Rail minister Huw Merriman has said the HS2 Euston plans are unaffordable at current costs and that the government will consider partnering with the private sector to ensure “it delivers” for taxpayers.
The government will use the two-year pause in the phase 2a works to “look again” at the Euston terminal design and consider private sector partnerships.
“It will require careful prioritisation of requirements and a willingness from stakeholders to compromise,” Merriman wrote in his HS2 report to Parliament.
In March, the National Audit Office (NAO) published a report calling on the government to rethink its HS2 strategy to avoid further failures. It came after the Department for Transport announced more delays in the planned high-speed railway line due to inflation.
NAO said that although the two-year pause will see HS2 spending deferred in the short-term, it will lead to additional costs and potentially an overall increase in costs in the long-term.
“The March 2023 announcement by the transport secretary pausing new construction work should now give DfT and HS2 Ltd the necessary time to put the Euston project on a more realistic and stable footing,” said NAO head, Gareth Davies.
“However, the deferral of spending to manage inflationary pressures will lead to additional costs and potentially a more expensive project overall, and that will need managing closely.”
The latest cost estimate for the 10-platform design at Euston was £2.2bn over its original budget. That brings the total works estimate to £4.8bn.
Merriman said officials are now working with the Euston Partnership, HS2 Ltd and Mace Dragados joint venture “to understand the causes of the additional costs and to develop alternative delivery options”.
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Sounds like the minister is handling a time bomb to a future Labour Minister when the costs of the delay are revealed.
The costs are eyewatering, when you consider the condition of rail infrastructure across most of the rest of the country and the improvements that could be made for a fraction of this.
I’m sure that kind of money (for one station) would go a long way to pay for a high speed line across country, between Liverpool and Hull.