Green light for construction work to start on HS2

Contractors have been the green light to start construction work on the first phase of HS2.

Until now, the focus has been on site preparation and other associated work but today's announcement by the Department for Transport means building can start in earnest.

The move follows the publication of the review by former HS2 chairman Douglas Oakervee in February and the Government's subsequent backing for the scheme.

Phase one of HS2 will cover around 140 miles and see four new stations built at Euston and Old Oak Common in London, 'Interchange' in Solihull close to Birmingham Airport and the NEC campus and Curzon Street in Birmingham city centre.

The Department for Transport has given approval for HS2 to issue a so-called ‘Notice to Proceed' to the four main civil contractors working on the project - SCS Railways, Align JV, EKFB JV, and BBV JV.

So far, the contracts between HS2 and this quartet for phase one have focused on scheme design and site preparation including pricing and scoping.

The issuing of this notice marks the point where the project transitions from design and preparatory work to full detailed design and construction.

HS2 estimates that around 400,000 supply chain contract opportunities for UK businesses will be created during the construction of phase one, with 95 per cent of them being won by UK businesses and two thirds awarded to SMEs.

Chief executive Mark Thurston said: "In these difficult times, today's announcement represents both an immediate boost to the construction industry and the many millions of UK jobs the industry supports - and an important investment in Britain's future.

"HS2 has been over ten years in development and design.

"While the country's focus is rightly on defeating covid-19, the issuing of Notice to Proceed ensures our contractors and their supply chains have the confidence they can commit to building HS2, generating thousands of skilled jobs across the country as we recover from the pandemic." 

Work on progressing detailed design, site preparation and placing sub-contracts would start immediately, HS2 said, while adhering to the latest guidelines from Public Health England related to workplace practices and social distancing.

Phase one is expected to cost between £35 billion and £45 billion.

Services between Birmingham Curzon Street and Old Oak Common are due to begin between 2029 and 2033 and full phase one services to London Euston are forecast to start between 2031 and 2036.

Phase two, which will run from Birmingham to the East Midlands, North West and Yorkshire, is due for completion by 2040.

Once operational, the entire rail line will serve more than 25 stations and connect around 30 million people.

Want more business news straight to your inbox?

BusinessLive is your home for business news from around the country - and you can stay in touch with all the latest news through our email alerts.

You can sign up to receive morning news bulletins from every region we cover and to weekly email bulletins covering key economic sectors from manufacturing to technology and enterprise. And we'll send out breaking news alerts for any stories we think you can't miss.

Visit our email preference centre to sign up to all the latest news from BusinessLive.

West Midlands Mayor Andy Street described HS2 as a "serious shot in the arm" of the economy as the nation continues to battle the financial effects of covid-19.

"These are incredibly dark and challenging times for the economy in the West Midlands, with thousands of businesses fighting every day to stay afloat," he said.

"The Chancellor and his team at the treasury are doing the right thing in attempting to put the economy into hibernation but we will need a serious shot in the arm to help reboot our regional economy when the coronavirus crisis begins to subside.

"That is exactly what HS2 will provide.

"The notice to proceed gives our construction industry and its supply chain the confidence there is light at the end of this dark economic tunnel and businesses across a whole range of sectors the confidence our regional economy can recover.

"Not only will this announcement help to save tens of thousands of jobs across the West Midlands, it will also be the catalyst to create tens of thousands more."

Steve Hollis, chairman of the West Midlands HS2 Growth Strategy, said: "This announcement is much-needed positive news, not only for the West Midlands but for the whole country.

"Large-scale infrastructure projects such as HS2 will play a key role in restarting the national economy, helping to reinvigorate a core part, the construction industry, and demonstrating the confidence the government has in the nation's future.

"At a time when the global economy will need to rebuild from the impact of covid-19, the certainty and confidence this announcement provides sends out a message to investors across the world, we are open for business and the West Midlands will have a key role to play in restoring the UK's economic fortunes."