The National Audit Office (NAO) has warned that the government must not proceed with revised plans for the HS2 high-speed railway until it is fully confident they can be delivered. The spending watchdog’s report, published on February 19, 2025, calls for a stable footing to avoid repeating past failures.
Costs and Delays Double Initial Promises
Transport Secretary Heidi Alexander announced last month that HS2 is now expected to cost up to £102.7 billion, with trains between London and Birmingham not running until as late as 2039 – £70 billion more and 13 years later than originally promised. The entire project may not be completed until 2043. Initially, the London-to-Birmingham leg (plus the now-abandoned extensions to Leeds and Manchester) was estimated at £32.7 billion at 2011 prices, with services due to start in 2025.
NAO Demands ‘Considered Approach’
After a 15-month review, HS2 Ltd chief executive Mark Wild produced a new detailed plan for the remaining work. The NAO acknowledged a “considered approach” to resetting HS2 but stressed that “significant work” remains. The Department for Transport (DfT) and HS2 Ltd aim to complete the reset by spring 2027, at an estimated cost of £153 million. The NAO said they should review the timetable’s realism this autumn and revise if necessary.
Gareth Davies, head of the NAO, stated: “Establishing a fully robust estimate of cost and schedule, completing commercial negotiations and getting the right capabilities in place is necessary before they can complete the reset.” The report attributed most cost increases to “cost underestimation, inefficient delivery and scope changes.”
Political and Industry Reactions
The Manchester leg was cancelled by then-Prime Minister Rishi Sunak in October 2023. A DfT spokesperson said: “Following years of mismanagement, this government has taken decisive action to reset HS2 and ensure the safe delivery of the line between Birmingham and London at the lowest reasonable cost. The reset is driving faster, more efficient construction on the ground, with six major construction milestones reached ahead of schedule last year.”
An HS2 Ltd spokesperson added: “Fundamentally resetting HS2 was the only way to regain control of the project and break the cycle of poor delivery, delays and cost increases. Any costs associated with the reset will ultimately pay for themselves through improved management and efficiencies.”
