HS2 Ltd’s most recent estimate for the cost of Phase 1 is that it will be in the range £49 billion to £57 billion (2019 prices). It cites a range of issues as the cause of increases, including “design performance, delivery productivity, consenting delays, and a difficult operating environment with COVID-19 and the Ukraine War affecting the supply chain.” In particular it also cites the increased cost of ‘Main Work Civils’. The Government disagrees with this forecast because a) it was drawn up...
HS2 Ltd’s most recent estimate for the cost of Phase 1 is that it will be in the range £49 billion to £57 billion (2019 prices). It cites a range of issues as the cause of increases, including “design performance, delivery productivity, consenting delays, and a difficult operating environment with COVID-19 and the Ukraine War affecting the supply chain.” In particular it also cites the increased cost of ‘Main Work Civils’. The Government disagrees with this forecast because a) it was drawn up by HS2 Ltd before being told of the decision to cancel Phase 2 and b) because the Department makes different assumptions on how much cost risk remains a Type: conclusion | Number: 10 | Response status: accepted Government response: 2.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring and autumn 2024 2.2 HS2 Ltd’s leadership and its collective capability are critical to the success of HS2. The department commenced a recruitment exercise to identify new