HS2 costs could hit £66bn, warns Department of Transport progress report
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The cost of the HS2 project could hit £66bn, warns a progress report from the Department for Transport. An update to HS2 Ltd's board in June estimated the cost of the high-speed rail project ranging from £54bn to £66bn, a rise from November 2023’s projections of £49bn to £57bn for phase one.
The overall spend to date – which includes spending on phase one and the now-scrapped phase two – is £32.8bn. The costs and forecast costs are in 2019 prices and do not account for inflation since. Amid a review by new chief executive Mark Wild to assess HS2's costs and schedule, Transport Secretary Heidi Alexander emphasised that the recent projections don't reflect the "reset work" ordered by the Government or private financing dedicated towards extending the leg from Birmingham to Euston.
Chancellor Rachel Reeves, in her Budget statement, underscored funding for tunnels linking Old Oak Common to Euston. The Government is seeking private investment to redevelop Euston station for the new line and expand the underground station. It is the first progress report to be published since Labour came to Government. Sir Jon Thompson is set to step down from his role in the spring, with a hunt for his successor soon to commence.
A Department for Transport spokesperson commented: "These estimates are out of date and don’t take into account the urgent measures this Government took to get the project back under control or the previous government’s decision to cancel Phase 2 and attempt to secure private funding for Euston.".
