HS2 Euston

Public Accounts Committee Closed Inquiry
Opened: 15 Feb 2023 Closed: 24 Sep 2023 Parliament page
The Committee will question Dame Bernadette Kelly, Permanent Secretary at the Department for Transport and Mark Thurston, Chief Executive of HS2 Ltd on progress with the design and development of a new HS2 station at Euston. Questions will include how the risks to value for money are being managed, integration … Read more
13 Recommendations
14 Conclusions
1 Report
1 Oral session
1 Letter
1 Event
Activity timeline 5 events
24 Sep
2023
Report published
7 Jul
2023
Report published
15 May
2023
Correspondence
24 Apr
2023
Oral evidence
24 Apr
2023
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
24 Apr 2023
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HS2 Euston
Alan Over · Department for Transport Dame Bernadette Kelly DCB · Department for Transport Mark Thurston · HS2 Ltd
Title HC No. Published Items Response
Sixty-Third Report - HS2 Euston HC 1004 7 Jul 2023 27 Responded
Recommendations & Conclusions
5 results
Clear
1 Conclusion Deferred
Sixty-Third Report - HS2 Euston
Existing HS2 Euston report was late and lacked sufficient cost information
Why the existing report was late and contained so little information
Government Response
The government deflected from explaining why the past report was late and lacked information, instead detailing the future Euston Reset Programme's ambition to confirm an affordable and deliverable scheme by April 2025.
HM Treasury
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9 Conclusion Deferred
Sixty-Third Report - HS2 Euston
Initial HS2 Euston station budget was a 'stretch target' and significantly underestimated costs
In April 2020, as part of the overall Phase One budget of £44.6 billion set by the Department, HS2 Ltd planned to design and build the HS2 Euston station for £2.6 billion. This budget was lower than its £3 billion … Read more
Government Response
The government agrees with the observation and has launched the Euston Reset Programme, aiming to ensure an affordable HS2 station design and establish a realistic budget range and new delivery date in due course, with a target implementation date of Summer 2025.
HM Treasury
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15 Recommendation Deferred
Sixty-Third Report - HS2 Euston
Local communities impacted by HS2 pause, seeking transparency and input on interim solutions.
We heard concerns from the London Borough of Camden and Drummond Street Traders, who already face many years of disruption, and impact of the pause in construction on local residents and businesses and be absolutely transparent when it is possible … Read more
Government Response
The government agrees with the recommendation to address concerns and be transparent, and has commenced the Euston Reset Programme to develop an affordable and deliverable Euston campus by April 2025, deferring transparency on the revised timetable until after this programme.
HM Treasury
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16 Conclusion Deferred
Sixty-Third Report - HS2 Euston
Significant inflationary pressures led Department to pause HS2 and road building projects.
The Department is having to manage significant inflationary cost pressures across its spending on major infrastructure projects, particularly from higher costs of construction materials.37 For example when we examined progress on the HS2 programme in May 2022, HS2 Ltd told … Read more
Government Response
The government agrees with the observation and states that while departments must absorb inflation, they are discussing with HM Treasury how to manage future HS2 cost pressures to protect value for money, and will report back in six months.
HM Treasury
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17 Conclusion Deferred
Sixty-Third Report - HS2 Euston
Department discusses HS2 inflation management with Treasury, recognising mid-year cuts' poor value.
The Department told us that, although budgets are now set, it continues to have discussions with HM Treasury about how it manages inflation on programmes like HS2 in order to deal with any issues that may arise later in the … Read more
Government Response
The government agrees with the observation and states that while departments must absorb inflation, they are discussing with HM Treasury how to manage future HS2 cost pressures to protect value for money, and will report back in six months.
HM Treasury
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Government Response AI assessment · 27 of 13 classified
Accepted 12
Acknowledged 4
Deferred 5
Rejected 6
Total 13 recs + 14 conclusions
Correspondence 1 letter
15 May 2023 Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department for Transport, re Public Accounts Committee Hearing on HS2 Euston – Monday April 24th, 2023, dated 3 May 2023
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