PARLIAMENTARY DEBATE
High Speed 2 Reset - 19 May 2026 (Commons/Commons Chamber)
Debate Detail
Last summer, I stood at this Dispatch Box and promised that we would be straight with the British people not just about the appalling mess we inherited, but about how we would fundamentally reset the HS2 project. Today I am publishing the latest parliamentary report and the Lovegrove report—an assessment of what past failings in the delivery of HS2 mean for the civil service and the wider public sector. This was a Cabinet Secretary investigation commissioned by the Prime Minister last year. I will also take this opportunity to update hon. Members on the latest stage of the HS2 reset.
However, I will first remind the House of the litany of failures we inherited in July 2024. Costs soared by £37 billion under the previous Government alone, with billions of pounds of taxpayers’ money sunk into phase 2 work for the sections north of Birmingham before they were abruptly cancelled. Huge contracts were handed out without improvements in price, despite the Oakervee review’s recommendation to negotiate a better position.
Instead of signalling the country’s ambition, HS2 became a symbol of this country’s decline. After more than five years of construction and more than £40 billion spent, the country was no closer to having an operational HS2 railway than when construction first began. That is the shocking legacy of the previous Government, and I am afraid it gets worse: I can today confirm that the previous Government spent most of HS2’s budget without laying a single metre of its track. Today is about ending that era of neglect.
New chief executive officer Mark Wild and chair Mike Brown have an almost impossible task on their hands; as Mark put it to me recently, it is like changing the engine of an aeroplane mid-flight. However, the new leadership team at HS2 is turning things around, with six major construction milestones reached earlier than planned in the past year. The organisation is more focused on the things that matter, with 300 back-office roles removed. HS2 Ltd is reviewing its supply chain contracts and the incentives within them to ensure that we finish the job at the lowest reasonable cost, and it is managing those contractors properly now to ensure that supplier performance is up to scratch. Finally, we are seeing improved oversight, with HS2’s leadership now receiving real-time updates, helping to prevent delays and keep construction to time.
However, there is no getting away from the fact that the vast majority of HS2’s previous budget was blown on completing around a third of the entire project. Over the past year, Mark Wild and HS2 Ltd have worked closely with me and my Department to assess the remaining work to be done. They have now provided me with updated costs and timescales, which I can share with the House.
It gives me no pleasure to say that the expected cost of completing HS2 is now between £87.7 billion and £102.7 billion, priced in 2025. Two thirds of that increase is down to past misunderstanding of the work required, underestimation and inefficiency—issues within the control of HS2 Ltd, some of its suppliers and previous Governments. The remaining third is linked to inflation, which was not factored into previous cost estimates regularly enough.
On timings, I said last year that I could see no route by which trains could be running by 2033. We now expect the first services to run from Old Oak Common to Birmingham Curzon Street between May 2036 and October 2039. Where the previous Government could not say when the full HS2 scheme between Euston and Handsacre Junction would be delivered, I now expect it to happen between May 2040 and December 2043. Lessons have been learned from the Stewart review, meaning that HS2’s cost and schedules are now built on more solid foundations, with credible estimates published as ranges to ensure that they better stand the test of time.
Colleagues may feel that they have heard this all before; I understand that scepticism, but it is different this time. HS2 Ltd has now used the same experts and methods behind the successful Crossrail reset. It has priced future work against what we have learned so far, and its homework has been checked by an independent panel of experts.
However, if this seems like an obscene increase in time and costs, it is because it is. If it seems that I am angry, it is because I am. I am angry on behalf of taxpayers and affected communities who have been swindled by the failures of successive Conservative Governments; I am angry on behalf of the thousands of rail and construction workers who are giving their all on this project, and who do not deserve to have their industry tarnished in this way; and I am angry on behalf of passengers who continue to wait for the new services and new opportunities that they deserve.
Despite this sorry situation, we are determined to claw back as much time and money as possible. The Lovegrove report not only corroborates the Stewart review’s damning assessment of the decision-making environment under the previous Government, but talks about the original “gold plating” of HS2 and a focus on
“the highest possible speeds, resulting in bespoke and highly engineered design”.
