Transport Secretary Heidi Alexander is set to deliver a damning assessment of the previous Conservative government’s handling of the HS2 high-speed rail project, accusing ministers of wasting billions of pounds through poor oversight, mismanagement, and politically driven indecision.
In a statement to be made in the House of Commons on Wednesday, Alexander will unveil the findings of two major reviews into the troubled project, as government sources brace for confirmation that the total projected cost of HS2 could exceed £100 billion—five times the original 2012 estimate for phase one.
“Billions of pounds of taxpayers’ money has been wasted by constant scope changes, ineffective contracts and bad management,” Alexander will tell MPs. “It’s an appalling mess. But it’s one we will sort out.”
The reviews, led respectively by James Stewart and Mark Wild, paint a bleak picture of how costs spiralled out of control and key decisions were taken—or delayed—with little regard for commercial or operational consequences.
One of the central criticisms in Stewart’s review is the decision to sign major construction contracts in 2020, despite recommendations from the Oakervee Review—commissioned by then Prime Minister Boris Johnson—that the government delay contracting until a clear scope had been agreed. Alexander will highlight how successive ministers pressed ahead with signing off on billions in spending before making core political decisions about the route and design of the railway.
Wild’s early assessment, meanwhile, focuses on how to proceed with the now truncated phase one line between London and Birmingham. His findings, according to sources briefed on the report, suggest the entire budget will need to be restated in current prices, pushing the official cost closer to £100bn, compared with the £20bn estimate made in 2012.
Among the most egregious examples of waste, Alexander will cite the £250 million spent on two separate sets of designs for the new HS2 station at Euston, both of which were ultimately discarded. Meanwhile, £2 billion was spent on preparatory work for the now-cancelled northern leg from Birmingham to Manchester, which was scrapped by Rishi Sunak in October 2023.
Despite Sunak announcing the formation of a ministerial task force to oversee improvements to Euston following the cancellation, government sources now confirm the task force never held a meeting.
A Labour source close to the project called it a “comedy of errors” caused by political indecision and inadequate ministerial oversight:
“The cost inflated out of all control. Billions were wasted due to political dithering and a delivery company not fit for purpose. It’s a comedy of errors, but no one’s laughing.”
The transport secretary is also expected to address allegations of fraud within the HS2 supply chain, following whistleblower reports that a labour supplier charged inflated rates for staffing. HS2 Ltd has launched an internal investigation and reported the matter to HMRC.
“There are allegations that parts of the supply chain have been defrauding taxpayers,” Alexander will tell MPs. “These need to be investigated rapidly and rigorously. If fraud is found, then the consequences will be felt by all involved.”
To try and rescue the beleaguered scheme, Alexander will announce the appointment of Mike Brown, the former Transport for London commissioner, as the new chair of HS2 Ltd, replacing Jon Thompson, who resigned earlier this year after publicly criticising the project’s direction—including the now-infamous £100m bat tunnel.
Brown is expected to work closely with Mark Wild, who has laid out the terms for a “reset” of the project. Wild, credited with eventually delivering the Elizabeth Line, has proposed a revised approach aimed at cutting costs and rebuilding credibility. However, insiders suggest this will likely mean pushing back HS2’s full opening into the 2030s, even for the reduced London-Birmingham route, while admitting that real-terms costs will continue to rise.
Despite the challenges, ministers maintain that delivering even a slimmed-down HS2 is vital to modernising Britain’s rail network and increasing capacity in the decades ahead.
The disclosures mark a watershed moment for a project once billed as the crown jewel of Britain’s infrastructure future but now viewed by many as a case study in failed governance. As Labour ministers attempt to clean up what they describe as “an appalling mess”, Wednesday’s statement will crystallise the scale of the financial damage — and the uphill task now facing the new government to get HS2 back on track.
The Conservative Party, which championed HS2 through successive governments, has yet to issue a comment.
Read more:
Reviews show Tories wasted billions of pounds on HS2, transport secretary to say