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Telegraph
2 days ago
- Politics
- Telegraph
HS2 has devastated my constituency. And for what?
For years we have been asking 'when? When will HS2 finally be completed?' But this misses the point. We should have questioned not the deadline, but the justification and purpose of the costly, benighted vanity project. We should have demanded to know why taxpayers are being forced to bankroll this failure. Why are we allowing the civil servants who have overseen this woeful tale of waste and incompetence to remain in their posts? Why have no heads rolled, as a consequence of this national embarrassment? The most painful aspect to this sorry affair is the knowledge that, even at the outset, when it was a twinkle in Lord Adonis's eye under the previous Labour government, it lacked a business case. Not one private sector investor was willing to risk a penny piece on it. Over a decade later, it has inflicted unnecessary misery on my constituents. And now we discover that the opening of HS2 will be delayed, with the Transport Secretary announcing that the remaining section of the line will not be completed by 2033. This is hardly the first time the project has come off the tracks. First the eastern leg to Leeds was scrapped. Then the Manchester leg was curtailed. For a time, it looked as though it would terminate at Old Oak Common in West London, not even making it to Euston despite the money piled into the station's revamp. Commuting times would then have more than offset any savings from HS2's much lauded speed. That truncation has since been abandoned. The Department for Transport (DfT) has faced accusations of insufficient oversight. Leadership at HS2 Ltd, a public company owned by the DfT, has been a merry-go-round. And all of this is before you get to the £100 million tunnel to protect bats in my county, or HS2's 52-page annual Equality, Diversity and Inclusion statement For the residents of Wendover, daily life has been fundamentally changed by HS2. The impact on local amenities – on churches and cricket clubs – cannot be overstated. The brazen attempts to send HGVs down narrow residential streets have been destructive. Landowners and community organisations have been abandoned by project managers. While they face the degrading financial uncertainty that comes with losing their land, the construction companies are raking in millions thanks to the DfT's cost-plus contract model, which guarantees a profit at the expense of the taxpayer whilst reimbursing firms' costs. This is why the project's real price tag has exceeded £200 billion, with one of the worst benefit-cost ratios of any major project, all to, in the words said to me by a former Minister of State for Transport a few years back, prop up Britain's construction industry. Last month it was revealed by RAIL Magazine, through a Freedom of Information request, that not only will the final cost of Phase One reach over £100 billion, with £81 billion (at 2019 prices) attributed to constructing as far as Old Oak Common, but also that it will be 2036 at the earliest until this section is finished. It's a slap in the face for those who've experienced compulsory land purchases, land which may have provided a source of income. There is effectively no spending control mechanism. It is a project which, by its very design, benefits the contractors at the expense of hard working taxpayers who are currently seeing no benefit from HS2 and likely never will, given its reduced scope. When asked, HS2 contractor Balfour Beatty Group's former Chief Executive Leo Quinn answered 'no' to a question on the efficacy of restructuring HS2's major works contracts in the interests of the taxpayer; his suggestion that 'no contractor in the UK could actually have a balance sheet to deliver something of that [HS2's] size' is highly alarming. Not only does this bring into doubt the Department's ability to renegotiate its own contracts – it also casts significant doubt on whether the project could ever be delivered in full at all when, as Mr Quinn suggests, the private sector does not have the capital resources required to facilitate a project like this. The utter failure of HS2 is a vivid example of British decline. That so much money has been spent on something which has so miserably failed to come about does not augur well for other future infrastructure projects. We need to learn from this. HS2 ruins the lives of everyone it touches and, if it's not reigned in soon, we as a country will suffer immensely, just as my constituents have.
Daily Mail
2 days ago
- Business
- Daily Mail
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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The Independent
2 days ago
- Politics
- The Independent
Is HS2 still worth completing, or is it just a £66bn mistake? Join The Independent Debate
With the cost of Britain's flagship high-speed rail project soaring past £66 billion and its opening delayed yet again – this time well beyond 2033 – serious questions are being raised about the future of HS2, and what, if anything, should be salvaged. What was once promised as a transformational national infrastructure project linking London, Birmingham, Manchester and Leeds has been continuously scaled back, plagued by spiralling budgets, environmental controversies, governance failures and now, fresh allegations of fraud. Transport Secretary Heidi Alexander is set to confirm to Parliament this week that the project will be delayed indefinitely, conceding there is 'no reasonable way to deliver' HS2 on time or within budget. Two independent reviews are due to be published imminently, one focusing on the London-Birmingham section still under construction, the other investigating the leadership and decision-making behind the project's troubled path. Ms Alexander says this is about drawing 'a line in the sand' and moving forward with lessons learned for future schemes like Northern Powerhouse Rail and the Lower Thames Crossing. But the question remains: what should become of HS2? Some argue that completing the full route as originally envisioned is the only way to realise its benefits and justify the money already spent. Meanwhile, others believe it's time to stop the funding tap and either halt the project entirely or limit it to the part that's already furthest along, from London to Birmingham. Now we want to know where you stand. Should HS2 be finished in full or scaled back? Or do you think it should be scrapped entirely? Share your thoughts in the comments and vote in the poll above – we'll feature the most compelling responses and discuss the results in the coming days. All you have to do is sign up and register your details – then you can take part in the debate. You can also sign up by clicking 'log in' on the top right-hand corner of the screen.
The Independent
2 days ago
- Business
- The Independent
HS2 opening set to be delayed again as costs soar
The government is expected to announce a delay to the London to Birmingham stretch of the HS2 high-speed rail project beyond its 2033 target opening date, due to soaring costs. Transport Secretary Heidi Alexander will address Parliament, outlining a £37bn increase in HS2 's costs since its approval in 2012 and vowing consequences for those who overcharged taxpayers. The government aims to learn from HS2 's failures to improve the delivery of future infrastructure projects like Northern Powerhouse Rail and the Lower Thames Crossing. Two reviews into HS2, led by Mark Wild and James Stewart, are expected to be announced alongside the Transport Secretary's statement, focusing on construction progress and governance issues. A new chair of HS2, Mike Brown, former commissioner for Transport for London, will be announced, replacing Sir Jon Thompson, as the Transport Secretary is expected to address allegations of fraud by contractors to HS2.
Daily Mail
3 days ago
- Business
- Daily Mail
Network Rail strikes lifeline £500m deal with British Steel to help save the Scunthorpe blast furnaces
Network Rail has struck a lifeline £500million deal with British Steel to help save the Scunthorpe blast furnaces – but the industry is still facing punitive 25 per cent US tariffs. The agreement, for British Steel to produce 337,000 tonnes of rails over five years, safeguards 2,700 jobs. But the industry remains in peril unless the Government can finalise its trade deal with the Trump administration and have tariffs removed. Otherwise, the charge would rise from its interim level of 25 per cent – covering UK steel imports while trade deal discussions are ongoing – to the 50 per cent levied on all other countries. And the rail-supply deal follows outcry after the state-owned track and infrastructure company put a £140million steel contract for overhead electrical installations out for tender on the open market last month, as revealed in The Mail on Sunday. Transport Secretary Heidi Alexander, who yesterday visited Scunthorpe steelworks to finalise the deal, said it 'truly transforms the outlook for British Steel'.
