HS2 £7bn over budget and facing delay say MPs

The High Speed 2 rail link is running billions over budget and likely to be delayed, MPs (BSE: MPSLTD.BO - news) have warned.

They say ministers must set out a realistic timetable for delivering the project, currently expected to cost more than £55bn.

Members of the Public Accounts Committee (PAC) said they were "not convinced" by the current schedule, describing it as "overly ambitious".

The first phase of HS2, between London and the West Midlands, is due to open in December 2026.

But minister and bosses at HS2 Ltd, the company behind the project, are now looking at extending this by a year, MPs said.

Costs of a second phase taking the line to Manchester and Leeds were "volatile" and currently £7bn over budget, the report also found.

The committee found there had been "considerable progress" on HS2 since 2013.

But it voiced concern over the recent announcement that the project's chief executive Simon Kirby is to leave for a job at aerospace firm Rolls-Royce, adding to the uncertainty surrounding it.

PAC chair Meg Hillier said: "The Government has promised significant benefits to taxpayers in return for their investment in HS2, expected to run to more than £55bn.

"Despite this, Parliament and the public are still in the dark about crucial details - not least when the railway will open, how much it is expected to cost and precisely where it will go."

She (Munich: SOQ.MU - news) urged the Government to address the committee's concerns when it announces further details of the phase two route this autumn.

The Department for Transport said: "The Government is fully committed to HS2 and the project is on time and on budget."

HS2 Ltd said: "We are making good progress in building confidence in our programme plan, and will continue to do so over the coming months."

The cost of HS2 has already surged from an initial estimate of £33bn with one think-tank, the Institute of Economic Affairs estimating this could rise to £80bn.

It has said the project "defies economic logic" and called for it to be cancelled.