New HS2 fraud allegations as cost could pass £100bn and further delays expected
New HS2 fraud allegations as cost could pass £100bn and further delays expected
Posted by theipaper
New HS2 fraud allegations as cost could pass £100bn and further delays expected
New HS2 fraud allegations as cost could pass £100bn and further delays expected
Posted by theipaper
9 comments
[HS2 ](https://inews.co.uk/topic/hs2?ico=in-line_link)has been plunged into fresh chaos after whistle-blowers came forward with claims of “large-scale” tax fraud, *The i Paper* can reveal.
The claims relate to the West Midlands section of the high-speed railway project between Birmingham and London which has been hit by repeated delays and cost increases.
The allegations are that an HS2 sub-contractor has been falsely declaring self-employed workers as PAYE (Pay as You Earn) salaried staff and charging an inflated rate for them, then submitting “fake” payslips, it is claimed.
An internal investigation has been launched, overseen by HS2 Ltd’s central fraud team, and the firm has been suspended from working on the West Midlands section of the project pending the outcome. It has been permitted to continue working on the other three sections of HS2. The company has denied any wrongdoing.
HS2 could refer the claims to either HMRC or the police, though *The i Paper* understands neither are involved at this stage.
The new investigation will increase further pressure on the Government over the project, which has been dogged by [consistent allegations of fraud](https://inews.co.uk/news/blew-whistle-hs2-finances-labour-ignoring-failures-3427824?srsltid=AfmBOooE8LJSUffTC4_v_VHczr_NCtW8-Nm2si9srHhOp1xOuoWucC8P&ico=in-line_link).
Labour promised to [get a grip on HS2 when it came to power](https://inews.co.uk/news/politics/hs2-revived-government-owns-land-birmingham-manchester-3163241?srsltid=AfmBOop-15tQWyO7pMIGMXh8P8ye_Y6PrBYM9bBAasJ3hQXdYLEfrZw0&ico=in-line_link) and announced the Government would be taking back “ministerial oversight” before Christmas.
However, the tax probe threatens to give critics fresh ammunition for claims Labour is failing to take control. [Nigel Farage’s Reform party ](https://inews.co.uk/topic/reform-uk-party?ico=in-line_link)has said it would cancel the “bloated” HS2, saving the taxpayer £25bn.
A Government source said: “We are taking a keen interest in this issue on behalf of the taxpayer and expect there to be serious consequences if these claims are substantiated.”
# Claims of ‘fake’ PAYE slips to mislead auditors
The investigation has been sparked by two separate whistle-blowers.
The claims relate to the Balfour Beatty VINCI (BBV) joint contractor venture which is building the West Midlands section of the high-speed railway between Birmingham and London.
Danny Sullivan Group, a business which supplies labour to HS2, has been suspended from involvement in the BBV section of the project pending further investigation.
An employee first raised concerns about Danny Sullivan Group, which relate to the alleged misclassification of self-employed workers, in February, HS2 Ltd said.
On 11 April, a HS2 employee sent an anonymous email to HS2’s chief executive Mark Wild and the entire HS2 board concerning Danny Sullivan Group.
I’ll never forget when one of my team who I’d been wanting to get rid of, and was paid £45ph left for a HS2 contract at £110ph. He was completely useless and still there 5 years later. It’s a great idea but shockingly wasteful in planning.
At least HS3 is a few years away
There’s been widespread fraud through from the start, it goes from a worker claiming extra expensive, right up to these allegations.
I know a few people that have worked on the HS2 project and the things that they have told me, would see them sacked from pretty much any private company. They were all told to purchase high end laptops “for work”, they were all staying in high end hotels weeks at a time, they were all paid way over the odds.
There’s just been no oversight at all. Any other project or company would have been audited for all these things. Of course I am not involved in the project, but from what I have been told, they never got checked up on.
This is just another example of why voters are abandoning establishment parties.
No one can seriously sit there and justify this, billions spent and nothing to show for it, and its not just HS2, its every ‘project’ the British state attempts. People will turn to parties who will ‘just do things’, because when rules and regulations are so restrictive and so costly to do the most basic of things, there is no justification for maintaining them.
If a political party attempts to justify or rationalise a world view with a system that spends billions and achieves nothing, why would you accept their world view on any other issue?
This country is a joke almost every piece of infrastructure comes in overbudget.
Time we had legislation introduced saying if you bid for a contract you can only go so many percent (say CPI) over.
Are we surprised?
In the time we Brits have accomplished absolutely nothing; China has built 100’s of miles of high speed rail
The sad thing is that people will use this to argue against investing in rail and investing in the north of England.
Remember, Crossrail was 4 years late and billions over budget. Now it’s the Elizabeth Line and everybody loves it.
If we don’t build, we decay.
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