New HS2 delay – over whether to scrap it

THE decision on whether to scrap HS2 has been delayed until the end of the year, the Daily Mail understands.

Treasury officials are examining the high speed rail line – which is expected to cost around £56billion – as part of an audit of major capital projects.

It was expected to report within months and would have heaped pressure on ministers to scrap the project.

But Whitehall sources said ‘slow progress’ meant the review was ‘not ready’ and had been pushed back by months.

The revelation will dash hopes that HS2 could be killed off in short order. Billions more could be committed to the project this year as part of Chancellor Philip Hammond’s spending review. But the review is unlikely to arrive in time to influence the outcome.

In recent weeks, Downing Street has insisted HS2 will go ahead despite rising dissent. Opponents are said to include Treasury Chief Secretary Liz Truss, Commons Leader Andrea Leadsom and David Lidington, Chancellor of the Duchy of Lancaster.

Concerns mounted after an investigation revealed HS2 could cost up to £6billion a year over a decade – the equivalent of the entire maintenance budget for the existing rail network.

Launching the review of major

The Mail, February 11 projects last month, Miss Truss stressed the Government must be prepared to junk ‘white elephants’. She said ‘all major investment projects across Government’ would be assessed to ‘judge their contribution to future prosperity’. A Channel 4 Dispatches investigation two weeks ago suggested ministers are so alarmed by the rising cost they are ‘increasingly minded to kill off the scheme’.

It suggested the project could easily exceed its budget.

The first leg of the line, between London and Birmingham, has been approved by Parliament. Significant works – including stations and land purchases – have already begun. It is due to open in 2026.

But the next stage, which would extend to Crewe, Manchester and Leeds, has not yet been approved by MPs or had its budget signed off. The Bill enabling the second section will not be tabled until 2020 – a year late – to ensure HS2 is linked with a rail upgrade across the Pennines that is currently no more than a proposal.

The Government claims this will not affect the deadline for the line, which is due to be opened in 2033.

HS2 Ltd has also been criticised for delays in giving residents the compensation they are due after land is compulsorily purchased.

Last month it also emerged that officials have been mulling over cost-cutting plans to lower train speeds of up to 225mph by around 30mph, and reduce the number of trains per hour from 18 to 14.

IS £56BN HS2 SET TO HIT THE BUFFERS?