HS2 now offer 'very poor value for money', MPs warn!

The UK Public Accounts Committee report, published today, has warned government that it is 'sceptical' that it would attract enough private investment to build a key new station at London, Euston. This follows the cancellation of links to the West Midlands to Manchester due to spiralling costs by the Prime Minister back in October.

Nothing is certain in life, and complex major infrastructure projects like HS2 pave the way for future growth but we can change how we approach expectations. Client organisations that sponsor major projects have to become more realistic and not get caught up in the 'big bang' moment when it comes to proving the long-term benefits for the investment needed today. The more complex the major project generally, the more stakeholders, and that means greater diversity when it comes to the meaning of success. Its not just time and cost, but as in the case for HS2, a 67% increase in outturn cost for phase 1 does grab the attention of the public.

HS2 is a prime example of over-expectation when forecasting benefits. All major projects need to be digested, which means they need to be eaten gradually and justified to be continued. The public need to be convinced this is whats best to achieve the best value gains. The business case must be a standalone justification for investment by phase measured against reality stage-gate control checks. It must be monitored and owned and not put into a predicament as the DoT finds itself in having to justify completing phase 1 on the fact that it would avoid £11bn in cancellation costs.

This is compounded by the Boston Consulting Group's findings from over 2,300 infrastructure projects across 16 similar countries. That the UK is often too costly and takes too long to deliver its transport infrastructure. It found the average cost per unit for both Road and Rail projects was higher than in France, Germany, Australia and the United States. It cited the need for updating the planning systems and how risk is measured and governed as being issues that needed to be addressed. Not exactly a glowing testimony in to how we plan, develop and deliver our major investment programs.

Welcome your thoughts, but heres the full article posted by the BBC today...makes for interesting reading!

https://www.bbc.co.uk/news/business-68217031