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Birmingham Post
Birmingham Post
Business
Tom Pegden

HS2 facing delays due to huge rise in costs

The boss of HS2 says there could be delays in construction in a bid to get to grips with rising costs.

Chief executive Mark Thurston told the BBC that inflation was hitting all aspects of the mammoth building scheme, which saw costs spiral even before the more current cost of living crisis.

Phase One is well under way and involves a new line between London and Birmingham, while Phase 2a would see the line extended from the West Midlands to Crewe.

Phase 2b would connect Crewe to Manchester, and the West Midlands to the East Midlands, although plans to take it all the way to a new station at Toton in Nottingham, look likely to be scaled back – the eastern stretch could potentially end at the isolated Parkway Station on the Midland Mainline near East Midlands Airport.

The PA news agency reports that the latest target cost of Phase One between London and Birmingham is £40.3 billion at 2019 prices – compared to a budget back in 2015 of £55.7 billion for the whole of HS2.

However, future parts of HS2 could be delayed among a number of potential options being considered.

Mr Thurston said the impact of inflation on the project over the past year has been “significant… whether that’s in timber, steel, aggregates for all the concrete we need to use to build the job, labour, all our energy costs, fuel”.

He told the broadcaster HS2 was in discussion with suppliers and the Government on finding ways to minimise the soaring costs.

He said: “We’re looking at the timing of the project, the phasing of the project, we’re looking at where we can use our supply chain to secure a lot of those things that are costing us more through inflation.”

His comments come after rail minister Huw Merriman told MPs on Thursday the Government remained “absolutely committed” to the project.

We told the House of Commons: “We are absolutely committed to delivering HS2 trains from London to Manchester and, of course, going over to the east as well.

“But of course we have to look at cost pressures, it’s absolutely right that HS2 focuses on costs, that should be expected of the Government and the taxpayer, we’ll continue to do so.

“But… I am absolutely committed, as is the Secretary of State (Mark Harper) and the entire department, to delivering HS2 and the benefits for this country.”

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