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.
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1:54
HS2 unearths unexpected treasure
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.
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1:00
Rishi Sunak on HS2 ‘speculation’.
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.
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.
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3:27
Parts of HS2 line to be delayed
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.
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.
Image: Aerial view of the HS2 Euston station construction site in London
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.
Update (Nov. 24 at 7:35 pm UTC): This article has been updated to include a response from Stand With Crypto.
The cryptocurrency advocacy organization backed by Coinbase has started surveying federal and state candidates on their positions on digital assets ahead of the 2026 midterm elections in the United States.
In a Monday notice shared with Cointelegraph, Stand With Crypto said it had sent a questionnaire to an unspecified number of candidates in state and federal races, asking for information related to their positions on “digital assets, crypto innovation, de-banking, crypto mining and zoning, consumer protections,” and more. The organization also requested that respondents disclose whether they had ever held crypto or used blockchain technology.
“The next Congress will have a significant impact on whether or not the US adopts the pro-crypto policies that will foster continued economic growth, innovation, and access,” said Stand With Crypto community director Mason Lynaugh.
Stand With Crypto said it would utilize the questionnaire’s results to determine where to focus its efforts for the 2026 midterm elections, mobilizing through events and encouraging crypto-minded individuals to vote. A spokesperson for the organization told Cointelegraph that it would distribute the forms “widely,” but did not specify the number of candidates.
The organization has already turned out voters in the 2025 election for New Jersey’s governor, which could have influenced Democrat Mikie Sherrill’s victory by about 450,000 votes.
All 435 seats in the US House of Representatives and 33 seats in the Senate will be up for grabs in the 2026 elections, as well as many in state-level races. In 2024, Stand With Crypto reported that 274 candidates considered “pro-crypto” based on their public statements and voting records won election or reelection.
“The questionnaire will not only significantly influence the final grade that politicians receive from Stand With Crypto, but also is the main way that candidates can receive a profile on the site for voters across the country to reference as they determine how to cast their ballots,” a spokesperson for Stand With Crypto told Cointelegraph.
Market structure paused during the US holidays?
This week, members of the House and Senate are scheduled for state work periods, meaning they will return to their home districts and states ahead of the Thanksgiving holiday on Thursday.
Although Congress has continued to make progress with a bill to establish a comprehensive digital asset market structure, the holidays and the longest government shutdown in US history are likely to slow Republican lawmakers’ plans to have the bill signed into law by 2026.
The latest estimate from Senate Banking Chair Tim Scott signaled passage early next year.
The government needs “more urgency” to grow the economy, the business secretary has admitted.
Peter Kyle, who also rejected claims that growth is no longer the top priority, told Sky News deputy political editor Sam Coates that people will “need to see” what happens at the budget on Wednesday.
He added: “I accept that we need more urgency, we need boldness, because we inherited a growth emergency.
“We are still in that growth emergency that we inherited, and that means we need to act with more boldness, creativity and urgency, and that is what I’ll be doing.”
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6:57
Peter Kyle stood before business leaders, telling them that he is
But Mr Kyle denied that growth is no longer the government’s top priority, following reports Rachel Reeves will abolish the two-child benefit cap, stick to the triple lock uprating for pensioners and the welfare bill being watered down this summer due to Labour MPs rebelling.
He listed reforms Labour has made, including changing the welfare system and trying to lower the number of people out of work due to sickness.
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“We are acting in these areas that have been holding back our economy profoundly for years and years, and none of those previous governments have done anything about it,” he said.
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2:33
Is growth downgrade problem for budget?
The business secretary, who was promoted in the September reshuffle, added: “People know that I can’t just wave a magic wand and have it happen today, but don’t give the impression that we’re not acting on energy prices, because for businesses that need that help the most, they’re getting it.”
Earlier, Mr Kyle told the Confederation of Business Industry conference the government will do “everything we can to turn the corner” to “build a pro-business, pro-wealth creation, pro-growth Britain”.
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He said the chancellor will “take the fair and necessary choices” at the budget this week.
“The chancellor will take the tough decisions necessary to keep inflation down, protect families and businesses from rising costs to safeguard the public services and keep debt under control for the long term,” he added.
Mr Kyle also admitted the news billionaires are leaving the UK is a “worry”.
Image: Mr Kyle faced criticism from CBI chief executive Rain Newton-Smith. Pic: PA
He told Sky News’ Mornings with Ridge and Frost: “Whenever anyone needs to leave the UK to succeed, I think it’s a worry. But what I don’t want to do is, as a country, just focus just on the billionaires because there are other people that have needed to leave.”
