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.
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.
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.
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.
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.
Senator Tim Scott, the chairman of the US Senate Committee on Banking, Housing, and Urban Affairs, recently said that he expects a crypto market bill to be passed into law by August 2025.
The chairman also noted the Senate Banking Committee’s advancement of the GENIUS Act, a comprehensive stablecoin regulatory bill, in March 2025, as evidence that the committee prioritizes crypto policy. In a statement to Fox News, Scott said:
“We must innovate before we regulate — allowing innovation in the digital asset space to happen here at home is critical to American economic dominance across the globe.”
Scott’s timeline for a crypto market structure bill lines up with expectations from Kristin Smith, CEO of the crypto industry advocacy group Blockchain Association, of market structure and stablecoin legislation being passed into law by August.
Support for comprehensive crypto regulations is bipartisan
US lawmakers and officials expect clear crypto policies to be established and signed into law sometime in 2025 with bipartisan support from Congress.
Speaking at the Digital Assets Summit in New York City, on March 18, Democrat Representative Ro Khanna said he expects both the market structure and stablecoin bills to pass this year.
The Democrat lawmaker added that there are about 70-80 other representatives in the party who understand the importance of passing clear digital asset regulations in the United States.
Treasury Secretary Scott Bessent, pictured left, President Donald Trump in the center, and crypto czar David Sacks, pictured right, at the White House Crypto Summit. Source: The White House
Khanna emphasized that fellow Democrats support dollar-pegged stablecoins due to the role of dollar tokens in expanding demand for the US dollar worldwide through the internet.
Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, also spoke at the conference and predicted that stablecoin legislation would be passed into law within 60 days.
Hines highlighted that establishing US dominance in the digital asset space is a goal with widespread bipartisan support in Washington DC.
The US Social Security Administration (SSA) will move all public communications to the X social media platform amid sweeping workforce cuts recommended by the Department of Government Efficiency (DOGE), led by X owner Elon Musk.
According to anonymous sources who spoke with WIRED, the government agency will no longer issue its customary letters and press releases to communicate changes to the public, instead relying on X as its primary form of public-facing communication.
The shift comes as the SSA downsizes its workforce from 57,000 employees to roughly 50,000 to reduce costs and improve operational efficiency. The agency issued this statement in February 2025:
“SSA has operated with a regional structure consisting of 10 offices, which is no longer sustainable. The agency will reduce the regional structure in all agency components down to four regions. The organizational structure at Headquarters also is outdated and inefficient.”
Elon Musk, the head of DOGE, has accused the Social Security system of distributing billions of dollars in wrongful payments, a claim echoed by the White House. Musk’s comments sparked intense debate about the future of the retirement program and sustainable government spending.
DOGE targets US government agencies in efficiency push
The Department of Government Efficiency is an unofficial government agency tasked with identifying and curbing allegedly wasteful public spending through budget and personnel cuts.
SEC officials signaled their cooperation with DOGE and said the regulatory agency would work closely with it to provide any relevant information requested.
Musk and Trump discuss curbing public spending and eliminating government waste. Source: The White house
DOGE also proposed slashing the Internal Revenue Service’s (IRS) workforce by 20%. The workforce reduction could impact up to 6,800 IRS employees and be implemented by May 15 — exactly one month after 2024 federal taxes are due.
Musk’s and the DOGE’s proposals for sweeping spending cuts are not limited to slashing budgets and reducing the size of the federal workforce.
DOGE is reportedly exploring blockchain to curb public spending by placing the entire government budget onchain to promote accountability and transparency.
United States President Donald Trump has exempted an array of tech products including, smartphones, chips, computers, and select electronics from tariffs, giving the tech industry a much-needed respite from trade pressures.
According to the US Customs and Border Protection, storage cards, modems, diodes, semiconductors, and other electronics were also excluded from the ongoing trade tariffs.
“Large-cap technology companies will ultimately come out ahead when this is all said and done,” The Kobeissi letter wrote in an April 12 X post.
The tariff relief will take the pressure off of tech stocks, which were one of the biggest casualties of the trade war. Crypto markets are correlated with tech stocks and could also rally as risk appetite increases on positive trade war headlines.
Following news of the tariff exemptions, the price of Bitcoin (BTC) broke past $85,000 on April 12, a signal that crypto markets are already responding to the latest macroeconomic development.
Markets hinge on Trump’s every word during macroeconomic uncertainty
President Trump walked back the sweeping tariff policies on April 9 by initiating a 90-day pause on the reciprocal tariffs and lowering tariff rates to 10% for countries that did not respond with counter-tariffs on US goods.
Bitcoin surged by 9% and the S&P 500 surged by over 10% on the same day that Trump issued the tariff pause.
Macroeconomic trader Raoul Pal said the tariff policies were a negotiation tool to establish a US-China trade deal and characterized the US administration’s trade rhetoric as “posturing.”
Bitcoin advocate Max Keiser argued that exempting select tech products from import tariffs would not reduce bond yields or further the Trump administration’s goal of lowering interest rates.
Yield on the 10-year US government bond spikes following sweeping trade policies from the Trump administration. Source: TradingView
The yield on the 10-year US Treasury Bond shot up to a local high of approximately 4.5% on April 11 as bond investors reacted to the macroeconomic uncertainty of a protracted trade war.
“The concession just given to China for tech exports won’t reverse the trend of rates going higher. Confidence in US bonds and the US Dollar has been eroding for years and won’t stop now,” Keiser wrote on April 12.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.