The High Speed Rail Group (HSRG), which represents contractors, has dropped demands to complete the project’s original route between Birmingham and Manchester, which was scrapped by Rishi Sunak in October 2023.
It comes after a group of MPs warned that the cost of building HS2 between London and the West Midlands could spiral to as much as £80bn.
Shortly after joining HS2 Ltd as chief executive at the start of December 2024, Mark Wild said the project was “in a very serious situation that requires a fundamental reset”.
But he is under pressure from Labour MPs and Andy Burnham, the mayor of Greater Manchester, to outline alternatives to improve transport in the North.
Northern rail links in turmoil after HS2 axed, damning new report warns
Read MoreIn October, the Government paused the sale of land previously acquired to build HS2’s northern leg, while ministers considered alternatives to the scheme.
Dyan Perry, chair of HSRG, told The i Paper: “HS2 is at a crossroads. If delivered correctly, it will unlock national transport capacity, generate a multi-billion pound return to the Treasury, drive economic growth across the UK and enhance regional connectivity.
“HS2 has already stimulated significant investment in the UK’s supply chain, workforce skills, and infrastructure expertise to name just a few benefits.
The Treasury was approached for comment.
The PAC said HS2 Ltd – the Government-owned company responsible for building the high-speed railway – and the DfT have “failed to work together effectively”.
The DfT’s estimate in November 2023 was £45bn to £54bn, while HS2 Ltd’s latest estimate in June 2024 was between £54bn and £66bn.
The PAC said: “The department and HS2 Ltd must not waste this latest opportunity to reset the programme properly, learning lessons from past mistakes and maximising for the taxpayer what value they can from this huge investment.”
“That is why the Government acted swiftly to get the project back under control by bringing new leadership to HS2 Ltd, directing the company to begin work on resetting culture, schedule and costs, and reinstating robust ministerial oversight.
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