Question to the Department for Transport:

To ask His Majesty's Government what assessment they have made of the impact of investigations into the tax status of workers engaged by contractors or subcontractors on the delivery of HS2.

The Transport Secretary has been clear allegations of fraud need to be investigated urgently and rigorously. Wherever fraud is found, there will be consequences for those involved. All whistleblower allegations received by HS2 Ltd are treated seriously and thoroughly investigated.

Danny Sullivan Group (DSG), a labour supply subcontractor to Balfour Beatty VINCI (BBV), has been under investigation for allegedly inflating invoices by including PAYE and NIC charges for self-employed workers who are not subject to these deductions.  The matter was reported to HMRC on 29 May 2025, but further details cannot be disclosed in line with HMRC guidance. On Friday 4 July 2025, BBV terminated its labour supply agreement with Danny Sullivan Group following an independent investigation into the status of workers.

While HS2 Ltd does not hold direct contracts with labour suppliers, it requires its supply chain to comply fully with contractual and tax obligations and HS2 Ltd is continuing to conduct further investigations into labour supply contracts across the supply chain.