Commons Sense

House of Commons · Ministers' Questions

HS2: Compensation

Thursday 24 November 2022 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • HS2 compensation has led to payments of about 3.2 billion for land acquisitions.
  • The government acknowledges past issues with the acquisition process and is learning from them.
  • 122 million of British steel has been purchased by HS2 so far.

Topics (select to filter)

Questions & Answers

Q1 Jeremy Wright Con Kenilworth and Southam
Transport
Context

Residents affected by HS2 have faced difficulties in obtaining fair compensation, with delays and contested valuations.

Question

I welcome my hon. Friend to his new responsibilities and offer him my sympathy that one of them is HS2. He will know that for those who find themselves in the path of this project, obtaining compensation is a painful and long drawn-out experience. That is particularly true for those subject to compulsory purchase, where payments are delayed. Where they are delayed, there are very low rates of interest, and valuations are heavily contested. That is not meeting the promise that he referred to, that the Government would be fair and that people would not be worse off as a result of this project. May I ask him to look urgently at this problem? In particular, will he look at those low rates of interest that are paid on delayed payments? The Government legislated to increase those rates but never brought the measure into effect.

Answer from Huw Merriman

Some £3.2 billion has already been paid out in land acquisitions, and more is to be paid out. The Government did recognise that there were problems with acquisitions, and a report was commissioned by a predecessor of mine. We will ensure that we can learn lessons. With regard to the payment of interest, HS2 Ltd pays interest at 0.5% below the Bank of England base rate, and there was a period of two years between 2020 and 2022 when no interest was paid because the base rate was below 0.5%, but I am willing to meet my right hon. and learned Friend to discuss these matters further.

Partly answered

Not addressed: Specific actions or timelines for addressing low interest rates on delayed payments were not provided

How: We Will Ensure That We Can Learn Lessons

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Q2 Jeremy Wright Con Kenilworth and Southam
Transport
Context

Residents affected by HS2 have faced difficulties in obtaining fair compensation, with delays and contested valuations.

Question

I welcome my hon. Friend to his new responsibilities and offer him my sympathy that one of them is HS2. He will know that for those who find themselves in the path of this project, obtaining compensation is a painful and long drawn-out experience. That is particularly true for those subject to compulsory purchase, where payments are delayed. Where they are delayed, there are very low rates of interest, and valuations are heavily contested. That is not meeting the promise that he referred to, that the Government would be fair and that people would not be worse off as a result of this project. May I ask him to look urgently at this problem? In particular, will he look at those low rates of interest that are paid on delayed payments? The Government legislated to increase those rates but never brought the measure into effect.

Answer from Huw Merriman

Some £3.2 billion has already been paid out in land acquisitions, and more is to be paid out. The Government did recognise that there were problems with acquisitions, and a report was commissioned by a predecessor of mine. We will ensure that we can learn lessons. With regard to the payment of interest, HS2 Ltd pays interest at 0.5% below the Bank of England base rate, and there was a period of two years between 2020 and 2022 when no interest was paid because the base rate was below 0.5%, but I am willing to meet my right hon. and learned Friend to discuss these matters further.

Partly answered

Not addressed: Specific actions or timelines for addressing low interest rates on delayed payments were not provided

How: We Will Ensure That We Can Learn Lessons

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Q3 Grahame Morris Lab Easington
Transport
Context

The anticipated spend for HS2 in the current year was £5.7 billion, but there is concern about how this budget is being used.

Question

I welcome my hon. Friend the Minister to his position. I remind him that Mark Thurston told the Transport Committee that the anticipated spend for the current year was within the envelope of £5.7 billion. My question relates to how that £5.7 billion is being used in terms of procurement. What can the Minister and the Department do to encourage or specify the use of British steel for rails and structures within the terms of the contract?

Answer from Huw Merriman

I recognise all the work that he has done and continues to do on the Transport Committee. Some £122 million of British steel has been purchased by HS2. I am keen that we talk to HS2 more about how it can further invest in British steel. I will supply him with figures on how much steel has been produced from outside the UK, because that is how we will end up holding to account.

Partly answered

Not addressed: Specific actions or commitments for increasing use of British steel were not provided beyond existing procurement practices

How: I Am Keen That We Talk To Hs2 More About How It Can Further Invest In British Steel

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