It is reported that a multi-billion pound black hole has appeared in Network Rail’s upgrading plans as the cost of projects ‘balloons’.
The Sunday Times (August 3) reported that one of the projects raising concern at the Ministry of Transport is the Great Western electrification. It is thought that the costs of this project have risen by 50 per cent – from £1bn to £1.5bn.
With the much-trumpeted ‘biggest investment since the Victorian era’ costing £38bn over the next five years, it is expected that some projects will have to be scaled back.
One source told the newspaper: “There’s a crunch point going to come later this year. We’re getting to the point where if there’s not enough money, something’s got to give.”
It is thought that some of the projects were “at an early stage of development” when the budget for upgrades during 2014 to 2019 was agreed. Work is now underway to produce definite costings for these schemes to see if the £38bn budget is big enough.
