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Government reveals HS2 reset with higher costs and delays
The UK's high-speed rail project, HS2, will now cost up to £102.7 billion and won't begin operations until 2036 at the earliest, Transport Secretary Heidi Alexander announced on Tuesday. The revised budget and timeline mark a significant escalation from previous estimates, with services delayed by up to six years.
Costs double as government commits to completion
Alexander confirmed the project's new budget range of £87.7 billion to £102.7 billion in 2025 prices, nearly double the original estimate when adjusted for inflation. As of March 2026, £44.2 billion has already been spent. She attributed two-thirds of the increase to cost underestimates by the previous government, inefficient delivery, and overlooked work in the original plan, while inflation accounted for the remaining third.
Despite the financial strain, Alexander vowed to complete the project, stating that cancellation would be as costly as finishing it while delivering none of the benefits. "This country can build big things; we just need competent people at the helm," she told MPs.
Speed reduction and revised timeline
To curb expenses, the government will lower the trains' top speed from 360 km/h to 320 km/h, a move expected to save £2.5 billion and accelerate delivery by a year. The reduced speed aligns with high-speed rail standards in Europe and Japan, according to officials.
Services will initially run between Old Oak Common in west London and Birmingham Curzon Street, with full operations from London Euston to Birmingham not expected until 2040-2043. The original plan included extensions to Manchester and Leeds, but these were scrapped by previous Conservative governments.
Criticism and calls for accountability
Shadow Transport Minister Jerome Mayhew acknowledged early mismanagement of the project but demanded a detailed plan from Alexander and HS2 Ltd to control costs and meet the new timeline. "If she's as angry as she says she is, that must be backed by legislative changes to prevent future overruns," he said.
HS2 Ltd CEO Mark Wild acknowledged the "unwelcome update" but framed the reset as necessary to regain control. He highlighted improved productivity over the past year, which has helped deliver major milestones ahead of schedule.
"We have turned a corner in the last 12 months with significantly improved levels of productivity, helping us to deliver major milestones ahead of schedule."
Mark Wild, HS2 Ltd CEO
Expert slams delayed decisions
Andy Meaney, who contributed to the Oakervee HS2 review commissioned by former Prime Minister Boris Johnson, expressed shock at the revelations. He criticized the persistent failure in decision-making, particularly the delay in reducing train speeds, which he argued should have been addressed years ago to cut costs.
"It's really frustrating that there's been this continual failure of decision-making right back to the conception of the scheme 16 or 17 years ago."
Andy Meaney, HS2 Review Contributor
Next steps and targets
Alexander confirmed that Wild has been tasked with delivering the project by 2037 at a cost of £92.2 billion. She emphasized the government's commitment to simplifying the project and improving cost control to avoid past mistakes.
