Reporters reveal cost breakdown of HS2

The final cost of HS2 is expected to be around £100 billion when it has been completed. Image: HS2

High Speed 2 (HS2) is a high-speed railway which has been under construction in England since 2019.  A National Audit Office report estimates that completing the full HS2 network will cost between £72 billion (US$98 billion) and £98 billion (US$133 billion) at 2019 prices.

Data obtained by The Sunday Times reveals that HS2 Ltd has already paid over £38.8 billion (US$52.8 billion) in construction costs, plus a further £3.8 billion (US$5.1 billion) on property acquisition.

Among the biggest recipients are contractors Balfour Beatty and Vinci, who have each been paid more than £5 billion (US$6.8 billion). Kier has received £2.4 billion (US$3.2 billion), and Eiffage £2.3 billion (US$3.1 billion). In total, 13 firms have each been paid over £1 billion (US$1.36 billion).

HS2 Ltd’s use of ‘cost-plus’ contracts, under which contractors are reimbursed for expenses with a guaranteed margin, has come under criticism as it left the UK government exposed to rising prices.

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Legal advisers billed £67 million (US$91 million), while the ‘big four’ accountancy firms charged £292 million (US$397.6 million) for consultancy services. An additional £50 million (US$68 million) was spent on public relations, stakeholder engagement and events.

The Labour administration has pledged a “full reset” of the project’s governance and spending in the face of serious structural failings.