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HS2 project costs soar up to 拢66.6bn
11 January 2024
The cost of building the UK-based rail project HS2 between London and Birmingham has increased to up to 拢66.6 billion, MPs heard at the Transport Select Committee.
An artist impression of HS2 (Photo: HS2)
During the committee meeting, Sir Jon Thompson, the executive chairman of HS2 Ltd, stated that the estimated cost for Phase 1 of the project ranges between 拢49 billion (US$62 billion) and 拢56.6 billion (US$72.1 billion) at 2019 prices. However, when accounting for current prices, the estimated cost range increases by approximately 拢8 to 拢10 billion (US$10 to 12 billion).
In 2013, the estimated cost of HS2 was 拢37.5 billion (US$47.8 billion) (in 2009 prices) for the entire planned network, including extensions from Birmingham to Manchester and Leeds that are now scrapped.
Sir Jon stated that the reasons for the cost increase included original budgets being too low as well as changes to scope, poor delivery and inflation.
He added, 鈥淭his is a systemic problem. It鈥檚 not just about HS2, it鈥檚 about large projects that the Government funds.The budget needs to be set early on in order for an outline business case to be approved by the Government, sometimes by Parliament.
鈥淎t that point, people think OK the original estimate for Phase 1 was 拢30 billion-something.That is based on very, very immature data. You don鈥檛 have a design, you haven鈥檛 procured anything, and there is no detail on which you can cost anything.鈥�
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