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Rishi Sunak’s plan to build HS2 between London and Birmingham but not extend it to Manchester will be “very poor value for money”, cross-party MPs have warned.

The Public Accounts Committee (PAC), which examines government spending, said there are “many uncertainties” in the assessment that it was better to complete Phase 1 of the project than cancel the whole thing.

The group also said it is “highly sceptical” that the Department for Transport (DfT) will be able to attract the private investment needed for the planned central London terminus at Euston.

The report stated: “HS2 now offers very poor value for money to the taxpayer, and the department and HS2 Ltd do not yet know what it expects the final benefits of the programme to be.”

A spokesperson for the Department for Transport said they disagreed with the committee’s assessment.

It comes as the Conservative mayor of the West Midlands, Andy Street, and his Labour counterpart in Greater Manchester, Andy Burnham, are due to hold an event on Wednesday to outline their plans to work with private investors on improving rail in the North and Midlands.

The prime minister made the controversial decision to scrap the northern leg of the high speed rail project last year amid ballooning prices.

More on Hs2

The estimated cost of building HS2 between London and Birmingham could be as high as £67bn, according to HS2 Ltd, up from a budget of £44.6bn in 2019.

The original bill for the whole project – at 2009 prices – was supposed to be £37.5bn.

The PAC report said there are many “unknown ramifications” of the decision to scale back the railway, ranging from how land and property no longer needed will be disposed of, impacts on other rail projects dependent on the cancelled phases, what will be delivered with the money saved, and how HS2 trains will operate on existing lines.

The report said the DfT have acknowledged to the committee that the total costs of building Phase 1 “will significantly outweigh benefits”, but officials have judged that continuing with that section “was value for money”, partly due to avoiding £11bn of costs that would be incurred from cancellation.

However, the report said: “There are many uncertainties in this assessment and we were left with little assurance over the calculations.”

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Burnham: HS2 plan ‘doesn’t make sense’

Mr Sunak’s October 2023 announcement also included a new plan to rely on private investment to extend HS2 from Old Oak Common in the suburbs of west London to Euston, near the centre of the capital.

This is aimed at saving £6.5bn of taxpayers’ money.

Read More:
HS2 explained – what is the route and why has leg been axed?
Transport secretary to look at HS2 revival plans with ‘open mind’

But the PAC said: “We are… highly sceptical that the department will be able to attract private investment on the scale and speed required to make the London terminus station a success.”

Dame Meg Hillier, the Labour MP who chairs the committee, said: “HS2 is the biggest ticket item by value on the government’s books for infrastructure projects.

“As such, it was crying out for a steady hand at the tiller from the start.

“But, here we are after over a decade of our warnings on HS2’s management and spiralling costs, locked into the costly completion of a curtailed rump of a project and many unanswered questions and risks still attached to delivery of even this curtailed project.”

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The move to ditch the northern leg of HS2 was highly controversial, triggering a backlash from Tory grandees, regional leaders, businesses and the rail industry.

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

Last month, HS2 Ltd executive chairman Sir Jon Thompson said reasons for the cost increase include original budgets being too low, changes to scope, lower than expected productivity, weak contractual models and inflation.

In response to the PAC report, a spokesperson for the company said they have been “clear about the cost challenges”, adding: “HS2 Ltd is now under new leadership and implementing changes across the programme aimed at controlling costs and learning the lessons of the past.”

A DfT spokesperson said: “We disagree with the Committee’s assessment.

“Our plans for Euston have already received extensive support from the private sector to invest and will offer a world class regeneration opportunity, mirroring the successful King’s Cross and Battersea and Nine Elms development programmes.

“The Permanent Secretary has already written to the Committee chair setting out her assessment on value for money, and we have repeatedly made clear we will continue to deliver HS2 at the lowest reasonable cost, in a way that provides value for taxpayers.”

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Man arrested over arson attacks after fire at Sir Keir Starmer’s house

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Man arrested over arson attacks after fire at Sir Keir Starmer's house

A 21-year-old man has been arrested over a series of arson attacks, police have said, after a fire at a house owned by Prime Minister Sir Keir Starmer.

