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HS2 is the UK’s biggest infrastructure project, supposed to transform public transport between London, the Midlands and the North.

But it is becoming synonymous with political football, disappointment, delays and spiralling costs.

It’s been backed by more than one government and political party over the years but Prime Minister Rishi Sunak has declined to throw his support behind the full project, resulting in fears the Manchester part of the line could be scrapped.

It’s the latest setback after the March announcement that parts of the line will be delayed, prompting questions of whether the UK is capable of delivering large infrastructure projects.

Interventions from five regional Labour mayors and numerous northern businesses have done their best to retain the current plans.

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HS2 unearths unexpected treasure

What is HS2?

HS2 is 330 miles of planned high-speed rail network, initially intended to link London and the West Midlands, stretching to Birmingham, with a further phase extending to Crewe, Manchester and Leeds in the North. Cost concerns in 2021 led to the shelving of the Leeds stretch.

It was first mooted by the Labour government in 2009.

The project has been beset by delays and rising costs, with some estimates now putting the price tag at more than £180bn, a figure that’s continuously risen from the 2019 estimate. In 2019 costs were put at around £100bn.

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Rishi Sunak on HS2 ‘speculation’.

How much was it supposed to cost?

The original bill – at 2009 prices – was supposed to be £37.5bn.

At the time of the 2010 election, when David Cameron said his government would publish plans for a high speed rail, £20bn was committed for rail infrastructure.

By January 2012, when the broad route of the proposed scheme was in place, this had risen to £32.6bn.

In June 2013, the coalition government increased the overall cost to £42.6bn and in November 2015, when the figures were updated, in line with inflation, to £55.7bn.

The Department for Transport’s latest estimate in 2021 had spiralled even higher, to between £72bn and £98bn.

But Lord Berkeley, former deputy chairman of the government’s independent review into the project, said it could climb to £107bn.

It could be the 2040s before passenger services are operating on the full network.

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New stations and 18 trains an hour

HS2’s inception follows the development of HS1, the high-speed line between London and Kent connecting the UK to routes on the European continent.

The aim is to run 18 trains an hour in each direction to and from London – at speeds of up to 224mph – compared to between two and six an hour on Europe’s high-speed railways.

It involves the construction of more than 300 bridges and 70 viaducts for the London-West Midlands phase alone.

There will also, under current plans, be new stations – including Birmingham Curzon Street and extensions for London Euston and Manchester Piccadilly.

The project is designed to meet the long-term growth in demand for rail services, improve the reliability of the network, boost connectivity by making journeys faster and easier, and help economic growth across the UK.

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Parts of HS2 line to be delayed

What is the route?

Stations on the first phase of the line will be London Euston, Old Oak Common in west London, Birmingham interchange and Birmingham Curzon Street. There are, however, concerns the London Euston station terminus will be axed as it’s been put on pause due to spiralling costs.

The line will instead end in Old Oak Common, requiring passengers to get the Elizabeth Line to central London.

This means it could be more than a decade before high-speed services stop at Euston, with passengers expected instead to travel for half an hour on the Elizabeth Line.

The second phase will see trains head northwest to Manchester Airport and Manchester Piccadilly, or use existing lines via Wigan, Crewe and Stafford.

The route had also been planned to go northeast from Birmingham towards the East Midlands Hub at Toton.

From there, before the eastern extension was cancelled, the trains were due to continue on the HS2 line to Leeds, with others diverging onto existing lines via Chesterfield and York.

Delays to the Crewe-northwest section were also placed for two years.

Hs2 map
Image:
Hs2 map

Where did it all begin?

In 2009, under Labour transport secretary Geoff Hoon, the government set up a company, HS2 Ltd, to look at proposals for a new high-speed line.

The following year, the Department for Transport (DfT) set out plans for a Y-shaped network connecting London and the cities in the North.

Later, under the Conservative-Liberal Democrat coalition, it was confirmed that the line would be built in two phases.

Phase 1 would run from London to the West Midlands, beginning in 2026. That’s been pushed back to between 2029 and 2033. Euston Station is not due to open until 2035.

Phase 2, extending from the West Midlands to cities in the North, would start in 2032-33. But that’s been moved to any time from 2034 and 2041.

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Why is HS2 so behind schedule?

By July 2019, the government accepted that the timetable was no longer feasible and has continued to change opening times.

Reasons for the delay included a year spent revising cost and schedule estimates for phase 1 and more time being needed for construction at various sites.

In August 2019, the government announced an independent review of the programme to advise on whether to proceed.

And in March of this year the government announced more construction would be delayed by two years to save money.

The COVID-19 pandemic probably didn’t help with progress, either.

In a written ministerial statement earlier this year, Transport Secretary Mark Harper said the government is “prioritising HS2’s initial services” between Old Oak Common in west London and Birmingham Curzon Street.

Handout photo dated August 2022 issued by HS2 of a aerial view of the HS2 Euston station construction site in London.
Image:
Aerial view of the HS2 Euston station construction site in London

Why have the costs risen so much?

In one word: inflation.

Mr Harper already said earlier this year, “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”.

A report in January 2020 by the National Audit Office (NAO) – the spending watchdog – said HS2 Ltd had not accounted for the level of uncertainty and risk in the plans.

