The chief executive of the HS2 rail project has described the doubling of its budget over five years as “terrible news”, as the government revealed new cost estimates and a delayed opening schedule.
New Cost and Timeline Estimates
The expected cost of completing the high-speed railway is now between £87.7 billion and £102.7 billion in 2025 prices, the government announced on Tuesday. This represents an increase of almost £60 billion compared to initial forecasts. The new target opening schedule is between May 2036 and October 2039, 13 years later than originally planned.
CEO's Admission
Mark Wild, the chief executive of HS2 Ltd, told the Transport Select Committee on Wednesday: “Let's just acknowledge this is terrible news, and we have to really think about the reasons for that.” He expressed confidence that the revised time and cost estimates are robust.
Slower Trains to Save Money
Transport Secretary Heidi Alexander also confirmed that trains will run at a reduced maximum speed of 320 km/h (199 mph), down from the original design of 360 km/h (224 mph). This move, aimed at cutting costs, has been criticised by unions as “unwise”.
Blaming Past Failures
Ms Alexander attributed the cost increase to “past misunderstanding of the work required, underestimation and inefficiency, issues within the control of HS2 Ltd, some of its suppliers, and previous governments”. She told MPs she was “angry” about the “obscene increase in time and costs”, which she blamed on “the failures of successive Conservative governments”.
Background and Cancellation Costs
The line from London to Birmingham, including the now-abandoned legs to Leeds and Manchester, was initially estimated to cost £32.7 billion in 2011 prices. Mr Wild recently pleaded with ministers not to cancel the project, warning that cancellation and remediation costs could range from £33 billion to £58 billion. He noted that removing assets already built would be complex, as structures are designed to last 120 years.
Political Reaction
Former Conservative minister Sir Gavin Williamson, whose constituency has been heavily affected, called HS2 “a busted project that has caused misery” and urged its closure. Ms Alexander reiterated her commitment to drawing a “line in the sand” over the project, which she described as an “appalling mess”. The overall budget includes work at Euston, but the government is still seeking a private investor for the site.
