HS2: Update following the Northern leg cancellation
Public Accounts Committee
Closed
Inquiry
In October 2023, the Government announced the cancellation of Phase 2 of the High Speed 2 (HS2) railway from the West Midlands to Manchester, as well as a smaller HS2 station in London Euston. Following this announcement, the Department for Transport (DfT) and DfT’s arm’s-length body HS2 Ltd began work …
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8
Recommendations
43
Conclusions
1
Report
1
Oral session
15
Letters
1
Event
Activity timeline 19 events
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9 Jul
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28 Feb
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Report published
Oral evidence sessions 1 session
19 Dec 2024
View on parliament.uk
Alan Foster · HS2 Ltd
Alan Over · Department for Transport
Dame Bernadette Kelly DCB · Department for Transport
Mark Wild · HS2 Ltd
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| 10th Report - HS2: Update following the Northern leg cancellation | HC 357 | 28 Feb 2025 | 51 | Responded |
Recommendations & Conclusions
22 results
2
Conclusion
Accepted
10th Report - HS2: Update followin…
Publish agreed HS2 cost estimate methodology and update programme costs regularly
The Department and HS2 Ltd’s failure to work together effectively is starkly illustrated by them not being able to agree how much HS2 will cost. The Department and HS2 Ltd have still not agreed on how much it will cost …
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Government Response
The government agrees, stating it is finalizing the cost estimating methodology with HS2 Ltd over the summer and will fully implement it as part of the program reset in 2026. It commits to providing a further update to the Committee with details on the agreed approach once this process is complete.
HM Treasury
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5
Conclusion
Accepted
10th Report - HS2: Update followin…
Address HS2 leadership and capability gaps to ensure successful programme delivery
The Department and HS2 Ltd do not have the skills and capabilities needed to successfully deliver the programme. The Public Accounts Committee has repeatedly raised concerns over the Department and HS2 Ltd having the skills and capability they need. Following …
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Government Response
The government is undertaking a comprehensive change programme to reshape HS2 Ltd's organisation, including executive leadership changes, appointing a new Chair to review board capability, and commencing recruitment for identified gaps. Key performance indicators for 2025-26 are being agreed and will be published, alongside a new performance-related pay scheme for senior leaders.
HM Treasury
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6
Conclusion
Accepted
10th Report - HS2: Update followin…
Update Parliament on HS2 Euston progress, funding, risk management, and costs
The Department’s plans for Euston carry huge risks given the uncertainties about its scope, cost, funding, schedule and delivery model. In the 2024 Autumn budget, the government confirmed that HS2 would terminate at London Euston rather than Old Oak Common …
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Government Response
The government agrees to include an update on Euston's progress in its six-monthly report to Parliament in Summer 2025, covering the delivery model, private financing, risk management, and cost figures. They are also responding to a separate committee letter regarding the Euston tunnelling schedule.
HM Treasury
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7
Conclusion
Accepted
10th Report - HS2: Update followin…
Slow progress on HS2 land and property disposal decisions post-Phase 2 cancellation
Things are moving too slowly on making decisions on the disposal of land and property purchased as part of the programme. The Department has yet to determine what land and property can be disposed of following the cancellation of Phase …
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Government Response
The government agrees with the recommendation, is undertaking a review of the Phase 2 land portfolio including identifying Crichel Down properties, and will write to the Committee to confirm next steps for a disposal programme. This information, along with approaches to future West Coast Main Line capacity, will be included in a future six-monthly report to Parliament.
HM Treasury
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8
Conclusion
Accepted
10th Report - HS2: Update followin…
Require the Department to report on lessons learned and their practical implementation to the Committee.
Over the last decade the Department and HS2 Ltd have repeatedly said they are learning lessons but there is little evidence that lessons have been applied effectively and mistakes avoided. Since 2013, the Department and HS2 Ltd have told the …
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Government Response
The government agrees to work with HM Treasury and NISTA to identify and apply key lessons from the HS2 programme during the reset, incorporating findings from the Major Transport Projects Governance and Assurance Review. They will write to the Committee outlining these lessons and provide further updates in the next Parliamentary report.
HM Treasury
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1
Conclusion
Accepted
10th Report - HS2: Update followin…
Committee examines current state of HS2 programme with Department and HS2 Ltd.
