First phase of HS2 uses up a third of its contingency funding a decade before the railway line is due to open
- Officials are ‘concerned’ about costs of first phase, expected to surpass £40.3b
- Read: HS2 could be TWELVE YEARS late: High-speed rail link face more delays
The first phase of HS2 has used up a third of its contingency funding – a decade before it is due to open.
Rail minister Huw Merriman revealed the speed at which money reserved for additional costs was being used, sparking renewed fears about the project’s spiralling costs.
In a statement to the Commons, he said the project had faced challenges from the impact of ‘excess inflation’ fuelled by the pandemic and war in Ukraine.
Officials are ‘concerned’ about the costs of the first phase, which will connect London and Birmingham and is expected to overshoot its latest target of £40.3billion.
The Government has urged HS2 Ltd, which runs the project, to find savings. Mr Merriman said 33 per cent (£1.83billion) of HS2 Ltd’s £5.5billion contingency fund for the first leg had been spent.
Rail minister Huw Merriman (pictured) revealed the speed at which money reserved for additional costs was being used, sparking renewed fears about the project’s spiralling costs
Officials are ‘concerned’ about the costs of the first phase, which will connect London and Birmingham and is expected to overshoot its latest target of £40.3billion (File image)
This is despite HS2 not yet reaching ‘peak construction’ and with phase one not expected to be operational until between 2029 and 2033.
Mr Merriman said: ‘HS2 Ltd is working with its supply chain to understand the wider cost and schedule implications.’
Lord Berkeley, who served as the deputy chairman of a government-ordered review into HS2, said: ‘It’s time to close it down.’
Around £20billion has been spent on phase one. The overall project will now cost up to £71billion, plus the cost of the eastern leg from the East to West Midlands, which has yet to be calculated.
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