HS2 Mitigation Projects: Inflation

Debate between Joy Morrissey and Mike Kane

Friday 14th March 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Mike Kane)]

I congratulate the hon. Member for Mid Buckinghamshire (Greg Smith) on securing this debate, on standing up so resolutely for civil society institutions in his constituency and on speaking so eloquently about them.

High inflation, the pandemic, protester action, planning appeals, judicial reviews and lower productivity than expected have had a significant impact on the cost of phase 1 of HS2. The Government have been clear that we are committed to getting a grip on the spiralling costs. As part of that work, the Secretary of State for Transport has published the first HS2 report to Parliament under the new Government, setting out some of the immediate actions and interventions that we will take to regain control of HS2’s costs and bring the project back on track. For instance, Ministers have tasked the new chief executive officer of HS2 Ltd, Mark Wild, with producing an action plan to reset the programme and deliver the remaining work as cost-effectively as possible. We have also reinstated ministerial oversight of the project through a ministerial taskforce to ensure transparency and accountability. My Department will update Parliament as the important work of resetting the programme and reinstating oversight progresses.

[Joy Morrissey]

May I say, on behalf of two of the Buckinghamshire MPs, that we stand in solidarity in support for scrapping HS2 altogether? It is never too late for a real cost-saving Minister to scrap the whole thing.

[Mike Kane]

Well, it was the former Prime Minister who came to Manchester during the party conference to scrap HS2 from going from Manchester. I have never known quite such a political insult. It was supposed to balance up our country, yet we will have reduced capacity and there is an impact on Northern Powerhouse Rail. The handling of the project over a number of years has had effects both on the constituencies it is going through, as the hon. Member has so passionately extolled, and on those that are not getting it.

Let me get back to the point that the hon. Member for Mid Buckinghamshire is here to talk about. Following discussions with St Mary’s in 2016, during the passage of the High Speed Rail (London – West Midlands) Act 2017, the church was given an assurance and commitment that the project would support it in improving its noise insulation. The assurance provided very clearly for a contribution up to a maximum of £250,000, with no provision for inflation. There are many other HS2 assurances on the public register, including commitments to fund particular works or activities. Some of those explicitly provide for index-linking; others do not. The one given to St Mary’s does not. It is worth noting that the House of Lords Committee set up to hear from petitioners against the Bill considered the case of St Mary’s, and took the unusual step in 2016 of reporting that the £250,000 offer was generous. Furthermore, I am pleased to report that, since the assurances were given, HS2 has made other improvements to its plans for noise mitigation in the locality of the church. That will reduce the amount of noise reaching the church in the first place.

Taking all that into account, it is not considered appropriate to increase the amount of public funding offered to the church or to increase any other financial mitigations that were fixed, not indexed, at the time they were agreed. There is no evidence that the sums are no longer sufficient. We have inherited a difficult situation on HS2, as the hon. Member said, and our priority now is to get a grip of the cost to the Government.