HS2: Landmark rail project facing seven-year delay as costs spiral, company admits

Boris Johnson has ordered a review into project and its ‘spiralling’ costs

HS2 could be delayed by seven years, the company contracted by the government to build the high-speed railway has said.

The landmark transport project could also cost some £22bn more than previously expected.

Its first phase, linking London with the West Midlands, could be set back five years, the transport department has been advised, while the planned link between the West Midlands, Leeds and Manchester may be delayed by seven years.

In a written statement to MPs, the transport secretary, Grant Shapps, said: “Colleagues will see that the chairman of HS2 does not believe that the current scheme design can be delivered within the budget of £55.7bn, set in 2015 prices.

“Instead he estimates that the current scheme requires a total budget – including contingency – in the range of £72bn to £78bn, again in 2015 prices.

“Regarding schedule, the chairman does not believe the current schedule of 2026 for initial services on phase one is realistic.”

Mr Shapps added: “In line with lessons from other major transport infrastructure projects, his advice proposes a range of dates for the start of service.

“He recommends 2028 to 2031 for phase one – with a staged opening, starting with initial services between London Old Oak Common and Birmingham Curzon Street, followed by services to and from London Euston later.

“He expects Phase 2b, the full high-speed line to Manchester and Leeds, to open between 2035 and 2040.”

Boris Johnson has previously criticised the manner in which HS2’s costs are “spiralling out of control” and has declined to guarantee the project will proceed as planned.

His government has announced a review of the scheme, which has been dogged by delays and fears over poor management.

But it is strongly supported by local government leaders in the north and the midlands, which would be connected to the capital by trains travelling at 250mph.

And the Federation of Small Businesses has previously said that scrapping HS2 would merely be another example of the “stop-start approach to major transport investment that’s held our economy back for decades”.

On Tuesday, business groups rushed to back the scheme while bemoaning the latest delay. The British Chambers of Commerce called it “critical” and added: “Many jobs have already been created in advance of its anticipated completion, and many thousands more will be created in the future.”

The Confederation of British Industry said: “Of course today’s report may be a clarion call for those anti-HS2 voices but businesses believe derailing the scheme would be a significant economic restraint on the midlands and the north.”

HS2 chairman Allan Cook admitted in a report that the project’s original plans failed to take sufficient account of how difficult it would be to build a high-speed train line through densely populated regions which also feature challenging ground conditions.

While insisting that its benefits had been understated, he further admitted that its initial budget had proved unrealistic.

The Independent has previously reported on how nearly 90,000 trees planted to mitigate HS2’s environmental impact died following extremely hot weather. Replacing them with new plants was cheaper than keeping the originals watered, bosses said at the time.

Once completed, the railway is expected to cut through at least 61 areas of woodland, including “irreplaceable, centuries-old” ancient woods, the Woodland Trust said last autumn.

Additional reporting by PA