The Independent understands levelling up secretary Michael Gove and transport secretary Mark Harper are "very unhappy" about the prime minister's plot to axe the route from Birmingham to Manchester.
In one of the biggest political stories of the year, this publication first revealed Mr Sunak was in secret talks - dubbed Project Redwood - with his chancellor Jeremy Hunt to scrap the second phase of the project. George Osborne, the former chancellor, and Michael Heseltine, the former deputy prime minister, described the proposal as a "gross act of vandalism" that would end up being a case of "economic self-harm".
After the story broke on 14 September, Downing Street repeatedly stonewalled before ministers accepted talks over the most dramatic decision in years to stop a £34bn infrastructure spend were taking place. The story has prompted unprecedented fallout, with two former prime ministers attacking Mr Sunak amid a cascade of criticism and cabinet divides. Boris Johnson and David Cameron were joined by ex-chancellor Philip Hammond in urging the PM not to cut the high-speed rail route.
Mr Sunak and Mr Hunt are understood to have been surprised by the major backlash from business chiefs, northern mayors and senior Tories and are thought to have delayed a final decision and announcement until after next week's party conference.
A source close to government discussions on HS2 told The Independent: "The PM and chancellor have opened up a big rift in the Tory party. There are significant figures in cabinet who are opposed [to ditching HS2]. Michael Gove and Mark Harper are very unhappy." The source added: "They've bottled any announcement for the moment. The backlash has been so big they are not ready to cancel. They are having to consider how to rephrase it. [Sunak] is going to have a very challenging conference in Manchester."
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