New HS2 fraud allegations as cost could pass £100bn and further delays expected
A labour supplier has been suspended from the West Midlands section of the rail project and a senior manager has resigned, The i Paper can reveal
HS2 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.
Labour promised to get a grip on HS2 when it came to power and announced the Government would be taking back “ministerial oversight” before Christmas.
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