Overview
Today, alongside my oral statement in the House, I am publishing this government’s latest report to Parliament on High Speed Two (HS2).
Over the past year, Mark Wild and HS2 Ltd have worked closely with my department and other partners in government to assess the remaining scope of work, and to estimate thoroughly how long it will take and how much it will cost to complete the project. The government has accepted his advice on the revised cost and schedule for completing HS2, and I am now sharing these figures publicly.
The expected cost of delivering HS2 is now in the range of £ 87.7 – 102.7 billion. This is expressed in a mixed price base, including the cash outturn of works to date and the costs of future work excluding inflation. This represents £ 70.9 – 82.2 billion in an equivalent 2019 mixed price base – a stark increase on the previous cost range of £35 – 45 billion (2019 prices) set under the previous government.
These ranges cover the cost of the whole programme, stretching from London Euston to Birmingham Curzon Street and to the connection to the West Coast Main Line at Handsacre Junction, which will enable HS2 services to continue to the Northwest and Scotland. This includes the indicative expected cost of delivering HS2 to Euston, some of which we intend to fund through private finance and other sources.
Regarding schedule, the delivery of HS2’s opening stage is now expected between May 2036 and October 2039. This will see the first trains running between Old Oak Common in west London and Birmingham Curzon Street. We estimate that the full scheme, including both Euston to the south and Handsacre Junction to the north, will open between May 2040 and December 2043.
Two thirds of this expected cost increase are a combination of necessary works that were missed from the scope of the original project plan, under-estimation and inefficient delivery. These are issues that were within the control of HS2 Ltd, some of its suppliers, and previous governments, and these lessons are being applied following the James Stewart Review.
A third of the cost increase is linked to inflation, which has significantly impacted the British economy over the past five years. The cost estimate for the programme was updated in the past to account for inflation, but not regularly enough. To reflect inflation more accurately in the future, including any impacts arising from the current conflict in the Middle East, we will update the price base every two years in line with future Spending Reviews.
As I set out in my interim Parliamentary Report in March, I asked HS2 Ltd CEO Mark Wild to present the government with options to reduce the complexity and over-specification of HS2 in order to bring down costs and delivery timelines. HS2 Ltd, in collaboration with my department, has reported on the initial outcomes of this work, and following robust assurance and consideration at a Ministerial Task Force, I have accepted the recommendation to bring HS2 into line with proven leading European high-speed operating standards, including operating HS2 at up to 320 kilometres per hour (kph), as it supports our endeavour to bring HS2 into operation safely at the lowest reasonable cost.
HS2’s initial work on speed specification suggests that by aligning with other top railways in Europe we could potentially save between £1 billion and £2.5 billion over the life of the delivery programme, by reducing testing and commissioning time, opening earlier and with reduced costs compared to existing plans. The main savings come from avoiding the risks associated with certifying a railway at a speed not operated anywhere in the world.
This is an initial assessment that will mature further as the work is refined into a full programme baseline, but HS2 Ltd, and my department, are confident this will make it more likely that HS2 is delivered at the lowest reasonable cost. This change provides an opportunity to reduce the risks involved in delivering HS2 by aligning the speed and systems used with tried-and-tested operations in the UK and Europe – simplifying the remaining work to be delivered. The reduction in top speed will be modest and brings HS2 in line with the fastest high-speed services already operating in Europe, relying on proven technology and systems. Initial assessments indicate that journey times from London to Birmingham will increase by 3 minutes, and will still be 30 minutes faster than the current service, whilst delivering the capacity we need and supporting future economic growth along the line, and around the stations.
Mark Wild has set his organisation the challenging ambition of delivering the programme at a cost of £ 93.2 billion and an initial opening date of late 2037 for trains running between Old Oak Common and Birmingham Curzon Street. This ambition deliberately sits within the lower half of the ranges to drive better and more efficient delivery. We support it, which gives him a clear mandate to drive down costs and improve productivity.
As the reset progresses and a full delivery baseline is developed, I recognise that additional information might result in HS2 Ltd reporting above this ambition in the future. If that is the case, the ambition will remain useful to incentivise better productivity within the ranges I have published today.