The suspect was arrested in the early hours of Tuesday on suspicion of arson with intent to endanger life, according to the Metropolitan Police.

He remains in custody.

Emergency services were called to fires at the doors of two homes in north London within 24 hours of each other – one just after 1.35am on Monday in Kentish Town and the other on Sunday in Islington. Both properties are linked to Sir Keir.

Sir Keir Starmer house
Metropolitan Police
Fire Pic: LNP
Image:
Police are investigating links to several fires, which they are treating as suspicious. Pic: LNP

Detectives were also checking a vehicle fire last Thursday on the same street as the Kentish Town property to see whether it is connected.

Part of the area was cordoned off as police and London Fire Brigade (LFB) investigators examined the scene.

Neighbours described hearing a loud bang and said police officers were looking for a projectile.

A police officer is seen in Kentish Town, north London. Police are investigating a fire at Sir Keir Starmer's house in north London. Picture date: Monday May 12, 2025.
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Emergency services were deployed to the scene in Kentish Town, north London, on Monday. Pic: PA

A forensics officer is seen in Kentish Town, north London. Police are investigating a fire at Sir Keir Starmer's house in north London. Picture date: Monday May 12, 2025.
Image:
Pic: PA

The prime minister is understood to still own the home, which was damaged by fire on Monday, but nobody was hurt. Pictures showed scorching at the entrance to the property.

Sir Keir used to live there before he and his family moved into 10 Downing Street after Labour won last year’s general election. It is believed the property is being rented out.

In the early hours of Sunday, firefighters dealt with a small fire at the front door of a house converted into flats in nearby Islington, which is also linked to the prime minister.

Sir Keir Starmer house
Metropolitan Police
Fire Pic: LNP
Image:
Counter-terror police are leading the investigation. Pic: LNP

In a statement, police said: “As a precaution and due to the property having previous connections with a high-profile public figure, officers from the Met’s Counter Terrorism Command are leading the investigation into this fire.

“Enquiries are ongoing to establish what caused it. All three fires are being treated as suspicious at this time, and enquiries remain ongoing.”

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The prime minister’s official spokesman said: “I can only say that the prime minister thanks the emergency services for their work and it is subject to a live investigation. So I can’t comment any further.”

Kemi Badenoch has condemned the suspected arson attacks.

Writing on X, the Conservative leader said: “This is a shocking incident. My thoughts are with the prime minister and his family. No one should face these sorts of threats, let alone people in public service.

“It’s an attack on our democracy and must never be tolerated.”

Shadow justice secretary Robert Jenrick told Sky News on Tuesday: “It’s important that the prime minister and anyone in public life has their family, their homes, protected.

“It is absolutely wrong, disgraceful, for any individual to take the kind of action that we saw against the prime minister’s home.”

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Arizona governor kills two crypto bills, cracks down on Bitcoin ATMs

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Arizona governor kills two crypto bills, cracks down on Bitcoin ATMs

Arizona governor kills two crypto bills, cracks down on Bitcoin ATMs

Arizona Governor Katie Hobbs vetoed two key cryptocurrency-related bills that aimed to expand the state’s involvement in digital assets while signing a strict regulatory measure targeting Bitcoin ATMs.

On May 12, Hobbs rejected Senate Bill 1373, which sought to establish a Digital Assets Strategic Reserve Fund. The fund would have allowed Arizona to hold crypto assets obtained through seizures or legislative allocations.

“Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars,” she stated in her veto letter. “I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk,” she added.

That decision followed her veto of Senate Bill 1025 — the more ambitious “Arizona Strategic Bitcoin Reserve Act” — on May 3. It would have authorized up to 10% of the state’s treasury and retirement funds to be invested in Bitcoin and other digital assets.

According to data from bitcoinlaws.io, 26 US states have introduced strategic crypto reserve bills, with 18 of them currently active.

Hobbs also vetoed Senate Bill 1024, which would have permitted state agencies to accept cryptocurrency payments for taxes, fines and fees via approved service providers.

Although the proposal attempted to shield the state from direct exposure to price volatility, Hobbs said it still introduced “too much risk.”