He said that while the government has closed some loopholes, it is also making it “easier for people to come here who have high talents”.
Over the weekend, it was revealed one of Britain’s richest men, Indian steel magnate Lakshmi Mittal, has left the UK due to the government’s targeting of the super rich.
Chancellor Rachel Reeves has promised to “grip the cost of living” in the budget – while also saving millions of pounds by raising taxes.
She and Prime Minister Sir Keir Starmer spent weeks laying the groundwork to break their manifesto promise not to raise income tax at the budget, but they will no longer do so.
Sky News understands ministers were working up a plan to lift the basic rate of income tax – perhaps by 2p – and then to simultaneously cut national insurance contributions for those on the basic rate of income tax.
So what could actually be announced when Ms Reeves reveals the budget on Wednesday 26 November?
Image: Chancellor Rachel Reeves holds the ministerial red box before delivering her budget in October last year. Pic: PA
Income tax thresholds frozen
Sky News understands the chancellor is expected to freeze income tax thresholds for another two years beyond 2028, which should raise about £8bn.
As the Financial Times has reported, one option to raise revenue would involve cutting the thresholds at which people pay different rates of income tax, while leaving the headline basic and higher rates of the tax unchanged.
Pensions
Rumours about pension reforms crop up every year, with changes often not materialising. However, Ms Reeves is expected to cap tax-free salary sacrifices for pensions at £2,000 a year to raise £3bn, according to reports.
Staff putting away any more than that would have to pay the standard NI rate: 8% if they earn less than £50,000 and 2% above that.
Companies currently don’t have to pay the 15% employer national insurance tax on cash that goes into workers’ pensions.
A person earning more than £125,000 who sacrificed 20% could pay £460 more, while their employer could pay £3,450 more, according to accountancy firm RSM.
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9:06
Minister on income tax U-turn
Those on lower salaries would face a much smaller hit. A worker earning £45,000 and sacrificing 5% would pay £30 more, while their employer would pay £34 more.
The Treasury has already confirmed pensioners will see their state pensions rise by as much as £550 next year under the triple lock pledge, which means the state pension must rise by the highest of wage growth, inflation or 2.5%.
Inheritance tax
A lifetime cap on the value of gifts someone can pass on before they die has also been considered by the Treasury, it is reported.
Currently, there is no charge on gifts if the donor survives seven years but a cap – possibly about £100,000 – on how much people can give before they are taxed could be introduced.
Ms Reeves is also said to be considering extending the seven-year period before inheritance tax has to be paid to 10 years or even longer.
The taper relief rate (the tax discount for living at least three years after giving a gift) is understood to also be under review.
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2:35
Rumours of inheritance tax U-turn
LLPs
The chancellor is reportedly considering imposing a charge on limited liability partnerships (LLP) to raise £2bn.
LLPs are used by about 190,000 people, including lawyers, GPs and accountants, to be considered self-employed, exempting them from employers’ national insurance.
VAT
Ms Reeves previously sparked rumours she is looking at raising VAT by refusing to rule it out.
Labour’s employers’ national insurance increase and putting VAT on private school fees has shown the government is not worried about workarounds to its promise to not raise taxes on “working people”.
She could end lower or zero rates for products such as food and children’s clothes.
The chancellor could also lower the starting threshold for businesses paying VAT – but tax experts say this risks increasing inflation.
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2:03
Former Bank of England Governor Lord Mervyn King says the budget will be tough
Business rates
Legislation to change the business rates system is already due to come into force in April 2026.
The chancellor is expected to confirm the exact rates for each band at the budget, as well as provide further guidance on transitional relief and eligibility criteria.
Stamp duty and council tax
One of the first budget rumours came in August when The Guardian reported the Treasury was considering a new tax on the sale of homes worth more than £500,000 to replace stamp duty.
Under the proposal, sellers, instead of buyers, would be responsible for paying the tax.
Instead of a complete council tax overhaul, which was previously rumoured, the chancellor is said to be looking at a revaluation of properties in the highest council tax bands – F, G and H – which could mean they move up or down a band.
She is also reportedly looking at a surcharge for the most valuable homes (over £2m) at a cost of about £4,500 a year, although owners will be able to defer the payment until they sell or die.
Landlord national insurance
Rent is largely exempt from national insurance at the moment, but there are reports the chancellor is considering applying the same 8% rate as the self-employed on landlords’ rental profits.
This could raise about £2.3bn a year, The Times previously reported.
