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
View on parliament.uk
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
6 results
Clear
3 Conclusion Rejected
Sixty-Third Report - HS2 Euston
Produce interim report on Euston pause costs and supply chain impact within three months.
The Department does not yet know the costs and impacts of pausing construction. Neither the Department nor HS2 Ltd know the likely costs of pausing construction work for the next two years. They had been developing funding scenarios for the … Read more
Government Response
The government disagreed with producing an interim report in three months due to affordability pressures, stating it will provide spend to date and contractual obligation details once available, but further details will follow after the Euston Reset Programme.
HM Treasury
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5 Conclusion Rejected
Sixty-Third Report - HS2 Euston
Provide clear explanations of HS2 Euston cost estimate maturity and risks in six-monthly updates
The Department’s reports to Parliament on the HS2 Programme did not reflect the significant level of uncertainty in its estimated cost of Euston station. From October 2020 through to its six-monthly update in October 2022, the Department HS2 Euston 7 … Read more
Government Response
The government disagreed with the recommendation to include clear explanations of cost estimate maturity and risks in six-monthly updates, stating that while committed to transparency, Benefit-Cost Ratios will not be included in these reports.
HM Treasury
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12 Recommendation Rejected
Sixty-Third Report - HS2 Euston
Costs of pausing HS2 Euston construction remain unknown, with significant winding-up expenses expected
In March 2023, following an announcement by the Secretary of State for Transport, the Department paused new construction work on the HS2 Euston station for the next two years to reduce spend over that period and to give it time … Read more
Government Response
The government rejects the implicit recommendation, stating it considered costs but paused construction due to affordability pressures. It commits to providing the Committee with spend-to-date, contractual settlement costs, and supply chain re-employment details after the Euston Reset Programme.
HM Treasury
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13 Recommendation Rejected
Sixty-Third Report - HS2 Euston
Impact of HS2 Euston construction pause on the supply chain remains undetermined
We asked the Department if Ministers had looked at the impact on businesses when they made the decision to pause construction. The Department told us that the decisions Ministers were trying to make were about trying to protect the supply … Read more
Government Response
The government rejects the implicit recommendation, stating it considered costs but paused construction due to affordability pressures. It commits to providing the Committee with spend-to-date, contractual settlement costs, and supply chain re-employment details after the Euston Reset Programme.
HM Treasury
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14 Conclusion Rejected
Sixty-Third Report - HS2 Euston
HS2 Ltd actively managing contract pauses but not receiving formal claims from contractors.
We asked HS2 Ltd whether it was receiving notifications from contractors of their intentions to make contractual claims due to the pause. HS2 Ltd told us that this was not the case and that it is in discussion with contractors … Read more
Government Response
The government disagrees with the implied recommendation, stating that despite considering the costs of pausing, it was not affordable to continue due to budget pressures. It is working with HS2 Ltd to manage pause costs and will provide the Committee with details of spend and contractual obligations later.
HM Treasury
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23 Recommendation Rejected
Sixty-Third Report - HS2 Euston
Department delayed HS2 six-monthly report, providing limited new information to Parliament.
Prior to our evidence session, the Department had published its latest six-monthly update to Parliament in October 2022. It did not publish an update six months later in March 2023. Following our evidence session on 24 April 2023, the Department … Read more
Government Response
The government rejects the recommendation, citing external factors for past delays but committing to timely future reports within 6 months. However, it specifically states that Benefit-Cost Ratios will not be included in these six-monthly reports, and updating the price base is subject to future agreement.
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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