Cancelling leg of HS2 will cost £100m, watchdog says

The decision to scrap the second phase of HS2 will cost up to £100m and could take three years to complete, an official report has revealed.

- ARCHIE MITCHELL

Rishi Sunak's decision to slim down the high-speed rail link also means the government has £592m worth of land and property on the route from Birmingham to Manchester it needs to sell, which the government spending watchdog has warned could take years and distort local housing markets.

The National Audit Office (NAO) laid bare the costs and complications of Mr Sunak’s decision to scrap phase 2, first revealed by The Independent last September.

The former PM used his conference speech that October to confirm plans to scrap HS2’s northern leg, sparking fury among local leaders, business chiefs and senior Tories, including David Cameron. He said the decision would save £36bn, which Mr Sunak promised to redirect towards transport projects including fixing potholes and upgrading motorways.

Labour’s newly appointed transport secretary Louise Haigh said the NAO report showed how the Conservatives had “allowed the costs to spiral entirely out of control”.