HS2 link 'facing £3.3bn funding gap'

Date: 16/5/2013

The High Speed 2 rail project is facing a £3.3 billion funding gap, figures released by Whitehall spending watchdog the (NAO) National Audit Office have revealed.

According to the NAO's report, there is no guarantee that the scheme will deliver economic balance or growth as the timetable for delivery throws its potential for success into question.

NAO Head Amyas Morse said: "It's too early in the HS2 programme to conclude on the likelihood of its achieving value for money.

"It is also unclear how HS2 will transform regional economies by delivering jobs and growth."

The watchdog claimed that the £3.3 billion funding gap will emerge from 2017-18 to 2020-21 - a period when the capital forecast is £33.7 billion but a constant capital budget at 2014-2015 levels would be £30.4 billion.

In addition, the NAO went on to question the benefit-cost ratio that has previously been outlined, suggesting it is "likely to change" in the future.

Posted by Sarah Bailey

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