HS2 rail line branded an 'appalling mess' and its opening is delayed past 2033 as focus switches to saving money after costs rose by £37BILLION
The disastrous HS2 rail project will not open as planned in 2033, a senior minister confirmed today, as a damning report reveals that its costs have soared by an astonishing £37billion.
Transport Secretary Heidi Alexander branded the building of a new line linking London and Birmingham with the North an 'appalling mess' and told MPs she saw 'no route' to getting trains running in eight years' time.
Instead the scheme will now focus on saving taxpayers' money even if it means delaying its opening, she told the Commons this afternoon.
She warned that phase 1 of the project between London and Litchfield could end up being 'one of the most expensive railway lines in the world' after years of cost overruns and delays.
And she warned there was evidence of sub-contractors defrauding the scheme.
The project was announced in 2010 by then Conservative Transport Secretary Philip Hammond.
But ever since it has been beset by controversy over its route amid ballooning costs - including spending £100million on a tunnel for bats.
Reports suggest the first phase will not open to passengers until 2035 at the earliest.
The Transport Secretary said she has accepted 89 recommendations from an independent review into infrastructure projects which was spearheaded by former Crossrail chief executive James Stewart.
She told MPs that the word '''affordable'' was clearly not part of the HS2 lexicon', adding: 'Quite simply, there have been too many dark corners for failure to hide in.
'The ministerial taskforce set up to provide oversight of HS2 had inconsistent attendance from key ministers, including the then-transport secretary and the then-chief secretary to the Treasury.
'The Government has re-established the taskforce with full senior attendance, as per the review's recommendations – and new performance programme and shareholder boards will offer much-needed oversight and accountability.
'Secondly, the report highlights HS2 could cost the taxpayer millions more than planned. We'll stop this spiralling any further by delivering all the recommendations on cost control.
'That starts with HS2 fundamentally changing their approach to estimating costs – it includes certainty over funding which the spending review has given, and it also means HS2 working with suppliers so their contracts incentivise saving costs for taxpayers.
'As far as I'm concerned, suppliers should make a better return the more taxpayer money they save.'
Mike Brown, former Transport for London (TfL) commissioner is set to become the new chairman of HS2 Limited - the company in charge of the project.
The review hit out at spending, including £2billion laid out by the Tory government on the route between Birmingham, Manchester and Leeds before they scrapped it.
More than £250million was also spent by HS2 Ltd on failed designs for a new station at Euston.
The company was reportedly asked to provide a cheaper alternative, but ended up nearly doubling the price in the second design.
Earlier this month a whistleblower who lost his job after accusing HS2 executives of fraud over the true cost of the project won more than £300,000 in compensation.
Risk management expert Stephen Cresswell repeatedly raised concerns that the cost of the high speed rail line - which could end up landing the taxpayer with a bill of more than £80billion - was being 'actively misrepresented'.
The consultant was told by one HS2 executive to 'disregard' scenarios he had prepared which forecast a 'significant' increase in the price to the public, an employment tribunal heard.
As a result, Mr Cresswell warned that he found himself in a 'very uncomfortable position' of having a 'very different' view to the high speed rail line company's 'documented position'.
The tribunal heard that in a meeting with bosses he said 'fraud had been committed because he understood fraud to be making false statement so as to secure a benefit'.
After losing his job, Mr Cresswell took HS2 to an employment tribunal, claiming he had his contract terminated and been denied other work as a result of blowing the whistle.
After the rail firm admitted that he had not given adequate levels of protection following his disclosures he has now been awarded £319,070 in damages.
In response, campaigners said it was not to late for Labour to consider scrapping high speed rail over years of 'catastrophic mishandling'.
HS2 Ltd previously said investigations into Mr Cresswell's claims found no evidence of fraud or illegal activity.
Last month a DfT spokesperson said: 'We take all whistleblowing allegations seriously and it is important that individuals are given appropriate levels of protection, which clearly was not the case for Mr Cresswell.
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