Government set to put brakes on HS2 phase 2 programmes

HS2 has been working with Government in a renewed attempt to cut costs from the over-budget project.

It is understood delays will primarily affect section 2a from Birmingham to Crewe and then the latter 2b phase on to Manchester.

While a project delay is unlikely to save cash over the full course of the project, it will allow Government to spread the cost over a longer period of time, making it more affordable by reducing annual expenditure.

The BBC also reports that there may also be a rethink on parts of the Euston station terminus despite previous assurances that the line would run into London as planned.

The decision to push back timelines on the HS2 project is part of a squeeze on all capital spending across government reported to total £600bn over five years in response to high inflation knocking construction budgets sideways.

Last month HS2 chief executive Mark Thurston told the BBC in an interview that said the project had suffered a “significant” impact from inflation adding to the cost of building materials, labour, fuel and energy.

“We’re looking at the timing of the project, the phasing of the project, we’re looking at where we can use our supply chain to secure a lot of those things that are costing us more through inflation.”


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