HS2 phase 2 and Lower Thames Crossing delayed by two years

Aaron Morby 2 weeks ago
Share

The Government has pushed back starts on its two biggest planned infrastructure projects by two years in a bid to combat soaring inflation.

Government to announce project timings rethink imminently
Government to announce project timings rethink imminently

Transport secretary Mark Harper said the £7bn Birmingham to Crewe leg of HS2 and the £7bn flagship Lower Thames Crossing would be delayed to allow funds to be focused on delivering the existing capital programme.

He said: “Refocusing our efforts will allow us to double down on delivering the rest of our capital programme. This will place our transport investments on a sustainable footing and allow us to support the government’s priorities of halving inflation, growing the economy and reducing debt.”

The announcement casts into doubt progress on phase 2b from Crewe to Manchester, which looks likely to suffer a knock-on delay.

Harper said over £800m had already been spent on planning the massive Lower Thames Crossing tunnel scheme.

He said: “It is one of the largest planning applications ever, and it is important we get this right.

“We remain committed to the Lower Thames Crossing, and the development consent order process will be an important opportunity to consult further to ensure there is an effective and deliverable plan. In order to allow time for this process, and given wider pressures on RIS, we will look to rephase construction by two years.”

He also announced that the £320m A27 Arundel bypass in Sussex and £250m A5036 Princess Way in Liverpool were facing a range of challenges including environmental considerations and ongoing scope and design changes.

To provide more time, both these schemes will be deferred to RIS 3 (covering 2025-2030).

Harper said that other schemes earmarked for RIS 3 would continue to be developed, in line with the statutory process, but for consideration for inclusion during RIS 4 (beyond 2030).

“Given many of these schemes were previously expected towards the end of RIS 3, this extra time will help ensure better planned and efficient schemes can be deployed more effectively,” he said.

The big decision to delay progress on HS2 Birmingham to Crewe looks set to have an immediate impact on Kier and Balfour Beatty.

Kier has been mobilised to deliver a £50m highways and utility enabling works contract for this stage while Balfour Beatty is also working on its £52m advanced environmental works package.

Also bidders hanging on tenterhooks since September for news of the award of the £500m design and delivery partner role to oversee construction of phase 2a are likely to face an even longer wait to find out if they have succeeded.

Teams in the chase include: 2 Connect JV (AECOM /Costain Integrated Services);  AMS JV (Atkins /Mace Consult / SYSTRA); and Jacobs UK.

While a project delay is unlikely to save cash over the full course of the project, it will allow Government to spread the cost over a longer period of time, making it more affordable by reducing annual expenditure.

Last official forecast costs in October – HS2 update to Parliament


Stephen Marcos Jones, CEO of the Association for Consultancy and Engineering (ACE),  said: “I think every sensible person knows that global events have driven inflationary pressures to record highs.

“But we have already spent significant sums on the design and delivery of this transformational major project.

“Scaling back ambitions at this stage will mean the economic and social benefits of HS2 for communities across the UK is further watered down – and major delays like this are actually going to cost more in the longer term.

“In a nutshell, the delays announced today are, quite simply, an absolutely false economy.”

Latest news

HS2 Euston needs full design reset as costs set to double

Spending watchdog warns Euston stop-start delay will simply inflate already ballooning costs
1 hour ago

Bid rigging: Keltbray to appeal and so could Squibb

Both contractors "disappointed" with level of fines
3 days ago

Ten demolition firms fined £60m for bid rigging

Full details of fines with Erith and Keltbray hardest hit
4 days ago

Retail contractor J M Scully files administration notice

£23m turnover Dorset based contractor lodges court notice
3 days ago

Civils specialist M Lambe delivers record performance

Housing civils specialist seeks to diversify in face of challenging housing market
3 days ago

Willmott Dixon clinches £60m Oxford Brookes University job

Preparation work starts on two new buildings at Headington Hill campus
3 days ago

Ferns seals £50m+ Openreach network services deal

Five-year south west deal to provide civils, poling and complex manhole programme
3 days ago

20 firms win £4.5bn Southern construction framework

A dozen new firms secure spots on fifth generation public sector deal
4 days ago

Call grows for bolder 18m second staircase rule for flats

Architects, surveyors and builders professional trade bodies demand lower height threshold than proposed 30m
4 days ago

GRS Roadstone warns staff following cyber attack

Materials giant sends out letters highlighting the extent of the attack
4 days ago

Inland Homes to suspend shares as results delayed again

Auditors need more time to go through embattled house builder's books
4 days ago

Kier wins £73m Southport events centre job

Local supply chain set to benefit from major new project
4 days ago

Multiplex profit rebounds as margin restored to 2.9%

London tower builder predicts return to revenue growth this year as major schemes advance
4 days ago

Upbeat Vistry to re-open mothballed offsite factory

Former Countryside timber panel factories rebranded Vistry Works in revived drive to deliver 5,000 units a year
5 days ago

Builder crushed and blinded in wall collapse

Property owner in court after barn conversion goes horribly wrong
4 days ago

Keltbray bags £140m haul of energy infrastructure work

Specialist secures trio of power frameworks, two battery storage facilities and an energy from waste package
5 days ago

Government awards £1.8bn for energy retrofit schemes – list

Housing and public building decarbonising funds awards to support 20,000 construction jobs
5 days ago

Landmark London scheme switches from flats to student rooms

Regal London rethinks Old Kent Road scheme with 900 student rooms and 220 affordable homes
5 days ago

Align reveals designs for final portal of HS2 tunnel

Contractor confirms how final key structure on project will look
5 days ago

Plans in for 1.4m sq ft of industrial space at Fiddlers Ferry

Peel NRE to appoint demolition contractors for coal-fired power station in weeks
5 days ago

Tilbury Douglas to replace hospital hit by weak concrete

Stoke-on-Trent outpatients building containing Reinforced Autoclaved Aerated Concrete to be replaced
6 days ago

Derby picked as destination for Great British Railways HQ

Public vote secures Derby's bid to be nerve centre of the rail industry
6 days ago

London tower over historic Leadenhall market approved

Building work to start in 2025 on 32-storey tower by historic city market
6 days ago

PfH starts race for £520m housing decarbonising deal

Four-year framework covers service specific lots from £5m to £100m
6 days ago

“Rock solid” balance sheet and record results for Henry Boot

Firm sees early signs of recovery this year in core markets
6 days ago

£200m Edinburgh Haymarket office and hotel approved

Haymarket Yards scheme to move to construction in 2024
6 days ago

Countryside closes deal for £80m build to rent homes

Deal with private rental developer Sigma to speed up delivery at two sites
6 days ago

Wates commercial director joins Caddick

Neil Trubshaw one of a string of appointments as contractor looks to expand across the north
6 days ago

Fusion21 names 16 winners for £125m painting framework

Latest deal will last four-years for public sector clients
6 days ago

Watkin Jones breaks ground on Cardiff 700 flats scheme

Largest build-to-rent scheme in Wales gets underway
7 days ago

Contractor services