The public accounts committee (PAC) has released a report characterizing the High Speed 2 (HS2) project as "a casebook example of how not to run a major project." The report criticizes the Department for Transport (DfT) and HS2 Ltd for a lack of effective collaboration and urges them to capitalize on the current "reset" phase to manage rising costs.

The MPs indicated significant concerns regarding the project’s lack of clarity, stating, "It is unacceptable that over a decade into the programme, we still do not know what it will cost, what the final scope will be, when it will finally be completed or what benefits it will deliver.”

Initially approved in 2012, HS2 was designed to connect London with Manchester and Leeds.

However, the current plans only include a direct line from London to Birmingham.

This shift has raised questions about the future viability of the project and its endpoints.

The PAC highlighted ongoing issues related to the cost projections for the project, with the last government estimate in November 2023 ranging between £45 billion and £54 billion, while HS2 Ltd's estimate from June ranged from £54 billion to £66 billion.

Both estimates, calculated using 2019 prices, suggest that inflation is pushing the total cost closer to £80 billion at present.

Concerns about the redevelopment of Euston station, the designated southern terminus, were also noted by the PAC.

Although the government confirmed that the HS2 service would reach central London, the committee remarked that the DfT has yet to formulate a comprehensive plan for the necessary improvements at Euston.

The PAC attributed the “cycle of repeated failure” between the DfT and HS2 Ltd to continuing disagreements over budget estimates.

The committee expressed that the department has failed in its oversight and financial management of what they termed as one of the UK's most consequential public sector initiatives, warning of potential reputational risks.

Mark Wild, the newly appointed chief executive of HS2 Ltd, previously worked on the Crossrail initiative, which has faced its own challenges.

In response to PAC inquiries, Wild noted that cost overruns can be traced back to poorly structured contracts that placed excessive risk on taxpayers.

He has initiated a review of the remaining works for HS2 to address these issues.

Despite the PAC's call for effective cost control measures, they reported “little confidence” that current efforts would yield significant improvements.

They urged both the DfT and HS2 Ltd to take full advantage of this latest opportunity to reevaluate the program.

A previous review in 2020 had also assessed the project due to cost concerns, leading to the continuation of the scheme under then-Prime Minister Boris Johnson, although plans for the line to Leeds were allowed to lapse.

In late 2023, Prime Minister Rishi Sunak announced the cancellation of the northern extension of the line.

HS2 Ltd issued a statement acknowledging the committee’s assessment of management failures in controlling costs and schedules.

Wild emphasized his commitment to delivering the project efficiently to meet economic growth objectives through enhanced connectivity.

The High Speed Rail Group, which represents suppliers involved in the project, remarked that the report illustrates the negative ramifications of government interventions over the past two years, indicating how each alteration in scope has compounded delays and added to costs.

PAC chair Geoffrey Clifton-Brown stated that the challenges faced by HS2 serve as a warning for future government projects.

In response to the PAC’s findings, a DfT representative expressed discontent over the escalating costs, affirming the government’s swift actions to restore control to HS2 through new leadership and reinforced ministerial oversight.