The new transport secretary has said the government is “looking at all of the options” over HS2 ahead of expected spending cuts.
Mark Harper would not commit to the plan for building the high speed rail project in full, saying “no decision has been made” on the Leeds to Manchester link.
Phase one will open between 2029 and 2033 and run from London to Birmingham over 134 miles.
However, phase two – which runs from Birmingham to Manchester via Crewe and had originally carried on to Leeds – has been shrouded in confusion after former prime minister Boris Johnson scrapped plans for a high speed link connecting Manchester and Leeds via Bradford – a decision his successor Liz Truss, while she was briefly prime minister, said she would reverse.
Asked if he will be “upholding what Liz Truss promised”, Mr Harper told Sky News the government “remains committed to delivering high speed two on time and within budget”.
Image: In 2019, the government watered down its high speed rail plans, axing fast links between Leeds and Manchester via Bradford
But, pressed specifically on the line between Manchester and Leeds with a stop in Bradford, he said: “I think it’s fair to say things that the former prime minister (said), as Rishi Sunak made clear when he became prime minister, that for all the best motives, a number of mistakes were made.
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“And he was elected as prime minister in part to fix them.”
Mr Harper acknowledged the Conservatives have made a manifesto commitment to get high speed trains to Leeds.
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He said the government will be looking at “all the options” in light of decisions being taken in the autumn statement – when spending cuts and tax rises are expected as part of a plan to plug the UK’s £40bn black hole.
“And then we’ll be setting our plans in due course,” he said.
Calls for the full implementation of HS2 are loudest within the Tory red wall MPs who see it as a way to solidify their standing in northern seats.
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1:46
Transport secretary ‘looking at all the options’ on HS2
But there are complaints from the more fiscally hawkish wings of the Conservative Party as they see it as a waste of money swaddled in bureaucracy and delays.
The project has been beset by delays and rising costs with some estimates putting the total price tag at more than £100bn.
Before Ms Truss’s intervention over the Northern Powerhouse Rail link, the government said as part of its Integrated Rail Plan it wanted to build 40 miles of newbuild high speed line between Warrington, Manchester and Yorkshire (to the east of Standedge tunnels); upgrade and electrify conventional line for the rest of the route between Liverpool and York; and significantly improve the previous Transpennine Route between Manchester and Leeds, with electrification of the whole route.
But this was rolling back on the original plan which was to build a full, high speed rail line from Liverpool to Leeds via Manchester, with links to other cities in the North and Midlands.
On Sunday, Levelling Up Secretary Michael Gove said investment in HS2 could be cut as a result of “mistakes” made by Liz Truss.
The UK is facing an economic crisis, with experts warning of an “unpalatable menu” of options to re-balance the nation’s finances after the fall-out from the previous administration’s disastrous mini-budget.
Any decision to cut spending on the project will likely be met with a backlash from northern leaders, who have previously accused the government of “betraying the north”after the plans were first watered down.
Asian stock markets have fallen dramatically amid escalating fears of a global trade war – as Donald Trump called his tariffs “medicine” and showed no sign of backing down.
Hong Kong’s Hang Seng index of shares closed down 13.2% – its biggest one-day drop since 1997, while the Shanghai composite index lost 7.3% – the worst fall there since 2020.
Elsewhere, Japan’s Nikkei 225 lost 7.8%, while London’s FTSE 100 was down 4.85% by 9am.
US stock market futures signalled further losses were ahead when trading begins in America later.
At 4am EST, the S&P 500 futures was down 4.93%, the Dow Jones 4.32% and the Nasdaq 5.33%.
Markets are reacting to ongoing uncertainty over the impact of President Trump’s tariff regime on goods imported to the US, which he announced last week.
Image: A screen showing the Hang Seng index in central Hong Kong. Pic: Reuters
Speaking on Air Force One on Sunday, Mr Trump said foreign governments would have to pay “a lot of money” to lift his tariffs.
