Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

UK's Hunt backs high-speed rail link to central London despite soaring costs

Published 27/01/2023, 09:04

By Sarah Young

LONDON (Reuters) -British finance minister Jeremy Hunt promised that the country's new high-speed rail line HS2 would connect to central London as originally planned, dismissing a report that it would end on the outskirts of the capital to save money.

"I don't see any conceivable circumstance in which that would not end up at Euston," Hunt said on Friday after he delivered a speech laying out his plans for growth.

The Sun newspaper reported earlier that the government was considering stopping the flagship rail connection in west London, instead of Euston in central London, due to surging inflation.

"We are absolutely committed to showing that we can deliver big, important infrastructure projects," Hunt said.

Hunt's backing for Euston does not rule out the newspaper's suggestion that the government was also considering delaying the whole project or pushing back the time line for the 7 kilometre tunnel connecting west London to Euston.

Asked about the report in the Sun before Hunt spoke, the government's Department for Transport had said: "The government remains committed to delivering HS2 to Manchester."

HS2, which will connect London to Manchester in northern England, was expected to cost between 72 billion pounds ($89 billion) and 98 billion pounds at 2019 prices, but since then inflation has soared, with price rises in the construction industry standing at around 18%.

SCALED BACK

The 2019 budget was already a big jump from the 2015 estimate of 56 billion pounds.

The government has already scrapped a link to the northern city of Leeds due to the spiralling costs of the project which is scheduled for final completion from 2035-2040.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

A trade association representing companies working on rail projects in Britain, High Speed Rail Group, said not linking to Euston would damage the whole point of HS2, because it would reduce capacity given the lack of platforms in west London.

Britain was the birthplace of rail travel and has an extensive network dating back to the nineteenth century.

But in the twenty-first century, it has fallen behind European peers like Spain and France which have thousands of kilometres of high speed infrastructure.

In northern England, in particular, the rail network is struggling, hit by a lack of investment and poor management.

The poor state of the transport network is the number one complaint among mayors representing cities in the north of England. On Wednesday they issued a joint statement saying they could no longer accept the current system.

Construction of the first part of HS2, from west London to Birmingham, is already underway. Building the second part from Birmingham to Manchester is slated to begin in 2024.

($1 = 0.8085 pounds)

Latest comments

What a waste of money! People dying because of the dire state of the once world leading health service… instead of investment in where its needed …money is spent on a high speed…railway!
at least they'll be able to get the private hospitals faster
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.