Rising costs of HS2 and Euston construction investigated by PAC
The Public Accounts Committee (PAC) will examine the recently revised costs and timeframe for delivering the High Speed Two (HS2) and Euston programme with Mark Wild, CEO of HS2 Ltd on Monday, 14 September at 3.30pm.
The construction cost of the HS2 programme is now projected to rise to up to £102.7bn. By March 2026, the Department for Transport (DfT) and HS2 Ltd had already spent £46.8bn on the programme, including on the cancelled Northern leg of the plans.
The completion of HS2, is now not expected until 2040-43, which is between 3 and 13 years later than previous estimates. The PAC found in 2024 that HS2 represented very poor value for money following the cancellation of its Northern leg, with the total costs for delivering only Phase 1 significantly outweighing its benefits.
MPs will question the CEO of HS2 Ltd and officials from the DfT on whether changes to the programme, including reduced train speeds, risk further reducing long-term benefits in favour of short-term cost savings. The potential for reduced capacity on HS2 trains compared with existing services may also be discussed.
Meeting details
The PAC could ask why the DfT has yet to set out a disposal strategy for the land and property it no longer needs, three years on from the Northern leg’s cancellation, as well as what steps are being taken to address capability gaps to ensure that HS2 Ltd has the skills and capacity to deliver the programme.
By March 2026, £3.8bn had been spent on works at Euston. With another £4.1bn of public funding anticipated, MPs will likely explore how this project will be managed, potential funding risks, and how the impact on residents and businesses will be addressed.