Labour writes to Rishi Sunak over his ‘alarm’ at the cost of HS2
Louise Haigh MP, Labour’s Shadow Transport Secretary, has today written to Rishi Sunak over his reported ‘alarm’ at the spiralling cost of HS2.
The full text of the letter is below:
Dear Prime Minister,
Re: High Speed 2
It has been reported in yesterday’s Times that you have only recently become “alarmed” by the escalating cost of HS2[1][1].
I find this concerning. In your present and previous roles – both as Chancellor and Chief Secretary to the Treasury – you have had plenty of opportunities, as well as a responsibility to British taxpayers, to monitor spending and progress.
It is under your direct watch that the cost of HS2 has reportedly almost trebled.
The National Audit Office has found that HS2 “cost increases may not have been necessary” if risks had been “recognised and managed earlier” by the Government[1][2].
During your time as Chancellor, the NAO published a report titled ‘Progress in implementing National Audit Office recommendations: High Speed Two’. This report confirmed that: “A detailed estimate of the full cost of the programme has not yet been completed”[1][3];
And, as Chancellor, you agreed revised funding for Phase One of: “£44.6 billion, including £5.6 billion of contingency to be held by HS2 Ltd and £4.3 billion of other contingency to be held by government”[1][4].
Please can you confirm that you personally, as Chancellor, approved the revised funding on the basis of an uncosted programme?
Further, I note that the Government has a non-executive director on the board of HS2 to provide monthly oversight of the project and has appointed a Minister for HS2 to provide accountability at the ministerial level.
HS2 is the Government’s largest infrastructure programme by value. I’m therefore concerned that, as Chief Secretary to the Treasury, Chancellor, and now Prime Minister, you suggest that you had no idea what was happening with the project.
Please can you confirm that HM Treasury receives regular reports from the Department for Transport and HS2 Ltd? If so, did you ever read any of these reports?
It’s further reported that you think HS2 executives have been acting like “kids with the golden credit card”[1][5].
It’s very easy for politicians to blame officials who can’t defend themselves in public.
Please can you confirm that, as Chancellor, you approved delegated authority to HS2 Ltd to make spending decisions within the agreed budget that you yourself set?
It’s clear that your Government is in chaos. The leaks, rumours and speculation about HS2 have real implications for railway workers, local communities and the economy.
Will you therefore commit to urgently updating Parliament in full on the current status of the project and its updated costs, based on cash prices and 2023 prices, not 2019 prices?
Due to the public interest in this issue, I will be releasing this letter to the press.
Yours sincerely,
Louise Haigh MP
Shadow Secretary of State for Transport
[1][1] https://www.thetimes.co.uk/article/rishi-sunak-hs2-alarmed-runaway-cost-5qb6pb9w7
[1][2] https://www.nao.org.uk/wp-content/uploads/2020/01/High-Speed-Two-A-progress-update.pdf
[1][5] https://www.thetimes.co.uk/article/rishi-sunak-hs2-alarmed-runaway-cost-5qb6pb9w7
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