Revealed: HS2 could be delayed by a YEAR and is £204m overspent
HS2 could be delayed by a year and is set to be £204 million over budget, the Whitehall spending watchdog said today.
The National Audit Office warns that the 2026 target date for opening phase one between London and Birmingham is 'at risk'.
It comes as anti-HS2 campaigners said Brexit could see the £55.7 billion project scrapped all together.
The Department for Transport has asked the company responsible for building the high-speed railway, HS2 Ltd, to assess the impact of extending its timetable by up to 12 months.
But Transport Minister Robert Goodwill insisted that HS2 is 'on track' despite the watchdog warning the project is facing financial pressures.
Cost forecasts for phase one, which includes a 12-mile stretch through Staffordshire to Lichfield and a link to Stafford, says the project is set to exceed available funding by £204m. Phase two, which will see a further 33 miles of Staffordshire countryside torn apart, contains some elements that are 'currently unfunded', the report said.
The head of the watchdog Sir Amyas Morse said: "HS2 is a large, complex and ambitious programme which is facing cost and time pressures. The unrealistic timetable set for HS2 Ltd by the Department means they are not as ready to deliver as they hoped to be at this point. The department now needs to get the project working to a timescale that is achievable."
Meg Hillier, chairman of the Commons Public Accounts Committee, added: "Today's report shows that preparations to deliver High Speed 2 are under severe strain. The programme is at a critical juncture and the department has some major decisions to make if it is going to protect taxpayers' interests and deliver all that the Government has promised from HS2."
But Mr Goodwill said: "We have strong cross party support and are on schedule to gain the powers needed to start building HS2, which the National Audit Office acknowledges is a significant achievement. We are on course to start construction next year and complete on time and budget."
However, anti-HS2 campaigners believe Brexit may see HS2 axed. Stop HS2 spokesman Joe Rukin said: "Brexit drastically means it is more likely HS2 will be scrapped, not because of any economic impact but purely because David Cameron and George Osborne will be gone and they have been the driving force behind it."