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Transport (the Department) and High Speed Two Limited (HS2 Ltd) on the current state of the High Speed Two (HS2) programme.1 …
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Government Response
The government agrees, stating that work is underway to improve oversight and financial control of HS2, including resetting contracts, launching an independent review, reinstating ministerial oversight, and commissioning a comprehensive review by the new HS2 Ltd CEO. Updates on this work and a detailed plan for programme reset will be provided to Parliament and the Committee.
HM Treasury
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9
Conclusion
Accepted
10th Report - HS2: Update followin…
HS2 programme reset to take until mid-2026 for assured contractual baseline.
We were told by HS2 Ltd that it would take time to implement the changes needed as part of the programme’s fundamental reset, with all of 2025 needed to ensure the organisation’s activities are all orientated towards delivering Phase 1. …
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Government Response
The government agrees with the committee's observation, stating that work is well underway to improve HS2's oversight and financial control, including making clear that HS2 Ltd and suppliers must reset contracts, launching an independent review, and reinstating ministerial oversight. The CEO has been commissioned to undertake a comprehensive review, and updates will be provided in the next six-monthly report and a letter before summer recess.
HM Treasury
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10
Conclusion
Accepted
10th Report - HS2: Update followin…
Department and HS2 Ltd disagree on total programme cost estimates and methodology.
The Department and HS2 Ltd still disagree on the estimated total costs for completing the programme. Despite using the same data, the Department and HS2 Ltd told us that estimates differ because they disagree over a range of technical factors …
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Government Response
The government agrees with the recommendation, stating it has commissioned a comprehensive review of the programme and agreed areas of cost estimation with HS2 Ltd. It is working to finalise the cost estimating methodology over the summer and implement it by 2026, providing further updates to the Committee.
HM Treasury
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11
Conclusion
Accepted
10th Report - HS2: Update followin…
Department and HS2 Ltd are working to agree cost estimation methodology with Treasury.
Both the Department and HS2 Ltd told us that they were working together to reach an agreed methodology including drawing on third–party technical advice on cost estimation and, to ensure that the underpinning assumptions of future estimates are agreed, establishing …
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Government Response
The government agrees with the recommendation, outlining steps to finalise and implement an agreed cost estimating methodology with HS2 Ltd, including a comprehensive review and collaboration with NISTA and HM Treasury, by Spring 2026.
HM Treasury
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28
Recommendation
Accepted
10th Report - HS2: Update followin…
Ensure Department and HS2 Ltd secure necessary skills for successful programme delivery.
The Public Accounts Committee has repeatedly raised concerns over whether the Department and HS2 Ltd have had the necessary skills and capability to deliver HS2 successfully. In 2020 the previous Committee cautioned that it was not yet convinced that the …
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Government Response
The government accepts the recommendation, detailing that the new HS2 Ltd CEO has commenced a comprehensive change programme to enhance skills and capabilities, made executive leadership changes, and the department is undertaking parallel activity. A new Chair is being appointed to review board capability and gaps, leading to recruitment, and new KPIs and a performance-related pay scheme are being introduced.
HM Treasury
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29
Conclusion
Accepted
10th Report - HS2: Update followin…
HS2 Ltd shifts focus to railway systems and operational capability.
HS2 Ltd also acknowledged in evidence to the previous Committee in November 2023 that it that it needed to think about its capacity and capability throughout the company to deliver the task ahead.47 While HS2 Ltd’s focus in recent years …
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Government Response
The government agrees with the committee's observation, detailing that the new CEO has commenced a comprehensive change programme to reshape HS2 Ltd's capabilities, with a reset program expected to conclude in 2026. Parallel departmental activity, a new Chair appointment to review board capabilities, and new KPIs and performance-related pay are also being implemented.
HM Treasury
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30
Conclusion
Accepted
10th Report - HS2: Update followin…
New HS2 Ltd CEO to reinforce capability, reduce costs, and focus on Phase 1 delivery.
HS2 Ltd now has new leadership, with Mark Wild appointed as the new Chief Executive Officer and taking up the role in December 2024. He brings his experience of delivering Crossrail into operation and is tasked with delivering the programme’s …
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Government Response
The government agrees with the committee's observation, detailing that the new CEO has commenced a comprehensive change programme, made executive leadership changes, and a new Chair is being appointed to review board capability and fill gaps. New KPIs and a performance-related pay scheme are also being introduced.
HM Treasury
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36
Conclusion
Accepted
10th Report - HS2: Update followin…
Euston tunneling confirmed, but completion date for HS2 services remains unknown.
