The northern leg of the HS2 line is set to be scrapped, Sky News understands.
Rumours had been circling for weeks that the high-speed rail line between Birmingham and Manchester was going to be axed by the prime minister and chancellor due to soaring costs.
Even the reports – which have been denied by Number 10 – led to a huge backlash from all sides of the political spectrum, including from former Conservative prime ministers Boris Johnson and Theresa May.
A Downing Street spokesperson said: “These reports are incorrect. No final decisions have been taken on Phase 2 of HS2.”
The development threatens to attract controversy and overshadow Rishi Sunak’s first Tory conference as leader and prime minister as the party faithful gathers in Manchester for the annual event.
The newspaper said a cost estimate revealed that the government has already spent £2.3bn on stage two of the railway from Birmingham to Manchester, but that ditching the northern phase could save up to £34bn.
Sky News understands the Department of Transport (DfT) has worked up a package of alternative projects – rail, bus and road schemes – which could be funded from money saved by scrapping the Manchester to Birmingham leg of the project.
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But Andy Burnham, the Labour mayor of Greater Manchester, accused the government of treating people in the north of England as “second-class citizens” with regards to HS2.
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8:52
‘Second-class citizens on transport’
He told Sky News’s Sunday Morning With Trevor Phillips: “An east-west line is really important for north of England, as well as north-south. Why is it always that people here are forced to choose? That we can’t have everything, ‘you can have this or you can have that but you can’t have everything’?
“London never has to choose between a north-south line and an east-west line and good public transport within the city.
“Why is it that people in the north are always forced to choose, why are we always treated as second-class citizens when it comes to transport?”
Number 10 is trying to shut down an announcement it is not ready to make public
Ahead of today, Downing Street drew up a plan for announcing a decision on scrapping the northern leg of HS2 in Manchester.
It would involve a cabinet meeting here at conference, possibly a visit by the PM and the announcement itself.
Earlier today, I was told a decision had been made. This would have been at the heart of government’s inner sanctum, with this communicated only to a small number.
All the internal government documentation on HS2 is numbered to try and capture leakers, with press spokesman not in the loop.
It has also not yet gone to cabinet – we would know if this had happened.
Therefore Number 10 can legitimately say that no final decision has been made – as some decisions have, we are told.
This revelation – as the chancellor was due on stage – could not be more disruptive for conference, meaning HS2 is eclipsing yet another day of the coverage.
Number 10 are now trying to shut down an announcement they are evidently not ready to make in public.
That is why they have issued the following: “These reports are incorrect. No final decisions have been taken on Phase 2 of HS2.”
We await the next twist in the tale.
He was joined in his criticism by Mr Johnson, who said delaying or scrapping the northern leg of HS2 would be “betraying the north of the country and the whole agenda of levelling up”.
The ex-prime minister’s intervention came on on the eve of the party conference.
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1:57
Are Tories planning ‘rail betrayal’?
But writing in his weekly Daily Mail column, Mr Johnson appealed to his former chancellor to show Britain still has “the requisite guts and ambition” to invest in infrastructure and labelled the aim of saving money “deluded”.
Mr Johnson – who made levelling up a centrepiece of his 2019 manifesto and government – said when he heard reports the northern leg was set to be delayed or cancelled, he let out a “long, low despairing groan”.
He wrote: “Cancel HS2? Cut off the northern legs? We must be out of our minds.”
Andy Street, the Conservative mayor of the West Midlands, has also warned against any downscaling of HS2.
Asked about the reports by Sky News at the conference in Manchester, he said: “You must ask the PM – I’m confident he’ll do the right thing.”
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.
The initial opening date of 2026 has fallen back to 2033, while cost estimates have spiralled from about £33bn in 2010 to £71bn in 2019 – excluding the final eastern leg from the West Midlands to the East Midlands.
It is not just the northern section of the project that has encountered trouble.There are also doubts about the future of Euston station in London and whether services will terminate there or at Old Oak Common in west London.
Sophisticated drones sending “overwhelming amounts” of drugs and weapons into prisons represent a threat to national security, according to an annual inspection report by the prisons watchdog.
HMP chief inspector of prisons Charlie Taylor has warned criminal gangs are targeting jails and making huge profits selling contraband to a “vulnerable and bored” prison population.
The watchdog boss reiterated his concerns about drones making regular deliveries to two Category A jails, HMP Long Lartin and HMP Manchester, which hold “the most dangerous men in the country”, including terrorists.
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2:28
Ex-convict: Prison is ‘birthing bigger criminals’
Mr Taylor said “the police and prison service have in effect ceded the airspace” above these two high-security prisons, which he said was compromising the “safety of staff, prisoners, and ultimately that of the public”.
“The possibility now whereby we’re seeing packages of up to 10kg brought in by serious organised crime means that in some prisons there is now a menu of drugs available,” he said. “Anything from steroids to cannabis, to things like spice and cocaine.”