Past estimates of both cost and schedule have proven clearly inaccurate. Given the need to rebuild public trust, it was essential that we learn lessons from past failures and take the time to develop a robust set of figures, as recommended by James Stewart in his review commissioned by this government. The new estimates and their methodologies have been thoroughly assessed and scrutinised, including by a panel of experts who have successfully delivered railways internationally and domestically, like the Elizabeth Line. An Accounting Officer Assessment was produced alongside the new ranges.
However, these estimates do not disguise the fact that HS2 Ltd has already spent close to the original budget. The reset work also makes clear that progress on finishing the civil engineering for the entire line of route is at least four years behind the original schedule, and that the time required to test and commission HS2 to ensure a reliable and safe service was underestimated by another three years. The number of years left to complete the programme is roughly the same as when construction started in 2020, and it is likely we will need to spend the same amount as has already been spent to date.
It is now imperative that we proceed with the final stages of the HS2 reset so that the programme is brought under control and delivered sensibly going forward.
Despite the significant challenges, the programme is at peak delivery, with 31,000 people and thousands of UK businesses working hard to deliver HS2. Delivery progress continues to be made, with the contract for HS2’s rolling stock depot at Washwood Heath, in Birmingham, awarded to a joint venture of Taylor Woodrow Infrastructure Ltd and Aureos Rail Ltd. We are starting to see results from reset HS2 is now being built faster and more efficiently, with six major construction milestones reached earlier than planned last financial year, and with early signs looking positive for this year’s milestones. Work will continue over the coming year, with the final stages of the reset expected to conclude in the first half of 2027. Under new leadership, HS2 Ltd is putting construction back in logical order, strengthening commercial controls, restructuring the organisation, and rebuilding the partnership with government.
When faced with such a difficult inheritance, I could have chosen to cancel the project and remediate the construction undertaken so far. The costs of doing so are considerable and could cost as much as completing HS2, and would result in no lasting benefit, abandoning ambitions for better national transport across our railway network and potentially leaving communities across our country blighted by unused infrastructure – something I am simply not prepared to do. Communities affected by HS2 do not want to live near half-finished structures that serve no useful purpose without a railway. The economic growth that HS2 is already driving in the West Midlands, and at Old Oak Common, through new housing development, job creation and local regeneration, would be significantly impacted. Instead, this government is committed to doing the responsible thing facing the challenge head-on so that we can leave the country’s infrastructure in a better condition than when we started.
Increasing the capacity and performance of the current network will drive economic growth. The southern section of the West Coast Main Line is congested and this limits the number of trains that can reliably run, and the number of passengers who can travel. Despite large urban centres, labour productivity in the West Midlands and the North West lags behind the national average. Faster trains will transform this, and extend these benefits to North Wales and Scotland too. This government has been clear on its mission to transform infrastructure across the country, and we are pursuing reforms that will improve our ability to deliver projects. Completing the project remains vital for economic growth and the capacity of our rail network.
The same will be true of our plans for Northern Powerhouse Rail (NPR), which will deliver a turn up and go railway across the city regions of the Northern Growth Corridor – better connecting Liverpool, Manchester, Leeds, Bradford, Sheffield, and York, with faster and more regular services to Newcastle, Chester and Hull. Development work is underway and we will maintain our focus on applying the lessons from the successful delivery of the Transpennine upgrade, and from HS2, ensuring that we improve our delivery of major rail projects across the country. We also announced our long-term intent for a full new rail line connecting Birmingham and Manchester, which informed our decision on NPR. This will not be a revival of HS2 and no decisions have been taken on the specification or timetable for delivery. In the meantime, we will retain land the government has already purchased between the West Midlands and Crewe.
These new estimates, alongside cost and schedule ambitions to incentivise better delivery, provide a robust foundation for completing the final stages of the reset. Looking ahead, our focus will remain on delivering the railway safely, as soon as possible, and at the lowest reasonable cost.
Wider reset
A key focus of the HS2 reset work has been to put the building blocks of the programme back in the right order. HS2 Ltd has assessed what it will take to finish the civils works on the line of route and stations, to deliver the rail systems, and to deploy the rolling stock, test the railway and drive reliability before starting passenger services.
Over the coming year, HS2 Ltd will be developing a new Baseline for the programme to provide a clear scope of work and path to delivery. It will also form the basis for performance monitoring and reporting by the department to ensure that the project is robustly managed once the reset is complete. I have instructed my officials to update the programme’s business case to ensure that we reflect the changes in HS2’s delivery.
