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DfT Government Major Project Portfolio data, September 2015 (CSV)

Updated 7 July 2016
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Project Name Periodic Review 2013 (Rail Investment Strategy - HLOS & SOFA) Search and Rescue Helicopters Crossrail Programme InterCity Express Programme (IEP) Thameslink Programme Shared Services Implementation Programme Rail Franchising Programme High Speed Rail Programme (HS2) A14 Cambridge to Huntingdon Improvement Scheme Lower Thames Crossing Feasibility
Department DFT DFT DFT DFT DFT DFT DFT DFT DFT DFT
IPA RAG rating (A Delivery Confidence Assessment of the project at a fixed point in time, using a five-point scale, Red – Amber/Red – Amber – Amber/Green – Green; definitions in the IPA Annual Report) Green Amber/Green Amber/Green Amber Amber Red Amber Amber/Red Amber Amber
Description / Aims As part of the Office of Rail Regulation's Periodic Review, Government is required to publish a High Level Output Specification (HLOS), setting out information about what the Secretary of State wants to be achieved by railway activities during Railway Control Period 5 (1 April 2014 to 31 March 2019); and a Statement of Funds available (SoFA), setting out the public funds that are or are likely to become available to secure delivery of the HLOS. This fulfils the statutory obligation required by paragraph 1D(1) of Schedule 4A to the Railways Act 1993 as modified by the Railways Act 2005. To manage the delivery of a Search and Rescue Helicopter contract for the provision of search and rescue helicopter services for the UK. A new high-frequency rail service which will increase rail-based capacity in London by 10% and cut journey times across London and the South East. IEP will renew the UK's high speed train fleet on the Great Western and East Coast. Through franchise competitions, IEP is a key means to deliver the passenger benefits from the associated upgrades including more capacity, improved reliability, reduced journey times and better environmental performance. The order supports a new train factory at Newton Aycliffe which will create 730 new jobs with thousands more in the supply chain. IEP serves London to Bristol, Cardiff, Swansea, Cheltenham & Worcester, and London to Leeds, Edinburgh & Aberdeen offering through-trains from non-electrified lines without the need to change or attach a locomotive. The Thameslink Programme will deliver increased capacity and faster and more reliable journeys for people travelling to and across London. The Programme will deliver a series of infrastructure enhancements across the Thameslink network (such as platform lengthening) and the rebuilding of Blackfriars and London Bridge Stations, major works at Farringdon Station where Thameslink will connect with Crossrail,  and the introduction of a new fleet of 115 state of the art trains from 2016 .   The Programme will complete in late 2018 when 24 trains per hour will travel north-south across central London in each direction during peak hours. To centralise transactional functions for Finance, Human Resources, Payroll and Procurement into two Independent Shared Service Centres. To secure the provision of passenger rail services as set out under the Railways Act 1993 (as amended) by letting Rail Franchises. A new, fully integrated, high speed North-South railway. The A14 trunk road provides a vital road transport corridor between West Midlands and East Anglia and is of local, regional, national and international significance. The improvement scheme will: • combat congestion, making the A14 more reliable and providing capacity for growth; • unlock economic growth, both regionally and nationally; • improve local connectivity and local network for all users; • improve safety for road users and community; • recognise the wider benefits of road investment and leave a positive legacy. The project has been established to identify and develop options for relieving congestion at the existing Dartford crossing and enabling economic growth through the provision of additional road capacity across the river in the Lower Thames area. In the initial Options Phase the project will identify and assess: • the best location for a new crossing • the most suitable type of crossing structure • the funding/investment strategy (including the approach to user charging and the role of private sector finance) • the Options Phase will produce a Preferred Scheme supported by a business case, a funding strategy, the approaches to consenting, procurement and delivery. This will include a non-statutory consultation (26th January to 24th March 2016).
