High Speed 2 Railway Line:Written question - HL8961

Q
Asked by Lord Berkeley
Asked on: 26 June 2018
Department for Transport
High Speed 2 Railway Line
Lords
To ask Her Majesty's Government, further to the Written Answer by Baroness Sugg on 6 June (HL8406), whether the economic case for HS2, to be published in 2019 as part of the Full Business Case for Phase One, will include any increases in the capital cost budget above the £24.1 billion at 2013 prices that was presented to Parliament for the High Speed Rail (London–West Midlands) Bill as a result of (1) responses from suppliers and contractors, (2) additional costs of land and property costs and compensation and enabling works, and (3) any update on the likely traffic and revenue from the trains using the completed line; and under what economic circumstances they would review the need for the project, its scope and construction time scale.
A
Answered by: Baroness Sugg
Answered on: 10 July 2018

The Full Business Case for HS2 Phase One to be published in 2019 will be based upon the latest available total cost estimate for the Phase One scheme. This cost estimate will be informed by supplier feedback where contracts have been awarded and will reflect expenditure to date and projected income and maintenance costs. Where contracts have not yet been awarded (e.g. railway systems, rolling stock) HS2 Ltd estimates will be used.

The Department’s business case appraisal regime means that the Full Business Case will be a robust and comprehensive assessment of the Phase One scheme in terms of its value for money, achievability, deliverability, strategic value and affordability. In respect to affordability we are determined that the Phase One scheme will be delivered within the funding envelope of £27.18bn (including rolling stock and in 2015 prices).

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