More than £2bn spent on Euston HS2 station mired in delays and spiralling costs
More than £2 billion has been spent on HS2’s “failing” Euston station, the National Audit Office (NAO) has revealed.
In an in-depth report looking into the scheme, the watchdog found the current spend on the Euston terminal and the surrounding area had breached the £2 billion mark, with £200 million of that spent on designs that have failed to yield an affordable option.
It also revealed that the current forecasted cost of the station has exceeded £4.8 billion - £2.2 billion higher than had been budgeted for.
The full scale of the affordability challenges comes just weeks after Mark Harper, the Transport Secretary, revealed work on Euston would be delayed due to cost pressures. The station is now not expected to open until the early 2040s.
The NAO reported that despite being very early in its construction phase, more than £1.5 billion has been spent on property purchases and enabling works, while a further £548 million has gone on station pre-construction work.
This includes £200 million on the design, which has been beset by issues and revisions - with the current plans estimated to cost £4.8 billion.
Commenting on the report’s findings, Meg Hillier, chairman of the House of Commons public accounts committee, said: “Attempts to reset the High Speed 2 Euston station have failed. It is still unaffordable and no further forward than it was three years ago.
“The DfT [Department for Transport] and HS2 have wasted enough time and money. They must get Euston right next time or risk squandering what benefits remain.”
The report said that the DfT and HS2 have now taken the step of pausing new construction work at Euston for two years to develop an “affordable and deliverable” station design.
This would be the latest redesign of HS2’s Euston station after previous attempts at developing an affordable design failed to meet budget requirements.
In 2020, the DfT called for a pause in original design work to develop an 11-platform Euston and reduce it to a cheaper 10-platform site design.
This was then changed again in 2021, at a cost of £106 million to the taxpayer, with the DfT calling for HS2 to integrate its design with Network Rail’s redevelopment of the mainline Euston station.
The report said: “DfT’s and HS2 Ltd’s attempt to reset the programme since 2020 has not succeeded and further action is now required to develop an affordable and viable station.”
The NAO said that while the design review was needed, the costs associated with contractual changes, stopping and restarting the work, and managing the scheme for longer would lead to higher overall costs.
Gareth Davies, head of the NAO, said: “The deferral of spending to manage inflationary pressures will lead to additional costs and potentially a more expensive project overall, and that will need to be managed closely.”
A DfT spokesman said: “We remain committed to delivering HS2 from Euston to Manchester in a way that delivers the best value for money to the taxpayer.
“That’s why we recently announced we will rephase the Euston section of the project to manage inflationary pressures and work on an affordable design for the station.
“We will carefully consider the recommendations set out by the National Audit Office and will formally respond in due course.”
An HS2 spokesman said that Euston is one of the most complex parts to build and that it is committed to coming up with an affordable station that is right for the community and passengers.