Departmental commentary on actions planned or taken on the IPA RAG rating. The HLOS was published with the required information as planned in July 2012. The rail industry responded with a Strategic Business Plan in January 2013 setting out how it proposed to deliver the HLOS within the financial ceiling of the funds available. The independent Office of Rail Regulation (ORR) undertook a review of this plan in 2013 and concluded it was appropriate and would deliver the HLOS. The HLOS Project completed following completion of the ORR Periodic Review for Railway Control Period 5 in late 2013. The Department has since established separate arrangements for monitoring the subsequent delivery and affordability of the Rail Investment Strategy for Control Period. The exit review for the HLOS project was incorporated in the wider Bowe Review commissioned by the Secretary of State for Transport to identify lessons learned from the planning process for ‘Control Period 5’ (2014-19) for rail investment to be delivered by Network Rail. The Bowe Report was published on 25th November 2015. The recommendations have been accepted in full and are now being implemented. The UK SAR Helicopter Programme is nearing conclusion of its transition phase. The military Sea King SAR service in the UK has now ended and has been replaced with new helicopters operating under the UK SAR Helicopter Programme. This is a very significant milestone. In addition to marking the end of military involvement in SAR in the UK, it means that all state-operated SAR helicopters in the UK are now in Coastguard livery. Since SAR services under the UK SAR Helicopter Programme started, HM Coastguard's new helicopters have responded to over 600 requests for assistance, and saved or assisted over 500 people. The next SAR bases to fold into the new UK SAR Helicopter Programme are at Stornoway, Lee-on-Solent and Shetland in 2017. These bases are currently operated under legacy Coastguard helicopter contracts. All indications are that the transition of these three remaining bases will happen on time. The project is forecast to be completed within budget. The Department, as well as Transport for London, will continue to monitor costs and schedule (with the assurance of the Project Representative), to ensure that the project is delivered on time and within budget. The trains are expected to be on time and on budget with the first vehicles accepted into service from 2017. In the light of the delays to the Great Western Electrification Programme we are working with Agility and Hitachi on developing mitigations including re-phasing electrification and options that could see the 21 electric sets are delivered as bi-mode in 2018. This will be subject to confirmation of the Hendy Review and review of options to recommend a course of action to Secretary of State. The project is progressing to time with train manufacture (by Siemens), infrastructure works by Network Rail (including rebuilding London Bridge Station) and the construction of Hornsey depot all being delivered to the programme schedule. Recently completed programme milestones include: the completion of the new Three Bridges depot (July 2015); the start of train testing in the UK (Nov 2015); the successful completion of infrastructure works at London Bridge station over the 2015/16 Christmas blockade (which enabled the completion and delivery into service of the new Borough Viaduct in Jan 2016). Revised NR costs and increases in programmes associated with Major Projects were included as a result of the Hendy Review and are currently going through management and programme board scrutiny and approval. Key risks to the programme relate to train introduction, passenger facing changes at London Bridge (Aug 16), programme cost pressures, and the introduction of the 24 trains per hour timetable in 2018. The DfT Shared Services Implementation Programme comprises a series of planned (tranche) migrations to the new ISSC-1 service provision. Originally scheduled to complete by the end of the 2014 calendar year, delays to the tranche-2 & 3 migration, mean a rightward shift of later planned deliveries. Consequently it is currently anticipated that the programme will not be finalised until end 2017 as on-going delivery issues have recently resulted in a further slippage. Close interaction between the supplier (arvato) and the DfT is on-going to monitor and correct variance from delivery plans. The Rail Franchising Programme continues to deliver in line with the published schedule. Since Q2 we have made 3 franchise awards- 1 through Direct Award (West Midlands) and 2 following competition (Northern and TransPennine Express (TPE)). These awards will deliver significant benefits for passengers and higher returns to the exchequer. The Northern and TPE franchises will begin 1 April 2016 and work to mobilise them continues. This includes the formation of the joint Rail North/ DfT commercial management teams in Leeds, which will see a more localised approach to the franchises and is a step toward eventual devolution. The most recent issue of the franchise schedule included a retiming of the InterCity West Coast competition to ensure it is well aligned with the HS2 programme. The ICWC operator will play an important role during the construction of HS2 and in facilitating the introduction of High Speed services in 2026. This retiming will allow us to continue to engage with the market on the best options for the franchise to do this. We have also made changes in the procurement process to introduce a “Passport” approach