2014 Report details for project: High Speed Rail Programme (HS2)

Project name: High Speed Rail Programme (HS2) - there are 7 reports for this project: 2013, 2014, 2015, 2016, 2017, 2018, 2019
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Organisation: DFT (D9) - see all reports for this organisation
Report year: 2014 (data is from Sept 2013)
Category: Infrastructure - see all reports for this category
Description: HS2 is the Government project to build a new North-South railway. The case for the new line rests on the capacity and connectivity it will provide. We need this capacity because in the future, as our economy and our population grows, we will travel more. We need the connectivity because bringing people together drives economic growth. Our current transport system is already under strain and a constraint on growth. Among the many alternatives that have been considered – including new motorways and upgrades to the current rail network - HS2 is the best way of getting ahead of current demand on our core transport network. The new north-south railway is a long term solution to a long term problem. Without it the West Coast, East Coast and Midland Main Lines are likely to be overwhelmed. With it, we will transform intercity travel, radically improve commuter services into London and our other major cities and increase the amount of rail freight. These transport improvements will help support economic growth and make a major contribution towards rebalancing the economy. The new railway will be built in two phases. It will be fully integrated with the rest of the railway network. It will bring benefits to places with stations on the new railway including Leeds, Manchester, Birmingham and London; to stations on the classic network like Liverpool, Darlington and Newcastle which will receive high speed services; and to other places on the existing mainlines like Milton Keynes, Rugby and Peterborough which will have better services from released capacity on the existing main lines
DCA (RAG): Amber/Red
DCA text: HS2 is in excellent shape and has made significant progress since September. The rationale for HS2 was published in the Strategic Case in October; the hybrid Bill was deposited ahead of the published commitment in November; the High Speed Paving Bill received Royal Assent on 21 November and most recently the Phase1 Bill achieved resounding success at Second Reading with a majority of 452 to 41. On April 9, 2014 an improved package of compensation measures for property owners along the phase one of the route was announced and on March 21, 2014 the HS2 Growth Task Force published findings and recommendations to the Secretary of State setting out the main challenges the Growth Task Force can see in maximising the benefits from HS2. In addition, Sir David Higgins is now in place as Chairman and Simon Kirby has been appointed as the new Chief Executive for HS2 Ltd. On Communications Strategy: We appointed a senior level strategic communications advisor to deliver: • A short-term communications effort that focused on the Second Reading of the Hybrid Bill; • A longer-term campaign plan based on detailed market research (to be developed); and • We now have an integrated communications team in place to deliver against this plan. On Resourcing: We have made key appointments to senior roles at HS2 Ltd including: • Sir David Higgins as Chairman; • Simon Kirby as construction CEO; and • Patrick O’Connell as interim Programme and Strategy Director • Other senior appointments are in train and will be announced soon, including; o Programme and Strategy Director o Head of Programme Controls o Communications Director Both DfT and Network Rail have grown their project teams, bringing in the skills required for the next phase of work. On timetable: A timetable has been developed for the passage of the hybrid Bill through Parliament based on our assessment of the number of expected petitions. We deposited the Bill on time, achieved success at Second Reading and we are now working with Parliamentary authorities to ensure smooth passage of the Bill through parliament. Contingency plans, based on different scenarios for the progress of the Bill through Parliament, have been developed. On transitioning to the next phase: On 19 November 2013 SoS confirmed that HS2 Ltd will be the delivery agent for Phase 1. Following this decision we have made significant headway in putting in place the people and structures needed to enable construction to start in 2017. An integrated Programme Management Office is being created under the responsibility of the new HS2 Ltd Programme & Strategy Director. This will cover all aspects of the programme including DfT, HS2 Ltd and Network Rail. An initial draft of the Outline Procurement Strategy (OPS) for Phase 1 has been developed. Our strategy for supply chain management includes ongoing engagement with industry. The first HS2 Supply Chain Conference in Birmingham in November 2013 set out our OPS to the supply chain. A programme of work is underway to get ready for construction. A Baseline Programme is in place (Baseline 3) and the HS2 Phase 1 Programme Execution Plan (PEP) has been initiated to define scope and identify key inputs to the document. A critical path for Rolling Stock procurement has been developed to ensure alignment with the programme.