ISAs
Rumours surrounding the previous budget about cutting the annual tax-free cash ISA limit from £20,000 resurfaced in the summer and autumn.
The latest reports say the chancellor is considering cutting it to £12,000 in an attempt to get people to invest in stocks and shares ISAs instead – and therefore putting much of the £300bn held in cash ISAs into the stock market.
She is also looking at a “British ISA” scheme, where investors get an additional £5,000 tax-free allowance to put into UK-listed shares.
Fuel duty/EVs
There has been a freeze on fuel duty since 2011, while a 5p-per-litre cut from 2022 is to remain in place until March 2026.
But the chancellor could increase fuel duty by up to 3p per litre, according to some reports.
Electric vehicle drivers will be hit with a pay-per-mile tax, The Telegraph reported on 6 November.
EV drivers will be charged 3p per mile on top of other road taxes from 2028, meaning an extra £250 a year, on average.
They will be asked to estimate how many miles they will take and charged on that, with no need for electronic monitors in cars, it is understood.
Van drivers will avoid the pay-per-mile tax but plug-in hybrid cars will be included so will pay both that tax and fuel duty, The Times reports.
The chancellor is expected to extend the EV grant for another year.
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2:20
Has Rachel Reeves changed her tone on the budget?
Cycle to Work scheme
A cap on how much someone can spend on a bike through the Cycle to Work scheme is expected, the Financial Times reports.
The scheme allows people to save tax on bikes by “loaning” them from their employers, with payments automatically deducted from their salary pre-tax. There is currently no cap on how much a bike can cost.
Two-child benefit cap
Ms Reeves is expected to lift the two-child benefit cap, which has limited parents from claiming child tax credit or universal credit for more than two children since 2017.
The move, which will be welcomed by many Labour MPs, will cost the government £3bn.
Crackdown on benefits fraud
An extension of the Targeted Case Reviews taskforce, which clamps down on inaccurate universal credit claims, is expected in the hope of saving £1.2bn by March 2031.
Last year, a record £6.5bn was lost to universal credit fraud, National Audit Office analysis of government data showed.
Motability
The chancellor had been considering tightening the eligibility criteria for the Motability scheme, which provides a disability allowance to lease cars, scooters or powered wheelchairs.
It could have saved taxpayers £1bn, but social security minister Sir Stephen Timms said on 27 October there will be no changes until next year.
Wealth tax
There has been an increasing number of calls for a wealth tax, which could be an annual charge on those with assets exceeding a certain threshold or a 20% exit tax on the unrealised capital gains of wealthy people leaving Britain.
However, the government has stated neither option is currently under consideration, especially over fear of an exodus of millionaires.
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4:17
Chancellor faces tough budget choices
Mansion tax
The chancellor is understood to be looking at an annual 1% charge on the amount a property’s value exceeds £2m – a £10,000-a-year levy for homes worth £3m.
Another proposal would see capital gains tax (CGT) charged when someone sells their main home, based on the amount it has increased in value during ownership.
Reports suggest this would only be applied to the most expensive properties, with a possible threshold of £1.5m, which would affect about 120,000 homeowners and higher-rate taxpayers getting CGT bills of nearly £200,000.
Energy bills
A Treasury spokesman said in October that action to bring down energy prices is among the options being considered at the budget.
Ms Reeves is understood to be considering cutting the 5% VAT rate on bills to zero, a move that would save billpayers about £80 a year and cost £2.5bn to implement.
Gambling tax
The Institute for Public Policy Research (IPPR) thinktank has said increasing gambling taxes would earn the Treasury about £3.2bn extra a year.
Gordon Brown has backed calls for a new tax on profits made by online casinos, slot machines and other high-stakes betting firms.
Tourism tax
The chancellor is expected to announce cities across England can impose a tourist levy on visitors staying overnight. Levies are already coming in Scotland and Wales.
However, it is now expected she will not do this in the budget but through the English Devolution and Community Empowerment Bill, currently going through parliament, which will give regional mayors the power to impose a tourist tax.
London mayor Sir Sadiq Khan has cautiously welcomed the reports, with the Greater London Authority previously estimating a £1 a day levy could raise £91m, and a 5% levy could raise £240m.
Taxi tax
The chancellor is reportedly considering adding VAT to all private hire vehicle journeys, which could increase costs by up to 15% to raise about £750m – although the taxi industry disputes how much it would raise.
At present, VAT is only charged on the profit firms take, rather than the fare itself.
Milkshake tax
Ms Reeves is expected to confirm an end to the sugar tax exemption on milk-based drinks.