to prequalification of bidders, which will make the franchise bidding process simpler and reduce the barriers to entry for new entrants to the market. This has been designed to streamline the pre-qualification process for rail franchise competitions. In particular, the Passport System is intended to reduce the time and cost involved for Applicants in providing detailed technical information for multiple rail franchise competitions. A Passport is needed for any organisation to express an interest in any future rail franchise competition. We currently have teams working on 3 live franchise competitions at various stages of completion. West Midlands and South Western are undergoing consultation exercises and developing specifications; East Anglia is currently evaluating bids in preparation for award in the summer. The West Coast team is also in place doing preparatory work to launch the competition later this year. A recent PAC report into the programme confirmed the significant progress we have made in improving franchising and the benefits that it has brought to passengers since the launch of the programme in 2013. It highlighted the need to continue to ensure that the franchise market remains competitive. We are taking active steps to do this by working with OGDs and altering our policies to encourage new entrants to the market. HS2 is in excellent shape and substantial progress has been made in all areas of the programme this year. The Amber-Red assessment reflects the complexity of the scheme and this early stage of the programme. - The target opening date for Phase 1 remains 2026, with Phase 2a (Birmingham to Crewe) to open in 2027, and the rest of the “Y” (Crewe to Manchester and Birmingham to Leeds) in 2033. - The Spending Review 2015 (SR15) settlement announced on 25 November 2015 provides £14.8bn of capital funding for the programme over the next five years and sets out an updated funding envelope of £55.7bn for delivering HS2 in 2015 prices. This was an excellent outcome for the programme, and provides the funding for construction of Phase 1 to start in 2017 and keeps plans for Phase 2 on track. - An updated programme cost and schedule baseline (BL6) has been developed which contains a further level of granularity to inform the assumptions against which the Invitation To Tender for the Main Works Civils Contracts will be assessed. We expect BL6 to be adopted in April 2016. - New programme governance arrangements were implemented in December 2015, including a new Programme Board and three new Sponsor Boards (for Phase 1, Phase 2 and Commercial Operations) reporting to it. - There has been significant progress on building capability in the client and delivery organisations as the programme transitions towards the delivery phase, through DfT and HS2 Ltd developing Delivery, procurement and commercial strategies and demonstrating that the right capabilities and skills are in place to move forwards with procurements. - The Integrated Programme Management Office has been set up to put in place effective processes for joint planning, reporting and risk management across the wider programme. - A new Managing Director and team for Railway Operations are in place for HS2 and their work will include the development of the Operational Concept (a blueprint for how the future HS2 railway and its train services will work as an operational system), and the management of the Rolling Stock and Depots Programme. Highways England’s intention is for the A14 to be an exemplar for commercial and procurement best practice in the delivery of major projects. The strategy for delivery has centred on the Collaborative Delivery Framework (CDF) which centres upon the core belief of Highways England that significantly better value can be achieved through its supply chain with greater collaboration and engagement. The Integrated Delivery Team has been formed to enable collaboration between the various partners in the design and construction process along with Highways England. The partners are incentivised to drive down costs and to deliver early. Incentives have been set at a project wide level so that the performance of the A14 scheme, and its completion as a whole, will determine the level of incentive payments. Successful delivery is forecast with the constant monitoring of programme, budget, spend and management of key risks to delivery. All critical delivery areas have dedicated leaders and are appropriately resourced. A key risk to achieving the start of works commitment is legal challenge to the Development Consent Order outcome. The team has worked hard to implement a robust mitigation strategy to counter such an occurrence as far as possible. A risk management process is in place with an identified mitigation/escalation process. The Options phase work is continuing according to the approved scope and programme of work. Following an assessment of the long list of feasible options, four front running options (one at location A and three at C), have been shortlisted and were shared with Ministers in June 2015. Since then Highways England has carried out a detailed appraisal of each and determined its Proposed Scheme and consulted with the public. The Strategic Outline Business Case has been approved by H M Treasury. Procurement of a technical partner for the Development Phase is underway and the Project is supporting the DfT in its assessment of the role of private finance. The public consultation closed on 24th March and Highways England is on schedule to provide its Preferred Route Recommendation this summer.