In the meantime, with better contract management, clearer accountability and stronger project controls, the reset is enabling us to put taxpayers’ money to better use and deliver more construction in year for less expenditure than previously. In the 2025/26 financial year, HS2 Ltd delivered over 10% more progress on construction than planned with the same amount of money.
Taking earthworks as an example, over 2025/26, HS2 Ltd moved 25.0 million cubic metres compared to a plan of 20.8 million, an improvement of 20%. Construction costs are tracking below forecast and delivery performance improved over the past year, with six major milestones on tunnels and roads completed ahead of in-year schedule. These included the sliding of a road bridge for the A46 over the HS2 route in April 2025, the installation of precast beams and overbridges over Station Road near Calvert in August 2025, and the second breakthrough on the Bromford tunnel in Birmingham in October 2025. The north portal structure at the Chiltern tunnel was completed in 12 months, several months faster than the south portal, thanks to lessons learned and innovative construction methods. The excavation of the 8.4-mile Northolt tunnel, the second longest on HS2, was completed on schedule in June 2025 despite complex ground conditions.
These improvements have been supported by HS2 Ltd introducing an improved programme control framework. Teams are using new tools and mechanisms, allowing them to better track planned works against actual progress and delivery on the ground, and enabling better problem identification and reporting of progress. Weekly performance reviews enable construction teams to identify problems quickly and resolve issues before they escalate, creating a more responsive and accountable approach. This has taken place while key health and safety indicators have also improved.
HS2 Ltd’s new management team inherited a challenging commercial position. Prior to the reset, commercial capabilities and the management of HS2’s construction contracts were not effective. HS2 Ltd’s ability to settle commercial matters progressively and contemporaneously had deteriorated and become insufficient over recent years. Consequently, large backlogs had been allowed to develop in relation to cost verification, cost finalisation and contract change.
HS2 Ltd has since concentrated on strengthening its commercial controls. New commercial roles have been created to focus on cost verification and contract management, to scrutinise every payment application, to challenge contractor claims, and to manage contracts in taxpayers’ interests. These improvements must be fully embedded in the company, and endure beyond completion of the reset, to the conclusion of the programme.
HS2 Ltd is also engaging with its key supply chain partners to review contracts, close out historic payments only where appropriate and justified, and seek opportunities to incentivise improved performance. This work will be critical to stabilising costs and enabling us to make the spend on HS2 as efficient as possible. I will update on progress in my next report.
HS2 Ltd was set up to deliver a multiphase programme and grew accordingly; this multiphase programme no longer exists. Consequently, HS2 Ltd is being transformed into a lean and accountable delivery body focused on safe delivery between London and the West Midlands at the lowest reasonable cost. Given the overlap of alignment with elements of HS2’s former Phase 2, HS2 Ltd was already developing infrastructure for Northern Powerhouse Rail between Liverpool and Manchester. To make best use of taxpayers’ money and avoid additional costs through alternative arrangements, this work will continue and is being brigaded into a separate business unit, pending longer-term decisions about delivery responsibility for this scheme. The high-level plan we recently announced for Northern Powerhouse Rail remains unaffected by the new cost and schedule ranges for HS2.
HS2 Ltd did not have the right skills, structure or culture to deliver a programme of this scale successfully. Major steps are being taken to restructure the organisation to control and deliver HS2 more effectively, including
- reshaping the corporate centre, reducing headcount by cutting 300 corporate roles and rebalancing the organisation to better support delivery teams
- redirecting resources to boost frontline delivery capacity by 40%, with 168 additional roles focused on cost management, oversight and decision-making
- bringing in skilled and experienced professionals across commercial, technical, assurance, controls, and finance functions to fill critical capability gaps
As a result, there has also been significant restructuring of the leadership team at HS2 Ltd. This includes appointing a new Director of Business Delivery to reshape the organisation and a Chief Commercial Officer to provide additional commercial leadership, a gap identified in James Stewart’s review. Looking ahead, the department is also working closely with DfT Operator and Network Rail to strengthen the voice of the future operator into the delivery programme and deliver HS2 as part of an integrated railway.
The reset has begun bearing fruit, and I expect continued progress through the financial year as work progresses on completing the delivery baseline, implementing the new commercial strategy and reshaping HS2 Ltd.