Start date: 2011-02-28
End date: 2033-12-31
Schedule text: Comments on Schedule The programme has made excellent progress since the last published report in May 2013, having delivered to plan on all milestones. Phase 1 • 13 May - The High Speed Rail Preparation (Paving) Bill was introduced into Parliament on. • 26 June - Second reading of the Paving Bill. • 29 October - We published ‘The strategic case for HS2’ setting out how HS2 will deliver capacity, connectivity and growth for the UK. • 21 November - We secured Royal Assent of the Paving Bill with a majority of 350 to 37 at Third Reading demonstrating Parliament’s strong commitment to the scheme. • 25 November - We deposited the hybrid Bill for Phase1 into Parliament on schedule. • 26 November – We launched the Environment Statement consultation. • 22 January - We achieved a comprehensive victory in the Supreme Court against judicial challenges to HS2, including endorsement by the Supreme Court of our approach to assessing impacts of the scheme on the environment. • 27 February - The Environmental Statement Consultation formally closed. Early indications are that we have received around 21,700 responses to the consultation. • 6 March - We published the Management, Financial, Economic and Commercial cases for HS2 on the gov.uk website. • 7 April - A report provided to Parliament on 7 April in preparation for Second reading of the Bill following analysis of the 21,700 responses to the Environmental Statement Consultation. • 28 April - MPs voted overwhelmingly in favour of the High Speed Rail Bill at Second Reading with a majority of 452 to 41. Preparing for Delivery • 5 November – A summary of the initial draft of the Outline Procurement Strategy (OPS) that we have developed for the main construction elements of Phase One was shared with industry at the first Supply Chain Conference. • 19 November 2013 - The Secretary of State appointed HS2 Ltd as the delivery agent for Phase One. • 1 January – Sir David Higgins took up his role of Chairman of HS2 Ltd. • 6 January - A joint DfT/HS2 Ltd communications campaign team, led by Tom Kelly, was established providing a focus for success of the hybrid Bill at Second Reading. • 21 January - We have moved the project into new governance arrangements to support the next phase of work– formalising their role in the project through a Tripartite (DfT/ HS2 Ltd/ NR) Cooperation Memorandum, signed on the 21 January at the first meeting of the Tripartite Cooperation Board to act as a strategic, steering board for the programme. • 10 February - Patrick O'Connell took up his post as interim Director of Programme and Strategy. • 3 March - Heads of Terms for the Development Agreement were produced. • 18 March – Heads of Terms for the Development Agreement were reviewed by ExCo who agreed the direction of travel. Work is ongoing on the Development Agreement that will formalise the relationship, roles and responsibilities of DfT and HS2 and is due to be agreed in summer 2014. • 17 March 2014 - Sir David Higgins’ report “HS2 Plus” was published setting out proposals to build HS2 better and bring benefits to the north sooner, proposing improvements to the scheme following a review of the programme started in January. • 17 March The Government welcomed Sir David Higgins’ report on how HS2 can be delivered better, quicker and have responded by: o Accepting the current design of the HS2-HS1 link does not work and committed to taking the necessary steps to remove the HS2-HS1 link from the Phase One hybrid Bill along with commissioning a study into options for ways to improve connections to the continent which could be built once the initial stages of HS2 are complete. o Welcoming the proposal to go to Crewe earlier - by 2027 not 2033 and on this option commissioning HS2 Ltd to do work so it can be considered as part of the public consultation responses to Phase Two. o Agreeing with Sir David’s ambition for Euston to be a world class station that supports the aspirations of the local community, intercity passengers and commuters and starting work to explore a better option. o Welcoming Sir David Higgins’ confirmation that HS2 is the right project at the right price and the budget set by the government stands. Property • On April 9 - an improved package of compensation measures for property owners along the phase one of the route was announced. This was accompanied by the announcement of a new independent Residents’ Commissioner, who will hold HS2 Ltd to account on its handling of compensation applications. • 9 July - Safeguarding Directions were issued for Phase One. • 17 July - we announced the outcome of the Phase Two Exceptional Hardship Scheme (EHS) consultation and launched the scheme. • 12 September - We launched the property re-consultation for Phase One on. • 30 September - The property consultation roadshows started on 30 September. • 24 October – Safeguarding Directions were updated to reflect design refinements. • 2 November – The property consultation roadshows concluded. • 25 November - The Government announced three measures for the owners of properties above tunnels: ‘Before and after surveys’ of properties which may be at risk of subsidence due to tunnelling; ‘Settlement Deeds’ providing a legal guarantee that any damaged cause to properties due to tunnelling will be repaired by HS2 Ltd; and purchase of ‘Subsoil rights’ for a nominal sum following Royal Assent of the Phase One hybrid Bill. An approach