In the 2024 Autumn Budget, the government confirmed that HS2 would terminate at Euston, announcing that it would fund the work to tunnel from Old Oak Common in west London to Euston.61 The previous Public Accounts 57 Qq 78–80 58 …
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Government Response
The government agrees with the committee's observation and commits to providing an update on progress at Euston in its next six-monthly report to Parliament in Summer 2025, and is also responding to a specific letter about the Euston tunnelling schedule.
HM Treasury
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37
Conclusion
Accepted
10th Report - HS2: Update followin…
Euston works will cause over a decade of disruption to local communities
The Department acknowledged that establishing a clearer plan for the works at Euston and implementing it will take over a decade and that there will be continued disruption to local businesses and communities at Euston. The Department committed to provide …
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Government Response
The government agrees with the committee's observation that it committed to transparency and engagement, and states it will provide an update on progress on Euston in its six-monthly report to Parliament in Summer 2025, as well as responding to a letter regarding the tunnelling schedule.
HM Treasury
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38
Conclusion
Accepted
10th Report - HS2: Update followin…
HS2 Ltd spent £592 million on land for cancelled Phase 2 route
Up to the end of March 2024, HS2 Ltd had spent £3.7 billion on buying land and property along the HS2 route, of which £592 million relates to the cancelled Phase 2.66 The types of land and property include agricultural, …
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Government Response
The government responds to the perceived recommendation by stating that preparatory work for a Phase 2 land disposal programme is underway, which includes a review of the land portfolio and identification of Crichel Down properties. It commits to providing updates on next steps to the Committee and in future six-monthly reports.
HM Treasury
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39
Recommendation
Accepted
10th Report - HS2: Update followin…
Department developing programme for disposing of HS2 surplus land and property
In February 2024, the previous Public Accounts Committee stressed the need for the Department and HS2 Ltd to develop a strategy for the disposal of land and property, and to balance the need for value for money for the taxpayer …
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Government Response
The government agrees with the recommendation and states that preparatory work is underway for a Phase 2 land disposal programme, including a portfolio review and identification of Crichel Down properties. It commits to providing updates on next steps to the Committee and in future six-monthly reports.
HM Treasury
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41
Recommendation
Accepted
10th Report - HS2: Update followin…
Committee urges sympathetic handling of property offers back to former HS2 owners
We pressed the Department to ensure that wherever possible, properties should be offered back to the persons from whom they were purchased, and that requests from people who would like to move back into their former homes be handled sympathetically, …
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Government Response
The government agrees with the recommendation and states that preparatory work is underway for a Phase 2 land disposal programme, which includes identifying Crichel Down properties. It commits to confirming next steps to the Committee and providing updates in future reports, while developing a programme that delivers value for money and avoids market disruption.
HM Treasury
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42
Conclusion
Accepted
10th Report - HS2: Update followin…
Department must balance Crichel Down rules with human impact in property disposal
The Department told us that it is obliged to secure value for money for the taxpayer and to follow the Crichel Down rules, which require government departments to offer surplus land back to the previous owner at the current market …
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Government Response
The government agrees and is undertaking a review of the Phase 2 land portfolio, including identification of Crichel Down properties, as part of a disposal programme. They will write to the Committee with next steps and include updates in a future six-monthly report by Summer 2025.
HM Treasury
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46
Conclusion
Accepted
10th Report - HS2: Update followin…
Department and HS2 Ltd claim continuous learning from major project experiences
Since 2013, the Department and HS2 Ltd have told the Public Accounts Committee that they have been learning lessons from other major programmes to apply to how they are managing the HS2 programme. For example, in 2019, the Department and …
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Government Response
The government agrees with the committee's observation, committing to learning and implementing lessons from the HS2 programme reset and transformation, taking into account future review findings, and sharing lessons across government. The department will write to the Committee outlining key lessons and provide further updates in the next Parliamentary report.
HM Treasury
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49
Conclusion
Accepted
10th Report - HS2: Update followin…
Department continues to 'mine' lessons from HS2 programme with other bodies
The Department told us that, together with HS2 Ltd, it has worked with HM Treasury and the Infrastructure and Projects Authority to consider all the lessons to date from the HS2 programme but is continuing to ‘mine’ the lessons learned …
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Government Response
The government agrees with the conclusion, committing to identify and apply lessons from the HS2 program during the program reset and transformation of HS2 Ltd. It will outline key lessons to the Committee and provide updates in future Parliamentary reports.
