High Speed 2 Reset

Caroline Nokes Excerpts

Tuesday 19th May 2026 Commons Chamber

[The Secretary of State for Transport (Heidi Alexander)]

With permission, I will make a statement on High Speed 2.

Last summer, I stood at this Dispatch Box and promised that we would be straight with the British people not just about the appalling mess we inherited, but about how we would fundamentally reset the HS2 project. Today I am publishing the latest parliamentary report and the Lovegrove report—an assessment of what past failings in the delivery of HS2 mean for the civil service and the wider public sector. This was a Cabinet Secretary investigation commissioned by the Prime Minister last year. I will also take this opportunity to update hon. Members on the latest stage of the HS2 reset.

However, I will first remind the House of the litany of failures we inherited in July 2024. Costs soared by £37 billion under the previous Government alone, with billions of pounds of taxpayers’ money sunk into phase 2 work for the sections north of Birmingham before they were abruptly cancelled. Huge contracts were handed out without improvements in price, despite the Oakervee review’s recommendation to negotiate a better position.

Instead of signalling the country’s ambition, HS2 became a symbol of this country’s decline. After more than five years of construction and more than £40 billion spent, the country was no closer to having an operational HS2 railway than when construction first began. That is the shocking legacy of the previous Government, and I am afraid it gets worse: I can today confirm that the previous Government spent most of HS2’s budget without laying a single metre of its track. Today is about ending that era of neglect.

New chief executive officer Mark Wild and chair Mike Brown have an almost impossible task on their hands; as Mark put it to me recently, it is like changing the engine of an aeroplane mid-flight. However, the new leadership team at HS2 is turning things around, with six major construction milestones reached earlier than planned in the past year. The organisation is more focused on the things that matter, with 300 back-office roles removed. HS2 Ltd is reviewing its supply chain contracts and the incentives within them to ensure that we finish the job at the lowest reasonable cost, and it is managing those contractors properly now to ensure that supplier performance is up to scratch. Finally, we are seeing improved oversight, with HS2’s leadership now receiving real-time updates, helping to prevent delays and keep construction to time.

However, there is no getting away from the fact that the vast majority of HS2’s previous budget was blown on completing around a third of the entire project. Over the past year, Mark Wild and HS2 Ltd have worked closely with me and my Department to assess the remaining work to be done. They have now provided me with updated costs and timescales, which I can share with the House.

It gives me no pleasure to say that the expected cost of completing HS2 is now between £87.7 billion and £102.7 billion, priced in 2025. Two thirds of that increase is down to past misunderstanding of the work required, underestimation and inefficiency—issues within the control of HS2 Ltd, some of its suppliers and previous Governments. The remaining third is linked to inflation, which was not factored into previous cost estimates regularly enough.

On timings, I said last year that I could see no route by which trains could be running by 2033. We now expect the first services to run from Old Oak Common to Birmingham Curzon Street between May 2036 and October 2039. Where the previous Government could not say when the full HS2 scheme between Euston and Handsacre Junction would be delivered, I now expect it to happen between May 2040 and December 2043. Lessons have been learned from the Stewart review, meaning that HS2’s cost and schedules are now built on more solid foundations, with credible estimates published as ranges to ensure that they better stand the test of time.

Colleagues may feel that they have heard this all before; I understand that scepticism, but it is different this time. HS2 Ltd has now used the same experts and methods behind the successful Crossrail reset. It has priced future work against what we have learned so far, and its homework has been checked by an independent panel of experts.

However, if this seems like an obscene increase in time and costs, it is because it is. If it seems that I am angry, it is because I am. I am angry on behalf of taxpayers and affected communities who have been swindled by the failures of successive Conservative Governments; I am angry on behalf of the thousands of rail and construction workers who are giving their all on this project, and who do not deserve to have their industry tarnished in this way; and I am angry on behalf of passengers who continue to wait for the new services and new opportunities that they deserve.

