Question to the Department for Transport:

To ask Her Majesty's Government, further to the publication of their Full Business Case – High Speed 2 Phase One, published on 15 April, why “spend up to the end of 2019 has been treated as sunk and excluded from the appraisal”; whether they have written off such costs in any other major projects previously; if so, which; and whether the exclusion of such costs is compliant with the guidance issued in The Green Book.

The spend to date on HS2 up to the end of 2019 was £7.5bn (2015Q1 prices, excluding VAT). However not all of this is treated as sunk costs in the economic case as the land and property costs could be recoverable were HS2 not to go ahead.

what would the benefit-cost ratio figures be if those costs had been included;

The benefit cost ratio figures including sunk costs are as follows:

whether the writing off of development costs up to the time of Notice to Proceed is in compliance with the HM Treasury's Green Book;

The appraisal of HS2 has been undertaken in compliance with HM Treasury’s Green Book. The Green Book states that “[w]hat matters are costs and benefits affected by decisions still to be made.”

what other Government-funded projects have had the development costs written off; and whether any such costs were written off in order to improve the benefit-cost ratio figures.

Costs have not been written off in the approval of HS2, HS2 Ltd’s delegated Funding Envelope (the “Target Cost”) for Phase One is £40bn (2019 prices). This Target Cost includes the costs already spent on the project.