Following a full review, the Transport Secretary, Heidi Alexander, has set out a new High Speed Two (HS2) budget plan and timeline in order to reduce waste, speed up delivery and save billions. This decision comes after analysis reveals that it could cost as much to cancel the project as to complete it.
In her announcement on Tuesday 19 May, Heidi Alexander declared an end to the neglect of the HS2 project and revealed that she has convened the team that delivered the Elizabeth Line while cutting construction costs and speeding up the process.
The government has announced that the project is now expected to cost between £87.7 and £102.7 billion, with two thirds of the increase due to works being missed by previous governments from the scope of the original project plan, and the remaining third due to inflation.
The government has also confirmed that HS2 will run at 320 km/h (200 mph), similar to speeds across Europe and Japanese Bullet trains. In previous plans HS2 trains were set to run at 360 km/h (225 mph), however there is no existing track to test trains at that speed in Great Britain. This change in proposed speed could deliver savings of up to £2.5 billion and bring the project’s completion date a year earlier.
The first HS2 trains are now expected to start between Old Oak Common in west London and Birmingham Curzon Street sometime between 2036 and 2039.
It is predicted that HS2 will save passengers around 30 minutes between London and Birmingham compared with current services, and will double peak long-distance, fast rail capacity between London and the West Midlands. HS2 will also lead to a growth in houses and job opportunities, with recent forecasts estimating that it will contribute £20 billion to the economy over the next decade, with 63,000 new homes and over 49,000 new jobs in these areas.
The HS2 reset is fully funded within the Department for Transport’s current Spending Review settlement, with no additional borrowing. Funding beyond 2029-30 will be set at future Spending Reviews.