UK Inquiry Tracker

HS2 and Euston: Recall

Public Accounts Committee Closed Inquiry

Opened: 31 Jul 2023 Closed: 3 Apr 2024 Parliament page

In July 2023, the Committee reported that the Department for Transport (DfT) does not know what it is trying to achieve with the High Speed 2 station at Euston, despite spending over eight years planning and designing it. Construction work at Euston was paused for two years in March 2023. … Read more In July 2023, the Committee reported that the Department for Transport (DfT) does not know what it is trying to achieve with the High Speed 2 station at Euston, despite spending over eight years planning and designing it. Construction work at Euston was paused for two years in March 2023. The Committee has called on the DfT to use the pause to finally establish the design and expectations for the station against what it is willing to spend, while noting that the costs and impacts of the pause for the local community and small businesses remain unknown. The Committee will question senior officials at the DfT and HS2 Ltd. on progress on the project since its April 2023 evidence session and leadership changes at HS2 following the Committee’s report. Dame Meg Hillier MP, Chair of the Public Accounts Committee, said: “The HS2 Euston project is floundering. This is a multi-billion pound scheme which has already caused major disruption to the local community put on pause. The pause, ostensibly to save money, is not cost free – mothballing and possible compensation for businesses which have lost work will all need to be added to the HS2 tally. The Government must now be clear what it is trying to achieve with this new station, and how it will benefit the public. “Our report found that a wildly unrealistic budget for HS2 Euston was set in 2020 in the expectation that it would be revised. The Government must demonstrate that that it is not just repeating the same mistakes of unrealistic costings. HS2 Euston has shown us that forging ahead over-optimistically in an unclear direction is clearly not the right approach.” If you have evidence on these issues, please submit it here by 23:59 on Friday 10 November 2023. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. Please note that the Committee will not be scrutinising policy decisions in relation to HS2 Euston or the HS2 project. Show less

3 Recommendations

29 Conclusions

1 Report

1 Oral session

5 Letters

1 Event

Activity timeline 9 events

2 Apr
2024

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Tenth report from Session 2023-24

7 Feb
2024

Report published

Tenth Report - HS2 and Euston

10 Jan
2024

Correspondence

Correspondence from Sir Jon Thompson, Executive Chair, High Speed Two (HS2) Ltd, re Public Accounts Committee HS2 and Euston: Recall (16th …

10 Jan
2024

Correspondence

Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department for Transport, re Follow-up to the session of Thursday 16 No…

16 Nov
2023

Oral evidence

HS2 and Euston

16 Nov
2023

Correspondence

Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department for Transport, re Accounting Officer Assessment of Decision …

16 Nov
2023

Correspondence

Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department for Transport, re Accounting Officer Assessment of Decision …

16 Nov
2023

Correspondence

Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department for Transport, re Accounting Officer Assessment of Decision …

16 Nov
2023

Formal meeting (oral evidence session) · Room 16, Palace of Westminster

HS2 and Euston

Oral evidence sessions 1 session

16 Nov 2023

View on parliament.uk

HS2 and Euston

Alan Over · Department for Transport Dame Bernadette Kelly DCB · Department for Transport Dr Nick Bisson · Department for Transport Sir Jon Thompson KCB · High Speed Two (HS2) Ltd

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
Tenth Report - HS2 and Euston	HC 67	7 Feb 2024	32	Responded

Recommendations & Conclusions

7 results

4 Conclusion Acknowledged

Tenth Report - HS2 and Euston

Require Department to develop private investment plans for Euston and decide on tunnelling

Developing Euston is dependent on attracting private finance to pay for it, but the Department does not yet have any plan for how to do so and has to make investment decisions soon to protect long-term value for money. Despite … Read more

Government Response

The government agrees and is continuing to define and develop a range of development models and financing mechanisms for Euston, including options for funding the tunnelling from Old Oak Common. Preparatory works are ongoing, but no specific plans or decisions are detailed yet.