Project - Start Date (Latest approved start date) 31/08/2011 08/02/2011 22/07/2008 01/06/2005 01/07/2005 10/12/2010 26/03/2013 28/02/2011 01/09/2012 30/05/2014
Project - End Date (Latest approved end date) 31/07/2012 08/09/2017 31/12/2019 06/02/2020 31/12/2018 01/06/2015 31/12/2022 31/12/2033 30/09/2021 31/12/2026
Departmental narrative on schedule, including any deviation from planned schedule (if necessary) HLOS project delivered to schedule. The HLOS exit report was incorporated in the wider review of the process commissioned by the Secretary of State for Transport from Dame Collette Bowe in March 2015 The programme is performing well against the plan. We are nearing the final stages of the transition phase with the first seven bases now operational delivering SAR services. The three remaining bases to transition are on track to do so at the point at which the legacy Coastguard contracts they operate under end. The issues delaying the introduction of the smaller airframe type are being addressed. A phased introduction of these aircraft will take place only when these issues have been resolved and is anticipated to start from April 2017. The delayed introduction of these aircraft is mitigated through the use of alternative aircraft from the contractor's fleet. Crossrail Ltd report that the overall schedule and completion dates will be maintained. The Project Representative, who reports directly to the Department and Transport for London, provides ongoing assurance on the project schedule and will flag any potential deviation on the schedule to both Sponsors where corrective action can be taken. In the context of delays to the electrification of the Great Western, the Department is looking at a range of technical and commercial options to ensure passenger benefits such as more capacity are delivered on time. It is anticipated that a recommendation and decision will be made by May 2016. Train delivery is on schedule - the first three pre-series trains are currently being tested in the UK. In the light of delays on Great Western electrification, alternative solutions for train testing at Old Dalby and on the East Coast are being considered. The manufacturing facility at Newton Aycliffe was opened by the Prime Minister and Chancellor on time in September 2015. The delivery of the main depots at Doncaster, North Pole (London) and Stoke Gifford (Bristol) is progressing as planned. Good progress has been made on all the key elements of the programme with no specific concerns regarding completion. The programme is progressing well and is scheduled to complete in 2018. Re-planning is underway regarding the broader migration schedule for the DfT Business units left to move across to the Agresso system. The Department is aiming at agreeing a robust schedule of migrations underpinned by evidence of delivery. Ministers have agreed to a 6 month retiming to the start of the West Coast ITT to enable DfT to impact assess redevelopment of Euston and HS2 on the West Cost franchise . Key work streams of the Specification work have been brought forward to enable more time to meet the ITT milestones. The programme remains on schedule to open Phase 1 of the Railway in 2026 and Phase 2 in 2033 - The Phase 1 Hybrid Bill remains on track for Royal Assent in December 2016, with Select Committee Stage completed in early February 2016, nearly 2,600 petitions handled, and five Additional Provisions successfully managed. Third Reading of the Bill in the Commons took place on 23 March, with MPs voting 399 to 42 in favour of the Bill, demonstrating strong cross-party support for HS2. The Bill has now passed to the House of Lords, with Lords First Reading also taking place on 23 March, and a Chair and members for the Lords Select Committee due to be appointed in May. - The Phase 1 Main Works Civils Contracts (MWCC) Pre-Qualification Questionnaire and the Invitation To Tender (ITT) for the Engineering Delivery Partner contracts were issued on 24 September 2015 following approval by the Secretary of State and HMT, marking a significant step towards start of construction in 2017. The successful bidder for the contract for the Engineering Delivery Partner was announced in March 2016, and we expect to issue the ITTs for the MWCC in early June 2016. - The ITT for the Phase 1 Enabling Works was issued on 23 March 2016 (for activities such as utility diversions, site clearance, demolition and ground remediation). The work is expected to start on schedule in 2017. - Following further work with the rail industry and Network Rail, a revised scheme for Euston station was developed, with a 3 stage delivery plan to support Phase 1, Phase 2 and 'classic' rail. The revised plan for Euston was outlined in Additional Provision 3 to the hybrid Bill, which was approved by the Chancellor and deposited in Parliament in September 2015. - The Secretary of State has granted approval for HS2 Ltd to be appointed as the ‘Agent’ responsible for the procurement of a Master Development Partner for Over Site Development (OSD) at Euston. - The procurement process was also started for seven million trees to be planted alongside the London to West Midlands line to mitigate its impact on woodland. A contract is expected to be awarded in the autumn of 2016, which will provide time for the trees to grow to a sufficient size to be planted out during construction. - On 30 November 2015, the Secretary of State announced his decision to accelerate part of the Phase 2 route (Phase 2a - Birmingham to Crewe), in order to bring benefits to the North earlier, and we commenced work to prepare a hybrid Bill for Parliament to take this forward. Property compensation arrangements for Phase 2a were announced along with the direction of travel on Phase 2b (Crewe to Manchester and Birmingham to Leeds), and the next steps on Crewe and Leeds stations. Sir David Higgins also published his findings on his review of the redevelopment options for Leeds station to prepare it for HS2. - The contract was awarded for the Phase 2a Parliamentary Agents on 25 February, who will be responsible for the drafting of the Phase 2a hybrid Bill. - A report was published on 21 March on the “Broad options for upgraded and high speed railways to the North of England and Scotland”, together with a joint UK/Scottish Government statement on next steps. - A supplement to the 2013 HS2 Strategic Case was published in November 2015, which updated and improved the evidence