HS2 opening delayed beyond 2036 as projected costs climb above £100bn

The UK government has confirmed that HS2 services are unlikely to begin operating before 2036, while revised forecasts now place the total cost of the high-speed rail project at between £87.7 billion and £102.7 billion.

Transport Secretary Heidi Alexander announced the updated figures in Parliament, describing the project as an example of repeated mismanagement and failed oversight rather than the symbol of national ambition it was originally intended to become.

Under the revised timeline, the first passenger services are expected to run between Birmingham Curzon Street and Old Oak Common sometime between May 2036 and October 2039. Trains are not expected to reach central London’s Euston station or Handsacre Junction until a later phase scheduled between 2040 and 2043.

Alexander said the new estimates were based on more realistic assumptions and designed to provide a firmer long-term assessment of both cost and delivery timescales.

According to the Department for Transport, around two-thirds of the cost increases are linked to earlier underestimation of engineering complexity, delivery inefficiencies and poor project management decisions made by previous administrations and project leadership. The remaining increase has been attributed to inflationary pressures that were not fully reflected in earlier financial forecasts.

The government also confirmed that HS2 trains will now operate at a maximum speed of 320km/h (200mph), rather than the originally proposed 360km/h (225mph). Ministers said the reduction would lower testing and operational costs while also shortening elements of the delivery programme.

Alexander criticised the previous focus on achieving record-breaking train speeds, arguing that passengers were more concerned with reliability, capacity and service frequency than headline speeds.

The revised cost range includes allowances for Euston station and signalling infrastructure, although the government said it is continuing to explore private investment opportunities to support parts of the scheme.

Despite growing criticism surrounding the project, the Transport Secretary insisted that cancelling HS2 would ultimately cost taxpayers close to the same amount as completing it, while leaving partially built infrastructure across large parts of the country without delivering any long-term transport benefits.

Shadow Rail Minister Jerome Mayhew acknowledged that efforts to reduce costs were necessary and said mistakes made during the project’s development needed to be addressed.

The latest announcement marks another major reset for HS2, which has faced years of escalating costs, revised delivery schedules and political scrutiny since construction first began.