HS2 construction to be delayed as government looks to rein in costs
The government is set to delay some sections of the HS2 high-speed railway project in a bid to save money.
The decision will affect the section of the high-speed railway between Birmingham and Crewe, and between Crewe and Manchester.
HS2 has been plagued by criticism over its finances, with costs soaring far beyond the initial estimates.
The railway, which will link London, the Midlands and North of England, was given a price tag of £33bn in 2010.
But now the overall target cost, excluding the eastern leg of Phase 2b from the West Midlands to the East Midlands, has rocketed to around £71bn.
It is understood that the government hopes that the delays will allow it to spread the cost over a longer period of time, making it more affordable by reducing annual expenditure.
The Department for Transport said: “The Government also remains fully committed to delivering HS2 from Euston to Manchester. However, in recognition of inflationary pressures and to help balance the nation’s books, the next two years will be used to rephase construction and optimise future delivery of Phase 2a between Birmingham and Crewe so this is done in the most cost-effective way. This aims to deliver high-speed services to Crewe and the North West as soon as possible after accounting for the rephasing of construction”.
A spokesperson for the High Speed Rail Group, which represents companies who have worked on similar projects, said: “The High Speed Rail Group is alarmed by today’s news that sections of HS2 will be delayed. The delay at Euston in favour of Old Oak Common coupled with the delay between Birmingham and Crewe by two years will not save money and will only add to the total cost of the project. Without clear timings on delivery between Crewe and the North West, millions will only be left behind again. The cheapest way to deliver HS2 is quickly.
“Every cost element that make up HS2 rise each time the project is delayed. Constant uncertainty in Government breeds uncertainty in industry which does nothing to ensure efficient delivery.
“Investment to upgrade our national infrastructure is imperative to achieve the economic growth needed for prosperity and opportunity. HS2 is the single largest infrastructure project in Europe and will bring the UK’s cities and regions closer together. Delays and cuts cost the people of Manchester, the people of Liverpool and the people of Glasgow at a time where what Britain needs most of all, is economic growth. If you cut investment, you cut growth and that is what are seeing here.”
However, West Midlands Mayor Andy Street was upbeat about the Government’s announcement. He said: “The most important part of this announcement is it remains full steam ahead for Phase 1 of the project. That means Birmingham and the West Midlands will continue to reap the benefits of HS2 before any other part of the country, with investment continuing to pour in and tens of thousands of jobs being created. The ability to get from doot-to-door from Birmingham to central London in less than an hour remains unaffected by this news.”
