Ministers urged to impose cutbacks to HS2 as costs surge
Ministers are being urged to impose cutbacks to the HS2 railway infrastructure project after a report warned that costs were well over those for comparable schemes in Europe.
A report from PWC said HS2 was “at the high end of the range of costs” for comparable schemes around the world.
Total costs for the whole scheme stand at £55.7bn and according to the study, cuts should be made to construction “inefficiencies” and adapting design methods from abroad. The size of stations, new train depots and the amount of land bought could be cut.
PWC suggested that these cuts could shave off more than £7bn from the second phase of the line north of Birmingham, cutting the budget by 27%.
The report, said that HS2 was “materially different” to high-speed rail schemes elsewhere in the world because of the UK’s population density, the high cost of land, the number of stops and its links to the main cities.
The line to Birmingham is expected to open in 2026 and the second phase by 2033 although some MPs have said the line should be scrapped and spending directed to other sectors in more need.
Balfour Beatty, Costain and Kier are among the construction firms building the line, as had Carillion before its collapse.
China's state-owned Guangshen Railway Company and Hong Kong’s MTR Corporation, which is three-quarters owned by the special administrative region’s government, it has been suggested are on track to win the contract to operate the HS2 trains.
A shortlist of three also includes a consortium involving Virgin Group and another headed by FirstGroup.