Detailing a deliverability report from HS2 chairman Allan Cook, the Transport Secretary added that current estimates put the total cost of the scheme in a range of £81Bn to £88Bn, compared to its current £62.4Bn budget (all in 2019 prices).

Yesterday’s update emerged two weeks after the launch of an independent cross party review of High Speed 2 by the Government, led by Douglas Oakervee. This is expected to culminate with a decision on whether to proceed or cancel the project by the year end.

“The Prime Minister and I have been clear about the potential for transport investment to drive growth, redistribute opportunity and support towns and cities across the UK,” said Grant Shapps in a written statement. “But we have been equally clear that the costs and benefits of those investments must stack up.”

Allan Cook’s ‘stocktake’ report highlights that the scale and complexity of the task of delivering High Speed 2 were underestimated in the original business case, meaning the budget and target schedule for the programme have proved unrealistic.

‘The budget, schedule and business model for HS2, as well as the way it interfaces with the rest of the rail network, need to be reset,’ the report says, ‘to ensure the programme delivers the greatest possible benefit for the country in the most cost effective way’.

It also claims that the benefits of the scheme have been undervalued and emphasises that ‘HS2 remains the right strategic answer to join up Britain more effectively to meet the transport needs of the 21st Century’.

The report proposes a staged opening for phase one between 2028 and 2031, starting with initial services from London’s Old Oak Common to Birmingham Curzon Street (pictured). The full high speed line to Manchester and Leeds could then become operational between 2035 and 2040.

It is also suggested that phase 2a connecting the West Midlands with Crewe could be delivered to the same timetable as phase one, subject to Parliamentary approval.

The Transport Secretary has authorised High Speed 2 to continue its current works on the project while the independent review takes place. “This will ensure we are ready to proceed without further delay for the main construction stage of phase one in the event that the Government chooses to continue,” said Grant Shapps.

“Similarly, I intend to continue to progress the next stages of the Hybrid Bill for phase 2a, West Midlands to Crewe, in the House of Lords while the review is ongoing.”

A High Speed 2 spokesman said: “The assessment makes clear that HS2 remains a compelling strategic answer for Britain’s future transport needs, relieving overcrowding and congestion on our roads and railways, and reducing the carbon footprint of the UK. It will drive economic growth and regeneration in our regions, and bring Britain closer together.

“The assessment of phase one is based on the significant work carried out so far, which has given us detailed insight into the scale and complexity of the programme. The assessment of phase 2b takes into account lessons learnt on phase one.”

The Labour Party’s Shadow Transport Secretary Andy McDonald said: “This Government has misled both Parliament and the public about the cost of HS2. People need to have confidence in the project, so this delay is bad news for the UK transport system as a whole and the north of England in particular.”

(Image: Grimshaw Architects)