HS2 Costs Soar to £102Bn; Delays Extend to 2039

On May 20, 2024, UK Transport Secretary Heidi Alexander announced significant delays and cost increases for the HS2 high-speed rail project. The revised budget ranges from £87.7 billion to £102.7 billion in 2025 prices, with trains not expected to run until between May 2036 and October 2039—up to six years later than the previous target of 2033.

To cut costs, train speeds will be reduced from the originally planned 360km/h (224mph) to 320km/h (199mph), aligning with high-speed services in Europe and Japan. This change could save up to £2.5bn and allow for earlier completion of some sections.

The full service from London Euston to Handsacre junction, north of Birmingham, is now expected between May 2040 and December 2043. Alexander blamed previous governments for mismanagement, stating that two-thirds of the cost increase stems from underestimates, inefficient delivery, and missed works in the original plan.

Alexander emphasized the government's commitment to completing HS2 despite the challenges. 'If it seems like an obscene increase in time and costs, it is because it is,' she told MPs. She also noted that cancelling the project now could cost nearly as much as finishing it while delivering none of the benefits.

According to The Guardian, Alexander blamed the Conservative government for standing by and watching 'the world’s most expensive slow-motion car crash'. The revised timeline primarily applies to services between Old Oak Common in west London and Birmingham Curzon Street. HS2 Ltd's chief executive, Mark Wild, acknowledged the disappointment but asserted that resetting the project was necessary to regain control and improve productivity.