Despite this sorry situation, we are determined to claw back as much time and money as possible. The Lovegrove report not only corroborates the Stewart review’s damning assessment of the decision-making environment under the previous Government, but talks about the original “gold plating” of HS2 and a focus on

“the highest possible speeds, resulting in bespoke and highly engineered design”.

To translate: it was a massively over-specced folly, with the prospect of the fastest trains anywhere in the world tickling the fancy of Conservative Ministers. If we were a country the size of China, I could understand it—but we are not. Passengers just want reliable trains that turn up when they are supposed to, more services and more seats. They want a common-sense approach that gets them the railway they deserve, not a vanity project with trains so fast that proper testing could not be done until track and railway systems were complete.

I therefore asked Mark Wild to remove the gold-plating and complexity from this project, and I have today accepted his recommendation to align HS2 with speeds already delivered on other European high-speed networks. That means we will still run some of the fastest trains in Europe, with speeds reaching 320 kph; but, crucially, it will lower the cost of testing and make delivering the project less risky. It could realise savings of up to £2.5 billion and save at least a year in delivery time.

I realise that there will be those who will say that this is all too much and that we should just cancel the whole thing. However, I can confirm today that it could cost almost as much to cancel the line as it would to finish it, while delivering none of the benefits, with half-finished structures strewn across the English countryside, a relic of what could have been.

This Labour Government are clear that we will deliver HS2 to completion, because this country can build big things; we just need competent people at the helm to deliver them. Prime Ministers Cameron, May, Johnson, Truss and Sunak—

[Madam Deputy Speaker (Caroline Nokes)]

Order. I am sure that the Secretary of State did not mean to use the name of the right hon. Member for Richmond and Northallerton (Rishi Sunak).

[Heidi Alexander]

My apologies, Madam Deputy Speaker.

Previous Prime Ministers, in my view, created the world’s most expensive slow-motion car crash, and they barely batted an eyelid. This Government have rolled up our sleeves and done the hard yards, putting the right team in place and being honest about the scale of the challenge.

I understand that this statement today will be met with cynicism and anger, but I say with genuine pride and conviction that I believe we are finally starting to see real delivery. Tunnelling machines are currently working under Londoners’ feet to make HS2 to Euston a reality, and Birmingham’s skyline is changing before our eyes, with new film studios, a sports quarter and housing all being built around the new Curzon Street station. This is national renewal in action. When I last worked with Mark Wild and Mike Brown, we took the delayed and over-budget Crossrail project and turned it into the Elizabeth line, which has now served more than half a billion passengers. We have done it before, and we will do it again. I commend this statement to the House.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.

--- Later in debate ---

[Heidi Alexander]

I am grateful to the shadow Rail Minister for his questions and the tone in which he presented his case. He was not quite as bombastic at the Dispatch Box as he normally is, so I can only assume that perhaps he was considering making an apology for the dreadful mess that the previous Government left this project in. I did not hear one, but I accept the manner in which he made his points. I do question where the shadow Secretary of State, the right hon. Member for Basildon and Billericay (Mr Holden), is today. This is not the first time that he has run scared from an oral statement, and I can only assume that it is because he is embarrassed by his party’s abject record on transport.

The hon. Gentleman talked about the appointment of the new CEO, Mark Wild, under the previous Government. I gently say to him that it is a bit like an arsonist demanding praise for calling the fire brigade. Let me quote what Mark Wild said about what he had inherited when he spoke to the Public Accounts Committee just days after he started in his job:

“we are in a completely unacceptable position…we have to acknowledge that HS2 has failed in its mission to control costs.”

The hon. Gentleman asked a number of specific questions, and I will answer them directly. He asks how reducing the speed to 320 kph will save money and ensure delivery. To be clear, that will mean that trains on HS2 are running as fast as bullet trains in Japan. We are making three scope changes in this announcement today: first, reducing the speed; secondly, reducing automatic train operation; and thirdly, ensuring that the signalling we put in on HS2 is aligned with the European train control system that is being rolled out on the trans-Pennine route upgrade and across the Network Rail system more broadly. We will depend on proven technologies; we are not taking a punt on world firsts. That is the way to reduce risk in the delivery of this programme and potentially reduce cost as well by up to £2.5 billion.

