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The headline makes it sound like they have engineering challenges that can't be overcome when actually the classification in this report tells us nothing new.
Here is a link to the report that they are referencing:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1171218/IPA-Annual-report-2022-2023.pdf
It summarizes about 150 projects in about 30 pages, so there is no specific rationale or analysis given for why each project receives the rating that they give it.
The description of the colour ratings says:
The HS2 projects are already over-budget (as stated in the article), so it is clear that the likelihood of achieving them on budget is zero, which makes a
Red
rating inevitable, and not particularly newsworthy.