HS2: parts of high speed railway construction delayed by up to two years to save money

The government has announced delays to some sections of the HS2 of up to two years, laying the blame on the pressure of skyrocketing inflation and costs.

The HS2 is a planned high-speed rail link between London, the Midlands and the north of England. The route, which could eventually connect eight of Britain’s 10 largest cities, would also join with existing routes into the north-east and Scotland. Those behind the scheme say it will connect more than 30 million Britons via fast public transport, allowing “rebalancing” of the country’s economy beyond London and creating 22,000 jobs during the construction phase.

Transport Secretary Mark Harper announced on Thursday construction of the Birmingham to Crewe leg of HS2 will be delayed by two years, as part of cost-saving measures that threaten to deliver a blow to “levelling up” plans. The high-speed line was due for extension between Birmingham and Crewe between 2030 and 2034 to help boost transport in the north of England.

But Mr Harper said he was instead “prioritising” the initial services between Old Oak Common in London and Birmingham Curzon Street, as he also announced setbacks to key road projects.

Harper also announced setbacks to key road projects, as he blamed the pressures of soaring inflation and increasing costs. In a written ministerial statement, the Secretary insisted that the Government was “committed” to delivering the high-speed rail link between Birmingham and Crewe.

But he added: "We have seen significant inflationary pressure and increased project costs, and so we will rephase construction by two years, with an aim to deliver high-speed services to Crewe and the North West as soon as possible after accounting for the delay in construction."

Shadow transport secretary Louise Haigh said the North is "yet again being asked to pay the price for staggering Conservative failure".

“Tens of thousands of jobs and billions in economic growth are dependent on this project,” the Labour MP said. "This is the biggest project in Europe and delays pile costs up in the long-run – ministers now need to come clean on precisely how much their indecision will cost taxpayers and the North."

Conservative MP Simon Clarke earlier told the BBC the delays "would be a sensible decision". The former chief secretary to the Treasury added: "Having observed HS2’s progress as chief secretary, I have serious doubts as to value for money and cost control."

HS2 Ltd chief executive Mark Thurston recently said the impact on the project from inflation has been “significant”, adding to the cost of building materials, labour, fuel and energy.

“We’re looking at the timing of the project, the phasing of the project, we’re looking at where we can use our supply chain to secure a lot of those things that are costing us more through inflation,” he told the BBC.

In October last year, Transport Secretary Mark Harper said the forecast for when HS2’s phases would be complete remained within planned ranges. That involved phase one – connecting London with Birmingham – opening between 2029 and 2033.

Mr Harper said phase 2a – extending the line from Birmingham to Crewe – was “on track” to be completed between 2030 and 2034. The date range for the western leg of phase 2b – connecting Crewe with Manchester – remained between 2035 and 2041, the Cabinet minister added.

HS2 has been dogged by issues with its ballooning budget. The budget for the whole project was set at £55.7 billion in 2015, but the target cost for phase one alone had spiralled to £40.3 billion by 2019. A planned extension to Leeds was shelved in November 2021.

The Department for Transport has been approached for comment.