Tenth Report - HS2 and Euston
Select Committee
Public Accounts Committee
HC 67
7 February 2024
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Tenth report from Session 2023-24 · published 2 Apr 2024
Recommendations & Conclusions
7 results
4
Conclusion
Acknowledged
Require Department to develop private investment plans for Euston and decide on tunnelling
Conclusion
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 …
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Government Response Summary
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
No final decisions made on HS2 operational train services for Phase 1.
Conclusion
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 …
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Government Response Summary
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
HS2 Ltd faces capacity challenges and struggles with recruitment in overheated market.
Conclusion
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 …
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Government Response Summary
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
Realising Euston's private sector funding requires greater certainty and a coherent market proposition.
Conclusion
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 …
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Government Response Summary
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
£36 billion HS2 savings to be reinvested across UK regions
Conclusion
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 …
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Government Response Summary
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
Network North projects funded by HS2 savings require individual business case approvals
Conclusion
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 …
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Government Response Summary
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
No comprehensive profiled list of projects funded by redirected HS2 savings exists
Conclusion
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 …
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Government Response Summary
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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