HS2 has become “a casebook example of how not to run a major project”, according to the latest report on the high-speed rail line from MPs on the Public Accounts Committee.

The committee criticised the Department for Transport (DfT) and HS2 for failing to "work together effectively" and urged them “not waste this latest opportunity” to reset the programme properly.

It added: “It is unacceptable that over a decade into the programme we still do not know what it will cost, what the final scope will be, when it will finally be completed or what benefits it will deliver.”

The HS2 programme is now subject to a “fundamental reset”.

The committee highlighted concerns about the redevelopment of Euston station and the surrounding area of London. While government confirmed HS2 would terminate at London Euston in the Autumn 2024 Budget, the committee said the DfT does not yet have a plan for the work at Euston.

Although Phase 2 of HS2 has been cancelled, the committee said there are still crucial areas that need to be addressed.

Questions remain around how the DfT will dispose of the land it no longer needs and it must still address future issues around capacity on the West Coast Mainline.

There is also uncertainty on the cost of the project.

The DfT’s estimated range in November 2023 was £45-£54bn compared with HS2 Ltd’s latest estimate of £54-£66bn in June 2024.

But the report said with their cost estimates still in 2019 prices, once adjusted for inflation the total programme costs might be close to £80bn.

The report added: “The Department has failed in its oversight and financial control over one of our most important public sector projects and there is now a reputational risk to the UK.”

The committee has recommended the DfT and HS2 should write to the committee before the 2025 summer recess, setting out the key components of how they are undertaking the reset of the programme, including the actions, milestones and outcomes.

It also recommended DfT’s six–monthly progress updates to parliament should include progress on contract renegotiations and the level of savings made, as well as its progress on Euston.

New HS2 chief executive Mark Wild, who joined the project at the end of last year, will reset the programme over the next 12 months.

This work will include comprehensively reviewing the costs and schedule, reviewing the skills and structure of HS2 Ltd and recalibrating its relationship with the supply chain.

Wild undertook a similar reset of the Crossrail programme in 2019, getting the programme on a more transparent, realistic, and achievable cost and schedule footing, allowing for the successful opening of the Elizabeth line in 2022.

A spokesperson for HS2 said: “Mark Wild, our new chief executive, agrees with the committee’s conclusion that there has been failure in the management of HS2’s cost and schedule. He is taking decisive action to get the project back on track at the lowest feasible cost.

“His fundamental reset is critical to ensure the successful delivery of HS2's goals – driving economic growth and connecting our biggest cities with fast and reliable journeys.”

Click here to read the full report.