“Drone technology is moving fast… there is a level of risk that’s posed by drones that I think is different from what we’ve seen in the past,” warned the chief inspector – who also said there’s a “theoretical risk” that a prisoner could escape by being carried out of a jail by a drone.
He urged the prison service to “get a grip” of the issue, stating: “We’d like to see the government, security services, coming together, using technology, using intelligence, so that this risk doesn’t materialise.”
Image: The report highlights disrepair at prisons around the country
The report makes clear that physical security – such as netting, windows and CCTV – is “inadequate” in some jails, including Manchester, with “inexperienced staff” being “manipulated”.
Mr Taylor said there are “basic” measures which could help prevent the use of drones, such as mowing the lawn, “so we don’t get packages disguised as things like astro turf”.
Responding to the report, the Prison Advice and Care Trust (PACT) said: “The ready access to drugs is deeply worrying and is undermining efforts to create places of rehabilitation.”
Mr Taylor’s report found that overcrowding continues to be what he described as a “major issue”, with increasing levels of violence against staff and between prisoners, combined with a lack of purposeful activity.
Some 20% of adult men responding to prisoner surveys said they felt unsafe at the time of the inspection, increasing to 30% in the high security estate.
Andrea Coomber, chief executive of the Howard League for Penal Reform, said: “This report is a checklist for all the reasons the government must prioritise reducing prison numbers, urgently.
“Sentencing reform is essential, and sensible steps to reduce the prison population would save lives.”
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0:51
May: Male prison capacity running at 99%
The report comes after the government pledged to accept most of the recommendations proposed in the independent review of sentencing policy, with the aim of freeing up around 9,500 spaces.
Those measures won’t come into effect until spring 2026.
Prisons Minister Lord Timpson said Mr Taylor’s findings show “the scale of the crisis” the government “inherited”, with “prisons dangerously full, rife with drugs and violence”.
He said: “After just 500 prison places added in 14 years, we’re building 14,000 extra – with 2,400 already delivered – and reforming sentencing to ensure we never run out of space again.
“We’re also investing £40m to bolster security, alongside stepping up cooperation with police to combat drones and stop the contraband which fuels violence behind bars.”
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The education secretary has said children with special needs will “always” have a legal right to additional support as she sought to quell a looming row over potential cuts.
The government is facing a potential repeat of the debacle over welfare reform due to suggestions it could scrap tailored plans for children and young people with special needs in the classroom.
Speaking in the Commons on Monday, Bridget Phillipson failed to rule out abolishing education, health and care plans (EHCPs) – legally-binding plans to ensure children and young people receive bespoke support in either mainstream or specialist schools.
Laura Trott, the shadow education secretary, said parents’ anxiety was “through the roof” following reports over the weekend that EHCPs could be scrapped.
She said parents “need and deserve answers” and asked: “Can she confirm that no parent or child will have their right to support reduced, replaced or removed as a result of her planned changes?”
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2:45
Sophy’s thought on whether to scrap EHCPs
Ms Phillipson said SEND provision was a “serious and complex area” and that the government’s plans would be set out in a white paper that would be published later in the year.
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“I would say to all parents of children with SEND, there is no responsibility I take more seriously than our responsibility to some of the most vulnerable children in our country,” she said.
“We will ensure, as a government, that children get better access to more support, strengthened support, with a much sharper focus on early intervention.”
ECHPs are drawn up by local councils and are available to children and young people aged up to 25 who need more support than is provided by the Special Educational Needs and Disabilities (SEND) budget.
They identify educational, health and social needs and set out the additional support to meet those needs.
In total, there were 638,745 EHCPs in place in January 2025 – up 10.8% on the same point last year.
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One Labour MP said they were concerned the government risked making the “same mistakes” over ECHPs as it did with the row over welfare, when it was eventually forced into a humiliating climbdownin the face of opposition by Labour MPs.
“The political risk is much higher even than with welfare, and I’m worried it’s being driven by a need to save money which it shouldn’t be,” they told Sky News.
“Some colleagues are rebel ready.”
The MP said the government should be “charting a transition from where we are now to where we need to be”, adding: “That may well be a future without ECHPs, because there is mainstream capacity – but that cannot be a removal of current provision.”
Later in the debate, Ms Phillipson said children with special educational needs and disabilities would “always” have a “legal right” to additional support as she accused a Conservative MP of attempting to “scare” parents.
“The guiding principle of any reform to the SEND system that we will set out will be about better support for children, strengthened support for children and improved support for children, both inside and outside of special schools,” she said.
“Improved inclusivity in mainstream schools, more specialist provision in mainstream schools, and absolutely drawing on the expertise of the specialist sector in creating the places where we need them, there will always be a legal right … to the additional support… that children with SEND need.”
Her words were echoed by schools minister Catherine McKinnell, who also did not rule out changing ECHPs.
She told the Politics Hub With Sophy Ridge that the government was “focused on reforming the whole system”.
“Children and families have been left in a system where they’ve had to fight for their child’s education, and that has to change,” she said.
She added that EHCPs have not necessarily “fixed the situation” for some children – but for others it’s “really important”.