HS2 Delays Cost Expected to Cost Government £200m​

By Beatrice Kang​

What do you need to know this week?

Environmental activists have been living near a HS2 building site in Staffordshire for over a year, demonstrating against plans to cut down woods for the line. The delays associated with the protests have been revealed to cost the government £122 million so far, and HS2 Ltd (the state-funded body responsible for developing the HS2 high-speed rail network) expects losses of more than £200 million if further delays take place.

Pressure group Stop HS2 believes that construction of the HS2 line will increase carbon emissions and damage historical areas of natural beauty. HS2 Rebellion, another protest group, argues that the new line is the “most expensive, wasteful and destructive project in British history". The Wildlife Trusts estimates that the HS2 will destroy or irreparably damage five internationally protected wildlife sites, 108 ancient woodlands, 693 local wildlife sites and 33 legally protected sites of special scientific interest. Despite HS2 Ltd’s claims of net carbon neutrality, many critics remain unconvinced and contend that, even in the best-case scenario, it will take several decades until the project reaches carbon neutrality.

Why is this important for your interviews?

Last week, the government announced that it would introduce a new public order bill to tackle disruptive protests. These new laws will allow the courts to impose a maximum prison sentence of 12 months upon those who are convicted of “interfering with key national infrastructure”, such as airports. The new bill will also create a new criminal offence of “locking on” or “going equipped to lock on” - preventing protestors from locking themselves onto building sites or transport lines to cause disruption. The government proposes that this new offence will carry a maximum penalty of six months imprisonment or an unlimited fine.

How is this topic relevant to law firms?

The HS2 project has generated lucrative work for many City firms. From 2020-2021, the HS2 project raked up £7.5 million in legal costs, marking a near 70% increase from the expenditure in 2018-2019. Since 2012, the HS2 accounts reveal a total cost of over £33 million on the project. A number of top firms have secured mandates on the HS2 firm roster list, including Eversheds Sutherland, which won two major contracts in 2020 to 2021 ranging from £1.54 million and another for £2.06 million. The government contract awards also reveal that DLA Piper secured a £1.50 million contract related to the project. Other firms which have advised the government on the project since 2012 include Herbert Smith Freehills, Squire Patton Boggs, Addleshaw Goddard and Womble Bond Dickinson.

In addition, the introduction of the new public order bill will be a controversial measure. If passed through Parliament, the bill will grant extended policing powers to police authorities to control major protests. This will impact protesters’ ability to carry out major protests in public spaces, including in front law firm offices. For example in 2020-21, Extinction Rebellion activists targeted several City law firms in a wave of protests in London which blamed the City of London’s role as ‘arch-financier’ of the carbon economy.