HS2 delays ‘could see construction firms go bust’

by Rory Butler /  March 15, 2023

The claim follows transport secretary Mark Harper’s announcement last week the Birmingham to Crewe section of the high-speed rail project will be delayed by two years due to soaring inflation. 

Shadow transport secretary Louise Haigh told MPs in the House of Commons (HoC) a leaked document by “senior officials” seen by Labour revealed the delays “will increase costs” and could put firms out of business. 

“They admit it will cost jobs, that construction firms could go bust,” said Ms Haigh.   

The government has said it will not comment on leaked documents. 

Ms Haigh also said HS2 could terminate on the outskirts of London, instead of Euston, until 2041. 

Last week the transport secretary said soaring inflation and costs had forced the “difficult” decision to rephase construction. 

The government hoped it could reduce annual expenditure by spreading costs over a longer period.  

HS2 CEO, Mark Thurston, recently revealed the price of goods and services, including materials, labour and energy, had been “significant” in the past 12 months.    

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.  

A DfT spokesperson said: “We remain fully committed to delivering HS2 from Euston to Manchester, and HS2 and the Department’s rail investments will continue to support [construction] across the country.”

HS2 was also approached for comment. 

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