“I don’t want anything to go down. But sometimes you have to take medicine to fix something,” he said.
The US president said world leaders were trying to convince him to lower further tariffs, which are due to come into effect this week.
“I spoke to a lot of leaders, European, Asian, from all over the world,” Mr Trump told reporters.
“They’re dying to make a deal. And I said, we’re not going to have deficits with your country.
“We’re not going to do that because to me, a deficit is a loss. We’re going to have surpluses or, at worst, going to be breaking even.”
Mr Trump, who spent much of the weekend playing golf in Florida, posted on his Truth Social platform: “WE WILL WIN. HANG TOUGH, it won’t be easy.”
Reality hits that trade war no longer just a threat
China’s announcement of its tariff retaliation came late afternoon on Friday local time.
Most Asian markets closed shortly after – and markets in China, Hong Kong and Taiwan were closed for a public holiday – meaning the scale of the hit did not play out until today.
This morning we are getting a sense of the impact. Dramatic falls across all Asian markets clearly signal a realisation a global trade war is no longer just a threat, but a reality here to stay, and a global recession could yet follow.
Up until Friday, China’s response to Donald Trump’s tariffs had been perceived as restrained and designed to avoid escalation, the markets had reacted accordingly.
But that all changed last week when Mr Trump’s new 34% levy on all Chinese goods was matched by China with an identical tax. Both sit on top of previous tariffs levied, meaning many goods now face rates in excess of 50%.
These are numbers that make most trade between the world’s two biggest economies almost impossible and that will have a global impact.
China has clearly decided any forthcoming pain will have to be managed, and not being seen to be cowed and bullied by Mr Trump is being deemed more important.
But the scale of the retaliation will have further spooked the markets as it makes the prospect of negotiation and retreat increasingly unlikely.
Mr Trump added to the atmosphere of intransigence when he told the media on Sunday the trade deficit with China would need to be addressed before any deal could be done. The complete lack of concern from the White House over the weekend will also not have helped.
While smaller economies like Japan, South Korea, Cambodia and Vietnam are all lining up to attempt to negotiate, there are a lot of nations in that queue.
There is a sense none of this will be easily rectified.
On Saturday, US customs agents began collecting Mr Trump’s baseline 10% tariff.
Higher “reciprocal” tariffs of between 11% and 50% – depending on the country – are due to come into effect on Wednesday.
President Trump believes his policy will ultimately make the US richer, creating jobs and forcing companies to relocate more of their manufacturing to America.
However, his announcement has jolted economies around the world, triggered retaliatory levies from China and sparked fears of a global trade war.
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1:04
Trump’s tariffs: What you need to know
Investors and world leaders are unsure whether the US tariffs are here to stay or a negotiating tactic to win concessions from other countries.
Richard Flax, chief investment officer at Moneyfarm, said: “I guess there was some hope over the weekend that maybe we would see this as part of the start of a negotiation.
“But the messages that we’ve so far seen suggest that the President Trump is comfortable with the market reaction and that he’s going to continue on this course.
Goldman Sachs has raised the odds of a US recession to 45%, joining other investment banks that have also revised forecasts.
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In the UK, Sir Keir Starmer has promised “bold changes” and said he would relax rules around electric vehicles as British carmakers deal with a new 25% US tariff on vehicles.
The prime minister said “global trade is being transformed” by President Trump’s actions.
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2:53
‘Nothing off the table’ over tariffs
Meanwhile, KPMG warned tariffs on UK exports could see GDP growth fall to 0.8% in 2025 and 2026.
The accountancy firm said higher tariffs on specific categories, such as cars, aluminium and steel, would more than offset the exemption on pharmaceutical exports, leaving the effective tariff rate on UK exports around 12%.
Yael Selfin, chief economist at KPMG UK, said: “Given the economic impact that tariffs would cause, there is a strong incentive to seek a negotiated settlement that diminishes the need for tariffs.
