HS2 Project: Cancellation of Second Phase Costs British Taxpayers More Than 2 Billion Pounds

The suspension of the second construction phase of the HS2 high-speed rail line has cost British taxpayers more than 2 billion pounds so far, according to the annual report of the project released on Monday. In October 2023, former Prime Minister Rishi Sunak abandoned the plans for this segment of the line. The decision was made due to massive delays and cost overruns, which were estimated at over 70 billion pounds as of 2019. Last year, a total of 8.6 billion pounds of taxpayers' money was invested in the HS2 project, an increase from 6.9 billion pounds the previous year. This includes 2.17 billion pounds resulting from the withdrawal from the project, comprising costs for winding down operations and ensuring a safe cessation of the work. The cancellation of the northern section, which was originally set to run north of Birmingham, has raised concerns about the cost-effectiveness of the remaining route. The original plans envisioned trains traveling at a maximum speed of 360 km/h in a Y-shape connecting London, Manchester, and Leeds. HS2, once considered Britain’s most ambitious infrastructure project, is now under criticism due to budget overruns, delivery delays, as well as allegations of conflicts of interest and a lack of transparency. Currently, the route runs from Birmingham to a new station at Old Oak Common in West London, while plans for a new terminus at King’s Cross in Central London remain uncertain. According to a report by the National Audit Office, it could take years before trains reach the planned terminus in London. Without additional capacity on the West Coast Main Line, passengers could be deterred by a lack of space, as the new HS2 trains will be slower and have less capacity once they pass onto the older section of the line north of Birmingham. Tony Travers of the London School of Economics sharply criticized the project's lack of transparency. Henri Murison, director of the Northern Powerhouse Partnership, warned of the economic consequences for the North and the Midlands and advocated for detailed capacity planning. The report also revealed that Mark Thurston, the former CEO of HS2, received a total remuneration of 652,569 pounds last year, including a bonus of 34,345 pounds. Mark Wild, the former head of the Elizabeth Line in London, has since been appointed as the new CEO.