The northern section of the HS2 high speed rail line looks set to be scrapped by Rishi Sunak, Sky News understands.
It comes as a number of Sunday newspapers reported that any decision would be announced before next weekend’s Conservative Party conference.
Sky News political correspondent Tamara Cohen said: “The widespread view in Westminster is that the prime minister is set to scrap the northern leg of the High Speed 2 rail line – the bit that was due to go between Birmingham and Manchester – because of concern about the cost.
“We’ve had several reports that the crunch meeting between the prime minister and chancellor to make the final decision could happen as soon as next week and be announced to Conservative MPs.
Boris Johnson said suggestions the Birmingham to Manchester route could be chopped over cost concerns were “desperate” and “Treasury-driven nonsense”.
And David Cameron has also privately raised significant concerns about the prospect that the high-speed rail line could be heavily altered, according to The Times.
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An ally quoted by the newspaper said it was “unusual” for the former prime minister, who resigned after the Brexit referendum result in 2016, to intervene in politics but felt HS2 was “different”.
Ministers have looked to sidestep questions about the future of the Manchester destination this week and Chancellor Jeremy Hunt said on Thursday that HS2’s budget was “getting totally out of control”.
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Cleverly questioned over HS2
Mr Sunak has refused to guarantee it will reach Manchester despite £2.3bn having already been ploughed into stage two of the national line.
Cohen said recent comments from Jeremy Hunt in a radio interview showed the chancellor was concerned with costs spiralling.
“It’s being reported the costs may be overrunning by at least £8bn on the section from London to Birmingham alone since last year – although the government has not commented on those figures.”
The planned railway – announced by the last Labour government but backed by successive Tory administrations – is intended to link London, the Midlands and the North of England but has been plagued by delays and rising costs.
A budget of £55.7bn for the whole of HS2 was set in 2015 but some reports suggest the bill has surpassed £100bn, having been driven up by recent inflation.
Ministers have already moved to pause parts of the project and even axed sections in the north.
The eastern leg between Birmingham and Leeds was reduced to a spur line which is due to end in the East Midlands.
It was confirmed in March that construction between Birmingham and Crewe would be delayed by two years and that services may not enter central London until the 2040s.
Image: Work at Euston would be paused for two years
Transport Secretary Mark Harper announced that work at Euston would be paused for two years as costs were forecast to almost double to £4.8bn.
A government spokesman said: “The HS2 project is already well underway with spades in the ground, and our focus remains on delivering it.”
Lucy Powell has accused Bridget Phillipson’s team of “throwing mud” and briefing against her in the Labour deputy leadership race in a special episode of Sky’s Electoral Dysfunction podcast.
With just days to go until the race is decided, Sky News’ political editor Beth Rigby spoke to the two leadership rivals about allegations of leaks, questions of party unity and their political vision.
Ms Powell told Electoral Dysfunction that through the course of the contest, she had “never leaked or briefed”.
But she said of negative stories about her in the media: “I think some of these things have also come from my opponent’s team as well. And I think they need calling out.
“We are two strong women standing in this contest. We’ve both got different things to bring to the job. I’m not going to get into the business of smearing and briefing against Bridget.
“Having us airing our dirty washing, throwing mud – both in this campaign or indeed after this if I get elected as deputy leader – that is not the game that I’m in.”
Ms Powell was responding to a “Labour source” who told the New Statesman last week:“Lucy was sacked from cabinet because she couldn’t be trusted not to brief or leak.”
Ms Powell said she had spoken directly to Ms Phillipson about allegations of briefings “a little bit”.
Image: Bridget Phillipson (l) and Lucy Powell (r) spoke to Sky News’ Beth Rigby in a special Electoral Dysfunction double-header. Pics: Reuters
Phillipson denies leaks
But asked separately if her team had briefed against Ms Powell, Ms Phillipson told Rigby: “Not to my knowledge.”
And Ms Phillipson said she had not spoken “directly” to her opponent about the claims of negative briefings, despite Ms Powell saying the pair had talked about it.
“I don’t know if there’s been any discussion between the teams,” she added.
On the race itself, the education secretary said it would be “destabilising” if Ms Powell is elected, as she is no longer in the cabinet.
“I think there is a risk that comes of airing too much disagreement in public at a time when we need to focus on taking the fight to our opponents.
“I know Lucy would reject that, but I think that is for me a key choice that members are facing.”
She added: “It’s about the principle of having that rule outside of government that risks being the problem. I think I’ll be able to get more done in government.”
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But Ms Powell, who was recently sacked by Sir Keir Starmer as leader of the Commons, said she could “provide a stronger, more independent voice”.
“The party is withering on the vine at the same time, and people have got big jobs in government to do.
“Politics is moving really, really fast. Government is very, very slow. And I think having a full-time political deputy leader right now is the political injection we need.”
The result of the contest will be announced on Saturday 25 October.
The deputy leader has the potential to be a powerful and influential figure as the link between members and the parliamentary Labour Party, and will have a key role in election campaigns. They can’t be sacked by Sir Keir as they have their own mandate.
The contest was triggered by the resignation of Angela Rayner following a row over her tax affairs. She was also the deputy prime minister but this position was filled by David Lammy in a wider cabinet reshuffle.
HMRC sent nearly 65,000 warning letters to crypto investors last year, more than double the previous year, as the UK steps up efforts to trace undeclared capital gains.
The government says it is exploring what “additional resources and support are required” to allow “all fans” to attend Maccabi Tel Aviv’s match against Aston Villa next month.
Supporters of the Israeli side have been told they are not allowed to attend November’s game in Birmingham after a decision by Birmingham’s Safety Advisory Group (SAG).
The group – made up of local stakeholders, including representatives from the council, police and event organisers – said the decision was due to a high risk of violence based on “current intelligence and previous incidents”.
The decision has been criticised across the political spectrum, with Sir Keir Starmer describing it as a “wrong decision” while Tory opposition leader Kemi Badenoch called it a “national disgrace”.
In a statement on Friday night, a government spokesperson said: “No one should be stopped from watching a football game simply because of who they are.
“The government is working with policing and other partners to do everything in our power to ensure this game can safely go ahead, with all fans present.
“We are exploring what additional resources and support are required so all fans can attend.”
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Birmingham residents react to the Maccabi fan ban
Meanwhile, Home Secretary Shabana Mahmood said: “Antisemitism is a stain on our society that shames us all. Every football fan, whoever they are, should be able to watch their team in safety.
“This government is doing everything in our power to ensure all fans can safely attend the game.”
The prime minister’s spokesman previously said Sir Keir would “do everything in his power to give Jewish communities the security they deserve”.