The government has announced a major reset of HS2, confirming the high-speed railway will now run at lower operating speeds, cost significantly more than previously expected and open later than planned.
Transport Secretary Heidi Alexander said the changes marked the end of what she described as an “era of neglect” surrounding the project, following years of cost overruns, delays and governance failures.
Under the revised plans, HS2 trains will operate at 320 km/h (200 mph) rather than the previously proposed 360 km/h (225 mph). Ministers say the move will align the railway with European and Japanese high-speed standards while reducing construction complexity.
The Department for Transport estimates the lower speed could save up to £2.5 billion and cut at least a year from delivery times.
The project is now expected to cost between £87.7 billion and £102.7 billion. According to the government, around two thirds of the increase stems from scope omissions, underestimation and inefficient delivery inherited from previous administrations, with the remaining third linked to inflationary pressures.
The revised delivery timeline means the first passenger services between Old Oak Common and Birmingham Curzon Street are now expected to begin between 2036 and 2039. Full services to London Euston, alongside connections to the West Coast Main Line, are projected between 2040 and 2043.
The reset is being overseen by HS2 Ltd chief executive Mark Wild and chair Mike Brown, both previously involved in delivering the Elizabeth line. The government said HS2 Ltd has already reduced bureaucracy by removing 300 roles and achieved six major construction milestones ahead of schedule over the past year.
Speaking about the changes, Heidi Alexander said:
“Taxpayers, passengers and communities along the route have been let down by years of mismanagement on HS2.
“We will get the job done but we will also take every opportunity to save time and money in the process, getting a grip on delivery, controlling costs, and stripping out the complexity that’s plagued the project in the past.”
Despite renewed scrutiny around costs, the government confirmed it remains committed to completing the railway between London and Birmingham. Officials said new assessments suggest cancelling the scheme could ultimately cost as much as completing it, while delivering none of the intended economic or capacity benefits.
The government also highlighted HS2’s wider economic impact, including forecasts suggesting the railway could contribute £20 billion to the economy over the next decade around station sites and depots in west London and the West Midlands. The project is also linked to plans for 63,000 homes and more than 49,000 jobs in surrounding growth zones.
Commercial development around Euston alone is estimated to generate £41 billion over the next 30 years and support around 34,000 jobs. More than 6,100 contracts have already been awarded to UK businesses, over half of them to SMEs.
Mark Wild acknowledged public frustration over the revised timeline and costs but said the reset was necessary to regain control of the programme.
“Resetting HS2 was the only way to regain control of the project,” he said.
“Better journeys, more capacity on the network, and economic growth are all vital to the country’s future prosperity, and that’s exactly what we will deliver.”
