2015 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: 2015 (data is from Sept 2014)
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 our railways are increasingly busy and in the future, as our economy and our population grows, we will travel even 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: The High Speed 2 programme remains in a strong position and continues to make significant progress. On Resourcing: There has been significant progress on building capability in the programme as we transition towards the delivery phase. We have made key appointments to senior roles at DfT and HS2 Ltd including: • Simon Kirby, Chief Executive, HS2 Ltd – May 2014 • Alistair Kirk, Programme and Strategy Director, HS2 Ltd – September 2014 • Jonathan Crone, PMO Director, HS2 Ltd - January 2015 DfT and Network Rail and HS2 Ltd have each grown their project teams, bringing in the skills and capability required for the next phase of work. On Phase 1 Hybrid Bill and timetable: The hybrid Bill for Phase One (London-West Midlands) was deposited on time and achieved resounding support at its Second Reading in April 2014 with a majority of 452 to 41 demonstrating the strong cross party support for the scheme. Good progress has been made in hearing petitions and, by March 2015, 344 petitioners had been heard by the Bill Committee and a further 99 petitioners had withdrawn or will not appear on account of agreed changes or assurances received from the Secretary of State, along with 22 who were denied standing by the Committee. The Secretary of State announced in Parliament that the working assumption was that the Hybrid Bill would achieve Royal Assent in late 2016. A carry-over motion was successfully passed that will allow the Bill’s work to be carried over into the next Parliament. The target opening date for Phase 1 remains unchanged for 2026. On governance and the transition to the next phase: Governance arrangements have been developed to formalise tripartite working between DfT, HS2 Ltd and Network Rail. Board structures have been reviewed and the new structures have been operating successfully for some months. A Development Agreement was signed by DfT and HS2 Ltd on 8 December 2014 formalising the relationship between DfT and HS2 Ltd in developing and delivering the HS2 railway and associated work. A new client board, chaired by the SRO, has been put in place to manage the performance of HS2 Ltd against this Development Agreement. The creation of an integrated Programme Management Office, under the responsibility of the new HS2 Ltd Programme & Strategy Director, is in hand. We are making good progress on preparations towards construction: HS2 Ltd held two further supply chain conferences, in London on 17 October 2014 and in Manchester on 23 October 2014, to discuss the commercial opportunities with the supply chain and inform the procurement strategy and approach for the programme. Phase 2 (Birmingham to Manchester and Leeds) On 27 October 2014 Sir David Higgins released his second report on HS2, ‘Rebalancing Britain’. This confirming that the strategic goal for Phase Two linking Birmingham to Manchester and Leeds is right; the East Midlands and South Yorkshire stations are best for the regions and the existing network; a hub station at Crewe would serve the local region and the North West; Leeds station must match the city’s vision and its transport needs; and that work needs to continue on the best route for an East/West connection in the North (‘HS3’), how and when it could be constructed, and its cost. In response to Sir David’s report, the Government confirmed its commitment to the Y Network. The programme in now undertaking further work to consider the possibility of expediting the delivery of part of the Phase 2 route and the possibility of a hub station at Crewe. The Government expects to take decisions on this during 2015.
Start date: 2011-02-28
End date: 2033-12-31
Schedule text: The programme has made excellent progress against plan since September 2014. In addition to the achievements set out above, we have accomplished the following: Phase 1 • High Speed Rail Phase One Hybrid Bill – Following the deposit of the Hybrid Bill in November 2013 an Additional Provision (AP), proposing 55 minor amendments, was deposited on 10 September 2014. Progress on petitions against the Hybrid Bill and AP is on schedule with 344 petitioners having been heard by the Bill Committee by March 2015 and a further 99 petitioners withdrawing, along with 22 who were denied standing by the Committee. The rate of hearings are set to increase during 2015. Preparing for Delivery • Development Agreement - On 8 December 2014, DfT and HS2 Ltd signed a Development Agreement for the HS2 project. The Agreement provides clarity over roles and responsibilities of the two organisations: DfT as sponsor and client and HS2 Ltd as adviser and delivery body. Land and Property • HS2 property compensation package – On 16 January 2015 the Secretary of State announced the Government’s package of measures to help owner occupiers along the line of route for Phase One of High Speed 2, from London to the West Midlands. • Residents’ Charter & Commissioner – 16 January 2015 also saw HS2 Ltd launch a Residents’ Charter to help ensure that residents are treated in a fair, clear, competent and reasonable manner. A new Residents’ Commissioner overseeing the charter, Deborah Fazan, will ensure that HS2 Ltd meets its commitments set out in the new charter. • Strategic Environmental Assessment Judgement – On 25 November 2014 the Court of Appeal found in the Government’s favour by agreeing with the High Court’s previous judgment that a Strategic Environmental Assessment (SEA) was not required before making safeguarding directions to protect the planned route for Phase One of HS2. The Government has now won 20 out of 21 judicial challenges to the project. • Safeguarding the Route between Fradley and Crewe - The consultation on safeguarding the route between Fradley and Crewe was launched on 4 November 2014 and closed on 6 January 2015. 105 responses were received, which are being analysed to support a ministerial decision later this year. Wider Benefits • Growth and Regeneration – The Growth Taskforce published its report ‘HS2: get ready’ on 21 March 2014. This set out a number of recommendations on ensuring the whole country shares in the job and business opportunities HS2 will deliver. ‘Getting set for HS2: responding to the HS2 Growth Taskforce’ was published on 24 July 2014 setting out how Government and HS2 Ltd will work with local areas and businesses to ensure the wider economic growth benefits of HS2 are maximised. The recommendations have been progressed and, as part of this, Greater Birmingham and Solihull were awarded funding for 2015/16 to support the development of local plans for HS2-related growth/connectivity.
Baseline: £380.01m
Forecast: £483.01m
Variance: 27.10%
Variance text: The forecast (CDEL) overspend of £103.0m is a reflection of a number of property acquisitions identified on the 2014/15 critical path to construction, following advances in design refinement and stakeholder engagement since the DfT £150m property budget was set in 2010. This in-year overspend does not affect the total cost of HS2. We are on track to deliver the programme within both budget and schedule.
Whole Life Cost: £42,559.51m
WLCost text: The 2013 Spending Round provided the long term certainty required to build HS2 by setting a funding envelope of £42.6 billion (in 2011 prices excluding VAT). This provided a clear funding envelope within which the Government will aim to deliver HS2. 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' first report ‘HS2 Plus’, published in March 2014, 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
Sourcefile: IPA_2015.csv

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