stand by,’ said HS2’s chief executive

Simon Calder
Travel Correspondent
Monday 17 December 2018 14:39 EST
Comments
Property puzzle: the cost of buying land and buildings along the HS2 route is still not known
Property puzzle: the cost of buying land and buildings along the HS2 route is still not known (HS2/PA)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The cost of the High Speed 2 (HS2) rail project, intended to increase capacity between London, the Midlands and the north of England, is under fresh scrutiny.

In a BBC Panorama programme, a former HS2 executive has claimed that early estimates of the value of properties along the route that needed to be bought were “enormously wrong”.

Doug Thornton, former land and property director, said the figures underestimated the amount HS2 would have to pay, and that “thousands” more properties had not been budgeted for at all.

He told the programme’s presenter, Justin Rowlatt: “I have never seen anything like it.”

Mr Thornton said he was “appalled” at the “loose and slapdash fashion” that numbers were used. He said he walked out of HS2 “one Wednesday evening and breathed a sigh of relief” in 2015.

He was later dismissed by the company.

The first stage of HS2, which is the biggest civil engineering project in Europe, requires 27 square miles of property to be purchased.

According to a recent National Audit Office report, the HS2 estimate of the net cost to acquire land and property for Stage One was £1.12bn in 2011 prices, but by 2017 it had risen to £3.3bn in 2015 prices.

The report concluded: “HS2 Ltd’s current estimate is within its agreed funding envelope from HM Treasury and provides a reasonable basis from which it can monitor the potential cost to compensate property owners and tenants affected by the construction of the railway.”

HS2’s chief executive, Mark Thurston, told Panorama: “I’m not worried about overspending, I’m confident we’ve got a budget we can stand by.”

Earlier this month Sir Terry Morgan, who was chairman of both HS2 and the troubled Crossrail project, resigned. He warned of possible cost issues ahead for HS2, talking of the “challenge inside the project” to stay on time and on budget.

Proposed route for the HS2 high speed rail scheme

The first stage of the line, from London Euston to Birmingham Curzon Street, is due to open in 2026. It has a budget of £27bn. Going north from Birmingham there will be a Y-shaped layout, with the eastern branch going to the East Midlands, Leeds and York, and the western branch to Manchester. Stage two is planned to cost £29bn, making the total bill £56bn.

But an industry expert, Michael Byng, last week calculated that the whole £56bn would be swallowed up for the first phase of the line between London and Birmingham.

In response the transport secretary, Chris Grayling, said: “I’m very clear on HS2 – it’s got a budget, it’s got to live with that budget.”

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in