HS2: Parts of rail project to be delayed for two years
The government has announced the construction of sections of HS2 will be delayed by two years to save money.
The high-speed railway was initially set to link London and the West Midlands with a further phase extending to cities in the North.
However, Transport Secretary Mark Harper said on Thursday: “We have seen significant inflationary pressure and increased project costs, and so we will rephase construction by two years, with an aim to deliver high-speed services to Crewe and the North West as soon as possible after accounting for the delay in construction.”
The delay will affect the northwest section of HS2, from Birmingham to Crewe, and then from Crewe to Manchester.
The first part was due for extension between 2030 and 2034 to help boost transport in the north of England, but the window has now shifted to 2032 to 2036 while services will not extend to Manchester until the 2040s.
In a written ministerial statement, Mr Harper said the government is “prioritising HS2’s initial services” between Old Oak Common in west London and Birmingham Curzon Street.
The delay will affect the northwest section of HS2, from Birmingham to Crewe, and then from Crewe to Manchester.
On delivering services to central London, he also hinted at delays, saying: “We will address affordability pressures to ensure the overall spending profile is manageable.
“We will therefore take the time to ensure we have an affordable and deliverable station design, delivering Euston alongside high-speed infrastructure to Manchester.”
This means it could be more than a decade before high-speed services stop at Euston, with passengers expected instead travel for half an hour on the Elizabeth Line.
Mr Harper also announced a series of setbacks affecting key road projects under cost-saving measures that threaten to deliver a blow to “levelling up” plans.
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A planned extension to Leeds was already shelved in November 2021.
Labour said the latest delay meant the North was again having to “pay the price” for government failures.
Louise Haigh, the shadow transport secretary, said: “Tens of thousands of jobs, and billions in economic growth are dependent on this project.
“The North is yet again being asked to pay the price for staggering Conservative failure.
“Conservative chaos and chronic indecision is holding back jobs, growth and costing the taxpayer.
“This is the biggest project in Europe and delays pile costs up in the long run – ministers now need to come clean on precisely how much their indecision will cost taxpayers and the North.”
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Raising a point of order in the Commons, Labour MP Sarah Owen also attacked Mr Harper for “avoiding scrutiny”.
She said the cabinet minister “should have had the decency to come to this House and explain to members why they are doing this” instead of publishing a written statement “at nearly 5 o’clock on Thursday afternoon”.
Commons speaker Lindsay Hoyle also criticised the way the delay was communicated, with his spokesperson saying: “The Speaker has consistently told the government that major policy announcements should be made to the House first so that members have the chance to ask questions on behalf of their constituents, rather than hearing about them via the media.”
Delay ‘could lead to higher costs’
Delivery of the high-speed railway has been a core pledge of the Conservative government but it has been plagued by delays and ever-increasing costs – from estimates of about £33 billion in 2010 to £55.7bn for the whole project in 2015.
By 2019, the estimated cost had soared to at least £71bn, excluding the final eastern leg from the West Midlands to the East Midlands.
Ministers are understood to be delaying construction of the northern section in the hope they can spread the cost over a longer period of time so it was more affordable annually.
Chancellor Jeremy Hunt is set to announce his spring budget next week and will have Rishi Sunak’s target in mind – to get government debt to fall as a percentage of GDP within five years.
The high-speed trains were set to go from London Euston to Birmingham and up to Crewe and Manchester
However, the Confederation of British Industry (CBI) said the delay would hit confidence in the rail industry and could ultimately lead to higher overall costs for HS2.
John Foster, the CBI’s policy unit programme director, said the news “will ultimately reduce investor and contractor confidence in the rail sector”.
“To mitigate further loss of confidence, it is critical that government tackles the inflationary pressures which are biting hard across the infrastructure sector,” he said.
“Delays to projects may create short-term savings, but they can ultimately lead to higher overall costs and slow down the UK’s transition to a better, faster and greener transport network.”
HS2 a ‘colossal mistake’
Leader of Birmingham City Council, Ian Ward, said the delay is “another betrayal of the Midlands and the North, making a mockery of the government’s empty promises to level up the UK economy”.
But Conservative MP and former chief secretary to the Treasury Simon Clarke said delaying construction “would be a sensible decision”.
“Having observed HS2’s progress as chief secretary, I have serious doubts as to value for money and cost control,” he said.
