HS2 Reports Subcontractor to HMRC over Alleged Fraud

Transport Secretary Heidi Alexander has initiated a comprehensive reset of the HS2 high-speed rail project after acknowledging significant management failures and escalating costs that threaten the project's delivery on time and within budget. Central to the reset is an investigation into alleged fraud within the HS2 supply chain, involving subcontractors who reportedly inflated worker payment rates and submitted falsified payslips. HS2 Ltd has formally reported one subcontractor, notably the Danny Sullivan Group working under the Balfour Beatty Vinci joint venture, to HM Revenue and Customs (HMRC) following internal whistleblower allegations. The subcontractor has been suspended from new contracts pending the outcome of ongoing inquiries, with Alexander pledging vigorous prosecution if fraud is confirmed. The reset also includes appointing Mike Brown as HS2 Ltd chair and implementing contractual reforms incentivizing cost savings for taxpayers, reflecting a push to restore confidence and accountability in the project after prior mismanagement. The issue is expected to be raised in Parliament as part of a broader Labour-led effort to overhaul HS2's governance and delivery strategy.