The northern leg of the HS2 line is set to be scrapped, Sky News understands.
Rumours had been circling for weeks that the high-speed rail line between Birmingham and Manchester was going to be axed by the prime minister and chancellor due to soaring costs.
Even the reports – which have been denied by Number 10 – led to a huge backlash from all sides of the political spectrum, including from former Conservative prime ministers Boris Johnson and Theresa May.
A Downing Street spokesperson said: “These reports are incorrect. No final decisions have been taken on Phase 2 of HS2.”
The development threatens to attract controversy and overshadow Rishi Sunak’s first Tory conference as leader and prime minister as the party faithful gathers in Manchester for the annual event.
The newspaper said a cost estimate revealed that the government has already spent £2.3bn on stage two of the railway from Birmingham to Manchester, but that ditching the northern phase could save up to £34bn.
Sky News understands the Department of Transport (DfT) has worked up a package of alternative projects – rail, bus and road schemes – which could be funded from money saved by scrapping the Manchester to Birmingham leg of the project.
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But Andy Burnham, the Labour mayor of Greater Manchester, accused the government of treating people in the north of England as “second-class citizens” with regards to HS2.
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8:52
‘Second-class citizens on transport’
He told Sky News’s Sunday Morning With Trevor Phillips: “An east-west line is really important for north of England, as well as north-south. Why is it always that people here are forced to choose? That we can’t have everything, ‘you can have this or you can have that but you can’t have everything’?
“London never has to choose between a north-south line and an east-west line and good public transport within the city.
“Why is it that people in the north are always forced to choose, why are we always treated as second-class citizens when it comes to transport?”
Number 10 is trying to shut down an announcement it is not ready to make public
Ahead of today, Downing Street drew up a plan for announcing a decision on scrapping the northern leg of HS2 in Manchester.
It would involve a cabinet meeting here at conference, possibly a visit by the PM and the announcement itself.
Earlier today, I was told a decision had been made. This would have been at the heart of government’s inner sanctum, with this communicated only to a small number.
All the internal government documentation on HS2 is numbered to try and capture leakers, with press spokesman not in the loop.
It has also not yet gone to cabinet – we would know if this had happened.
Therefore Number 10 can legitimately say that no final decision has been made – as some decisions have, we are told.
This revelation – as the chancellor was due on stage – could not be more disruptive for conference, meaning HS2 is eclipsing yet another day of the coverage.
Number 10 are now trying to shut down an announcement they are evidently not ready to make in public.
That is why they have issued the following: “These reports are incorrect. No final decisions have been taken on Phase 2 of HS2.”
We await the next twist in the tale.
He was joined in his criticism by Mr Johnson, who said delaying or scrapping the northern leg of HS2 would be “betraying the north of the country and the whole agenda of levelling up”.
The ex-prime minister’s intervention came on on the eve of the party conference.
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But writing in his weekly Daily Mail column, Mr Johnson appealed to his former chancellor to show Britain still has “the requisite guts and ambition” to invest in infrastructure and labelled the aim of saving money “deluded”.
Mr Johnson – who made levelling up a centrepiece of his 2019 manifesto and government – said when he heard reports the northern leg was set to be delayed or cancelled, he let out a “long, low despairing groan”.
He wrote: “Cancel HS2? Cut off the northern legs? We must be out of our minds.”
Andy Street, the Conservative mayor of the West Midlands, has also warned against any downscaling of HS2.
Asked about the reports by Sky News at the conference in Manchester, he said: “You must ask the PM – I’m confident he’ll do the right thing.”
Delivery of the high-speed railway has been a core pledge of the Conservative government, but it has been plagued by delays and ever-increasing costs.
The initial opening date of 2026 has fallen back to 2033, while cost estimates have spiralled from about £33bn in 2010 to £71bn in 2019 – excluding the final eastern leg from the West Midlands to the East Midlands.
It is not just the northern section of the project that has encountered trouble.There are also doubts about the future of Euston station in London and whether services will terminate there or at Old Oak Common in west London.
The World Transformed, a left-wing political festival, has historically ran alongside the Labour Party Conference as an unofficial fringe event.
But a lot has changed since it began in 2016, organised then by the Corbyn-backed group Momentum. And like the former Labour leader himself, TWT has gone independent.
From Thursday to Sunday, a programme of politics, arts and cultural events will be held in Manchester, a week after Labour’s annual party gathering ended.
“It no longer made any sense to be a fringe festival of the Labour conference,” Hope Worsdale, an organiser since 2018, tells Sky News. “We need a space for the independent left to come together.”
This decision was made before the formation of Your Party in July and the surge of support behind the Greens and its new leader Zack Polanski, but both these factors have given TWT some extra momentum. Organisers say it is not just a festival, but a “statement of intent from the British left” – and a left that looks different from how it used to.
Previous headline speakers were Labour MPs in the left-wing Socialist Campaign Group, and in 2021, the showstopper was American democrat Bernie Sanders calling in live for an event alongside John McDonnell.
