A former worker on HS2 railway project who lost his job after accusing bosses of disguising the true price of the long-delayed railway project has been awarded nearly £320,000 by a tribunal.
Project risk management practitioner Stephen Cresswell told an employment tribunal in Croydon that his contract was not renewed at High Speed Two (HS2) Ltd in 2022 after he repeatedly warned that the rail link’s costs were being “actively misrepresented”.
Among his allegations was that he was told by one executive to “disregard” his forecasts of a “significant” increase in the cost of the project, which was predicted to be £30bn in 2010 prices when it was first announced by ministers.
Cresswell worked briefly for HS2 in 2014 and then returned from 2018 until 2022, at which point the state-owned company did not renew his contract. His departure came a few months after he wrote to colleagues alleging that figures were being manipulated to deceive politicians.
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Claiming his contract was not renewed because he was a whistleblower, Cresswell filed a claim against HS2 at the employment tribunal.
The company has said an internal investigation into Cresswell’s concerns found no evidence of fraud or illegal activity. But an internal email sent to Cresswell last August, and seen by the Financial Times, accepted he had highlighted legitimate concerns.
“The investigation has concluded that there was no evidence of fraud or illegal/criminal activity by any individual,” wrote Helen Knight, ethics investigator at HS2.
“However, the investigator did conclude that there were some questions over culture and behaviours in HS2 Ltd in respect of cost estimating at the time, which are being given due consideration.”
HS2 said the £319,070 remedy was not the result of the whistleblowing allegations but the company’s acceptance of partial liability that Cresswell was not given adequate levels of protection when he raised concerns as a whistleblower.
It said it “accepted that Mr Cresswell raised concerns as a whistleblower and was not then given the appropriate level of protection when his contract came to an end. This is regrettable and HS2 Ltd is committed to ensuring that staff and others can raise concerns in confidence.”
Cresswell said the tribunal’s decision meant he could now get on with his search for a “new livelihood” after the process had taken longer than it should have. He added that HS2 was “not an organisation that should be trusted with public money” and that the scheme was “destroying taxpayer value”.
HS2 was originally supposed to link London with both Manchester and Leeds via Birmingham. But since 2010, it has been mired in controversy, delays and cost overruns. Two years ago, prime minister Rishi Sunak axed the route north of Birmingham.
HS2 added: “This admission does not mean that HS2 Ltd accepts the specific allegations around cost estimating practices raised by Mr Cresswell.”
The Department for Transport said it took “all whistleblowing allegations seriously and it is important that individuals are given appropriate levels of protection, which clearly was not the case for Mr Cresswell.”
The largest proportion of the remedy award consisted of loss of earnings (£233,000), which was agreed by the claimant and respondent. The tribunal also ordered HS2 to pay Cresswell £10,400 for legal costs.
Legal comment: ‘good intentions are insufficient’
Partner and head of employment law at Harper James, Simon Gilmour, said the ruling was a “wake-up call” for businesses of all sizes.
He said it showed “that even large organisations with resources can fall foul of complex whistleblowing legislation.
“For smaller businesses, such an award could prove financially devastating, making the risks disproportionately higher than for major corporations who are usually better placed to absorb such costs.”
Gilmour added: “Employers need to recognise that informal business cultures and resource constraints provide no legal excuse for mishandling whistleblowing cases. Essential protective measures include implementing clear written whistleblowing policies communicated during induction, training managers on their obligations when concerns are raised, and conducting thorough reviews before making any employment decisions affecting whistleblowers.
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“The HS2 case underscores that good intentions are insufficient – businesses need effective systems, robust documentation and professional HR practices. For SMEs operating with tighter margins, seeking early legal advice when whistleblowing concerns arise is not just prudent but essential to avoid potentially significant tribunal awards.”
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