base including emphasis on capacity and demand on the West Coast Main Line and the way in which HS2 will support a modern economy. -The National College for High Speed Rail was incorporated in July 2015 and is on track to open in 2017, with funding through BIS agreed as part of the SR15 announcement in November 2015. Construction contracts were let for the new Doncaster and Birmingham National College sites in February and March 2016 respectively, with construction due to start in April 2016. - In March, the Secretary of State approved the principles, high-level terms and process through which the DfT-owned land at Old Oak Common will be transferred to the Old Oak Common and Park Royal Development Corporation (OPDC). A Memorandum of Understanding (MoU) for the land transfer was then signed between Government and the OPDC on 15 March and an announcement on this made during the 2016 Budget. - Approval was given in November 2015 to provide early funding for HS2 Growth Strategies for Crewe and East Midlands via the relevant Local Enterprise Partnerships, which will enable a joined-up regional approach in developing regeneration and transportation plans. The Development Consent Order (DCO) application was submitted on 31 December 2014 followed by a six month examination period which ended on 13 November 2015. The Examining Authority is currently preparing its recommendations which will be submitted to the Secretary of State no later than February 2016. It is expected that a decision will be announced by the Secretary of State on or before May 2016. The project is on track to commence construction works at the earliest opportunity following a positive DCO decision with the scheme open for traffic by the end of 2020, as indicated in the Roads Investment Strategy Delivery Plan. For the Delivery Plan to be met, Highways England Board approved the award of the detailed design package and three construction packages for the scheme under Highways England’s Collaborative Delivery Framework Lot 3B to progress detailed design and pre-construction activities ahead of the DCO announcement. HMT approved funds in order to undertake early enabling works and secure long lead time materials for statutory undertakings. These works are ongoing. Final Business Case approval and full construction funding will be progressed for approval in June/July 2016. Full award of the construction contracts will take place once funding and DCO approvals have been granted. Having taken into account a very high level of response to the consultation, the project has agreed with DfT that the period of consideration of consultation responses will be extended. This means a Preferred Route Announcement will be made later in 2016. The Project is being carried out using Highways England's Project Control Framework and the next Stage Gate Assessment Review is scheduled to take place in June 2016. The next IPA review is scheduled for the Autumn 2016 (exact dates to be agreed with IPA) . An Integrated Assurance and Approvals Plan has been submitted to DfT and the IPA. N.B. The "open for traffic date" of 2025 assumes public funding. The DfT is working with H M Treasury to assess the potential for private finance. If private finance is used, the overall programme would be extended by up to 2 years.
2015/16 Budget (£million) £3,381.94 £119.00 £1,794.50 £98.75 £29.58 £20.20 £0.00 £713.00 £40.10 £19.10
2015/16 Forecast (£million) £2,577.40 £112.80 £2,068.90 £98.00 £29.58 £11.17 £0.00 £713.00 £41.73 £16.40
Variance Budget / Forecast %age -23.79% -5.21% 15.29% Budget variance less than 5%. Budget variance less than 5%. -44.70% Budget variance less than 5%. Budget variance less than 5%. Budget variance less than 5%. -14.14%
Total budgeted whole life costs (£million) (including Non-government costs) £16,840.60 £1,923.00 £14,768.87 £6,246.89 £6,830.50 £222.30 £1,036.30 £42,559.51 £1,519.32 £199.10
Departmental Narrative on Budget / Forecast variance for 2015/16 where more than +/- 5% The budget provided is based on the Secretary of State's Statement of Funds Available (SOFA) which was published in July 2012 as part of the Control Period 5 HLOS. The forecast provided is based on the current net resource and capital position, based on the most up-to-date Long Term Forecast for Rail, at the time of reporting. The resource forecast is based on the in year Support for Passenger Rail Services position, which has improved significantly as a result of increase in revenues. The capital forecast is based on the Office of Rail and Road Final Determination from 31 October 2013. The Determination sets out the amount of capital grant the DfT provides to Network Rail in 2012/13 prices. This is inflated using the latest Office for Budget Responsibility indicators to produce the forecast. The amount of grant Network Rail receive in each year of Control Period 5 is recalculated in this way annually and detailed in the Deed of Grant. As such, inflation risk remains. The forecast variance in 2015/16 of an underspend versus budgeted costs is the result of a negotiated reduction in contractual charges relating to Bristow's contingency plan to address issues with the smaller airframe type coupled with generally favourable movements in variable costs such as the lower price of fuel. The variance in the 2015/16 Crossrail budget is due to the funding arrangements for the project. The budget describes the schedule for Sponsors funding Crossrail Limited. The forecast describes the profile for Crossrail Limited then spending those funds. A re-baselining of the programme schedule in 2010 meant that costs have been incurred in different years than originally anticipated. Despite this the Crossrail project is still forecast to come within the total available budget. Budget variance less than 5%. Costs refer to DfT costs for the Programme. Budget variance less than 5%. The changes in the migration dates have meant that the Programme team has needed to stay in place for longer than originally planned to see through the re-planning and subsequent migrations of the DfT family of business units. Budget variance less than 5%. Budget variance less than 5%. Budget variance less than 5%. The in-year spend has been reduced following a review of the scope of Stakeholder Management activity, rescheduling the commencement of work for the technical partner (including surveys) and deferring commencement of work on Version 3 of the Traffic Model until later in 2016.
