HS2 Reset

Lord Berkeley Excerpts

Thursday 19th June 2025 Lords Chamber

[Lord Berkeley (Lab)]

My Lords, I welcome the Government’s Statement on HS2 yesterday. It has good detail and a lot of the plans that the Government intend to do. I was also pleased that the latest cost estimate of about £100 billion to get it to Birmingham, is much closer to the one that Michael Byng and I have been peddling for some years. I also welcome the new chief executive and chair of HS2 and, of course, the Ministers, who are both relatively new.

The worry I put to my noble friend is that the four new people at the top, excellent though they will be, have an incredibly difficult job ahead of them. One of the biggest problems is to unpick or change the mouthwatering contracts that most of the contractors have been given by the previous Administration, which means it will be very difficult to know what the future output costs will be and how they will be monitored. So, can one or two people—very good people, with two Ministers in charge—plan this without a much greater root-and-branch change in the Department of Transport and HS2? I hope I am wrong, but I think there is a lot of work to be done there as well.

[Lord Hendy of Richmond Hill (Lab)]

I thank my noble friend for that. There is no latest cost estimate. One of the things we are absolutely resolved to do is not to have such a cost estimate until Mark Wild and the people he is bringing in have been through this project in such detail that an estimate can be reliable. It is not at all satisfactory to have contractors working on such huge contracts without a full understanding by a decent sponsor of what they have delivered as they deliver it, how much it has cost, and what the remaining work is. That is also a feature, because the contracts were let too early and the design was not certain, so all that work needs to be done.

My noble friend is right that four new people by themselves cannot do all this—not by a long chalk. But noble Lords will, I hope, have read Mark Wild’s letter in detail, in which he sets out that, fundamentally, HS2 is unfit for purpose and he will have to restructure that company, alongside getting proper estimates of cost and timescale. He will need some help doing it and much of my and the Secretary of State’s discussion with him in the last weeks and months has been about how many people he needs to do that, who they are, whether we can trust them and how quickly we can get them in. Those elements are all important.

One of the really important things in this is that, I think for the first time for a long time, we will have a chair and a chief executive of HS2 who are communicative, collaborative, straight and honest, and we can have a discussion with them about where this is going and what it is doing. One of the characteristics of this company so far and of the Crossrail company for most of its life is that they were both arrogant enough to believe that they knew what they were doing without any supervision and without telling anybody what was really going on. In both cases, it went badly wrong. Mark knows that he has to change the culture of the company. There clearly are some good people there, but they need to be led and directed properly.