The government has confirmed that HS2 will be delayed by a further two years, with the Birmingham to Crewe stretch put on hold and major roadbuilding schemes slowed in response to soaring inflation. Transport Secretary Mark Harper announced the delays in a written statement to MPs, citing significant inflationary pressure and increased project costs.
Parts of the HS2 line between Birmingham, Crewe and Manchester will be rephased by two years, meaning the line to Crewe may not open until 2036 and Manchester not until 2043. Trains may also not run all the way to and from central London until years later than planned, as the government takes time to ensure an affordable and deliverable station design at Euston.
The flagship Lower Thames Crossing, a £7bn tunnel and road scheme linking Essex and Kent, will be deferred for at least two years. Active travel budgets, including cycling schemes, will also be slashed to about £100m over the next two years, compared with £850m in the last three years.
Labour politicians and business groups expressed dismay, with shadow transport secretary Louise Haigh saying delays pile costs up in the long run. The High Speed Rail Group said the delay would only add to the total cost, while BusinessLDN chief executive John Dickie called it a false economy.
At least £2bn more is believed to be needed for the first London-Birmingham stretch alone since the last official budgetary update in October, well above the contingency sums in the initial £44.6bn funding. Harper said the government would address affordability pressures to ensure the overall spending profile is manageable.
