HS2 contractors urge ministers to resurrect line to Crewe

Contractors working on HS2 have urged ministers to revive the high-speed line’s axed northern leg as far as Crewe.

The High Speed Rail Group (HSRG), which represents contractors, has dropped demands to complete the project’s original route between Birmingham and Manchester, which was scrapped by Rishi Sunak in October 2023.

But the group claims that constructing the project’s so-called phase 2a – intended to run between the West Midlands and Crewe – is necessary to secure the “long-term” advantages of the high-speed line.

It comes after a group of MPs warned that the cost of building HS2 between London and the West Midlands could spiral to as much as £80bn.

The Public Accounts Committee (PAC) said that the high speed line was an example of “how not to run a major project” and HS2 and transport officials “must not waste” the latest opportunity to reset the scheme.

Shortly after joining HS2 Ltd as chief executive at the start of December 2024, Mark Wild said the project was “in a very serious situation that requires a fundamental reset”.

Sir Keir Starmer has previously said it would be “impossible” to resurrect the beleaguered project north of Birmingham.

But he is under pressure from Labour MPs and Andy Burnham, the mayor of Greater Manchester, to outline alternatives to improve transport in the North.

In a submission to the Treasury, the HSRG said it acknowledges and supports the need for a “reset” on the project. It advocates reviving the West Midlands to Crewe leg, and proposes a six platform extension plan for London Euston to prevent future capacity constraints.

In October, the Government paused the sale of land previously acquired to build HS2’s northern leg, while ministers considered alternatives to the scheme.

The HSRG said the freeze on land sales should continue, and that prospective land acquisitions between the West Midlands and Crewe should be completed.

Dyan Perry, chair of HSRG, told The i Paper: “HS2 is at a crossroads. If delivered correctly, it will unlock national transport capacity, generate a multi-billion pound return to the Treasury, drive economic growth across the UK and enhance regional connectivity.

“However, if cut short, the Government risks wasting substantial investments to date, short-changing the national account and squandering HS2’s far reaching socio-economic benefits.

“HS2 has already stimulated significant investment in the UK’s supply chain, workforce skills, and infrastructure expertise to name just a few benefits.

“To secure the long-term advantages of a modern, high speed rail network, we strongly urge the Government to adopt our recommendations and take decisive action to restore financial control and accelerate delivery.”

The Treasury was approached for comment.

In the damming PAC report, MPs said that the Department for Transport (DfT) has “failed in its oversight and financial control” of HS2, and that there is “a reputational risk to the UK” because of the project.

The PAC said HS2 Ltd – the Government-owned company responsible for building the high-speed railway – and the DfT have “failed to work together effectively”.

This is “starkly illustrated by their continued disagreement” over how much it will cost to build the line from London to the West Midlands, it stated.

The DfT’s estimate in November 2023 was £45bn to £54bn, while HS2 Ltd’s latest estimate in June 2024 was between £54bn and £66bn.

All these figures were in 2019 prices. Once adjusted for inflation, the cost “might be close to £80bn”, according to the report.

The PAC said: “The department and HS2 Ltd must not waste this latest opportunity to reset the programme properly, learning lessons from past mistakes and maximising for the taxpayer what value they can from this huge investment.”

A DfT spokesperson said: “The continuously climbing costs of HS2 are completely unacceptable.

“That is why the Government acted swiftly to get the project back under control by bringing new leadership to HS2 Ltd, directing the company to begin work on resetting culture, schedule and costs, and reinstating robust ministerial oversight.