3

Funding:
In 2013 a hybrid bill was passed for HS2’s phase one to be initiated. The hybrid bill
enabled ‘HS2 LTD’ to “compulsory acquire interests in the land and carry out work
on listed buildings and demolish buildings in conservation areas” (GOV.UK, 2017).
According to GOV.UK (2013), in 2013 ‘HS2 LTD’ estimated that “phase one would
have costed up to £19bn pounds”. However, over time that figure has significantly
changed, as the cost of phase one has risen to £54.5bn in 2019.
The original estimate of HS2 in 2011 excluding rolling stock was £32bn. This
estimate was revised to “a figure of £38.4bn in October 2013, with £19.0 bn
allocated to Phase 1 and £19.4 bn to Phase 2 with another £6.9 bn for rolling
stock” (HS2 LTD, 2019). In July 2015 the spending review of HS2’s estimate rose to
£55.7 bn with Phase 1 costing £27.2 bn, Phase 2a costing £3.7 bn and Phase 2b
costing £24.8 bn respectively.
“The figure of £55.7 bn has been repeated many times by ministers as the only
budget for the project, including most recently as part of the debate of the Third
Reading of the Phase 2a Hybrid Bill in the House of Commons on 15 July 2019.”
(BERKELEY, 2019).
HS2 LTD (2019) states the “programme delivery of HS2’s Phase 1 will be completed
by the end of December 2026, Phase 2a by the end of October 2027 and Phase 2b
in 2033W.”
Lord Tony Berkeley enlisted help from an independent consultant who reviewed
the project outlined costs. BERKELEY (2019) insists; “HS2 could no longer be
delivered within the available funding envelope of £55.7 bn”. Further stating “the
overall and comparable total cost for delivery of the project was increased to
between £72.1 and £78.4 bn... representing an increase of between “29.4% and
40.8% on the above funding envelope figure”. Including inflation, “the Chairman’s
Stocktake estimate increases the upper figure to £88 bn. (+58%)”.
There are significant underlying concerns regarding funding and cost of the
project, as the project is being funded by taxpayer money and the expenditure
costs are significantly increasing alongside the expected timescale of HS2. The
changes to the expected timescale can be seen in appendix 2.

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