HS2 Phase I

Infrastructure and Construction

Record date: 31 March 2026

Whole-life cost: Not disclosed
Published schedule: 14/01/2009 – The GMPP project is still at the planning stage (Pre-SOC or equivalent) and is not yet in a position to provide cost/schedule information
NISTA delivery confidence: RED
Senior responsible owner: Dean Creamer

What the project is for

A new high-capacity, high-speed railway connecting London and the West Midlands with onward services to other cities, via the existing West Coast Main Line.

Departmental delivery commentary

The NISTA / SRO Delivery Confidence Assessment (DCA) rating remains at RED at 25/26 Q4. This is primarily due to delivery of HS2 being unachievable against Baseline 7.1 (approved at Notice to Proceed in April 2020), as confirmed through correspondence between the HS2 Ltd Chief Executive Officer (CEO) and the Secretary of State in 2025. In response, the Department and HS2 Ltd have progressed a comprehensive reset programme, alongside strengthened governance and delivery controls. Key developments include: • Continuing the HS2 reset under the leadership of CEO Mark Wild and Chair Mike Brown, with Board capability strengthened through new Non-Executive Director appointments. • HS2 Ltd providing assured cost and schedule ranges to the Department, approved by the Ministerial Task Force in January 2026, with further conditions (including the outcome of the Strategic Scope Review) addressed ahead of publication and announcement by the Secretary of State on 19 May 2026. • Commencing development of a new delivery baseline (Baseline 8.0/8.1), supported by a staged review process to ensure robust assurance and programme integration. • Maintaining tight in-year financial and performance controls through the Performance Management Plan (PMP), contributing to improved construction productivity and delivery within annual budgets. • Delivering FY25/26 Phase 1 expenditure and maximising productivity in line with budget (£6.967bn, 0.4% below Supplementary Estimates) and agreeing a £7.1bn funding allocation for FY26/27. • Progressing Euston Programme activities, including definition of an integrated Euston Station Spatial Plan and delivery schedule, the stand-up of the Euston Delivery Company in April 2026, continuation of enabling works and exploration of a private finance delivery model for the HS2 station. Overall, the Department has focused on resetting the programme to establish a credible, deliverable baseline while maintaining cost control, improving productivity, and strengthening governance arrangements.

Schedule

As at 25/26 Q4, the previous delivery into service range of 2029–2033 is unachievable, as confirmed through correspondence between the HS2 Ltd CEO and the Secretary of State in 2025. In response, the Department and HS2 Ltd have progressed a comprehensive reset programme. Key developments include: • The Department has tasked the HS2 Ltd CEO with progressing a comprehensive reset to establish realistic cost and schedule estimates for delivering the remaining scope at the lowest reasonable cost. Assured schedule ranges were provided to the Department in December 2025 and approved by the Ministerial Task Force in January 2026, with further conditions (including the outcome of the Strategic Scope review) addressed ahead of publication and announcement by the Secretary of State on 19 May 2026. • The reset will deliver updated schedule ranges for key service configurations (Old Oak Common–Birmingham, Euston–Birmingham, and Euston–North West) and inform development of a new schedule baseline (Baseline 8.0/8.1). Baseline development commenced in January 2026 and is subject to a progressive integrated review and assurance process. • Whilst the reset is ongoing, the Department continues to manage HS2 Ltd through strengthened in-year controls, including a Performance Management Plan for 2026/27 setting out key milestones, targets and productivity metrics. Enhanced governance and assurance arrangements, aligned to the James Stewart Review, remain in place to support in-year delivery and schedule discipline.

Cost

At 25/26 Q4, the departmentally agreed Whole Life Cost (measured in £m) for HS2 is exempted. The Department does not report on Whole Life Cost as it does not reflect the true up-front cost for building HS2. Key developments include: • The Department has tasked the HS2 Ltd CEO with progressing a comprehensive reset to establish realistic cost and schedule estimates for delivering the remaining scope at the lowest reasonable cost. Assured cost ranges were provided to the Department in December 2025 and approved by the Ministerial Task Force in January 2026, with further conditions set ahead of public announcement, including consideration of the Strategic Scope Review. As the Secretary of State publicly announced on 19 May 2026, the expected cost of delivering HS2 is now in the range of £87.7 – £102.7 billion. This is expressed in a mixed price base, including the cash outturn of works to date and the costs of future work excluding inflation. • The HS2 reset is ongoing and work continues to progress on development of a new cost baseline (Baseline 8.0/8.1). Baseline development commenced in January 2026 and is subject to a progressive integrated review and assurance process. • Whilst the reset is ongoing, the Department continues to manage HS2 Ltd through strengthened in-year controls, including a Performance Management Plan for 2026/27 and application of financial controls to support affordability and delivery confidence. • Funding provided through the Spending Review 2025 settlement supports continued delivery between the West Midlands and London Euston, alongside reset activities. Cost control remains focused on improving productivity, strengthening governance, and embedding lessons learned to ensure the programme can be delivered within future agreed budgets.

Benefits

The project's departmentally agreed Benefits at 25/26-Q4 (measured in £m) is exempted. The HS2 programme tracks progress against its benefits baseline through quarterly benefits reporting (QBR). The current reporting on benefits during design and construction is not monetised but uses natural measures to reflect whether the outcomes are achieved. The HS2 programme is currently being reset, and a reset of the programme’s benefits will form part of that programme of work; alongside this, we will update the HS2 business case. In the interim, HS2 Ltd will continue reporting against the existing benefits baseline.