Image: The World Transformed, previously headlined left-wing Labour MPs
Image: Bernie Sanders and John McDonnell in conversation at TWT in 2021
This year, Mr Polanski, Jeremy Corbyn and Zarah Sultana are the only British politicians due to speak at events – though Brian Leishman, who lost the Labour whip in the summer, is also scheduled on a panel.
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TWT was put on pause last year for organisers to reflect upon its role going forward, after Sir Keir Starmer’s election victory.
In 2021, 2022 and 2023, while he was leader of the opposition, the festival was able to “co-exist” with Labour as a space for activists on the left to discuss ideas.
But the prime minister’s “shift to the right” has alienated so many of those grassroots members that it was felt TWT’s core audience would no longer be at Labour Party conferences, says Hope, who joined Labour in the Corbyn years and has since left.
Image: TWT in 2016. Pic: TWT
Image: Event at TWT in 2023
“Our official position isn’t that Labour is dead and no one should engage with it,” she says.
“But they have shifted the values of Labour so radically since the last election, broken promise after promise, attacked civil liberties… there’s been such a suite of terrible decisions that mean people who are generally progressive and generally left wing feel like they have to take their organising elsewhere.”
So what’s on the cards?
There will be 120 events held in Hulme, Manchester, from Thursday to Sunday evening.
At the heart of the programme is daily assemblies, which organisers say are “designed to hold genuinely constructive debates about what we should do and how we should do it”.
But there’s just as much partying as there is politics – Dele Sosimi and his Afrobeat Orchestra are headlining the Saturday night slot while a “mystery guest” will host what TWT calls its “infamous” pub quiz on Friday night.
Back in 2018 that was Ed Miliband’s job, when 10,000 activists were expected to attend TWT. This year, organisers anticipate around 3,000 people will gather, but those involved insist this is a real chance for the left to strategise and co-ordinate, given the involvement of over 75 grassroots groups, trade unions, and activist networks.
Collaboration ‘vital’
A key question the left will need to address is how it can avoid splitting the vote given the rise of the Greens, socialist independents and the formation of Your Party,
One activist from the We Deserve Better organisation, which is campaigning for a left-wing electoral alliance and will be at TWT this weekend, acknowledged collaboration is “vital” if the left is to make gains under Britain’s first-past-the-post system.
Image: Jeremy Corbyn at TWT. Pic: Reuters
But it remains to be seen whether Your Party co-leaders Mr Corbyn and Ms Sultana can even work together following their public spat last month, let alone with other parties. The pair put on a united front at a rally in Liverpool on the eve of TWT, when Sultana said she was “truly sorry” and promised “no more of that”. But will the truce last?
“It’s not ideal”, says the activist. “Hopefully they are back on track…a lot of collaboration is happening at the grassroots and we need to make sure it’s formalised so we can beat Labour and the right, we need to put on united front.”
They point to seats like Ilford North, where Health Secretary Wes Streeting clung on by a margin of just 528 votes in the general election, after a challenge from British-Palestinian candidate Leanne Mohamad, who ran in protest against Labour’s stance on Gaza.
Meanwhile, in Hackney, the Greens are hoping to gain their first directly elected mayor next May, with the Hackney Independent Socialist Group of councillors throwing their weight behind the party’s candidate, Zoe Garbett.
The We Deserve Better activist says Labour’s “hostile war on the left” has made these areas ripe for the taking, and what is more important than party affiliation is galvanising momentum behind one candidate who shares socialist values on issues like public ownership and immigration – be they the Greens, independents, or Your Party.
“The World Transformed reflects a general reorientation of the left outside of Labour. If they are taking these places for granted, we are going to win. If we unite as the left then we can win even bigger. Bring it on.”
Is Labour in danger?
There is some cause for Labour to be worried. It is haemorrhaging votes to both the right and the left after a tumultuous first year in office (13% to Reform UK, 10% to the Greens and 10% to the Lib Dems, according to an Ipsos poll in September).
Many Labour MPs feel the prime minister has spent too much energy trying to “out Reform Reform” with a focus on immigration, and he needs to do more to win back moderate and progressive voters that will be gathering at TWT this weekend.
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One fed-up MP told Sky News it was a shame TWT had decided to branch away from Labour, but not a surprise.
“This was something that was on the cards for a while, a parting of the ways, it’s another thing to show what’s happening with the direction of the party.”
He said in previous years the festival “was full of people for the first time in their life who were excited about politics and had a leadership looking at how it could challenge the biggest issues in our country”.
“Debates could be heated but it was always a place for intellectual discussion and that inside the Labour Party is now dead.”
But he said the party ultimately had bigger things to worry about than TWT, with a budget round the corner and potentially catastrophic local elections in May.
“I don’t think it will keep Keir Starmer or Morgan McSweeney up at night.”
The Irish Communications Interception and Lawful Access Bill is still in development, with drafting yet to occur, but the Global Encryption Coalition wants it scrapped now.