The UK government announced on May 19 that the construction cost of High Speed 2 (HS2) has continued to rise even after a reduction in the project's scope, potentially exceeding £100 billion (approximately HK$1.05 trillion), with further delays to the completion timetable.
HS2, one of the UK's largest and most controversial infrastructure projects in recent years, was originally planned to connect London, Birmingham, Manchester and Leeds with high-speed rail. However, due to spiralling costs and repeated delays, the government has previously cancelled several sections, and the current focus is on the London-to-Birmingham segment.
More than 30% of cost increase linked to inflation
Transport Secretary Louise Alexander said that, based on 2025 prices, the cost of completing the London-to-Birmingham line could range between £87.7 billion and £102.7 billion (approximately HK$9.2 billion to HK$1.1 trillion). She noted that about two-thirds of the increase is due to underestimation of engineering complexity and poor project delivery efficiency, while the remaining one-third is linked to inflation.
She also said the expected completion date has been pushed back further. The London-to-Birmingham section, originally slated to open this year, has now been delayed to as late as 2039. Under the latest schedule, the central London terminus is expected to become operational no earlier than 2040, and could be postponed as far as 2043. In addition, the maximum design speed of the project's trains has been reduced from 360 km/h to 320 km/h to lower testing, certification and construction costs. The government expects this adjustment to save up to £2.5 billion (approximately HK$26.2 billion).
Alexander said the cost of cancelling the remaining work and restoring the land already under construction has been assessed as nearly as high as completing the project, so the government has decided to proceed.
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