HS2 may cost £106bn, says leaked review

HS2 could cost up to £106bn, according to a widely leaked Government-commissioned review.

An inquiry led by former HS2 Ltd chairman Doug Oakervee reportedly found there is “considerable risk” that the high-speed rail project’s cost will rise by up to 20%.

A report by current HS2 Ltd chairman Allan Cook, published just four months ago, set out an estimated cost range of between £81bn and £88bn. HS2 was allocated £56bn in 2015.

A decision on whether to go ahead with the project will be made in “weeks rather than months”, Transport Secretary Grant Shapps said.

Mr Oakervee’s review recommends that work on phase 2b of HS2 from the West Midlands to Manchester and Leeds should be paused for six months to investigate if it could be a mix of conventional and highspeed lines.

The review concluded that the Government should “on balance” continue with the 250mph railway, which would initially go from London’s Euston station to Birmingham and then to Leeds and Manchester by 2040, but that this is subject to “a number of qualifications”.

It said “further work” is needed to assess HS2’s impact on regional growth, and warned that it is “hard” to say what economic benefits will result from building it.

Several construction bosses have claimed scrapping the project would cause “irreparable damage” to the industry.

But a group of more than a dozen Tory MPs will reportedly meet the PM in the coming days to urge him to block HS2 and spend the money on other projects.