At a time when the UK government is under pressure to manage the costs of its major infrastructure projects, the latest news from HS2 Euston is alarming. The costs of the project are set to double, and a full design reset is urgently needed to address the issues and risks involved.
The HS2 Euston Project: A Critical Overview
HS2 Euston is a part of the High Speed Two (HS2) rail network, which is expected to provide a faster and more reliable rail service between London and the North of England. The Euston project is particularly important, as it involves the redevelopment of the Euston station in London, which is a key transportation hub for the city.
A statement from National Audit Office (NAO) into the HS2 Euston Station development warns that forecast project costs have continued to balloon despite attempts to simplify the project.
The original plans for the project, which were announced in 2017, involved the construction of a new station building and the reconfiguration of the tracks and platforms. However, it soon became clear that the plans were not feasible, as they would have required the demolition of many homes and businesses in the area.
As a result, a revised plan was developed, which involved the construction of a smaller station building and the use of a tunnel to connect the high-speed lines to the existing lines. However, this plan has also faced significant challenges, as it involves complex engineering and construction work in a densely populated and heavily built-up area.
The Challenges Facing the Project
The challenges facing the HS2 Euston project are numerous and complex. They include:
- The need to build a new station building and connect it to the existing transport network
- The need to construct a tunnel to connect the high-speed lines to the existing lines
- The need to minimize disruption to local residents and businesses during the construction process
- The need to manage the risks involved in working in a densely populated and heavily built-up area
- The need to manage the costs of the project, which have already increased significantly
The Urgent Need for a Design Reset
The NAO’s report recommends the DfT works with stakeholders: Euston Partnership, HS2 Ltd, Network Rail, Lendlease and local partners to reassess the expectations for the HS2 Euston project, its budget, and the public benefits.
Gareth Davies, the head of the NAO said: “Government is once again having to revise plans for Euston HS2.
“Clearly, the 2020 reset of the station design has not succeeded.
“DfT and HS2 Ltd have not been able to develop an affordable scope that is integrated with other activity at Euston, despite their focus on costs and governance since 2020. Recent high inflation has added to the challenge.
“The March 2023 announcement by the Transport Secretary pausing new construction work should now give DfT and HS2 Ltd the necessary time to put the HS2 Euston project on a more realistic and stable footing.
“However, the deferral of spending to manage inflationary pressures will lead to additional costs and potentially a more expensive project overall, and that will need to be managed closely.”
Meg Hillier MP, Chair of the Committee of Public Accounts, added: “Attempts to reset the High Speed 2 Euston Station have failed.
“It is still unaffordable and no further forward than it was three years ago.
“Today’s NAO report shows that the redesigned station would have cost nearly double what was budgeted.
“Department for Transport and High Speed Two Ltd have wasted enough time and money. They must get Euston right next time or risk squandering what benefits remain.”
