The frustrating thing is that Phase 1 getting canned now won't make one jot of difference to improved links in the north (equally needed) appearing any quicker....
I suspect that if HS2 doesn't get canned, the money available for HS3 will be pretty much zilch as HS2 will take it all up.
When I travel to various parts of the country, it is always the trains to and from London which are the best appointed and have the best timings. The quality and speed of trains appears inversely proportional to the distance from London, ie the further away the worse it gets. Even those to Scotland get slower from Preston.
Cross-Country trains should be double the length and many journeys which should be cross-country are actually cheaper and quicker via London because the trains are too short and the line speed is pathetic.
Transpennine is replacing its 185's with longer trains, but these will be full within a year or two - in London they would have been 6 coach trains ages ago and 8 coaches now. Look at the miserable service in the South West, North East. Because travel to / from London has been made so much better than any other journeys, people travel to / from London and London becomes ever-more the greater focus as they dream up CrossRail1, then CrossRail 2. Government and business needs spreading more around the country. Execs and Senior Civil servants will not move to the sticks unless the CEO / directors or top Civil servants move too.
The best way to get proper transport planning in this country would be to move the Department of Transport away from London to Hull, Liverpool, Newcastle, Leeds or Exeter.
A further point is that lack of capacity on passenger services between London and Birmingham is in my opinion a bit of a falacy. During a serious disruption at Kings Cross, I went to St Pancras and a Pendalino at 19.30 to Manchester was virtually empty.