Applying and learning lessons
As part of the reset, the department has been working with HS2 Ltd to address the significant challenges identified by James Stewart in his major transport projects governance and assurance review. Both organisations remain committed to the implementation of all of the review’s recommendations. The department is also working with HM Treasury and HS2 Ltd to implement the recommendations made in the Office for Value Money’s study on the governance and budgeting arrangement for mega projects.
The government accepted all 89 of James Stewart’s recommendations in June last year, and since then good progress has been made in implementing them, with both the department and HS2 Ltd on track to implement the remaining recommendations by the end of the programme reset, recognising that delivering the principles of the review will be an enduring endeavour for the lifetime of the programme. I am pleased that James has agreed to join the HS2 Shareholder Board to help ensure that the principles of his review are delivered in full.
The review found that multiple layers of assurance cause duplication and delays, driven by a lack of trust. The department has worked with HS2 Ltd and government partners to implement streamlined governance. This includes using the new Mega Projects Decision Panel to replace existing approval processes and oversee the HS2 reset process, alongside the Ministerial Task Force that this government reinstated. To support effective decision-making, the department has also implemented an integrated approach to assurance, bringing cross-government partners and external experts together to scrutinise the reset and utilising experts to assure the approach. Improvements to culture and trust are being put in place across the two organisations.
The review also highlighted weaknesses in HS2 Ltd’s corporate governance. The appointment of Mike Brown as Chair of HS2 Ltd and his subsequent strengthening of the Board are significant steps in addressing this. The HS2 Ltd Board’s roles and responsibilities have been clarified, with strengthened arrangements for compliance and organisational capability; enhancing delivery expertise within the Board and the company; and ensuring robust oversight through the Board’s sub-committees.
Learning is being embedded across current and future projects through
- independent assurance reviews of major projects, including Euston, Heathrow, Northern Powerhouse Rail, East West Rail, and the A66 Northern Trans-Pennine
- resetting the department’s programme of work to improve project delivery
- dissemination of learning across the department, its arm’s-length bodies, and wider government
- monitoring progress on wider government recommendations in partnership with the National Infrastructure and Service Transformation Authority
Following the publication of the review in June 2025, the Prime Minister asked the Cabinet Secretary to consider the Civil Service and the wider public sector’s stewardship of the HS2 programme, and whether further investigation was warranted. The Cabinet Secretary commissioned Sir Stephen Lovegrove, former National Security Adviser, to undertake a review focusing on accountability, governance and capability. The review has been published today; the government will respond to its recommendations after thorough consideration of the findings.
Oversight
We have continued to strengthen oversight structures to drive performance and accountability. We established a new Shareholder Board, chaired by the Permanent Secretary and with independent membership, to provide more effective oversight. This Board has met six times over the last year. A monthly Programme Performance Board has been established to ensure and oversee the effective delivery of HS2 against agreed schedule, cost and scope.
Alongside regular bilateral meetings between government ministers, the Chief Secretary to the Treasury and I have attended all meetings of the Ministerial Task Force to deliver effective oversight. Since my report in July 2025, it has met four times to review progress on both delivery and the reset; to agree HS2 Ltd’s commercial strategy; to agree the updated schedule and cost ranges for the delivery of HS2; and to consider the early findings of the work on HS2 speed specification.
On his appointment, I tasked Mike Brown with reviewing the capacity and capability of the HS2 Ltd Board and its effectiveness. On his recommendation, I have appointed six new Non-Executive Directors which will bolster senior leadership capability in infrastructure delivery, health and safety, business transformation and commercial relationships.
While better governance alone is not enough to bring performance back on track, effective oversight, clear accountability and purpose-driven structures will be essential in improving management of the programme’s delivery.
Expenditure
To the end of March 2026, £44.2 billion (nominal prices) had been spent on the HS2 programme. This is provided in more detail in the financial annex, based on data provided by HS2 Ltd.
Spend to date information covers the period up to the end of March 2026. Unless stated otherwise, all figures are presented in nominal prices.
At the 2025 Spending Review, the government allocated a £25.3 billion capital settlement for HS2 Ltd from Financial Years 2026/27 to 2029/30 in order to progress delivery of HS2 from the West Midlands to London Euston. The HS2 programme reset work is underpinned by this settlement, and the annual funding allocations remain unchanged.