It used a method for calculating how much extra might be needed “that was not appropriate for a programme at such an early stage of development”.

Among the factors causing higher costs were commitments to increase the length of tunnelling and to erect noise barriers.

The NAO said the government and HS2 Ltd had “not adequately managed risks to taxpayer money”.

More money was needed for building bridges, tunnels and stations than first thought.

Complex issues involving the discovery of asbestos and archaeological remains, and the need to divert more gas and power lines than expected, have caused problems too.

More money was also needed to buy properties to make way for the rail line.

Even after these have been accounted for, there is uncertainty around the cost of extending London’s Euston station to accommodate the high-speed trains.

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NATO will force the UK to increase defence spending to 3.5% of GDP to keep US on side, Sky News understands

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UK will be forced to increase defence spending to 3.5% to keep US on side, Sky News understands

The UK will be forced to agree this month to increase defence spending to 3.5% of national income within a decade as part of a NATO push to rearm and keep the US on side, Sky News understands.

The certainty of a major policy shift means there is bemusement in the Ministry of Defence (MoD) about why Sir Keir Starmer‘s government has tied itself in knots over whether to describe an earlier plan to hit 3% of GDP by the 2030s as an ambition or a commitment, when it is about to change.

The problem is seen as political, with the prime minister needing to balance warfare against welfare – more money for bombs and bullets or for winter fuel payments and childcare.

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Prime Minister Sir Keir Starmer stands next to a New Zealand soldier during a visit to a military base during a visit to a military base training Ukrainian troops in the West of England. Picture date: Tuesday April 22, 2025. PA Photo. See PA story POLITICS Ukraine. Photo credit should read: Finnbarr Webster/PA Wire
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Prime Minister Sir Keir Starmer during a visit to a military base training Ukrainian troops in April. File pic: PA

Sir Keir is due to hold a discussion to decide on the defence spending target as early as today, it is understood.

As well as a rise in pure defence spending to 3.5% by 2035, he will also likely be forced to commit a further 1.5% of GDP to defence-related areas such as spy agencies and infrastructure. Militaries need roads, railway networks, and airports to deploy at speed.

This would bolster total broader defence spending to 5% – a target Mark Rutte, the head of NATO, wants all allies to sign up to at a major summit in the Netherlands later this month.

It is being referred to as the “Hague investment plan”.

Asked what would happen at the summit, a defence source said: “3.5% without a doubt.”

Yet the prime minister reiterated the 3% ambition when he published a major defence review on Monday that placed “NATO first” at the heart of UK defence policy.

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What’s in the UK Strategic Defence Review?

The defence source said: “How can you have a defence review that says NATO first” and then be among the last of the alliance’s 32 member states – along with countries like Spain – to back this new goal?

Unlike Madrid, London presents itself as the leading European nation in the alliance.

A British commander is always the deputy supreme allied commander in Europe – the second most senior operational military officer – under an American commander, while the UK’s nuclear weapons are committed to defending the whole of NATO.

Even Germany, which has a track record of weak defence spending despite boasting the largest economy, has recently signalled it plans to move investment towards the 5% level, while Canada, also previously feeble, is making similar noises.

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Is the UK battle ready?

The source signalled it was inconceivable the UK would not follow suit and said officials across Whitehall understand the spending target will rise to 3.5%.

The source said it would be met by 2035, so three years later than the timeline Mr Rutte has proposed.

Defence spending is currently at 2.3%.

A second defence source said the UK has to commit to this spending target, “or else we can no longer call ourselves a leader within NATO”.

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Sky News’s political editor Beth Rigby challenged the prime minister on the discrepancy between his spending ambitions and those of his allies at a press conference on Monday.

Sir Keir seemed to hint change might be coming.

“Of course, there are discussions about what the contribution should be going into the NATO conference in two or three weeks’ time,” he said.

“But that conference is much more about what sort of NATO will be capable of being as effective in the future as it’s been in the last 80 years. It is a vital conversation that we do need to have, and we are right at the heart of that.”

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Mr Rutte, a former Dutch prime minister, said last week he assumes alliance members will agree to a broad defence spending target of 5% of gross domestic product during the summit in The Hague on 24 and 25 June.

NATO can only act if all member states agree.

“Let’s say that this 5%, but I will not say what is the individual breakup, but it will be considerably north of 3% when it comes to the hard spend [on defence], and it will be also a target on defence-related spending,” the secretary general said.

The call for more funding comes at a time when allies are warning of growing threats from Russia, Iran, and North Korea as well as challenges posed by China.

But it also comes as European member states need to make NATO membership seem like a good deal for Donald Trump.

The leaders of all allies will meet in The Hague for the two-day summit.

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The US president has repeatedly criticised other member states for failing to meet a current target of spending 2% of national income on defence and has warned the United States would not come to the aid of any nation that is falling short.

Since returning to the White House, he has called for European countries to allocate 5% of their GDP to defence. This is more than the 3.4% of GDP currently spent by the US.

Mr Rutte is being credited with squaring away a new deal with Mr Trump in a meeting that would see allies increase their defence spending in line with the US president’s wishes.

The NATO chief is due to visit London on Monday, it is understood.

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