LONDON, May 19 (Xinhua) -- Britain's High Speed 2 (HS2) rail project is now expected to cost up to 102.7 billion pounds (about 138 billion U.S. dollars), about 20 billion pounds higher than the previous upper estimate, with full services not due to begin until the early 2040s, Transport Secretary Heidi Alexander told parliament on Tuesday.
Alexander told the House of Commons that the latest estimate for completing HS2 is between 87.7 billion pounds and 102.7 billion pounds in 2025 prices, marking another sharp rise in the cost of the long-delayed project.
Alexander said the latest increase reflected long-running problems in the management and delivery of the project, including underestimation of the work required, inefficiency within HS2 Ltd and its suppliers, and inflation that had not been regularly reflected in earlier cost forecasts.
The project will also be delivered much later than previously planned. Alexander said the first HS2 services between Old Oak Common in west London and Birmingham Curzon Street are now expected to begin between May 2036 and October 2039. Full services from London Euston to Handsacre Junction, connecting to the West Coast Main Line, are not expected before May 2040 and could be delayed until 2043.
HS2 was originally planned as a Y-shaped high-speed rail network linking London with Birmingham, Manchester and Leeds. When first proposed in 2010, the London-Birmingham section was expected to open by 2026, before the timetable was later pushed back to 2033. Large parts of the route were subsequently cancelled as costs escalated, leaving the project largely limited to the London-Birmingham line.
HS2 has long been one of Britain's most controversial infrastructure projects. Supporters say it could increase rail capacity, cut journey time and support regional economic growth, while critics have cited repeated delays, rising costs, environmental disruption and uncertainty over its final benefits.
Alexander said the government had considered whether cancelling the remaining project would offer better value for money, after more than 40 billion pounds had already been spent. However, a review led by HS2 chief executive Mark Wild concluded that cancelling the scheme and restoring the land could cost almost as much as completing it.
The transport secretary also said HS2 trains will run at 320 km per hour, rather than the originally planned 360 km per hour, a change expected to save up to 2.5 billion pounds. She said the lower speed would still make journeys between Birmingham and London about 30 minutes faster than current services.
The latest estimate includes the redevelopment of Euston station in London, but Alexander said uncertainty remained over the final cost because there was still no agreed plan for the design and construction of the London terminus. ■