Euston
We have made significant progress in developing affordable, integrated plans for the Euston Campus, with all partners confirming their support for an overall spatial plan. The HS2 station will include 6 platforms, supporting all foreseeable Phase 1 services. Space will also be provided for additional platforms should they be required to support a future expansion of the network. In addition, the redevelopment of the existing Euston Station will deliver a new station concourse that will accommodate current and future passenger demand on the West Coast Main Line, while replacing life-expired station assets in a cost-effective manner.
We are working at pace with our Master Development Partner, Lendlease, on a Masterplan for Euston, with an emphasis on economic growth and delivering much needed housing, and will set out a plan in due course. We are also exploring models for development across the wider Euston area with local partners.
In April 2026, the Euston Delivery Company assumed the leadership role for the Euston campus and became the single directing mind for the Euston programme, delivering a cross-campus approach to the next stage of design work. Initially, the Euston Delivery Company will sit as a business unit within the department as we build its capability. We expect the company to be stood up as a public body in the Autumn.
With our significant public commitment to funding HS2 into Euston, we believe that the additional investment required to build the new HS2 station at Euston is an exciting opportunity for private investors. As referenced in the government’s 10-Year Infrastructure Strategy, the department is exploring the use of a public-private partnership to design, build, finance and maintain this HS2 station. We are continuing to advance this work, in close collaboration with HM Treasury and the National Infrastructure and Service Transformation Authority.
In February 2026, the department launched the first stage of preliminary market engagement which sought to raise industry awareness of the project and the department’s emerging plans, assess potential market appetite and identify priority issues for the market at an early stage, to support refinement of the proposed commercial and procurement approach. Confirmation of using a public-private partnership model will be subject to achieving appropriate risk transfer and delivering value for money for taxpayers. We will also continue to explore the most effective ways to capture the value created by development unlocked through transport infrastructure and recycle it to repay public investment, including through a tax increment financing-style mechanism at Euston.
The updated cost range for HS2 published today includes an early estimate of the cost of delivering the HS2 and London Underground elements of the Euston programme, some of which we intend to fund through private finance and other sources. While at an earlier stage of maturity than the wider HS2 reset, these costs will be reviewed and refined as work progresses, and further updates will be provided as part of regular parliamentary reporting. An updated budget for Euston will be subject to further development of design and schedule. The redevelopment of the existing Euston Station concourse area is subject to separate funding via the Rail Network Enhancements Pipeline.
Progress has been made on ‘meanwhile uses’ to reduce the impact on the local community. In July 2025, the new Euston Community Hub opened in the former Maria Fidelis school and has since had over 7,000 visitors. The Hub, located at the heart of Euston, provides a dynamic space for community sector organisations and public service providers to carry out various programmes and community-led activities, initiatives and engagement. It will also serve as a central information point for residents and passengers, providing regular updates and engagement opportunities about plans to redevelop Euston. September 2025 also saw the opening of the Construction Skills Yard, where local people can gain experience of being on site, get trained on machinery in a realistic environment, and use the site facilities. The new training hub, which expands the existing Euston Skills Centre is being used to deliver skills courses and create more opportunities for residents to access local jobs in the construction industry, and on the Euston station works.
Benefits
Economic growth and housing
HS2 will provide people with more choice about where to work, and where to study. Economic growth will also be driven by increased leisure travel, as it becomes quicker and easier for people to visit friends or explore different parts of the UK.
By bringing businesses closer together, HS2 will make it easier to share knowledge and enable them to access more workers in different locations. As a result, HS2 will attract new businesses to local areas, in turn driving increased investment and economic activity.
The economic benefits of HS2 are already being seen with the programme’s four new stations acting as catalysts for significant local growth and regeneration. HS2 estimate this will support the generation of over 63,000 new homes, 49,000 new jobs and an economic uplift of £20 billion in the West Midlands and west London over the next 10 years. HS2 is supporting the early development we are already seeing in Birmingham and the West Midlands, helping to catalyse investment in exciting new areas such as the Sports Quarter.
HS2 will also have a significant impact around Euston station. Euston is one of the largest development opportunities in central London and its potential is enhanced by the connectivity HS2 will provide. Recent estimates from the London Borough of Camden suggest that by 2053 a mix of new homes and commercial development could deliver an economic uplift of around £41 billion and support the creation of 34,000 new jobs.
Alongside the reset, HS2 Ltd is exploring opportunities for early release of land at key locations Old Oak Common, Interchange, Curzon Street and Washwood Heath, enabling some land holdings to be brought into use while the railway is being built. This work aims to unlock potential for new homes, retail and commercial development.