To translate: it was a massively over-specced folly, with the prospect of the fastest trains anywhere in the world tickling the fancy of Conservative Ministers. If we were a country the size of China, I could understand it—but we are not. Passengers just want reliable trains that turn up when they are supposed to, more services and more seats. They want a common-sense approach that gets them the railway they deserve, not a vanity project with trains so fast that proper testing could not be done until track and railway systems were complete.
I therefore asked Mark Wild to remove the gold-plating and complexity from this project, and I have today accepted his recommendation to align HS2 with speeds already delivered on other European high-speed networks. That means we will still run some of the fastest trains in Europe, with speeds reaching 320 kph; but, crucially, it will lower the cost of testing and make delivering the project less risky. It could realise savings of up to £2.5 billion and save at least a year in delivery time.
I realise that there will be those who will say that this is all too much and that we should just cancel the whole thing. However, I can confirm today that it could cost almost as much to cancel the line as it would to finish it, while delivering none of the benefits, with half-finished structures strewn across the English countryside, a relic of what could have been.
This Labour Government are clear that we will deliver HS2 to completion, because this country can build big things; we just need competent people at the helm to deliver them. Prime Ministers Cameron, May, Johnson, Truss and Sunak—
Previous Prime Ministers, in my view, created the world’s most expensive slow-motion car crash, and they barely batted an eyelid. This Government have rolled up our sleeves and done the hard yards, putting the right team in place and being honest about the scale of the challenge.
I understand that this statement today will be met with cynicism and anger, but I say with genuine pride and conviction that I believe we are finally starting to see real delivery. Tunnelling machines are currently working under Londoners’ feet to make HS2 to Euston a reality, and Birmingham’s skyline is changing before our eyes, with new film studios, a sports quarter and housing all being built around the new Curzon Street station. This is national renewal in action. When I last worked with Mark Wild and Mike Brown, we took the delayed and over-budget Crossrail project and turned it into the Elizabeth line, which has now served more than half a billion passengers. We have done it before, and we will do it again. I commend this statement to the House.
The Secretary of State’s comments today demonstrate not only the challenges faced in the past and the reasons that action was taken to reduce the scope of HS2, but the significant challenges ahead if it is finally to be delivered. It is true that the early years of the HS2 project were beset with delay and cost overruns, with HS2 Ltd failing to maintain tight control of the budget and, frankly, the Department for Transport allowing it to get away with it. It was for that reason that the previous Government appointed Mark Wild OBE as the new chief executive of HS2 Ltd with the clear instruction to get a grip of costs and robustly oversee the project. It is apparent from today’s statement that HS2’s leadership under Mark Wild is taking those steps to try to achieve that.
Where there are actions that can reduce costs in the long run, the Opposition will clearly support them, but given concerns about trust in the project, I hope that the Government and HS2 Ltd will set out in detail how they believe these measures will save money and deliver even on this new extended timetable.
In addition, we have to acknowledge the deep-seated infrastructure challenges we face in this country. When the Prime Minister was campaigning during the last general election, we heard a range of promises about housing and infrastructure goals, but they completely foundered when they came into contact with reality. That is why the Opposition propose substantial changes to environmental legislation to give us the freedoms needed to cut environmental red tape, both for business and large infrastructure projects. Even the Prime Minister does not support regulations that lead to a £100-million bat tunnel—does the Secretary of State?
This issue must be addressed because the Secretary of State has made a number of strong statements. If she is angry, as she says she is, those statements must be backed up by consequential legislative changes that prevent cost overruns from occurring in future.
Turning to the specifics, I wish to press the Secretary of State on matters on which those in the sector have indicated they want assurances. For example, what do the new project cost figures include? Do they include all the rolling stock under the new plans? To what extent is funding for Euston included in the new estimates, and do they include signalling? Do the Government intend to set out precisely what is being funded and when the various elements will be delivered under their new timetable? Can the Secretary of State also explain what steps the Government have taken to improve HS2 Ltd’s performance on settling claims with those impacted by construction, since she has highlighted separately that this is an area that requires improvement?
Of course, HS2 does not operate in a vacuum. On the same day that this statement is being made to the House, it has been announced that Government pressure will result in one in seven rail services being cut on one of Avanti West Coast’s routes following a Government request to reduce expenditure. Given the comments made about the project, is it appropriate that services on the west coast will offer fewer services to passengers?