“The UK automotive manufacturing sector is particularly exposed given the complex supply chains of some producers.”
Pope Francis, 88, had spent five weeks in Rome’s Gemelli hospital as he was treated by doctors for a life-threatening bout of double pneumonia.
The Pope, in what was a previously unannounced move, entered St Peter’s Square in a wheelchair shortly before noon local time at the end of the celebration of a mass for the Catholic Church’s Jubilee year.
Image: The pontiff arrives at the end of a mass. Pic: AP
In front of the main altar for the service, Francis waved to applauding crowds, before briefly talking.
Speaking in a frail voice while receiving oxygen via a small hose under his nose, he said: “Happy Sunday to everyone. Thank you so much.”
A message prepared by the Pope and released by the Vatican said he felt the “caring touch” of God.
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“On the day of the jubilee of the sick and the world of healthcare, I ask the Lord that this touch of his love may reach those who suffer and encourage those who care for them,” said the message.
“And I pray for doctors, nurses and health workers, who are not always helped to work in adequate conditions and are sometimes even victims of aggression.”
The IDF says it mistakenly identified a convoy of aid workers as a threat – following the emergence of a video which proved their ambulances were clearly marked when Israeli troops opened fire on them.
The bodies of 15 aid workers – including eight medics working for the Palestine Red Crescent Society (PRCS) – were found in a “mass grave” after the incident, according to the head of the UN Office for Coordination of Humanitarian Affairs Jonathan Whittall.
The Israeli military originally claimed an investigation found the vehicles did not have any headlights or emergency signals and were therefore targeted as they looked “suspicious”.
But video footage obtained by the PRCS, and verified by Sky News, showed the ambulances and a fire vehicle clearly marked with flashing red lights.
In a briefing from the IDF, it said the ambulances arrived in the Tel Sultan neighbourhood in Rafah shortly after a Hamas police vehicle drove through.
Image: Palestinians mourning the medics after their bodies were recovered. Pic: Reuters
An IDF surveillance aircraft was watching the movement of the ambulances and notified troops on the ground. The IDF said it will not be releasing that footage.
When the ambulances arrived, the soldiers opened fire, thinking the medics were a threat, according to the IDF.
The soldiers were surprised by the convoy stopping on the road and several people getting out quickly and running, the IDF claimed, adding the soldiers were unaware the suspects were in fact unarmed medics.
An Israeli military official would not say how far away troops were when they fired on the vehicles.
The IDF acknowledged that its statement claiming that the ambulances had their lights off was incorrect, and was based on the testimony from the soldiers in the incident.
The newly emerged video footage showed that the ambulances were clearly identifiable and had their lights on, the IDF said.
The IDF added that there will be a re-investigation to look into this discrepancy.
Image: The clip is filmed through a vehicle windscreen – with three red light vehicles visible in front
Addressing the fact the aid workers’ bodies were buried in a mass grave, the IDF said in its briefing this is an approved and regular practice to prevent wild dogs and other animals from eating the corpses.
The IDF could not explain why the ambulances were also buried.
The IDF said six of the 15 people killed were linked to Hamas, but revealed no detail to support the claim.
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1:22
Bodies of aid workers found in Gaza
The newly emerged footage of the incident was discovered on a phone belonging to one of the workers who was killed, PRCS president Dr Younis Al Khatib said.
“His phone was found with his body and he recorded the whole event,” he said. “His last words before being shot, ‘Forgive me, mom. I just wanted to help people. I wanted to save lives’.”
Sky News used an aftermath video and satellite imagery to verify the location and timing of the newly emerged footage of the incident.
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2:43
Aid worker attacks increasing
It was filmed on 23 March north of Rafah and shows a convoy of marked ambulances and a fire-fighting vehicle travelling south along a road towards the city centre. All the vehicles visible in the convoy have their flashing lights on.
The footage was filmed early in the morning, with a satellite image seen by Sky News taken at 9.48am local time on the same day showing a group of vehicles bunched together off the road.