DynamicSpirit
Established Member
The Strategic Case clearly states that, in 2011 terms, the estimated cost with contingencies for HS2 is £21.4bn for Phase 1, £21.2bn for Phase 2, and £7.5bn for rolling stock. At some point, I imagine the rolling stock cost got rolled into the headline figure to make it seem like HS2's budget is spiralling out of control. The current figure of £55.7bn was announced during the 2015 Spending Review, and is due to inflation.
Thanks, I was asking because I was thinking of writing to my MP in support of HS2 and I want to be sure I've got my facts correct. Just to query a bit more. the £55.7bn is for phase 1 and 2, but that presumably that therefore includes Phase 2b, which hasn't yet gone through any detailed design plan, and therefore must be a fairly crude estimate? Is that correct? Shouldn't there be a reasonably accurate and up-to-date figure covering specifically Phases 1 and 2a, since those are the bits that have gone through a very detailed design process (and are starting construction)?
Also, there were stories a couple of weeks ago in the Press that the Government were temporarily withholding some funding for HS2 pending clarification on the costs. For example, this in Rail Technology Magazine:
RTM said:Ministers have delayed signing off on the first half of funding for HS2 over concerns about the flagship rail project’s spiralling costs.
A formal ‘notice to proceed’ on the major construction works for the first phase of the project was due to be issued in June, but this now been put back by six months, according to the Sunday Telegraph.
The order would have unlocked up to £27bn for the first phase of HS2, but ministers have reportedly not allowed the firm to enter into agreements with contractors based on the current design and cost.
The Sunday Telegraph quoted a Whitehall source who said the delay came after Chris Grayling made it “very clear to HS2” that they must stick to the project’s £56bn budget.
Does anyone know more details of that, and what the Government's reasoning was? Based on that story, the Government seem worried that it will be more than £56bn. But is there any actual evidence of that? (Beyond speculation)