HS2 Project Costs Could Exceed £100 Billion, Minister Confirms Slower Train Speeds
The HS2 high-speed rail project faces a potential final cost reaching £102.7 billion, with services not commencing until between 2036 and 2039. This timeline marks a delay of up to six years from the most recent official target.
Transport Secretary Heidi Alexander informed the House of Commons that to mitigate expenditures, the trains' maximum operational speed would be reduced to 320km/h (199mph) from the initially planned 360km/h (224mph). This adjustment is presented as a cost-saving measure, potentially cutting £2.5 billion from the budget and expediting project delivery by a year.
Project 'Reset' Reveals Extensive Mismanagement
Alexander characterised these announcements as a 'reset' for a project plagued by delays, budget escalations, and a significantly diminished scope. She published the Lovegrove report, which she stated details a 'litany of failure' inherited from the preceding administration. 'Instead of signalling the country's ambition, HS2 became a signal of the country's decline,' Alexander asserted to MPs.
The projected cost range, in 2025 prices, is now between £87.7 billion and £102.7 billion. Alexander noted, 'If it seems like an obscene increase in time and costs, it is because it is.' This contrasts sharply with the 2013 forecast of £50.1 billion (equivalent to approximately £75 billion today), which encompassed routes to Manchester and Leeds, unlike the current London-Birmingham alignment.
Approximately two-thirds of the cost escalation is attributed by the government to underestimated expenses, inefficient execution, and omitted works from the original plan. The remaining third is due to inflation.
The updated service commencement for trains between Old Oak Common and Birmingham Curzon Street is set for 2036-2039. The full operational service from London Euston to Curzon Street, including a connection to the West Coast Main Line, is now anticipated between 2040 and 2043.
