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The cost of building HS2 between London and Birmingham could reach nearly £67bn – almost double an early projection for the entire project to the north.

HS2 Ltd executive chairman Sir Jon Thompson told MPs the estimated cost for phase one stood between £49bn and £56.6bn based on 2019 prices – but adjusting the range for current prices would mean “adding somewhere between £8bn and £10bn”.

Politics latest: Sunak and Starmer face off in first PMQs of year

The new estimate is nearly double what the high-speed network was expected to cost in 2013, when it had a price tag of £37.5bn.

That figure was based on 2009 prices for the entire planned network, including the routes from Birmingham to Manchester and Leeds which have now been scrapped.

Giving evidence to parliament’s Transport Select Committee, Sir Jon said the costs for phase one had jumped due to original budgets being too low, poor delivery and inflation.

He said there was a “systemic problem” where budgets are set out early “based on very, very immature data”.

“You don’t have a design, you haven’t procured anything, there is no detail on which you can cost anything,” he explained.

“But then you get into the detailed design, you know exactly how big it is, what surfaces you want, how much concrete needs to be poured. Unsurprisingly you get a better number.”

A general view of the HS2 construction site at Curzon Street in Birmingham city centre, Birmingham, Britain, October 3, 2023. REUTERS/Carl Recine
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The HS2 construction site at Curzon Street in Birmingham

Rishi Sunak took the controversial decision to scrap the northern leg of HS2 to Manchester at the Tory party conference in October, attracting criticism from regional leaders who branded it a “betrayal” of northern voters.

The prime minister promised to spend the billions of cash savings on hundreds of other transport schemes across the country instead, including a new Network North project to join up northern cities by rail.

The government was recently mocked after it emerged roads in London will be revamped as part of the project.

Read more:
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Council issues bankruptcy warning after scrapping of HS2

A recent document published by the Department for Transport (DfT) which outlined plans for Network North stated the government believed phase one of HS2 should cost between £45bn and £54bn – and HS2 Ltd “should deliver at the lower end of this range”.

But Sir Jon told the committee: “It’s for the department and the government to decide what it wants to use that data for, but I do not believe that phase one could be delivered for £45bn.”

He also told the committee the decision to scrap HS2 north of Birmingham could lead to a reduction in seat capacity for train services between London and Manchester compared with today.

Louise Haigh, Labour’s shadow transport secretary, said: “This is a direct result of Rishi Sunak’s weak leadership and mismanagement of HS2.

“As chief secretary, chancellor and now PM Rishi Sunak has allowed costs to soar, and public money go down the drain.

“This is a government with no direction, no plan and no regard for taxpayers’ money.”

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Can a trade deal with Trump save Starmer?

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Can a trade deal with Trump save Starmer?

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

With Ruth away, Beth and Harriet are joined by Salma Shah, a former Conservative special adviser from 2014-2018 and now a political commentator.

They unpack Donald Trump’s surprise UK trade deal announcement and what it means for Sir Keir Starmer, who’s also landed a deal with India and is gearing up for key EU negotiations.

But while the global optics look strong, the domestic mood is tense. Harriet has some advice for the Labour backbenchers who are unhappy over welfare cuts and the winter fuel allowance policy.

Also – does Sir Keir need a hand with his comms?

Come and join us live on Tuesday 20 May at Cadogan Hall in London, tickets available now: https://www.aegpresents.co.uk/event/electoral-dysfunction-live/

Remember you can also watch us on YouTube!

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Red Wall MPs should focus on two-child benefit cap rather than winter fuel, Harriet Harman says

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Red Wall MPs should focus on two-child benefit cap rather than winter fuel, Harriet Harman says

Red Wall MPs should push for the two-child benefit cap to be lifted rather than a reversal of the winter fuel payment policy, Baroness Harriet Harman has said.

Baroness Harman, the former Labour Party chair, told Sky’s Electoral Dysfunction podcast that this would hand the group a “progressive win” rather than simply “protesting and annoying Sir Keir Starmer” over winter fuel.

Earlier this week, a number of MPs in the Red Wall – Labour’s traditional heartlands in the north of England – reposted a statement on social media in which they said the leadership’s response to the local elections had “fallen on deaf ears”.

Follow live: UK-US trade deal

They singled out the cut to the winter fuel allowance as an issue that was raised on the doorstep and urged the government to rethink the policy, arguing doing so “isn’t weak, it takes us to a position of strength”.

Labour’s decision to means test the policy has snatched the benefit away from millions of pensioners.

But Baroness Harman said a better target for the group could be an overhaul of George Osborne’s two-child benefit cap.

