Route of High Speed 2’s second phase has been revealed and contractors have been named for phase one from London to Birmingham (see list below). But fears persist that the project could end up costing over £100Bn.

 

Transport Secretary Chris Grayling confirmed new high speed rail connections from Birmingham west towards Manchester and Liverpool and east to Leeds and York on Monday.

 

It was also confirmed that High Speed 2 will serve a station in Sheffield city centre, which is likely to require the demolition of homes at the Shimmer housing development in Mexborough, South Yorkshire. The Government says it will ensure homeowners on the estate can secure a comparable local home.

 

Meanwhile plans for the project’s western spur include the possibility of building a new hub station in Crewe and potentially introducing High Speed 2 services to Stoke.

 

An upcoming Bill for Phase 2a will grant powers to deliver the line from the West Midlands to Crewe by 2027 – just one year after the London to Birmingham link is due to complete – if approved by Parliament.

 

Transport Secretary Chris Grayling said: “By building a whole new railway line for high speed intercity connections, we will free up local services, meaning more comfort, more seats and more trains for passengers across the north and the Midlands.”

 

But the project has been hit by fresh fears over rising costs this week. Reports suggest that new estimates from Michael Byng – who created the method used by Network Rail to cost its projects – showed that High Speed 2 would cost £111Bn including trains.

 

However a Department for Transport spokesman dismissed the claims and said: “We are keeping a tough grip on costs and the project is on time and on budget at £55.7Bn.”

 

Winners of £6.6Bn worth of major construction contracts for phase one of High Speed 2 were also announced this week including for the delivery of tunnels, bridges, embankments and viaducts.

 

Successful bidders include a joint venture featuring Carillion, which earlier this month reported lower that expected operating profits. It is undertaking a review of its business and is looking to reduce net borrowing.

 

In Parliament on Monday evening Labour’s transport spokesman Andy McDonald asked the Transport Secretary what measures have been put in place to ensure that any financial instability of any contractor will not delay or add to the cost of the project, and also asked what assurances he can give that the total overall cost will not exceed the stated £55.7Bn.

 

Chris Grayling replied: “Carillion is a big UK construction business which is clearly going through a troubled time. However it is part of a consortium in which all the organisations involved have committed to delivering their part of the contract, and I am confident that consortium will deliver the results that we expect.”

 

Regarding the overall project cost, he said: “This project has a total cost attached of £55.7Bn. It is currently on time and on budget, and I expect it to stay that way.”

 

Successful joint venture bidders to build High Speed 2 phase one (London to Birmingham)

 

Area South:

Area Central:

Area North:

(Image: HS2)