The UK government intends to take a more direct approach to ensure accountability and cost savings in relation to the HS2 rail line currently under construction between London and Birmingham. Transport Secretary Louise Haigh has acknowledged that the cost of the project has exceeded budget estimates and called for rapid action to rectify the situation. The project could reach £65bn in total cost, although it had been intended originally to cost £44.6bn, according to Sir Jon Thompson of HS2 Ltd. Costs have risen in part due to inflation and poor management, according to officials.
As part of the new approach, meetings will be held on a regular basis to discuss issues related to delivery and resolving obstacles. These will involve the transport secretary, Rail Minister Lord Hendy, and the Chief Secretary to the Treasury. An independent review of HS2 by former Crossrail CEO James Stewart has been commissioned. However, the previous plan to run the line to Crewe and Manchester will not be reinstated, according to government officials.
HS2 Ltd, the company responsible for the development of the high-speed railway line, welcomed the government’s oversight but suggested that the company would expect to work collaboratively with ministers in order to address some of the challenges the project has faced in order to help remedy cost overruns. The executive chairman of HS2 Ltd had warned of increased costs, linked in part to the rising cost of materials such as concrete and steel.
The project has proved controversial due to concerns over environmental impact and the wisdom of spending substantial sums on an infrastructure project at a time when the economy is sluggish. Others have suggested that the project would have strategic value, improving transport links across the country and boosting economic growth and employment prospects.
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