Ultimately, the Government are right to take steps to reduce costs on this project. Errors were made and should be rectified, and I am glad that the Government continue to support Mark Wild and his team as they work towards opening HS2.
The hon. Gentleman talked about the appointment of the new CEO, Mark Wild, under the previous Government. I gently say to him that it is a bit like an arsonist demanding praise for calling the fire brigade. Let me quote what Mark Wild said about what he had inherited when he spoke to the Public Accounts Committee just days after he started in his job:
“we are in a completely unacceptable position…we have to acknowledge that HS2 has failed in its mission to control costs.”
The hon. Gentleman asked a number of specific questions, and I will answer them directly. He asks how reducing the speed to 320 kph will save money and ensure delivery. To be clear, that will mean that trains on HS2 are running as fast as bullet trains in Japan. We are making three scope changes in this announcement today: first, reducing the speed; secondly, reducing automatic train operation; and thirdly, ensuring that the signalling we put in on HS2 is aligned with the European train control system that is being rolled out on the trans-Pennine route upgrade and across the Network Rail system more broadly. We will depend on proven technologies; we are not taking a punt on world firsts. That is the way to reduce risk in the delivery of this programme and potentially reduce cost as well by up to £2.5 billion.
The hon. Gentleman asked me about bat tunnels. I can tell him that we are building no more bat tunnels on HS2 and that this Government have changed legislation through the Planning and Infrastructure Act 2025, which could mean a different approach to protected species in future. I gently ask him who was overseeing the project when HS2 took the decision to proceed with the bat tunnel. It was not this Government; it was his Government, and we have taken actions to ensure that regulations in future do not get in the way of building the homes and infrastructure that this country needs.
The hon. Gentleman asked me specifically whether the revised cost ranges include a number of different areas. I can confirm that there is provision within this range for the delivery of Euston, though we have also gone out to market to attract private investment, given that in the 10-year infrastructure strategy we set out our ambition to deliver the new HS2 station through a public-private partnership. The signalling costs are also included in those cost ranges.
The hon. Gentleman rightly asked me what action HS2 is taking to improve its performance on settling claims on land and property. I know that there are very many hon. Members in this House whose constituents will have experienced frustrations in that regard. In the letter I recently wrote to the chair of HS2 setting out his priorities for the year, I was clear that I wanted greater attention on this area.
Finally, the hon. Gentleman asked me about some of the minor changes that Avanti West Coast has made recently to its summer timetable. It came to me with a proposition to better optimise its service pattern to meet the demand in the summer months. If we can save money because we are not moving trains around the country with half-empty carriages, as a responsible Government I think it is reasonable for us to look at that. On the timetable introduced on Sunday, we have seen significant enhancements, including additional seats on London Northwestern services between London and Birmingham. We are seeing the most regular Mid Cornwall Metro service in 60 years. Where his Government failed to invest in Britain’s rail network, this Government are doing exactly the opposite and ensuring that people across the country have the trains they need and deserve.
My question is not actually on HS2, because the Rail Minister and the HS2 chief exec are coming to the Committee tomorrow, but on elements that are picked up in the Lovegrove report. What is the Secretary of State doing now to ensure that essential transport projects, starting with the lower Thames crossing and the Northern Powerhouse Rail project, do not go the same way? Will she assure me that she will not put on the high-vis and the hard hat for the photo opportunities until all the detail, permits and cost budgets are in place first?
My hon. Friend asked me what lessons we are learning about the delivery of future transport infrastructure. On Northern Powerhouse Rail, we have worked closely with local leaders to agree scope, priorities and sequencing in advance, so that we know what elements of the overall programme will be delivered first. We have set an overall budget cap for that, and are securing local contributions to ensure that we maximise the economic and regeneration potential of the new transport infrastructure in those places. We are learning the lessons.
We in this country know how to build high-speed lines, because we did it between London St Pancras and the channel tunnel at a reasonable cost. Of course, our French and Spanish allies also know how to do it. The high-speed line from Tours to Bordeaux in France took 15 years, including all the planning and construction. The Secretary of State highlighted Crossrail’s expertise on the expert panel, which is welcome, but is she sure that that expertise is the same as is needed in the more specialised case of high-speed rail construction? Is she confident that her expert panel has the specific high-speed rail construction and commissioning skills that we need, from either the UK or abroad, to turn the situation around?
