A leaked government review has warned that the cost of the HS2 high-speed rail project could reach £106bn, with a 'considerable risk' of a further 20% increase, potentially pushing the total to £112bn when accounting for inflation. The original budget was £34bn.
The review, led by former HS2 chair Doug Oakervee, recommends putting the second phase from the West Midlands to Manchester and Leeds on hold for six months to explore a mix of standard and high-speed rail. This has sparked fears in the north that the project may be scaled back or axed after the first leg from London to Birmingham is completed.
Greater Manchester Mayor Andy Burnham criticised the approach, saying it was the 'same old story' of prioritising London over the north. Leeds council leader Judith Blake called for an unambiguous government commitment to deliver the full project, warning that downgrading it would damage the government's levelling-up agenda.
The review is expected to recommend proceeding with HS2 but calls for further assessment of regional economic benefits. The first leg, due to open in 2026, could be delayed until 2031, while the second phase may not be completed until 2040. Transport Secretary Grant Shapps said a 'fact-based' decision would be made shortly.
Tory opponents of HS2, emboldened by the election victory, plan to meet Boris Johnson to argue against the scheme. Meanwhile, rail industry leaders warn that cancellation would put up to 30,000 jobs at risk and increase costs for other projects like Northern Powerhouse Rail, which relies on HS2 track.
