In a Department for Transport announcement, Shapps said today that HS2 chairman Allan Cook had advised him that the 2026 deadline for delivering initial services on the line under phase one was “not realistic” and that it was more likely to open between 2028 and 2031. He has instead recommended a staged opening, starting with initial services between London Old Oak Common and Birmingham Curzon Street, followed by services to and from London Euston later
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Phase 2b, the full high-speed line to Manchester and Leeds, is now expected to open between 2035 and 2040.
Meanwhile, Cook has also confirmed that the £55.7bn budget, set in 2015 prices, is not realistic and that the budget for the project is now in the range of £72bn-£78bn, again in 2015 prices.
Adjusting by construction cost inflation, the range set out in Allan Cook’s report is equivalent to £81bn to £88bn in 2019 prices, against a budget equivalent to £62.4bn.
Shapps has already announced a review into HS2, chaired by Douglas Oakervee with Lord Berkeley as deputy chair, which will report in the autumn.
Shapps said: “I will discuss its findings with the Prime Minister and Chancellor of the Exchequer. Its recommendations will inform our decisions on our next steps.
“HS2 is the single largest project of this government. One important aspect of the panel’s work is to consider whether both the costs, and the benefits, of the scheme have been correctly identified. HS2’s business case has been founded on increasing capacity on our constrained rail network, improving connectivity, and stimulating economic growth and regeneration. The current budget was established in 2013 and later adjusted to 2015 prices. Since that time, significant concerns have been raised.”
“We all in this House know we must invest in modern infrastructure to ensure the future prosperity of our country and its people. We look back to past achievements with a sense of pride – from the canals and railways that ensured the UK led the world into the Industrial Revolution, to the space ports and launch sites we are now considering that will make the UK a global leader in space.
“These endeavours both inspire and improve the quality of our everyday lives. It is therefore right that we subject every project to the most rigorous scrutiny; and if we are to truly maximise every opportunity, this must always be done with an open mind and a clean sheet of paper.”
