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An investigation has been launched into “whistleblower allegations” about the practices of some “labour suppliers” to the company building the embattled HS2 rail line.

HS2 Ltd is investigating two companies that supply workers to build part of the London to Birmingham section of the line, which the i Paper, which first reported the story, says relates to the billing for the staff supplied.

The company, which is owned by the government, says it “treats all whistleblower allegations seriously” and launched an investigation earlier this year, while the Department for Transport adds that it will ensure any claims of wrongdoing are “thoroughly investigated”.

Politics latest: More welfare headaches for Starmer

The paper reports that the allegations relate to staff being misclassified, and therefore an inflated rate being charged to employ them.

It is understood the two firms under investigation were providing workers to one of HS2’s contractors on the West Midlands section of the line, Balfour Beatty Vinci (BBV), which is not accused of wrongdoing.

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Watch: Starmer declares war on policies leading to HS2’s £100m bat shed

A spokesperson for HS2 Ltd says BBV has “implemented additional monitoring and controls”.

It is understood that one contractor remains suspended from new contracts while the probe continues.

An HS2 spokesperson said: “HS2 Ltd treats all whistleblower allegations seriously and we are aware of the claims made in relation to labour suppliers on part of the route.

“An investigation was launched earlier this year into a number of different allegations and our contractor Balfour Beatty VINCI has implemented additional monitoring and controls.”

HS2
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The public has protested the vast cost of HS2. Pic: PA

A Department for Transport spokesperson added: “The government and HS2 Ltd take all whistleblower allegations extremely seriously and have a zero-tolerance attitude towards fraud, bribery, and corruption. We will therefore ensure any claims of wrongdoing in HS2’s supply chain are thoroughly investigated.

“We have taken action to grip the delivery of HS2, tasking CEO Mark Wild to fundamentally reset the project and change the company’s culture and capability to deliver the line as cost effectively as possible.”

It is understood that there is currently no police or HMRC involvement.

BBV has been approached for comment.

The new-look HS2 route
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The previous Tory government scrapped the second phase of HS2

What is HS2?

The HS2 rail line was announced in 2009 to boost capacity and cut the journey time between London and the north of England.

The initial plan was to build the first phase connecting London and Birmingham, followed by adding two branches to Manchester and Leeds – but the previous Conservative government decided to scrap the second phase due to spiralling costs and numerous setbacks, and the new Labour administration has said it will not reverse the decision.

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Sam Coates: PM declares war on £100m HS2 bat shed
Changes to HS2 explained
Government doesn’t know how much HS2 will cost

Sir Keir Starmer’s government has pledged to “get a grip” on the rising costs of the project that, according to a House of Commons research briefing, have been driven “by high inflation, as well as scope changes, worse ground conditions than expected and optimism bias”.

In 2012, it was estimated that HS2 Phase 1 would cost £20.5bn (in 2019 prices) to complete – but forecasts have since grown, with the most recent estimate in January 2024 estimating it would cost £49bn to £56.6bn (in 2019 prices).

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SEC Chair calls tokenization an ‘innovation’ in sign of regulatory shift

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<div>SEC Chair calls tokenization an 'innovation' in sign of regulatory shift</div>

<div>SEC Chair calls tokenization an 'innovation' in sign of regulatory shift</div>

In a media interview, Chair Paul Atkins pledged to empower businesses to innovate through tokenization.

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Just 25% of public think Sir Keir Starmer will win next election – with welfare row partly to blame

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Just 25% of public think Sir Keir Starmer will win next election - with welfare row partly to blame

Only a quarter of British adults think Sir Keir Starmer will win the next general election, as the party’s climbdown over welfare cuts affects its standing with the public.

A fresh poll by Ipsos, shared with Sky News, also found 63% do not feel confident the government is running the country competently, similar to levels scored by previous Conservative administrations under Boris Johnson and Rishi Sunak in July 2022 and February 2023, respectively.

Politics latest: ‘A moment of intense peril’ for PM

The survey of 1,080 adults aged 18-75 across Great Britain was conducted online between 27 and 30 June 2025, when Labour began making the first of its concessions, suggesting the party’s turmoil over its own benefits overhaul is partly to blame.

