Speculation Mounts Over HS2’s Second Leg

Headlines speculating on the Government’s next HS2 announcement are continuing to circulate, with many suggesting that Sunak may scrap the high-speed project north of Birmingham. With former and current politicians from across the political spectrum all giving their two cents, the BBC are reporting that such an announcement from Downing Street may be made as early as this week. Earlier this month a leaked document suggested that though £2.3bn had already been spent on stage two of HS2 between Birmingham and Manchester, £35bn could be saved by axing the phase all together. This comes amid reports that the costs of the project are continuing to mount. For example, in 2010 the estimated cost of the whole project totalled some £30bn. By 2016, this had inflated to £80bn before being further revised higher to a gargantuan £107bn by 2020.

Over the weekend, the deputy chairman of the Oakervee report (which aims to investigate the future of HS2) argued to The Telegraph that Sunak “needs to be bold and call a stop to the line north of Birmingham”. Here, Lord Berkeley continued by saying that “If the line stops at Old Oak Common, then the money saved could be used to improve rail services in the North.” The Defence Secretary and former Transport Secretary Grant Shapps also said over the weekend that the Government would be “crazy” if it didn’t review the cost-spiralling project. This comes

as the Chancellor Jeremy Hunt conceded that spiralling costs were becoming “totally out of control”. According to The Telegraph, the cost per mile of track has skyrocketed to over £275m for HS2’s phase one. To give this some perspective, the cost per mile of track on the Berlin to Munich line is around £30m, while the Madrid-León line is around £25m.

Elsewhere however, the former Chancellor George Osbourne said that abandoning the line North of Birmingham would be “an act of huge economic self-harm”, as would scrapping the section of the line from Euston to Old Oak Common. Andy Burnham also expressed concern that the leg to Manchester could face the axe with the Greater Manchester mayor saying that it ‘beggared belief.

As speculation mounts, the BBC is stating that over 80 companies and business leaders have sought clarity over the government’s plans regarding to HS2. For example, Virgin Money, Manchester Airports Group, British Land, and the Northern Powerhouse have all signed off a formal letter urging Downing Street for renewed commitment to HS2.

As such, all eyes are now on any clarification from the Government as speculation over HS2 mounts ahead of the Conservatives annual conference in Manchester.