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Wednesday, Apr 02, 2025

Oversight and Local Negotiations Linked to Delays and Cost Overruns in HS2 Project

Oversight and Local Negotiations Linked to Delays and Cost Overruns in HS2 Project

A desire to address every concern in the HS2 project contributes to increased costs and delays, states the UK's infrastructure adviser.
The HS2 high-speed railway project in the United Kingdom is experiencing delays and increased costs due to the intention to address every community concern and objection, according to Sir John Armitt, the Government’s independent adviser on infrastructure.

Speaking to the Commons’ Transport Select Committee, Armitt highlighted that the decision to keep HS2 Ltd, tasked with the project’s construction, within the Department for Transport (DfT) subjects the initiative to excessive oversight and ministerial involvement, contributing to the delays.

Sir John noted that HS2 Ltd has had to make approximately 12,000 agreements with local entities following the passage of the hybrid Bill.

This extensive local engagement complicates and protracts the construction timeline, as each approval or modification can potentially incur additional costs and delay the project.

The infrastructure adviser remarked on a tendency within government-led projects to accommodate various concerns, unlike private sector approaches which may strictly adhere to budgetary constraints.

A notable example highlighted is the construction of a bat protection structure in Buckinghamshire, costing over £100 million, mandated by Natural England despite concerns over whether high-speed trains impact bats.

Recent figures from the DfT suggest the total cost of the HS2 project could reach £66 billion, based on 2019 prices.

This is a significant increase from the 2013 estimate of £37.5 billion at 2009 prices, which included extents to Manchester and Leeds that have since been removed from the plans.

Initially, the line from London to Birmingham was expected to be operational by the end of 2026, though recent projections estimate completion sometime between 2029 and 2033. In response to rising costs and timeline shifts, the DfT has taken urgent measures to control budget and delivery schedules, tasking the recently appointed chief executive with developing an action plan to implement HS2 at the most economical cost.
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