The hon. Gentleman asked me about bat tunnels. I can tell him that we are building no more bat tunnels on HS2 and that this Government have changed legislation through the Planning and Infrastructure Act 2025, which could mean a different approach to protected species in future. I gently ask him who was overseeing the project when HS2 took the decision to proceed with the bat tunnel. It was not this Government; it was his Government, and we have taken actions to ensure that regulations in future do not get in the way of building the homes and infrastructure that this country needs.

The hon. Gentleman asked me specifically whether the revised cost ranges include a number of different areas. I can confirm that there is provision within this range for the delivery of Euston, though we have also gone out to market to attract private investment, given that in the 10-year infrastructure strategy we set out our ambition to deliver the new HS2 station through a public-private partnership. The signalling costs are also included in those cost ranges.

The hon. Gentleman rightly asked me what action HS2 is taking to improve its performance on settling claims on land and property. I know that there are very many hon. Members in this House whose constituents will have experienced frustrations in that regard. In the letter I recently wrote to the chair of HS2 setting out his priorities for the year, I was clear that I wanted greater attention on this area.

Finally, the hon. Gentleman asked me about some of the minor changes that Avanti West Coast has made recently to its summer timetable. It came to me with a proposition to better optimise its service pattern to meet the demand in the summer months. If we can save money because we are not moving trains around the country with half-empty carriages, as a responsible Government I think it is reasonable for us to look at that. On the timetable introduced on Sunday, we have seen significant enhancements, including additional seats on London Northwestern services between London and Birmingham. We are seeing the most regular Mid Cornwall Metro service in 60 years. Where his Government failed to invest in Britain’s rail network, this Government are doing exactly the opposite and ensuring that people across the country have the trains they need and deserve.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Chair of the Transport Committee.

--- Later in debate ---

[Heidi Alexander]

My hon. Friend the Chair of the Select Committee is right that the problems of HS2 were born many years ago. The fact that the civil engineering was delayed for four years is not the product of decisions by this Government or the current management of HS2, but is, as she says, about overly optimistic cost estimates, construction starting before designs were mature, insufficiently controlled delivery, poor contractual arrangements, gold-plating, and constant changes in policy and scope. She is entirely right on that.

My hon. Friend asked me what lessons we are learning about the delivery of future transport infrastructure. On Northern Powerhouse Rail, we have worked closely with local leaders to agree scope, priorities and sequencing in advance, so that we know what elements of the overall programme will be delivered first. We have set an overall budget cap for that, and are securing local contributions to ensure that we maximise the economic and regeneration potential of the new transport infrastructure in those places. We are learning the lessons.

[Madam Deputy Speaker]

I call the Liberal Democrat spokesperson.

[Olly Glover (Didcot and Wantage) (LD)]

I thank the Secretary of State for her candour on the scale of the HS2 disaster and for the specificity of the range of dates she provided. The Liberal Democrats certainly agree with her intent: we need to make the most of this shambles, and it would be better to do something with what has been built rather than scrap it and hope that doing so resets the past. It is also good news that the Secretary of State has outlined a commitment to proven technology, rather than the innovations of the future—warp drive and whatever else was being talked about before. In particular, the use of the ETCS for signalling is welcome.

We in this country know how to build high-speed lines, because we did it between London St Pancras and the channel tunnel at a reasonable cost. Of course, our French and Spanish allies also know how to do it. The high-speed line from Tours to Bordeaux in France took 15 years, including all the planning and construction. The Secretary of State highlighted Crossrail’s expertise on the expert panel, which is welcome, but is she sure that that expertise is the same as is needed in the more specialised case of high-speed rail construction? Is she confident that her expert panel has the specific high-speed rail construction and commissioning skills that we need, from either the UK or abroad, to turn the situation around?