Ministers have repeated their commitment to a high-level £96bn rail plan drawn up last year, but less is likely to be built for that money than originally anticipated.
It is understood that sections of the high-speed network between Crewe and Birmingham are likely to be delayed or trimmed, while full running of trains into London Euston may also be held off further.
At least £2bn more will be needed for the first London-Birmingham stretch alone since the last official update in October, well above the contingency sums in the initial £44.6bn funding, casting doubt over prospects for the full network’s delivery.
While the chancellor, Jeremy Hunt, and Downing Street reiterated in January that the government would build the line between London Euston and Manchester, the Department for Transport has been under mounting pressure to find cost savings from HS2 – or let other, non-HS2 rail investment projects lapse.
Ministers have repeated their commitment to the £96bn rail plan drawn up last year, but what will actually be built is less than anticipated
HS2 Ltd and the DfT have been working on cost-saving options under two tightly guarded initiatives, entitled Project Silverlight and Operation Blue Diamond. The transport secretary, Mark Harper, is expected to deliver the news in a statement to MPs today.
Although delays have long been acknowledged to have increased the eventual overall cost of infrastructure projects such as HS2, the current economic climate and Treasury pressure is leading ministers to consider deferring parts of the scheme.
The completion of the line into London Euston could be knocked further back until the 2040s, with insiders suggesting that the London terminus is not required until the line to Manchester is open.
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