to the replacement of lost social rented housing was also published. • 4 December - The property consultation concluded on. In total 17,773 responses were received. These were reviewed throughout December and into early January. Significant analytical work was undertaken during this period to evaluate potential property compensation schemes. • 24 January - The first property purchase was made in Chipping Warden (Oxon) as a result of a blight notice being served in a safeguarded area. Need to include the announcement on the property compensation for phase 1 Funding • 29 April - Following constructive discussions with the Treasury, the department submitted its initial spending round bid. • 27 June - Spending Round 2013 agreed a long-term funding allocation for HS2.This provides long term funding certainty and signifies the commitment of the Treasury to the project. This is made up of £42.6bn for construction and £7.5bn for rolling stock (2011 prices). • 27 June - HS2 Ltd was set a target price to deliver Phase One of the project of £17.16bn. This was outlined in the ‘remit letter’ from the Secretary of State to the Chairman of High Speed 2 Ltd of 27 June. We have established a framework of delegations and approvals for Phase One in which to manage the funding thresholds held by HS2 Ltd, DfT and HM Treasury to incentivise cost control. • 15 November - HS2 Ltd introduced the Estimate of Expense to parliament. This is a single page summary that sets out the estimated cost of the works for Phase One of the HS2 line of route between London and the West Midlands. The format and breakdown of the structure are specified under the requirements of the House of Commons. • 17 March - Sir David Higgins’ report, “HS2 Plus” carried out a rigorous review of the costs of Phase One and the cost of contingency and confirmed the Phase One budget is right. He proposed to use any savings to protect contingency at this early stage in the parliamentary process and the Government supported that. Wider Benefits • 27 June – Lord Deighton was confirmed as chairman of The High Speed 2 (HS2) Growth Task Force to advise the Government on how to maximise economic growth and job opportunities from the government’s plans to build a high speed rail network. • 31 July – The membership of the Growth Task Force was confirmed. • September – January - The Growth Task Force held evidence gathering sessions in Birmingham, Manchester, Loughborough, Sheffield, Leeds, Liverpool and London. • 13 January - Plans for a new college to train the next generation of world-class engineers to work on the construction of High Speed Two (HS2) were announced. • 7 March - Cities were invited to express an interest for the HS2 Skills College by 7 March. • 21 March - The Growth Task Force published findings and recommendations to the Secretary of State. The report sets out the main challenges the Growth Task Force can see in maximising the benefits from HS2 and sets out 19 recommendations which challenge the Government, local authorities (and their partners), HS2 Ltd, businesses and skills providers to help the country ‘Get Ready’ for HS2. The 19 recommendations are set out into four areas; getting our cities ready, getting our transport network ready, getting our people ready and getting our businesses ready. Phase Two • 17 July - We launched the consultation on the route for Phase Two (Birmingham-Leeds and Manchester). • 18 October - The Phase Two consultation roadshows began and the 37 roadshows ran in towns along the length of the Phase Two route. • 15 January – The Phase Two consultation road shows concluded and there were approximately 8000 attendees at the roadshows. • 31 January – The consultation on the route for Phase Two (Birmingham-Leeds and Manchester) closed. We received approximately 10,000 responses and we are currently considering these. • 17 March - David Higgins’ report, “HS2 Plus”, set out a clear proposal to accelerate construction so that the Crewe section of Phase Two can be completed by 2027, not 2033, and to build a new integrated hub station at Crewe. He also recommended integrating Phase Two with existing rail network to maximise connectivity. We commissioned HS2 Ltd and Network Rail to undertake work allow both of these proposals to be considered in detail during the consideration of the public consultation responses to Phase Two.
Baseline: £347.60m
Forecast: £347.60m
Variance: 0.00%
Variance text: NA
Whole Life Cost: £42,600.00m
WLCost text: The 2013 Spending Round provided the long term certainty required to build High Speed 2 by setting a funding envelope of £42.6 billion (in 2011 prices excluding VAT) for construction costs. This provided a clear funding envelope within which the Government will aim to deliver HS2. In addition, in order to ensure the project can start construction in the next Parliament, the Government has set a detailed budget for HS2 from 2015-16 to 2020-21 of over £16 billion. The Government has learned from the successful delivery of the London 2012 Olympic Games, and is setting a cost control framework to ensure the project remains affordable to the nation over the coming two decades. Sir David Higgins' report HS2 Plus, confirmed that the cost estimates for constructing Phase One are right and that any savings should be used to protect the contingency at this early stage.
Notes1: High Speed Rail Programme
Notes2:
Sourcefile: IPA_2014.csv

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