The prime minister was forced into an embarrassing climbdown on Tuesday night over his plans to slash welfare spending, after it became apparent he was in danger of losing the vote owing to a rebellion among his own MPs.

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Govt makes last-minute concession on welfare bill

The bill that was put to MPs for a vote was so watered down that the most controversial element – to tighten the eligibility criteria for personal independence payments (PIP) – was put on hold, pending a review into the assessment process by minister Stephen Timms that is due to report back in the autumn.

The government was forced into a U-turn after Labour MPs signalled publicly and privately that the previous concession made at the weekend to protect existing claimants from the new rules would not be enough.

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While the bill passed its first parliamentary hurdle last night, with a majority of 75, 49 Labour MPs still voted against it – the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.

It left MPs to vote on only one element of the original plan – the cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

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Govt makes last-minute concession on welfare bill

An amendment brought by Labour MP Rachael Maskell, which aimed to prevent the bill progressing to the next stage, was defeated but 44 Labour MPs voted for it.

The incident has raised questions about Sir Keir’s authority just a year after the general election delivered him the first Labour landslide victory in decades.

Read more:
How did your MP vote on Labour’s welfare bill?
The PM faced down his party on welfare and lost

And on Wednesday, Downing Street insisted Rachel Reeves, the chancellor, was “not going anywhere” after her tearful appearance in the House of Commons during prime minister’s questions sparked speculation about her political future.

The Ipsos poll also found that two-thirds of British adults are not confident Labour has the right plans to change the way the benefits system works in the UK, including nearly half of 2024 Labour voters.

Keiran Pedley, director of UK Politics at Ipsos, said: “Labour rows over welfare reform haven’t just harmed the public’s view on whether they can make the right changes in that policy area, they are raising wider questions about their ability to govern too.

“The public is starting to doubt Labour’s ability to govern competently and seriously at the same levels they did with Boris Johnson and Rishi Sunak’s governments. Labour will hope that this government doesn’t end up going the same way.”

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Emotional Reeves a painful watch – and a reminder of tough decisions ahead

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Emotional Reeves a painful watch - and a reminder of tough decisions ahead

It is hard to think of a PMQs like it – it was a painful watch.

The prime minister battled on, his tone assured, even if his actual words were not always convincing.

But it was the chancellor next to him that attracted the most attention.

Rachel Reeves looked visibly upset.

Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA
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Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA

It is hard to know for sure right now what was going on behind the scenes, the reasons – predictable or otherwise – why she appeared to be emotional, but it was noticeable and it was difficult to watch.

Reeves looks visibly upset as Starmer defends welfare U-turn – politics latest

Her spokesperson says it was a personal matter that they will not be getting into.

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Even Kemi Badenoch, not usually the most nimble PMQs performer, singled her out. “She looks absolutely miserable,” she said.

Anyone wondering if Kemi Badenoch can kick a dog when it’s down has their answer today.

The Tory leader asked the PM if he could guarantee his chancellor’s future: he could not. “She has delivered, and we are grateful for it,” Sir Keir said, almost sounding like he was speaking in the past tense.

Pic PA
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Rachel Reeves looked visibly upset behind Keir Starmer at PMQs. Pic PA

It is important to say: Rachel Reeves’s face during one PMQs session is not enough to tell us everything, or even anything, we need to know.

But given the government has just faced its most bruising week yet, it was hard not to speculate. The prime minister’s spokesperson has said since PMQs that the chancellor has not offered her resignation and is not going anywhere.

But Rachel Reeves has surely seen an omen of the impossible decisions ahead.

How will she plug the estimated £5.5bn hole left by the welfare climbdown in the nation’s finances? Will she need to tweak her iron clad fiscal rules? Will she come back for more tax rises? What message does all of this send to the markets?

If a picture tells us a thousand words, Rachel Reeves’s face will surely be blazoned on the front pages tomorrow as a warning that no U-turn goes unpunished.

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