HS2 southern half on track to be sidelined over cost fears

BORIS JOHNSON is considering plans to put the southern half of High Speed 2 on ice amid mounting concerns about the costs of the project.

He has been studying proposals to start building the railway line in the North, rather than London, as part of a set of policy changes designed to demonstrate a focus on “left behind” regions and towns.

The plans, discussed as part of his team’s “transition” work in readiness for taking office, would involve pushing back construction of the southern half of the line, between London and Birmingham, and giving the green light to the phase connecting the West Midlands with Leeds and Manchester.

This week, he is expected to make a major speech in the North, which is likely to feature a commitment to boosting local transport connections, including east-west rail links under the Northern Powerhouse project.

Allan Cook, the chairman of HS2 Ltd, the government-owned firm behind the scheme, has warned Chris Grayling, the Transport Secretary, that the project cannot be completed within its official £56billion budget. Mr Cook believes the final costs could be between £70billion and £85billion, the Finan

cial Times reported.

A source in Mr Johnson’s team said that the estimated costs of the London to Birmingham stretch were the most “questionable” when considering value for money.

In May, a report by the Lords economic affairs committee, which includes two former chancellors, said that work on HS2 “should have started in the North”, with London on course “to receive the benefits of the new railway long before northern cities”.

Lord Forsyth, the chairman of the committee and a former Tory minister, told The Sunday Telegraph that he was “disappointed but unsurprised” that the Department for Transport indicated last week that it would “ignore” the panel’s recommendations.

“The Government offers no justification for its decision to build HS2 from the south upwards, stating only that Parliament voted for the Phase One Bill and that northern cities will also benefit from Phase One,” he said.