Arizona governor kills two crypto bills, cracks down on Bitcoin ATMs
Source: State of Arizona, Office of the Governor

Related: Taiwan lawmaker calls for Bitcoin reserve at national conference

Hobbs approves Bitcoin ATM bill

On May 12, Hobbs approved House Bill 2387, which introduces new consumer protection rules for cryptocurrency kiosk (ATM) operators, aiming to reduce fraud and improve transparency.

The bill mandates that kiosks display clear, multilingual warnings about common crypto scams and require users to acknowledge these risks before completing transactions. Operators must also provide detailed receipts that include transaction data, contact information, fees and refund policies.

Furthermore, the bill caps transactions at $2,000 per day for new customers and $10,500 per day for returning users after 10 days. Kiosk providers must also offer 24/7 toll-free customer service and post the number visibly on each machine.

Under the bill, if a new user is tricked into sending crypto under false pretenses and reports it with proof within 30 days, they are entitled to a full refund, including fees.

According to CoinATMRadar, there are currently 20 active Bitcoin ATMs in Arizona.

Notably, Hobbs has not entirely closed the door on digital assets. On Wednesday, she signed House Bill 2749, which updates Arizona’s unclaimed property laws to include digital assets.

The legislation allows the state to retain unclaimed cryptocurrencies in their original form rather than liquidating them into fiat currency.

Magazine: Bitcoin eyes ‘crazy numbers,’ JD Vance set for Bitcoin talk: Hodler’s Digest, May 4 – 10

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Robert Jenrick claims UK ‘already island of strangers’ – and names locations with ‘segregated society’

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Robert Jenrick claims UK 'already island of strangers' - and names locations with 'segregated society'

Robert Jenrick has claimed the UK is “already an island of strangers” after the prime minister faced criticism for using that phrase in a speech on migration.

The shadow justice secretary told Sky News Breakfast with Wilfred Frost that the UK was not at risk of becoming an “island of strangers”, as Sir Keir claimed, but that this already the reality.

Politics latest: PM under fire for ‘island of strangers’ phrase

Asked if he agreed with the PM’s language he said: “I think we already are. I think there are certain places in this country where people are not living side by side, where we are a very divided and segregated society.

“If you look at the centre of Bradford, for example, 50% of people were not born in the UK. If you look at the centre of Luton, almost 50% of people only arrived in the UK in the last 10 years. If you look at parts of Dagenham, the white British population has reduced by 50% in the last 25 years.”

In 2021, 80.1% of Bradford residents reported their country of birth as England according to the ONS, while in Luton the figure is 60.3% of the local population and in Barking and Dagenham it was 58.2%.

In Barking and Dagenham, about 85% of the population identified as white in 2001, which fell to 58.3% in 2011 and 44.9% in 2021.

In his speech on Monday announcing a package of measures to reduce net migration, Sir Keir pledged a new system that is “controlled, selective and fair”.

He said without the fair rules, “we risk becoming an island of strangers, not a nation that walks forward together”.

The comment has attracted criticism from within his own party, including Labour MP Sarah Owen, who said it could put the UK on “a very dark path”.

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‘We risk becoming an island of strangers’

The chair of the Women and Equalities Select Committee said “fair and sensible” checks on immigration “should not equal blaming all the woes of our country on immigrants”.

“The best way to avoid becoming an ‘island of strangers’ is investing in communities to thrive – not pitting people against each other,” she added.

“I’ve said it before and will say it again, chasing the tail of the right risks taking our country down a very dark path.”

Nadia Whittome, the Labour MP for Nottingham East, also said the phrase mimicked the “scaremongering of the far-right”, while former shadow chancellor John McDonnell argued it was reminiscent of the late politician Enoch Powell.

Home Secretary Yvette Cooper defended the prime minister, pointing out “he also said we are a diverse nation and that he celebrates that”.

She added: “It is possible to both say that we have had huge benefits through generations by people coming, being part of communities, contributing, and also that that will continue to be important in the future, and also say we have a problem with the immigration system and that net migration needs to come down.”

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