HS2 explained: What is it and why are parts being delayed?

Published

2 years ago

September 28, 2023

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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.

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.

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.

New stations and 18 trains an hour

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.

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.

Delays to the Crewe-northwest section were also placed for two years.

Where did it all begin?

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.

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.

Politics

Bitcoin still on track for $1.8M in 2035, says analyst

Published

5 hours ago

April 12, 2025

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Bitcoin still on track for .8M in 2035, says analyst

Bitcoin remains on track to surpass $1.8 million by 2035 despite recent price corrections and waning investor appetite caused by ongoing global trade tensions, according to Joe Burnett, director of market research at Unchained.

Speaking during Cointelegraph’s Chainreaction live show on X, Burnett said that Bitcoin is still in a long-term bullish cycle and could potentially rival or surpass gold’s $21 trillion market capitalization within the next decade.

Despite tariff uncertainty limiting risk appetite among investors, research analysts remain optimistic about Bitcoin’s (BTC) long-term prospects for the next decade.

“When I think about where Bitcoin will be in 10 years, there are two models I admire,” Burnett said. “One is the parallel model, which suggests that Bitcoin will be about $1.8 million in 2035.” “The other is Michael Saylor’s Bitcoin 24 model, which suggests Bitcoin will be $2.1 million by 2035.”

Burnett emphasized that both are “good base cases,” adding that Bitcoin’s trajectory could exceed these predictions depending on broader macroeconomic factors.

🎙Could Bitcoin really hit $10m by Q1 2035? Perhaps.

But first, we need to unravel the tangled web of the markets this week, and for both discussions, @rkbaggs and @gazza_jenks are joined today by Joe Burnett (@IIICapital) on the #CHAINREACTION show! https://t.co/hfyEwGUCsh

— Cointelegraph (@Cointelegraph) April 11, 2025

Bitcoin outlook remains long-term bullish

“The automobile industry is significantly more valuable than the horse and buggy industry,” Burnett said, adding that Bitcoin’s more advanced technological properties will make it surpass the $21 trillion market capitalization of gold. He added:

“The gold market is an estimated $21 trillion market. If Bitcoin just hit $21 trillion and had Bitcoin-gold parity, Bitcoin would be $1 million per coin today.”

Since US President Donald Trump’s Jan. 20 inauguration, global markets have been under pressure due to heightened trade war fears. Hours after taking office, Trump threatened to impose sweeping import tariffs aimed at reducing the country’s trade deficit, weighing on risk sentiment across both equities and crypto.

While Bitcoin’s role as a safe-haven asset may reemerge amid ongoing trade war concerns, physical gold and tokenized gold remain the current winners.

Bitcoin still on track for $1.8M in 2035, says analyst — *Top tokenized gold assets, trading volume. Source: CoinGecko, Cex.io*

Tariff fears led tokenized gold trading volume to surge to a two-year high this week, topping $1 billion for the first time since the US banking crisis in 2023, Cointelegraph reported on April 10.

Strong hands hold during drawdowns

Bitcoin’s volatility is falling during both bear and bull markets, signaling its growing maturity as an asset class.

While another 80% drawdown during future bear markets is still possible, this will act as a robust acquisition period for the “strongest” holders, Burnett said, adding:

“The highs bring [Bitcoin] attention, and the deep, dark bear markets move coins into the hands of the strongest, most convicted holders, as fast as possible.”

Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, predicted Bitcoin could climb to $250,000 by the end of 2025 if the US Federal Reserve formally enters a quantitative easing cycle.

Despite the optimistic predictions, investors remain cautious and continue “rebalancing their portfolios” but are unlikely to take on significant positions in the next 90 days before markets gain more clarity on global tariff negotiations, Enmanuel Cardozo, market analyst at real-world asset tokenization platform Brickken, told Cointelegraph.

“With money flowing out of Bitcoin ETFs, investors are looking for safer spots to hold their cash right now, including strong currencies. Gold’s a traditional vehicle in these cases and a go-to when markets are uncertain,” he added.

Since the beginning of 2025, the price of gold has risen over 23%, outperforming Bitcoin, which has fallen by more than 10% year-to-date, TradingView data shows.

Magazine: Bitcoin’s odds of June highs, SOL’s $485M outflows, and more: Hodler’s Digest, March 2 – 8

Politics

SEC and Binance push for another pause in lawsuit after ‘productive’ talks

Published

7 hours ago

April 12, 2025

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<div>SEC and Binance push for another pause in lawsuit after 'productive' talks</div>

The US Securities and Exchange Commission (SEC) and crypto exchange Binance have asked a US federal judge for an additional two-month pause in their nearly two-year legal battle.

