HS2 Ltd has cost the taxpayer more than £440m to date
HS2 Ltd has cost the taxpayer more than £440m since it was incorporated in January 2009. The company is entirely grant-aid funded by the DfT and it received £208.4m for the financial year ended 31 March 2014, according to the latest annual report.
DfT support has grown exponentially since the project started to take shape: from £9.4m (2010); to £14.6m (2011); £33.9m (2012); and £176.4m (2013). The total DfT payout to date comes to £442.8m.
Payment for professional services accounted for around three-quarters of total expenditure in 2014, £153.4m (2013: £144.6m); staff costs nearly doubled to £29.9m (2013: £15.1m), and staff numbers have more than doubled to 395 (2013: 194).
The professional services include Phase One (London – West Midlands) civil and design works, systems design, environmental and land access/third party works. They are being carried out through a combination of the HS2 workforce and 16 professional service company (PSC) contracts managed by CH2M Hill.
Out of the total expenditure of £208.4m, Phase One accounted for £173.8m (2013: £158.1m), and Phase Two – between Birmingham and Leeds/Manchester – for £19.5m (2013: £10.7m).
The total HS2 budget is £42.6bn (at 2011 prices) plus a £14.4bn contingency provision.
Chairman, Sir David Higgins, concludes: “The budget for Phase One is adequate, and there should be no cutback on the planned mitigation measures, whether for noise or broader environmental reasons.”