Greg Smith, the Conservative MP for Buckingham, called for the government to “accept the whole thing was a colossal mistake and scrap it, all of it”.
Just last week, rail minister Huw Merriman told the Commons the government is “absolutely committed” to delivering HS2 but admitted “cost pressures” must be examined.
HS2 Ltd chief executive Mark Thurston said the project had suffered a “significant” impact from increased costs in building materials, fuel and energy due to high inflation.
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HS2 unearths unexpected treasure
HS2 is Britain’s biggest infrastructure project and has had support from governments of all stripes since it was first mooted more than a decade ago.
But last month, the government reportedly planned to make drastic changes that would almost halve the number of high-speed trains per hour and services would travel slower to save money.
Aerial view of the HS2 Euston station construction site in London
The Department for Transport (DfT) said at the time it “does not comment on speculation” and said the government “remain committed to delivering the project”.
In January, Chancellor Jeremy Hunt said he did not see “any conceivable circumstance” in which the original plan would not be followed after reports the high-speed line could stop before reaching central London.
There were claims the last leg of HS2 into Euston could be scrapped and replaced with a new hub at Old Oak Common in the suburbs of northwest London, where it is set to stop before travelling into Euston.
The government did not deny the reports or that a two to five-year delay to the entire project – currently due to be completed between 2029 and 2033 – was being considered due to record high inflation impacting costs.
The fast-moving developments on Trump’s Ukraine peace deal are dominating the G20 summit in South Africa, as European leaders scramble to put together a counter-proposal to the US-Russia 28-point plan and reinsert Ukraine into these discussions.
European countries are now working up proposals to put to President Trump ahead of his deadline of Thursday to agree a deal.
Ukraine is in a tight spot. It cannot reject Washington outright – it relies on US military support to continue this war – but neither can it accept the terms of a deal that is acutely favourable to Russia, requiring Ukraine to give up territory not even occupied by Moscow and reducing its army.
Overnight, the UK government has reiterated its position that any deal must deliver a “just and lasting peace”.
Ukraine war latest: Kyiv to discuss ending war in talks in Switzerland
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Keir Starmer calls for growth plan at G20
The prime minister, who spoke with E3 allies President Macron of France, Chancellor Merz of Germany and President Zelenskyy of Ukraine on the phone on Friday, is having more conversations today with key partners as they work out how to handle Trump and improve this deal for Ukraine.
One diplomatic source told me allies are being very careful not to criticise Trump or his approach for fear of exacerbating an already delicate situation.
Instead, the prime minister is directing his attacks at Russia.
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Trump’s 28-point Ukraine peace plan in full
Analysis: We could all pay if Europe doesn’t guarantee Ukraine’s security
Prime Minister Keir Starmer attends a plenary session on the first day of the G20 Leaders’ Summit. Pic: Reuters
“There is only one country around the G20 table that is not calling for a ceasefire in Ukraine and one country that is deploying a barrage of drones and missiles to destroy livelihoods and murder innocent civilians,” he said on Friday evening.
“Time and again, Russia pretends to be serious about peace, but its actions never live up to its words.”
Pic: AP
On the Trump plan, the prime minister said allies are meetin on Saturday “to discuss the current proposal on the table, and in support of Trump’s push for peace, look at how we can strengthen this plan for the next phase of negotiations”.
Strengthening the plan really means that they want to rebalance it towards Ukraine’s position and make it tougher on Russia.
“Ukraine has been ready to negotiate for months, while Russia has stalled and continued its murderous rampage. That is why we must all work together with both the US and Ukraine, to secure a just and lasting peace once and for all,” said the prime minister.
“We will continue to coordinate closely with Washington and Kyiv to achieve that. However, we cannot simply wait for peace.
“We must strain every sinew to secure it. We must cut off Putin’s finance flows by ending our reliance on Russian gas. It won’t be easy, but it’s the right thing to do.”
Pic: AP
Europeans hadn’t even seen this deal earlier in the week, in a sign that the US is cutting other allies out of negotiations – for now at least.
Starmer and other European leaders want to get to a position where Ukraine and Europe are at least at the table.
There is some discussion about whether European leaders such as Macron and Meloni might travel to Washington to speak to Trump early next week in order to persuade him of the European and Ukrainian perspective, as leaders did last August following the US-Russian summit in Alaska.
But Sky News understands there are no discussions about the PM travelling to Washington next week ahead of the budget.
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