The government will “re-look” at the design of the planned HS2 station at Euston and consider working with the private sector to find an affordable way to build it.
A written statement today from Rail Minister Huw Merriman pointed to a recent report by the National Audit Office, which found that the estimated cost of HS2 Euston, on which construction is currently on hold, , had it almost doubled to £4.8 billion.
Merriman said that “the station is not affordable at this cost, nor, in any case, does the government have the financial margin to carry out the construction during the next two years”.
He said the government would use the next two years “to develop a more affordable scheme design that delivers for passengers, the local community and taxpayers”.
“This will include considering how we might partner with the private sector to deliver benefits for clients. It requires careful prioritization of requirements and the willingness of stakeholders to engage,” he said.
Merriman added: “We remain committed to delivering HS2 services to Euston.”
Officials are working with the Euston Partnership, HS2 Ltd and the Mace Dragados joint venture, which is managing the construction of HS2, “to understand the causes of the additional costs and develop alternative delivery options”, Mr Merriman said.
It comes after £289m has already been spent on designs for HS2 Euston, in accordance with Construction newsgerman magazine, Architects Magazine.
Merriman also noted that the estimated increases in construction costs were in 2019 values and did not reflect the “significant inflation” that had occurred since then. The minister will work with the Treasury to “update the price base”.
He reiterated an earlier update, which said the first phase of HS2, between Birmingham and Old Oak Common in west London, was going over budget with “around half” of the £40.3bn price tag for phase 1 already spent.
The government previously identified cost pressures of £1.9 billion on the first phase of HS2. Merriman said HS2 was reviewing the estimated cost of the first phase on completion, which would address “previous pressures and additional emerging costs”, as well as commissioned work to address these issues.
Earlier this year, doubts arose over whether Euston station would be built. In March, the equalization secretary, Michael Gove, said “There is a debate about whether [HS2’s London terminus] it will be Old Oak Common or Euston”.
But soon after, Prime Minister Rishi Sunak insisted there was nothing “ambiguous” about the final point.
