HS2 is a project to build a high-speed rail line in England. In 2010 it was originally planned to connect London with Birmingham, Manchester, East Midlands Parkway, Leeds and York. However, in October 2023 Prime Minister Rishi Sunak announced in his speech at the Conservative Party Conference that HS2 would only run from London to the West Midlands. The Prime Minister highlighted cost overruns, delays and changes to post-Covid travel as key reasons why he cancelled the line north of the West Midlands.
What changes has the Government announced to HS2?
Following the Prime Minister’s speech, the Department for Transport published the Network North policy paper (13 October 2023). This states that money saved on the cancelled phases of HS2 will be re-allocated to a variety of transport projects. Critics have noted that some of the funding originally allocated to HS2 will now be spent on road projects. They have also criticised the replacement plan for HS2 as “poorly drafted” with “too many errors” that subsequently had to be corrected. They have also noted that the decision to sell land needed for the line north of the West Midlands will make it more difficult for a future Government if it decides to construct this part of the route.
Network North also outlined changes to how the HS2 station at London Euston would be delivered, with a smaller station than originally planned funded by private sector investment and delivered by a development company separate from HS2 Ltd. Some have also criticised these changes, including questioning whether the private sector will pay for the HS2 station at Euston and the tunnel between Euston and Old Oak Common Station. Critics have also noted that the smaller station at Euston may restrict the destinations that can be served by HS2.
Why build HS2?
The case to have a high-speed railway running through the centre of Britain was first formally made by the Labour Government in 2010. At the heart of the strategic case for HS2 is the desire to address capacity constraints on the north-south rail links in England. Proponents of the project also say it will reduce journey times, create jobs and help the country's economy. The Government also saw investment in HS2 – and wider transport investment – as an opportunity to drive growth in regional economies and create opportunities for regeneration.
Following the announcement of the cancellation of the HS2 line north of the West Midlands, the Government has argued that there will still be an increase in capacity on the busiest part of the West Coast Main Line due to the construction of Phase 1, and that trains will be able to continue on the existing rail network to serve destinations in the north west, Scotland and other locations. However, critics have questioned whether capacity constraints on the existing network will mean that the full benefits of Phase 1 will not be realised.
What is happening to HS2 legislation?
The line was originally planned to be delivered in three phases:
- Phase 1: London to the West Midlands
- Phase 2a: West Midlands to Crewe
- Phase 2b: Crewe to Manchester and West Midlands to York/ Leeds.
Following the Prime Minister’s announcement in October 2023, only Phase 1 will now go ahead. When complete, Phase 1 will be the country's second high-speed line, the first being High Speed 1, which connects London to the Channel Tunnel.
Parliamentary approval for Phase 1 and Phase 2a have been given through the High Speed Rail (London to West Midlands) Act 2017 (Phase 1) and the High Speed Rail (West Midlands to Crewe) Act 2021 (Phase 2a). A hybrid bill for the Western leg, the High-Speed Rail (Crewe to Manchester) Bill, was introduced to Parliament on 24 January 2022. On 24 April 2022, the House agreed a motion to suspend proceedings and the Bill was carried over to the 2022-23 and then the 2023-24 Session. In March 2024, the Government announced its intention to re-purpose the High Speed Rail (Crewe-Manchester) Bill for the construction of the part of the route that will be used by Northern Powerhouse Rail.
This cancellation of HS2 north of the West Midlands has resulted in uncertainty for related projects, in particular Northern Powerhouse Rail, which was intended to use HS2 tracks between High Legh (near Manchester Airport) and Manchester Piccadilly Station.
How much will HS2 Phase 1 cost?
With the exception of the HS2 station at Euston and the tunnel between Euston and Old Oak Common, the Government is directly funding HS2. In 2012, HS2 Phase 1 was estimated to cost £20.5bn (in 2019 prices). Since then, forecast costs have grown, and the most recent estimate (January 2024) was £49 to £56.6bn (in 2019 prices). This has led to some to question whether Phase 1 should also be cancelled.
Cost increases have been driven by high inflation, as well as scope changes, worse ground conditions than expected, and optimism bias.
How long will HS2 Phase 1 take to build?
When proposed in the 2020 white paper, work on Phase 1 was expected to start in January 2013, with an opening date of December 2026 [PDF]. Since then, the project has been delayed. The most recent 6-monthly report to Parliament (November 2023) gives an estimated opening date between 2029 and 2033, and HS2 Ltd have a target date of 2030. This excludes the HS2 station at Euston and the tunnel between Euston and Old Oak Common.
Delays have been caused by a lack of a detailed schedule, and extra time spent developing revised cost and schedule estimates, as well as the scale and complexity of the project; extra time required to agree the detailed technical design; delays due to the ground requiring additional time to settle; and a revised amount of contingency due to an updated assessment of risk in the schedule.
How is HS2 being scrutinised in Parliament?
The Minister for HS2 has committed to providing a six-monthly progress report to Parliament. The latest six-monthly progress report was made on 15 November 2023. Both the Committee of Public Accounts and the Transport Committee have undertaken a number of inquiries into HS2. As a project in the Government’s Major Project Portfolio, the Infrastructure and Projects Authority also provide annual updates on the status of HS2.
Further reading
Recent developments following the cancellation of Phases 2a and 2b of HS2 are outlined in the Commons Library Insight What next for HS2? (November 2023).
More information on the High Speed Rail (London to West Midlands) Act 2017 and how it progressed through Parliament can be found in the Commons Library research briefing, High Speed 2 (HS2) Phase 1 (September 2018).
More information on the High Speed Rail (West Midlands to Crewe) Act 2021 and how it progressed through Parliament can be found in the Commons Library research briefing High Speed 2 (HS2) Phase 2a.
More information on the High Speed Rail (Crewe to Manchester) Bill can be found in the Commons Library research briefing High Speed Rail (Crewe to Manchester) Bill.