£43billion HS2 'will not help regions', warns Public Accounts Committee report
The controversial High Speed Two (HS2) rail project has received one of its most damning assessments yet – just days after the Prime Minister called for a fightback in favour of the project – with the Department of Transport accused of basing projections on “fragile numbers, out of date data and assumptions that do not reflect real life”.
The Public Accounts Committee (PAC), chaired by Margaret Hodge, criticised the cost of the project, now standing at £42.6bn, and insisted there was no evidence suggesting it would aid regional economies. Instead, it warned, its effects could be the reverse: “sucking” activity into London.
The scathing conclusions follow David Cameron’s decision to use the G20 summit to effectively relaunch the case for HS2 in wake of growing scepticism, urging doubters to “think big” about its economic and transport benefits.
But the committee warned of “unrealistic” plans to secure the necessary legislation for HS2 by 2015 and said management risked a repeat of costly errors such as last year’s flawed procurement of the West Coast mainline franchise award.
It said evidence used to show the benefits to commuters was so out of date that it failed to recognise business travellers were able to work on trains using laptops and other mobile devices. And it demanded an urgent explanation of how quickly the Department would plug significant gaps in project expertise. “In my committee’s experience, not allowing enough time for preparation undermines project from the start,” Ms Hodge warned.
The committee also said that the scale of the contingency built into the budget –at £14.4bn, the equivalent of a third of the total – appeared to be “compensating for weak cost information”.
The former Chancellor Alistair Darling, recently withdrew his support for a venture that he was instrumental in starting, calling it a potential “nightmare”. The Institute of Directors has branded it a “grand folly”. But the PAC criticism is the latest and perhaps most withering criticism of the proposed 351-mile service from London to Birmingham and beyond.
Advocates say it will reduce journey times and expand passenger capacity at a time when more people are using the railways than at any time since the 1920s. The chairman of HS2, Douglas Oakervee, told The Independent on Sunday that it would be “catastrophic” if the project was scrapped.
The Transport Secretary Patrick McLoughlin, who is expected to argue the economic case for HS2 in a major speech on Wednesday, rejected the findings, insisting the case was “absolutely clear” that without HS2, key rail routes would be “overwhelmed” by rising passenger numbers. “The project will free up vital space on our railways, generate hundreds of thousands of jobs and deliver better connections,” he said. “HS2 is a vital part of our plan to give Britain the transport infrastructure it needs to compete.”
The first phase of the scheme between London and Birmingham is due to open in 2026 with an extension to Leeds and Manchester scheduled to operate from 2033. Calling for more detailed evidence to back the case, the MPs concluded: “The Department has yet to demonstrate that this is the best way to spend £50bn on rail investment in these constrained times.”
A Whitehall-led review is being carried out for an update next month. It will set out broader benefits for the national economy than those covered by this formal cost-benefit analysis.
- 4 Frankie Boyle on Scottish independence: 'In the Interests of Unity, F**k Off'
- 5 Florida couple forced to register as sex offenders for having sex on public beach
Boston Marathon runner's search for mystery man she kissed ends with letter from his wife
Italian police 'reveal' what Jesus looked like as a young boy
Florida couple forced to register as sex offenders for having sex on public beach
Mysterious 'X-Files' sounds heard miles above the Earth
Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian with near-naked ensemble
In defence of liberal democracy
General Election 2015: Post-election 'shambles' looms as 70 per cent of voters say SNP 'should not be able to veto UK government policies'
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
£18000 - £20000 per annum: Ashdown Group: Helpdesk Analyst - Devon - £20,000 ...
£35000 - £50000 per annum + generous bonus: Ashdown Group: Business Analytics ...
£45000 - £50000 per annum: Ashdown Group: IT Project Coordinator (Software Dev...
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...