More on Harriet Harman

The cap, announced in 2015 as part of Lord David Cameron’s austerity measures, means while parents can claim child tax credit or Universal Credit payments for their first and second child, they can’t make claims for any further children they have.

Labour faced pressure to remove the cap in the early months of government, with ministers suggesting in February that they were considering relaxing the limit.

Baroness Harman told Beth Rigby that this could be a sensible pressure point for Red Wall MPs to target.

She said: “It could be that they have a kind of progressive win, and it might not be a bad thing to do in the context of an overall strategy on child poverty.

“Let’s see whether instead of just protesting and annoying Sir Keir Starmer, they can build a bridge to a new progressive set of policies.”

Jo White, the Labour MP for Bassetlaw and a member of the Red Wall group, suggested that her party’s “connection” to a core group of voters “died” with the decision to means test the winter fuel payment for pensioners.

“We need to reset the government,” she told Electoral Dysfunction. “The biggest way to do that is by tackling issues such as winter fuel payments.

“I think we should raise the thresholds so that people perhaps who are paying a higher level of tax are the only people who are exempt from getting it.”

Pic: AP
Image:
Pic: AP

A group of MPs in the Red Wall, thought to number about 40, met on Tuesday night following the fallout of local election results in England, which saw Labour lose the Runcorn by-election and control of Doncaster Council to Reform UK.

Following the results, Sir Keir said “we must deliver that change even more quickly – we must go even further”.

Some Labour MPs believe it amounted to ignoring voters’ concerns.

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Starmer faces rebellion from Labour MPs over welfare reforms

One of the MPs who was present at the meeting told Sky News there was “lots of anger at the government’s response to the results”.

“People acknowledged the winter fuel allowance was the main issue for us on the doorstep,” they said.

“There is a lack of vision from this government.”

Another added: “Everyone was furious.”

Downing Street has ruled out a U-turn on means testing the winter fuel payment, following newspaper reports earlier this week that one might be on the cards.

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US man who sent crypto to ISIS could serve prison till he’s 65

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US man who sent crypto to ISIS could serve prison till he’s 65

US man who sent crypto to ISIS could serve prison till he’s 65

A man from the US state of Virginia will spend over three decades behind bars after being convicted of sending crypto to the terrorist organization commonly known as the Islamic State of Iraq and Syria.

Federal Judge David Novak sentenced Mohammed Azharuddin Chhipa to 30 years and four months in prison on May 7 for sending over $185,000 to the Islamic State, the Department of Justice said on May 8.

Prosecutors said that from around October 2019 until October 2022, the 35-year-old Chhipa collected and sent money to female Islamic State members in Syria, which helped them escape prison camps and funded fighting.

The Justice Department said Chhipa would raise funds for the United Nations-designated terror organization through social media — receiving money online, or traveling hundreds of miles to accept donations in person. 

He’d convert the money into crypto and send it to Turkey for it to be smuggled to Islamic State members across the border in Syria, prosecutors said.

A federal jury convicted Chhipa in December, finding him guilty on a charge of conspiracy to provide support to a terrorist organization and four charges of providing and attempting to provide support to a terrorist organization.

US man who sent crypto to ISIS could serve prison till he’s 65
An undated picture of Chhipa, a naturalized US citizen born in India. Source: Alexandria Sheriff’s Office via TRM

“This defendant directly financed ISIS in its efforts to commit vile terrorist atrocities against innocent citizens in America and abroad,” Attorney General Pam Bondi said in a statement. “This severe sentence illustrates that if you fund terrorism, we will prosecute you and put you behind bars for decades.”

Chhipa tried to flee US during FBI probe

Prosecutors said that during the Federal Bureau of Investigation’s investigation into Chhipa, he tried to flee the country to escape prosecution and tried to hide his tracks through a series of actions seemingly aimed at confusing authorities.

According to a motion for detention filed in August, FBI agents searched Chhipa’s house on Aug. 2, 2019, and that night Chhipa drove to a bank, withdrew $1,800 from an ATM, and then went to a Taco Bell, where he paid a stranger for a ride to a relative’s house. The relative then drove him to a grocery store.

Related: US Treasury sanctions Myanmar militia group for alleged crypto scams

Three days later, prosecutors said Chhipa “purchased a series of bus tickets using variations and/or misspelling of his name and recently created email accounts.”

He then travelled from Virginia to Mexico and onto Guatemala. He then bought tickets to fly from Guatemala to Panama, then onto Germany, and then to Egypt, but an Interpol Blue Notice was issued, and he was returned to the US.

Magazine: Terrorism and the Israel-Gaza war have been weaponized to destroy crypto 

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