They said the Treasury was alarmed by the rising costs on parts of the HS2 northerly route where planning is at its most advanced, including the section from Crewe to Manchester. The Department for Transport insisted no final decisions have been taken on the eastern leg of HS2. Ministers are looking at ways in which other rail improvements can mitigate an expected prolonged delay in its construction. “The Integrated Rail Plan will soon outline exactly how major rail projects, including HS2 phase 2b and other transformational projects such as Northern Powerhouse Rail, will work together to deliver the reliable train services that passengers across the north and Midlands need and deserve,” the DfT said.
Ministers are studying long-delayed plans to improve rail connections across the Pennines between Leeds and Manchester. Another option being considered is to build a much shorter HS2 easterly extension to the East Midlands and to improve existing lines. Last December, the National Infrastructure Commission, a government advisory body, recommended delaying the eastern leg in favour of improved regional rail links, which it said would be quicker to build and would increase economic growth by 20 per cent more than long-distance rail services.
The Treasury, which has been forced to bail out the rail industry during the Covid pandemic, believes the “working from home” revolution has further weakened the case for expensive new rail projects.