UK Transport Secretary Heidi Alexander has set out a new update on HS2 costs and timelines, following a full review of the project and taking direct control in order to reduce waste, speed up delivery and save billions of pounds.
The Government has announced that the project is now estimated to cost between GBP 87.7 billion and GBP 102.7 billion (EUR 101.3–EUR 118.6 billion), with two-thirds of the increase driven by missing scope from the original plan, underestimation by previous governments and poor delivery, while one-third is attributed to inflation.
In 2011, the project was estimated at GBP 32.7 billion (EUR 37.8 billion), while in 2019 it was revised to GBP 35–45 billion (EUR 40.4–EUR 52 billion).
Funding beyond 2029–2030 will be determined in future spending reviews and will comply with strict government fiscal rules.
Lower speed brings cost savings
The Government has also confirmed that HS2 will operate at 320 km/h, aligning with European standards and those used by high-speed rail services in Japan.
Initial plans set the operating speed at 360 km/h, but the lack of suitable testing infrastructure in the UK contributed to higher costs and longer delivery times.
Reducing speed could deliver savings of up to GBP 2.5 billion (EUR 2.9 billion) and shorten the delivery schedule by at least one year, bringing benefits to communities sooner.
The Government remains committed to delivering HS2 in full between Birmingham and London, while a new assessment shows that cancelling the project would cost roughly the same as completing it, without delivering the expected benefits.
The new HS2 costs and timelines reflect “many years of poor management” and mark the end of a “period of neglect”, paving the way for a reset of the programme to deliver it as quickly as possible and at a reasonable cost.
“Taxpayers, passengers and communities along the route have been let down for years by poor management of HS2. I share their frustration at the waste and chaos, but I am proud that this Government has worked with the new HS2 leadership team to unlock the project and put it back on track,” the Transport Secretary said.
The new HS2 costs and timelines have been published alongside the full report by Sir Stephen Lovegrove on the role of the public administration in delivering HS2 to date. The Government will respond to the recommendations following a detailed review of the findings.
In June 2025, the UK Transport Secretary also clarified historic delivery failures and took decisive steps to regain control of HS2, including appointing Mike Brown as the new Chair of HS2 Ltd.
Services to begin in 2036–2039
HS2 was originally expected to begin services in 2026 on the London–Birmingham route (Phase One). Due to delays and design changes, this date was gradually pushed back to 2028–2031 and then to 2033 in revised scenarios.
However, under the latest timetable announced on 19 May by the Transport Secretary, the first trains are now expected to run between Old Oak Common in west London and Birmingham Curzon Street between 2036 and 2039. Full opening of the route between London Euston and Curzon Street, including the connection to the West Coast Main Line, is expected between 2040 and 2043.
“I recognise this will be unwelcome news for communities and taxpayers, and I share their disappointment that HS2 will take longer and cost more. Resetting HS2 was the only way to regain control of the project. Over the past 12 months we have changed direction, with significantly improved productivity, which has allowed us to complete major stages ahead of schedule,” said Mark Wild, Chief Executive of HS2 Ltd.
The restructuring process led by Mark Wild at HS2 Ltd is beginning to show results, with six major construction milestones completed ahead of schedule in the past year. In addition, 300 administrative roles have been removed and contracts have been reviewed to ensure better value for taxpayers’ money.
Project status
HS2 is the largest infrastructure project in the United Kingdom, delivering over 225 km of high-speed rail and four new stations between London and the West Midlands. Works are progressing across around 350 active construction sites. HS2 Ltd has completed 85% of tunnelling works, including the 16 km Chiltern Tunnel, and has built the longest railway viaduct in the UK in the Colne Valley.
A total of 52.3 km of tunnels are under construction to protect landscapes and reduce surface impact, alongside 175 bridges and 52 viaducts to carry the railway over existing infrastructure, as well as 111 embankments and 72 cuttings to adapt the route to varied terrain. Energy supply and signalling systems are also being developed to ensure safe high-speed operations.
HS2 benefits
With the revised HS2 costs and timelines, the Government remains committed to completing the project, which will increase train frequency on the West Coast Main Line and deliver faster, more reliable journeys, cutting travel times between London and Birmingham by around 30 minutes and doubling long-distance high-speed rail capacity during peak hours.
HS2 is expected to drive housing, jobs and economic growth. Recent estimates show the project is already contributing GBP 20 billion to the economy over the next decade around stations and depots in the West Midlands and west London, alongside the delivery of 63,000 homes and more than 49,000 jobs.
Development at Euston alone is expected to add GBP 41 billion (EUR 47.4 billion) to the economy over the next three decades and support 34,000 new jobs. Meanwhile, tunnel boring machines are already working beneath London to deliver the HS2 link into Euston. More than 6,100 contracts have been awarded to UK companies, with over half going to SMEs.
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