By Richard Johnstone | 16 January 2015
Major government investment decisions on rail infrastructure are being taken without a clear strategy for national transport networks, a committee of MPs has warned, which could hinder value for money.
The Public Accounts Committee called on the Department for Transport should set out a 30-year transport strategy for the UK to ensure future investment decisions were joined up.
Today’s Lessons from major rail infrastructure programmes report highlighted the recently announced proposal for a High Speed 3 trans-Pennine rail line as an example of uncoordinated planning.
The Department for Transport did not carry out an assessment of High Speed 3 before it gave the go-ahead to High Speed 2 line from London to Birmingham, Manchester and Leeds, MPs said, so it did not know whether improved connectivity in the North was a greater priority.
In addition, the DfT has still not published proposals on how Scotland will benefit from HS2, including whether the route will be extended north of the border.
PAC chair Margaret Hodge said this demonstrated the need for a long-term UK transport strategy that could be used to inform decisions about investment priorities.
‘Investment in major rail infrastructure programmes takes a long time and costs a lot of money,’ she added.
‘It is therefore hugely important to ask the right questions and make properly informed judgements on priorities. Yet the government takes decisions without a clear strategic plan.’
The committee’s recommendation comes after High Speed 2 chief Sir David Higgins told Public Finance that a 30-year transport plan, including possible private investment, was needed to end ‘stop-start’ investment cycles.
The committee also warned that it doubted whether the DfT could deliver value for money on HS2’s £50bn construction budget.
Hodge said the total allocated funding included a ‘generous contingency’, and it would be vital to ensure the use of these set-aside funds was properly controlled.
‘We are concerned that this will simply be used to mask cost overspends, rather than valid calls on contingency funds,’ she added.
The current plans are for the line to open between London and Birmingham in 2026 and on to Manchester and Leeds by 2033.
Responding to the report, a DfT spokeswoman insisted HS2 would have a transformational effect on the UK.
‘With Sir David Higgins as chairman of HS2 Ltd, we are fully focused on keeping costs down and are determined that this vital part of the government’s long-term economic plan will be built on time and within budget,’ she added.
‘As the project moves forward towards construction we will continue to address the issues raised by the PAC, and in particular value for money.’
