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The UK government has announced that the High Speed 2 (HS2) rail project could reach a total cost of up to £102.7 billion, with the transport secretary confirming that despite the rising expenses, the initiative will be completed. However, train services are now expected to begin only between 2036 and 2039, which is a delay of up to six years beyond the most recent target of 2033. This information was presented by Heidi Alexander during a session in the House of Commons.
In a bid to reduce expenditure, the trains’ maximum speed will be lowered from the initially planned 360 km/h (224 mph) to 320 km/h. The announcement of the increased budget, postponed opening date, and slower train speeds forms part of a comprehensive reassessment of the project, which has previously been plagued by delays, budget overruns, and significant reductions in scope. By March 2026, the government had already invested £44.2 billion into the programme.
Heidi Alexander described the HS2 project as a legacy of “a litany of failure” left by the preceding government and expressed frustration at how the project had come to represent “a signal of the country’s decline” rather than ambition. The expected cost is now projected to lie between £87.7 billion and £102.7 billion in 2025 prices, effectively doubling the original estimates when adjusted to 2019 prices. She acknowledged the extent of the increases, stating, “If it seems like an obscene increase in time and costs, it is because it is,” adding, “If it seems like I’m angry, it is because I am.”
Originally planned to extend north to Manchester and Leeds, those expansions were canceled by previous Conservative administrations, leaving the current project focused solely on the London to Birmingham route. Despite the escalating costs, the government remains committed to finishing the project. Alexander emphasized that cancelling the line could be almost as expensive as completing it, while failing to deliver any benefits. She underlined the need for effective leadership, saying, “This country can build big things, we just need competent people at the helm to deliver them.”
According to the government, two-thirds of the rise in costs stem from underestimations by the former government, inefficient delivery, and omissions in the original project scope, while the remaining one-third is attributed to inflation. The reduced top speed aligns with typical high-speed rail services in Europe and Japan, potentially saving £2.5 billion and allowing the project to be finished a year sooner. The earliest planned services will run between Old Oak Common in west London and Birmingham Curzon Street, with full service from London Euston to Curzon Street and a link to the West Coast Main Line expected between 2040 and 2043.
Shadow transport minister Jerome Mayhew acknowledged the project’s troubled start, noting delays and cost overruns and holding both HS2 Ltd and the Department for Transport accountable for previous mismanagement. He urged for detailed plans on saving money and adhering to the new timeline, stressing that Alexander’s anger should lead to concrete legislative measures to prevent future overruns. Meanwhile, HS2 Ltd’s chief executive Mark Wild has set a target for delivering the scheme by 2037 with a budget of £92.2 billion—a goal supported by Alexander to improve cost control and productivity.
Wild conceded that the project update might be unwelcome for local communities and taxpayers but insisted that this “reset” was essential to regain control over the development. He highlighted recent improvements, stating, “We have turned a corner in the last 12 months with significantly improved levels of productivity, helping us to deliver major milestones ahead of schedule.” Commenting on the revelations, Andy Meaney, who contributed to a previous HS2 review, expressed shock and frustration, pointing out that questions concerning the very high-speed train plans should have been addressed much earlier. He criticized the ongoing decision-making failures dating back 16 or 17 years and emphasized that the decision to reduce speed should have been made long ago to lower costs and facilitate delivery
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