HM Treasury

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16 Conclusion Acknowledged

Tenth Report - HS2 and Euston

No final decisions made on HS2 operational train services for Phase 1.

The Department’s November 2023 update to Parliament stated that “No decisions have been made on the train service that will run when HS2 is operational.”33 The Department told us it had developed “an outline train specification that sets out an … Read more

Government Response

The Department restates its position that no decisions have been made on the train service that will run when HS2 is operational and that final decisions will take account of economic conditions and demand at the time.

HM Treasury

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20 Conclusion Acknowledged

Tenth Report - HS2 and Euston

HS2 Ltd faces capacity challenges and struggles with recruitment in overheated market.

Notwithstanding the Board and Director level changes referenced above, HS2 Ltd also acknowledged that it needed to think about its capacity and capability throughout to deliver the task ahead. It told us it was going through that process and highlighted … Read more

Government Response

The government agrees with the committee's observation that HS2 Ltd needs to address its capacity and capability, stating it is supporting HS2 Ltd's comprehensive change programme to ensure the right skills are in place, with an update expected by Spring 2024.

HM Treasury

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25 Conclusion Acknowledged

Tenth Report - HS2 and Euston

Realising Euston's private sector funding requires greater certainty and a coherent market proposition.

We raised the issue that private sector involvement and finding would be dependent on there being greater certainty on dealing with issues in and around Euston. The state of the general property market in the area and how much infrastructure … Read more

Government Response

The government agrees with the committee's observation on the need for certainty regarding Euston to attract private sector involvement, stating that work is underway to develop funding packages and financing mechanisms to maximize private investment for the Euston Quarter, with a target for Summer 2024.

HM Treasury

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30 Conclusion Acknowledged

Tenth Report - HS2 and Euston

£36 billion HS2 savings to be reinvested across UK regions

The Department has said that the decision not to proceed with HS2 phases 2a, 2b and East will unlock £36 billion (2023 prices) and that “every penny of the £19.8 billion committed to the Northern leg of HS2 will be … Read more

Government Response

The government agrees with the committee's observation that the Network North funds will be reinvested. They state that progress will be reported for individual schemes as they mature, covering funding, location, and timescales, and that all schemes will undergo business case approval.

HM Treasury

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31 Conclusion Acknowledged

Tenth Report - HS2 and Euston

Network North projects funded by HS2 savings require individual business case approvals

In its Network North paper the Department described a number of road and rail projects to be included in what will be funded from the £36 billion, subject to approval of business cases.62 The Department told us that these “alternative … Read more

Government Response

The government agrees with the committee's description of the Network North projects and funding distribution. They reiterate that progress will be reported on individual schemes as they mature and that all will undergo business case approval and formal governance.

HM Treasury

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32 Conclusion Acknowledged

Tenth Report - HS2 and Euston

No comprehensive profiled list of projects funded by redirected HS2 savings exists

The Department told us it had already announced separately how some of this funding will be redirected.67 For example, on 23 October it announced a £150 million reallocation of HS2 funding to support bus services.68 It also announced additional funds … Read more

Government Response

The government agrees with the committee's points on funding redirection and previous announcements. They confirm that progress will be reported against individual Network North schemes as they mature, covering funding, location, and timescales, with all schemes subject to business case approval and formal governance.

HM Treasury

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Government Response AI assessment · 32 of 3 classified

Accepted 22

Acknowledged 7

Deferred 2

Rejected 1

Total 3 recs + 29 conclusions

Correspondence 5 letters

10 Jan 2024 Correspondence from Sir Jon Thompson, Executive Chair, High Speed Two (HS2) Ltd, re Public Accounts Committee HS2 and Euston: Recall (16th November) follow up, dated 11 December 2023

Parliament page

10 Jan 2024 Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department for Transport, re Follow-up to the session of Thursday 16 November 2023 - HS2 and Euston, dated 8 December 2023

Parliament page

16 Nov 2023 Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department for Transport, re Accounting Officer Assessment of Decision to complete Phase 1 of HS2 – revision to BCR Range, dated 14 November 2023

Parliament page