In a shocking revelation that has sent shockwaves through the UK’s transportation sector, the latest cost estimates for the ambitious HS2 high-speed railway project indicate that expenses could balloon to a staggering £80 billion. This jaw-dropping figure, adjusted for inflation, marks an alarming 15% jump from the projections reported to Parliament just a year ago, raising serious concerns about the project’s financial viability and its impact on taxpayers.
A Runaway Train of Expenses
According to sources close to the Department for Transport, the current budget for constructing the London-to-Birmingham line alone could range from a mind-boggling £67 billion to £81.7 billion, when accounting for inflation. This astronomical sum includes the eye-watering £5 billion price tag for the HS2 station at Euston, a figure that has left many scratching their heads in disbelief.
The latest estimates, provided to the DfT by HS2 Ltd, paint a grim picture of the project’s financial trajectory. Just last year, the formal estimate for Phase One hovered between £49 billion and £57 billion, a range that now seems like a distant memory. The £66 billion figure, reportedly given to the DfT over the summer, is based on cost increases relayed by suppliers to HS2, although experts caution that this calculation should be taken with a grain of salt until a full review is conducted by Mark Wild, the newly appointed chief executive.
A Wild Ride Ahead
As Wild settles into his new role, having previously helped Transport for London deliver Crossrail within its revised budget and timeline, all eyes are on him to provide a comprehensive report on HS2’s cost and schedule next year. The DfT’s own estimates were expected to be lower than those provided by HS2 Ltd, with ministers disputing last year’s figures by approximately £3 billion to £4 billion.
The growing costs were set to be revealed as the DfT announced that the chair of HS2 Ltd, Sir Jon Thompson, would step down from his position in spring.
– According to a source familiar with the matter
Transport Secretary Heidi Alexander acknowledged Thompson’s “strong leadership during challenging times for the project” and emphasized that the new chief executive and eventual replacement chair would be “tasked with gripping budgets and schedules and delivering the line as cost-effectively as possible.”
Batty Expenses and Derailed Plans
The ballooning costs of HS2 have not gone unnoticed by the public, with recent headlines highlighting the £100 million price tag for a “bat shed” being constructed alongside the line to protect the winged creatures. This revelation has only added fuel to the fire of criticism surrounding the project’s financial management.
To make matters worse, the northern leg of HS2 was unceremoniously axed last year by Prime Minister Rishi Sunak, citing concerns over the project’s escalating costs. This decision has left politicians in the north and Midlands clamoring for a similar railway line to alleviate capacity constraints between Birmingham and Manchester.
A Glimmer of Hope?
In a rare piece of good news for the beleaguered project, the Labour Party recently pledged funds to complete tunneling work in London that had been paused by Sunak, ensuring that HS2 will indeed run to Euston. However, this commitment has done little to quell the growing unease surrounding the project’s financial sustainability.
As the HS2 saga continues to unfold, taxpayers and transportation experts alike are left wondering whether this high-speed rail dream will ever become a reality, or if it will forever remain a cautionary tale of runaway costs and derailed ambitions. Only time will tell if Mark Wild and his team can steer this project back on track, or if the HS2 will go down in history as a multi-billion-pound blunder.