“Since the Court stayed this case, the Parties have been in productive discussions, including discussions concerning how the efforts of the crypto task force may impact the SEC’s claims,” both parties said in an April 11 joint status report with the US District Court for the District of Columbia.

SEC requests Binance to agree to the extension

According to the filing, the SEC requested and Binance agreed to another 60-day extension as the regulator continues to seek permission to “approve any resolution or changes to the scope of this litigation.”

“The Defendants agreed that continuing the stay is appropriate and in the interest of judicial economy,” the filing said.

The request comes not long after the SEC dropped a string of crypto-related lawsuits against crypto exchanges Coinbase, Kraken, and Gemini, as well as Robinhood and Consenys.

At the end of the 60-day period, the SEC and Binance plan to submit another joint status report. This marks the second 60-day pause the SEC and Binance have requested this year, following a previous extension granted by the judge on Feb. 11.

SEC, United States, Binance — *The recently launched crypto task force was a key reason behind the request for the second extension. Source:* *CourtListener*

The request in February came just days after crypto skeptic Gary Gensler stepped down as SEC chair on Jan. 20, with crypto-friendly SEC commissioner Mark Uyeda taking over as acting chair.

At the time, the SEC and Binance also cited the establishment of the SEC’s Crypto Task Force as a reason for the pause.

Formed just a day after Gensler resigned on Jan. 21, the task force said it aims to “help the Commission draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.”

The SEC’s legal battle with Binance has dragged on for almost two years. It began in June 2023 when the agency filed a lawsuit against Binance, its US platform, and CEO Changpeng “CZ” Zhao.

The US regulator pressed 13 charges against Binance, including unregistered offers and sales of the BNB and Binance USD tokens, the Simple Earn and BNB Vault products, and its staking program.

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Politics

US crypto industry needs band-aid now, ‘long-term solution’ later — Uyeda

Published

13 hours ago

April 12, 2025

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<div>US crypto industry needs band-aid now, 'long-term solution' later — Uyeda</div>

A fast-tracked temporary crypto regulatory framework could bolster innovation within the US crypto industry while permanent regulations are still in the works, says acting US Securities and Exchange Commission (SEC) chair Mark Uyeda.

“A time-limited, conditional exemptive relief framework for registrants and non-registrants could allow for greater innovation with blockchain technology within the United States in the near term,” Uyeda said at the SEC’s April 11 Crypto Task Force roundtable titled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading.”

Relief measures may address immediate challenges

Uyeda said this might be the short-term answer as the SEC works toward a “long-term solution,” at the roundtable with SEC members and crypto industry executives, including Uniswap Labs’ Katherine Minarik, Cumberland DRW’s Chelsea Pizzola, and Coinbase’s Gregory Tusar.

He flagged state-by-state regulation of crypto trading as a concern, warning it could lead to a “patchwork of state licensing regimes.”

Uyeda said that a favorable federal regulatory framework would ease the burden for market participants wishing to offer tokenized securities and non-security crypto assets, allowing them to operate under a single SEC license instead of navigating “fifty different state licenses.”

He urged crypto market participants to share feedback on areas where “exemptive relief” could be appropriate.

US crypto industry needs band-aid now, 'long-term solution' later — Uyeda — *Source:* *US Securities and Exchange Commission*

Uyeda also reiterated the benefits of blockchain technology in financial markets during the roundtable discussion.

“Blockchain technology offers the potential to execute and clear securities transactions in ways that may be more efficient and reliable than current processes,” Uyeda said.

Uyeda to fill chair position until Atkins is sworn in

“Blockchains can be used to manage and mobilize collateral in tokenized form to increase capital efficiency and liquidity,” he added.

Uyeda will continue serving as acting SEC chair until US President Donald Trump’s nominee, Paul Atkins, is officially sworn in.

On April 10, the US Senate confirmed Atkins as chair of the SEC in a 52-44 vote largely along party lines.

Uyeda has served as acting SEC chair since Jan. 20, succeeding former chair and crypto skeptic Gary Gensler. He’s been widely seen within the industry as a pro-crypto advocate.

On March 18, Cointelegraph reported that Uyea said the SEC could change or scrap a rule proposed under the Biden administration that would tighten crypto custody standards for investment advisers.

“I have asked the SEC staff to work closely with the crypto task force to consider appropriate alternatives, including its withdrawal,” Uyeda said.

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