Departmental Narrative on Budgeted Whole Life Costs The programme completed in 2012. The Department is working to develop the programmes and projects to deliver the infrastructure and train service changes, and will consider lessons learned for the next Periodic Review in 2018. Budgeted whole life cost of £1,923m is the headline cost figure for the contract of £1.6bn plus the associated non-recoverable VAT. This represents a significant saving against the previously reported whole life cost figure of £3,286m as a result of the procurement strategy requiring a shift away from a PFI-negotiated contract to a contract procured under the Competitive Dialogue process. Contractual costs began to be incurred in April 2015 when operational delivery commenced at the first two bases and will continue until the end of 2025/26. This constitutes the funding envelope for the project as a whole. There are a series of intervention points set out in the governance documents which are designed to mitigate against the risk of exceeding the total funding available. The aim of both Sponsors (DfT and TfL) is for final outturn costs to remain well within the total funding envelope. The total costs of £5.7bn are financed via PFI payments over 27.5 years. DfT guarantees use of the trains in the Great Western and East Coast franchises. Network Rail funded in CP5 to deliver £480m of enabling works prior to entry into service. The combined cost is £6.2bn. The budgeted Whole Life Cost for the Thameslink Programme is £6.5bn of which £4.6bn is Network Rail infrastructure costs, £1.9bn in respect of new rolling stock and maintenance depots. We expect a cost increase following changes to the NR infrastructure programme which was included in the Hendy Review during 2015. Measurable monetarised benefits will result following the successful migration of the DfT family of business units, now scheduled for end-2017. The financial benefits have been calculated by taking the costs of services if the Shared Services Centre remained in DfT ownership and cost of core service under the divestment case (F/C) and comparing the difference. Framework Authority commercial discussion may impact overall benefits, but the detail remains sketchy at this time. Consequently, the profile of benefits is subject to change. Budget values are derived from v15.51 of the rail LTF amended for subsequent CP5 and other changes. Economic factors as most recent OBR projections. Forecast from rail LTF v June 2015. A significant policy change since the Q1 forecast is the change in fares policy for the years of 2015/16 to 2019/20 where the fare increase has been reduced from RPI+1% to RPI+0%. This change increasingly reduces farebox across all years. Lower inflation forecasts will have also reduced farebox although this will be partially offset by lower costs. For all franchises, the franchise duration has been amended to the current duration. Both the budget and forecast values have been amended to this basis. In the 2015 Spending Review (SR15), Government restated the long-term funding envelope for the HS2 programme at £55.7bn in 2015 prices. This budget is for delivery of the full HS2 scheme including rolling stock. The SR15 settlement sets a year by year funding allocation for HS2 as a whole for a period of 5 years (2016/17 to 2020/21). Following the precedent set by Phase One, we expect to capitalise all expenditure following second reading of the Bills. The latest agreed forecast outturn estimate of £1.487bn is below the current Whole Life Cost Budget. A refined estimate is currently being produced by the project team which will be included in the final business case. Costs presented here are for the Options Phase which is scheduled to be complete in Summer 2016. Estimates of whole life project forecasts were included in the Strategic Outline Business Case for each of the short-listed routes. An application for Initial Development Phase funds (FY 16/17) was approved by DfT, BICC in February 2016 and is now awaiting HMT approval. The request for the remainder of the Development Phase funds will be submitted to DfT before the end of 2016 after the Preferred Route Announcement and completion of the Outline Business Case.