Transparency data

High Speed 2 (HS2) Crewe to Manchester: accounting officer assessment (January 2022)

Updated 27 November 2023

Background

An accounting officer assessment was prepared in January 2022 in support of the deposit of the High Speed Rail (Crewe-Manchester) Bill on 24 January 2022.

Overview

The objectives of the HS2 Crewe-Manchester scheme, as presented in the Update on the strategic outline business case (SOBC), are to:

• connect the largest economic regions and cities across the UK through the provision of a step-change in connectivity and capacity
• enable significant enhancements to the conventional rail network across the north-west and north, freeing up much needed capacity on key bottlenecks as well as providing critical infrastructure to allow the delivery of Northern Powerhouse Rail and new Metrolink routes
• support development and regeneration across the north-west through the alignment to and support of local authority growth strategies, enabling the development and transformation of key sites at Manchester Piccadilly and Manchester Airport
• support government plans to build back better through the direct and indirect expansion of investment in the development of technical skills needed to bring the UK in line with other leading economies
• provide a sustainable long-term transport solution that supports the UK’s net zero carbon target and aims for a net gain in biodiversity, alongside economic prosperity

The update on the SOBC is an evolution of earlier business cases prepared at various stages during the development of the HS2 programme over the past decade. This SOBC update presents a clear and up-to-date view of the strategic, economic and financial cases for the scheme.

Regularity

The High Speed (Preparation) Act 2013 provides the broad set of powers for the overall HS2 Scheme. Authorisation for the scheme is being sought through the High Speed Rail (Crewe-Manchester) Bill, following the October 2020 Western Leg Design Refinement Consultation and the route wide update of summer 2021.

Propriety

The HS2 Crewe-Manchester scheme is working to the HM Treasury Green Book 2021 and within the standards set out in Managing public money guidance.

The scheme has been considered by the Department for Transport (DfT) Investment Portfolio Delivery Committee and the Major Projects Review Group. It does not breach any parliamentary control procedures or expectations.

Value for money

The HS2 Crewe-Manchester scheme value for money assessment uses the transport analysis guidance (TAG) value for money framework for assessing the social benefits and costs of investing in HS2. This includes consideration of the benefit-cost ratio (BCR), the strategic objectives, wider economic impacts as well as non-monetized impacts. The value for money assessment for HS2 Crewe to Manchester undertaken by DfT finds that the scheme delivers long-term value to the taxpayer with an implied BCR of between 1.0 and 1.5. This range is based on a 60-year appraisal period (2038 to 2098) and includes direct user benefits, wider static and dynamic economic benefits, as well monetizable environmental benefits.

Feasibility

Following an Infrastructure and Projects Authority project assurance review of the HS2 Crewe to Manchester scheme undertaken in August 2021, the project received an amber delivery confidence assessment for the programme.

Conclusion

On this basis, we are content that investment in HS2 Crewe to Manchester as part of the wider HS2 network is consistent with official guidance on managing public money.