Committee publication · Correspondence · 1 June 2026

Letter from the Secretary of State at the Department of Transport relating to HS2 Parliamentary Report, 19 May 2026

Summary

The Secretary of State for Transport announces a fundamental reset of HS2, confirming revised cost estimates of £87.7–£102.7 billion (up from previous projections) and a delayed opening between May 2036 and October 2039 for the first stage. The government has accepted HS2 Ltd's advice to reduce complexity by adopting European operating standards (320 kph instead of higher speeds), potentially saving £1–2.5 billion and at least one year.

Key findings

After five years of construction and over £40 billion spent, HS2 remains non-operational and cost estimates have risen significantly to £87.7–£102.7 billion in mixed price base.
Opening of the first stage (Old Oak Common to Birmingham Curzon Street) now expected between May 2036 and October 2039, compared to the previous 2033 target.
Government has accepted recommendation to operate HS2 at up to 320 kph (European standard) rather than original higher specification, reducing testing complexity and certification risk.
Potential savings of £1–2.5 billion and at least one year of delivery time achievable through adopting proven leading European high-speed operating standards.
Cost and schedule estimates now built using same experts and methods as the successful Crossrail reset to improve credibility and rebuild public trust.

Tone

Factual

Topics

transport-infrastructurepublic-financeproject-deliveryrail

Key actors

Rt Hon Heidi Alexander MP, Mark Wild, HS2 Ltd, Department of Transport, Public Accounts Committee

Notable line

“… after more than five years of construction, and over £40 billion spent, the country is no closer to having an operational HS2 railway than when construction first began.”

Key Quotes

“… after more than five years of construction, and over £40 billion spent, the country is no closer to having an operational HS2 railway than when construction first began.”
— Rt Hon Heidi Alexander MP · Opening statement on the state of HS2

“It gives me no pleasure to confirm the expected cost of completing HS2 is now between £87.7 billion and £102.7 billion.”
— Rt Hon Heidi Alexander MP · Announcing revised cost estimates

“HS2 had become a symbol of decline.”
— Rt Hon Heidi Alexander MP · Characterising the programme before reset

“It could potentially save between £1 billion and £2.5 billion and at least a year in delivery time over the life of the delivery programme.”
— Rt Hon Heidi Alexander MP · Impact of adopting European operating standards

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Source · parliament.uk record ↗