HM Treasury
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50
Conclusion
Accepted
10th Report - HS2: Update followin…
Clear project scope definition essential to prevent cost escalation in infrastructure plans
The Department reflected that a key lesson from the experience of HS2, and which needs to inform all the Department’s future infrastructure plans, is that the Department needs to be very clear when it sets out on a large project …
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Government Response
The government agrees with the conclusion, committing to identify and apply lessons from the HS2 program during the program reset and transformation of HS2 Ltd. It will outline key lessons to the Committee and provide updates in future Parliamentary reports.
HM Treasury
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51
Conclusion
Accepted
10th Report - HS2: Update followin…
Incremental delivery of infrastructure projects offers better control and earlier benefits
The Department also suggested to us that the delivery of infrastructure has been too focused on “grand projects or big schemes that are binary—you do them or you don’t do them” as opposed to setting a long–term intent and delivering …
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Government Response
The government agrees with the conclusion, committing to identify and apply lessons from the HS2 program regarding project delivery approaches during the program reset and transformation of HS2 Ltd. It will outline key lessons to the Committee and provide updates in future Parliamentary reports.
HM Treasury
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Correspondence 15 letters
4 Sep 2025
To committee
Letter from the Permanent Secretary of the Department for Transport and High Speed Two Limited Chief Executive relating to the 10th Report of Session 2024-25, HS2: update following the Northern leg cancellation, recommendation 1 and 4, 22 July 2025
Parliament page
9 Jul 2025
To committee
Letter from the Permanent Secretary of the Department of Transport and the Chief Executive of HS2 Ltd relating to Bat mitigation on HS2, 8 July 2025
Parliament page
8 Jul 2025
To committee
Letter from the Permanent Secretary of the Department for Transport and the Chief Executive Officer at HS2 Ltd relating to the recommendations of the Committee's 10th report, HS2: Update following the Northern Leg cancellation, 07 July 2025
Parliament page
3 Jul 2025
From committee
Letter to the Permanent Secretary of the Department for Transport relating to the updated estimate of the HS2 bat mitigation structure at Sheephouse Wood, 03 July 2025
Parliament page
30 Jun 2025
From committee
Letter to the Permanent Secretary of the Department for Transport relating to the Treasury Minute Response on HS2 update following the Northern Leg cancellation, 24 June 2025
Parliament page
26 Jun 2025
To committee
Letter from the Interim Permanent Secretary of the Department for Transport and Chief Executive of High Speed Two Limited relating to the Sheephouse Wood bat mitigation structure, 20 June 2025
Parliament page
9 Jun 2025
From committee
Letter to the Permanent Secretary of the Department for Transport relating to the cost breakdown of the HS2 bat mitigation structure at Sheephouse Wood, 05 June 202
Parliament page
19 May 2025
To committee
Letter from the Permanent Secretary of the Department for Transport relating to the 10th Report of Session 2024-25, HS2: update following the Northern leg cancellation, Recommendation 2, 4, and 8, 15 May 2025
Parliament page
17 Mar 2025
From committee
Letter to the Permanent Secretary of the Department for Transport relating to the HS2 Euston tunnelling schedule, 06 March 2025
Parliament page
4 Feb 2025
To committee
Letter from the Permanent Secretary of the Department for Transport relating to the cost breakdown of the HS2 bat mitigation structure at Sheephouse Wood, 31 January 2025
Parliament page
20 Jan 2025
To committee
Letter from the Permanent Secretary of the Department for Transport relating to a follow up on questions during the oral evidence session held on 19 December 2024, 10 January 2025
Parliament page
20 Jan 2025
To committee
Letter from the Deputy Chief Executive Officer at High Speed Two (HS2) Limited relating to the oral evidence session on 19 December 2024, 10 January 2025
Parliament page
20 Jan 2025
To committee
Letter from the Permanent Secretary of the Department for Transport relating to a follow up on HS2 Resident’s and Construction Commissioner role, 10 January 2025
Parliament page
2 Jan 2025
From committee
Letter to the Permanent Secretary of the Department for Transport relating to the oral evidence session held on 19 December 2024, 23 December 2024
Parliament page
19 Dec 2024
To committee
Letter from the Permanent Secretary of the Department for Transport relating to the publication of the High Speed Two (HS2) Parliamentary Report, 17 December 2024
Parliament page