This approach means we can deliver regeneration benefits as early as possible, creating lasting economic value alongside railway construction rather than waiting until completion of the railway. Each site represents a significant opportunity to boost local economies and support this government’s growth agenda. We are working closely with local authorities, communities, stakeholders, developers and investors throughout this process to help realise these opportunities.
HS2’s economic benefits will extend beyond the new stations, as HS2 services will extend and provide better journeys to the Northwest and Scotland, with faster journeys also possible through onward connections to areas including North Wales. The delivery of this new railway will also release capacity to meet increasing demand for regional, local and freight services between London and the West Midlands, further supporting growth in the local communities along that route.
Skills and innovation
People are at the heart of HS2 and its benefits, as the programme continues to support around 31,000 jobs.
I am proud of the impact HS2 is already having on the lives of people being brought into the workforce. So far, 5,771 previously unemployed people have been brought into work since Phase 1 Royal Assent.
We are also making great progress on supporting apprentices and have achieved a significant milestone this year with 2,136 apprenticeships created since 2017, breaking the 2,000 target that had been set for the programme. These apprenticeships will have a lasting impact on the individuals who have completed their programmes and help to develop a skilled and modern workforce, leaving a lasting skills legacy for the construction industry.
Innovation also remains central to HS2’s delivery. As part of the programme reset, HS2 Ltd is working with some of the UK’s leading tech specialists – bringing in expertise from beyond the rail sector – to tackle key challenges, including improving value for money, boosting site productivity, and enhancing safety management. Through its partnership with Connected Places Catapult, the HS2 Innovation Accelerator has supported start-ups and tech innovators since 2020, delivering cost savings, funding and investment of over £250 million, creating hundreds of new jobs in science and tech and attracting investment into SMEs.
Community impacts, land and property
Due to the delays to delivery, the impacts of construction will be felt by communities along the line of route for longer. HS2 Ltd continues to inform and involve communities who are impacted by construction and the uncertainty caused by the project reset. Between April 2025 and March 2026, over 21,000 residents were engaged at over 3,000 meetings and events. A further 29,406 enquiries were received via the HS2 Ltd Helpdesk, which operates 24 hours a day.
During the same period, HS2 Ltd received 1,405 complaints, the vast majority of which continue to relate to the impacts of construction, including concerns about traffic and transport disruption and noise and vibration impacts. HS2 Ltd is committed to resolving complaints promptly. Of the 1,405 complaints received, HS2 Ltd resolved 100% of urgent complaints within 2 working days and resolved 98% of all other complaints within 20 working days or less.
Local funds
One of the ways in which HS2 currently offers mitigation, benefits and compensation for line-of-route communities affected by construction is through the £40 million Community and Environment Fund and the Business and Local Economy Fund. This fund will continue to be available throughout the prolonged construction period. As at April 2026, over £22.3 million has been invested in communities and businesses that have been demonstrably disrupted by the construction of HS2, delivering 405 projects that will leave an enduring legacy.
Land, property and remediation
This government has recognised the need to make faster progress in settling outstanding property compensation claims, which in the past were taking far too long to reach final settlement. HS2 Ltd has now significantly increased the rate at which claims on Phase 1 are being settled, but we have made clear to the company that further improvement is needed.
In January, the government confirmed its intention to retain existing land holdings previously acquired for HS2 between the West Midlands and Crewe, in line with its intention to ultimately deliver a new rail line between Birmingham and Manchester.
HS2 Ltd is speaking to property owners whose land has been acquired in order to progress outstanding claims. HS2 Ltd and the supply chain have begun to engage with landowners of temporarily acquired land alongside local authorities to agree necessary remediation plans. We anticipate the remediation programme will conclude by the end of 2027.
The powers to compulsory purchase land on the former HS2 Phase 2a route expired on 11 February 2026. The government has the option to seek to extend these powers in the future, if required; we will set out our future intentions on land powers, consents and safeguarding in due course.
Along the Phase 1 route, HS2 Ltd has identified a number of surplus properties for potential disposal and has begun to market these. We have already sold a small number of Phase 1 properties as part of a pilot project and anticipate selling an increasing number over the coming years as continued progress in building the railway means we are able to release properties back to the market.
