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Prime Minister Rishi Sunak will announce the cancellation of the northern leg of HS2 during his Conservative Party conference speech today, Defense Secretary Grant Shapps has confirmed.
Shapps’ comments were the first public admission by a senior government official that the high-speed rail line would be scaled back to just the line from London to Birmingham to cut the project’s ballooning costs.
Other train routes will continue to serve existing routes from the capital to Manchester and Leeds.
Ministers have previously said a new high-speed route is needed to increase capacity on the UK rail network. Under the revised plans, HS2 trains will compete with other operators for limited tracks north of Birmingham.
Plans to cut the northern leg of the project, which were first leaked a month ago, have sparked outrage from the former Conservative prime minister, ex-chancellor George Osborne, the current Conservative mayor of Andy Street in the West Midlands, and many civic leaders in the north of England. Angry.
Shapps said scaling back the scheme would free up tens of billions of pounds to be spent elsewhere.
The Financial Times calculates that the overall price tag of the scheme will rise from £72 billion to £91 billion, adjusted for inflation.
The figure does not include the proposed eastern leg of the project from Birmingham to the East Midlands, which is expected to increase the final cost by up to £8 billion.
Shapps acknowledged Sunak’s decision may be unpopular but said it showed the prime minister was prepared to consider tough decisions.
“In either case, HS2 trains will go to Manchester. In fact, they will actually go to Leeds as well… journey times will be much faster than they are now,” he told Times Radio. “But not as fast as the second part of the high-speed (rail).”
Sunak is expected to confirm HS2 will roll into London Euston station after Chancellor Jeremy Hunt successfully launched a rearguard action to stop the finish line at Old Oak public station, six miles from the city centre.
Government insiders say Hunt has been trying to ensure the line continues to a dedicated terminus at Euston, not only for financial reasons but also because Britain’s reputation would be damaged if the line ended in the London suburbs.
The Prime Minister is expected to convene cabinet to “seal” his HS2 plan before speaking to party members in Manchester.
Sunak will claim in his speech that canceling the final part of the scheme between Birmingham and Manchester proves he is prepared to make “tough decisions” in the national interest.
He will also announce funding for new transport links, with government insiders confirming that any cost savings from HS2 will be reinvested in road, rail and bus projects.
Sunak admitted his decision would be controversial and his allies fear Street could resign. “Andy will do what he wants,” one said. Street declined to say whether he would resign.
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