Soaring inflation could mean further delays in the construction of HS2, it has been reported.
by Rory Butler / March 3, 2023
Cost pressures have seen fresh discussions with the government and suppliers over the project’s timing, HS2 CEO, Mark Thurston, told the BBC in an exclusive interview.
He said the price of goods and services, including materials, labour and energy, had been “significant” in the past 12 months.
“We’re looking at the timing of the project, the phasing of the project, we’re looking at where we can use our supply chain to secure a lot of those things that are costing us more through inflation,” he told the BBC.
And while he said delays do not “typically” save money in the long term, he added HS2 is “looking at a number of options” with advice from the Department for Transport (DfT).
HS2 connects London, the Midlands and the North, with links in Birmingham and Manchester.
Delays and rising costs have long surrounded the scheme.
Chancellor Jeremy Hunt recently quashed reports the line might not reach Euston in central London due to inflation and costs, assuring it would.
HS2’s initial budget in 2010 was around £33 billion. In 2015 it was £55.7 billion. Recent estimates however put the total between £70 billion and £100 billion.
HS2 said it was not issuing any further comment at this time.
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