On the expert panel, I assure the hon. Gentleman that there are the multiple layers of assurance as regards the new plan and who has looked at it. We have real expertise on the third line of defence panel, including Kenny Laird, Andrew Paul, Rachel McLean, Colin Brown, Laurent Troger and Miles Ashley. We have also included a rep from the National Infrastructure and Service Transformation Authority, and the project representative is involved as well. This is a substantial group of people, who are all putting their shoulder to the wheel to make this project a success.
May I ask the Secretary of State specifically about noise modelling? Modelling has found that in Wendover—where trains were already going to come through at 320 kph—hundreds of homes will face noise that is above the permitted decibel limit set down by the World Health Organisation. Will she commit to the Government fully remodelling the noise impacts on real people—certainly in Buckinghamshire—of the new speed that she has set for HS2, and come back to the House with a commitment that the noise level will not be above the level set out in WHO guidance?
The community is furious. My constituents are the most, or certainly some of the most, impacted by HS2. Just last month, the A38 going past Lichfield was closed, forcing 70,000 vehicles a day on to roads in the city. My constituents are fed up. Can the Secretary of State give some reassurance that the ongoing works at Streethay—that is one of only two places north of Curzon Street where work is continuing—will be completed on time, by October? What mitigations will the Department put in place for communities like mine, who are significantly impacted? By the sounds of it, it could be a third of a century from the start of this process before the trains actually start travelling through our part of the world.
I have heard nothing to suggest that the works at Streethay will not be delivered on time. If there is any new information that I have not been apprised of, I will come back to my hon. Friend and let him know. It is important that we continue with the works north of Birmingham up to Handsacre junction, because that is how HS2 will connect to the wider rail network. In the short term, this project will improve connections between London and Birmingham; in the longer term, this is about improving the frequency, capacity and reliability of connections to the north-west, and beyond to Scotland. I appreciate his constituents’ patience with this project, because it is in the national interest.
Can I counter-intuitively ask her to be a little more ambitious, despite everything she has said about high-speed rail? She will recognise that the strategic benefits of high-speed rail, as they were put to this House originally, were about a nationwide network, not simply a line between London and Birmingham. Can she confirm that this Government—and future Governments, hopefully—will seek to expand that network, so that high-speed rail focuses not on going faster, but on going further?
Although I recognise that there will be some impacts in the hon. Lady’s constituency, this is a great engineering feat that we are involved in delivering. It will be the first new terminus station that this country has built in 125 years, and there will be new stations at Birmingham Interchange, Old Oak Common and Euston. Although I am always happy to talk to her about the local impacts, HS2 can provide very significant improvements to the rail network, and the Government are entirely right to be committed to completing this project.
I am glad that the Secretary of State has laid out how she will get a grip on this, but I would like to add to what the right hon. and learned Member for Kenilworth and Southam (Sir Jeremy Wright) said: once she has demonstrated that this Government have got a grip of the costs and the timescales, can we be more ambitious and reopen discussions about extending the line beyond Birmingham, and up to Manchester and Leeds?
I have to disagree with the hon. Lady on the idea that we should cancel the project. In his letter to my Department’s permanent secretary, the chief executive of HS2 made it very clear that cancelling this project and doing the necessary remediation could cost almost as much as completing the line. We would have half-completed structures strewn across the English countryside, and I am sure that her constituents would not wish to see that. That is why it is right to reset this project and to complete HS2, as I have set out today.
The Chair of the Transport Committee, the hon. Member for Brentford and Isleworth (Ruth Cadbury), said on BBC Radio 4’s “Today” programme yesterday that the most important thing is that HS2 will create a high-speed link between London and the north-west, and eventually to Scotland. Scottish taxpayers are paying for this folly. The Secretary of State can say the rest of the project will come in 2043, but will she explain when the project will extend to Scotland, as was suggested yesterday? How much more will we in Scotland be expected to pay? How many years after 2043 will it be delivered?
One of the key issues affecting my communities is the land being taken by HS2 that is yet to be released, including around Arden Cross—a project worth hundreds of millions of pounds that includes a health campus and is in conjunction with the local mayor, local councils and the University of Warwick. I am told that it might take four years, but I think it could be done in two years. Will the Secretary of State take a look at this issue?
Contains Parliamentary information licensed under the Open Parliament Licence v3.0.