The UK government will delay building the Birmingham to Crewe leg of the HS2 rail line and its link to central London, along with several road projects, as ministers grapple with the impact of inflation on the capital’s budget.
HS2, which has been delayed due to overruns and cost delays, is being built in stages with the initial leg connecting London to Birmingham already under construction.
The controversial project, originally envisaged as a new high-speed line linking London to Manchester and Leeds via Birmingham, has suffered delays, cost overruns and reduced scope.
HS2’s price tag has risen from £33 billion a decade ago to £100 billion, making the project a prime candidate for savings. The opening of the first phase has been pushed back from 2026 to between 2029 and 2033, while many lines to Leeds have been scrapped.
Mark Harper, the transport secretary, announced the latest delay on Thursday blaming “inflationary headwinds” caused by Russia’s invasion of Ukraine as well as “supply chain disruptions” due to the Covid-19 pandemic.
“These headwinds have made it difficult to deliver on our capital program and we know that some plans will take longer than expected,” he said. “Refocusing our efforts will allow us to double down to deliver the rest of our capital program.”
Harper said construction work on the Birmingham to Crewe leg, known as phase 2a, would be delayed by two years. This is part of the second part of the project linking Birmingham to Manchester, which is expected to be completed from 2033 to 2035 to 2041.
He also said the government would prioritize HS2 services from Birmingham and the new Old Oak Common station in west London but insisted ministers remain “committed” to eventually getting the line to the central London terminus at Euston.
The FT reported last month that the government is examining delays and cuts to the project with two initiatives called “Project Silverlight” and “Operation Blue Diamond” to reduce spending over the next five years.
Louise Haigh, shadow transport secretary, said the north of England must “pay the price for a staggering Conservative failure”.
Chris Fletcher, director of policy at the Greater Manchester Chamber of Commerce, understands the government’s financial constraints but said the latest cuts raised more questions about the minister’s commitment to the flagship leveling-up policy designed to balance out regional economic inequalities.
“We see the decision to delay the essential construction and further development of HS2 as a step in the wrong direction. We have seen important parts of the scheme canceled or significantly scaled back and further delays, dithering and uncertainty will undermine any claim that can be done by the government in terms of taking the level up seriously,” he said.
Rail engineer and transport writer Gareth Dennis said the delay would damage the whole scheme and the rail network as a whole. “If the government is really committed to this project and its results, the HS2 train will be running to Manchester by the end of this decade – at a cost closer to the original budget than it is now,” he said.
Harper also announced several road plans would be delayed, including the A27 at Arundel and the A5036 at Princess Way in Liverpool.
In addition, there will be a two-year delay in the construction of the Lower Thames Crossing, a road tunnel under the River Thames that will be the new crossing of the river in east London for more than 30 years.
The biggest cuts to infrastructure projects come as the government seeks to cut capital spending across all departments after inflation hit its highest level in decades. Other projects that will be delayed include some of the 40 new hospitals that will be built by 2030.