News

HS2 ‘waste and mismanagement’ over as contracts are renegotiated – minister

31 Jul 2026 3 minute read

The construction site for the HS2 project at Curzon Street in Birmingham. Photo Jacob King/PA Wire

Neil Lancefield, Press Association Transport Correspondent

HS2 Ltd said it has renegotiated two contracts to incentivise work being delivered on time and on budget – with the controversial ‘England and Wales’ project not expected to open until 2039, and costs set to triple from the initial £32 billion estimate.

It is hoped the new deals will save millions of pounds of taxpayers’ money by rewarding efficiency.

The contracts with two joint ventures, EKFB and Align, relate to more than 60 miles of the high-speed railway being built between London and the West Midlands.

EKFB consists of Eiffage, Kier, Ferrovial Construction and BAM Nuttall, and is delivering civil engineering between the north portal of the Chiltern Tunnel in Buckinghamshire and Long Itchington Wood in Warwickshire.

Align, which is made up of Bouygues Travaux Publics, Sir Robert McAlpine and VolkerFitzpatrick, is constructing a section of the route in outer London and south Buckinghamshire, with major work including the Colne Valley Viaduct and Chiltern Tunnel.

Ineffective contracts which placed nearly all risk on taxpayers were previously identified by chief executive Mark Wild as a key reason for HS2 being delayed and over budget.

Rail minister Lord Hendy said: “These new contracts are an important milestone in the reset of HS2.

“The waste and mismanagement of the past are behind us. We are now laser-focused on delivering this project efficiently and responsibly for taxpayers.

“By resetting contractor incentives and rewarding cost control, we are making sure every pound spent delivers real value and that the project is built at the lowest reasonable cost.”

Mr Wild said: “This is good news, but there’s more to do.

“Bringing an end to HS2’s cost over-runs and delays is a shared ambition, and I’d like to thank every one of the parent companies at both EKFB and Align for their willingness to negotiate and their commitment to doing the right thing for British taxpayers.

“Investing in world-class infrastructure is vital to securing economic growth, but it cannot come at any cost.

“Today’s announcement represents a significant step forward in our mission to regain control of HS2.”

In May, Transport Secretary Heidi Alexander announced a larger cost estimate and extended timeline for the project, amid a reset by Mr Wild scheduled to be completed in 2027 with a new detailed plan for the remaining works.

Ms Alexander said HS2 could cost more than £100 billion and may not open until 2039.

Constructing HS2 from London to Birmingham – plus the now abandoned onward legs to Leeds and Manchester – was initially estimated to cost £32.7 billion (in 2011 prices).

Services were initially scheduled to launch this year.

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