Following the lifting of safeguarding between the West Midlands and Leeds that I announced in my report in July 2025, the department has commenced a programme to sell land and property that is no longer required on the former Phase 2 route, starting with 558 properties on the former Phase 2b Eastern Leg.
A delivery agent has been appointed to lead on delivering the programme and we expect open market sales to begin later in 2026. HS2 Ltd will continue to manage properties on behalf of the department.
The disposal process will comply with the Crichel Down Rules, giving former owners, or their successors, whose properties were acquired under statutory blight or compulsory purchase, an opportunity to reacquire their former property at its current market value.
This programme will be phased over several years and carried out carefully to minimise disruption to local communities, protect local property markets, and ensure value for money for taxpayers.
Wider rail network
One of the lessons we are learning from HS2 is the need to approach the infrastructure needs of the rail network as a unified system, rather than a collection of separate projects. The government’s ultimate intention to deliver a full new rail line between Birmingham and Manchester will help to maximise the national benefits of both HS2 and Northern Powerhouse Rail and safeguard future growth for the long term, by ensuring that the West Coast Main Line corridor offers sufficient capacity and good connectivity. Further work will be carried out in collaboration with local partners on what will be delivered and when, but we expect the delivery timelines for this line to follow the completion of HS2 and Northern Powerhouse Rail.
As the department prepares to establish Great British Railways (GBR) and continues to bring passenger services back under public ownership, we are considering options for how HS2 services and infrastructure will be integrated. GBR will improve services for passengers and freight users, transition the rail network towards greater financial sustainability, and unlock barriers to the delivery of future schemes. As such, I am clear HS2 needs to be delivered and operated in a way that supports these objectives.
The planned approach to HS2’s operations must align with GBR’s operating model as it develops. The HS2 service will need to align with and complement the wider rail network. Decisions on the operational model for HS2 and its interaction with GBR are being carefully considered. It is likely that transitional states will be required in order to de-risk the process and protect our ability to deliver the HS2 project and services during this period.
Financial annex
Total estimated cost range
HS2 is forecast to cost £87.7 – £102.7 billion. This is expressed in a mixed price base, including the costs of both works to date and future work excluding inflation.
As committed to Parliament in my previous report, the cost ranges provided also express spend after Q3 2019 in 2019 values excluding projected inflation. This approach ensures that costs can be reconciled against figures previously communicated to Parliament and the public.
HS2 programme ranges
| £ billion | Low | High |
|---|---|---|
| Q3 2025 | 87.7 | 102.7 |
| Q3 2019 | 70.9 | 82.2 |
Notes
Q3 2025 ranges
[1] Spend up to September 2025 is expressed in nominal to reflect the cash spent on the programme (£40.9 billion). This approach is consistent with the government’s Parliamentary reporting and HS2 Ltd’s management of costs since Notice to Proceed in 2020, in which spend prior to Q3 2019 was treated in nominal.
[2] The remaining costs-to-go are presented in the prices of the day (Q3 2025) excluding forecast general and construction inflation. When the price base of the programme is reset every two years in line with future Spending Reviews, the lower and upper bound of the ranges will increase commensurately with inflation actually incurred over this period.
[3] The ranges include the full cost of delivering HS2 to Euston, some of which we intend to fund through private finance and other sources such as tax increment financing.
Q3 2019 ranges
[4] Note the Notice to Proceed Funding Envelope was constructed by uprating expenditure between 2015 and Q3 2019 to Q3 2019 prices.
Overall nominal cost
[5] Indicatively, the provisional cash estimate based on the lower and upper bound for the overall cost of the HS2 programme is £94.3 billion – £112.4 billion in cash terms, including projected inflation forecast using HS2 Ltd’s bespoke inflation indices.
Historic and forecast expenditure
The information on HS2’s overall spend to date and budget is now being provided in nominal (cash) terms following a commitment made by the department to the Public Accounts Committee to express the costs of the programme in a more up-to-date price base and better capture the inflation incurred since 2019. The government will provide further details on the 2026 to 2027 position in cash terms as part of the standard Main Estimates report to Parliament.
This is expressed in nominal prices, including land and property.
| Overall spend to date (£ billion) |
2026 to 2027 budget (£ billion) |
2026 to 2027 forecast (£ billion) |
2026 to 2027 variance (£ billion) |
|
|---|---|---|---|---|
| HS2 Programme Total | 44.2 | 7.1 | 7.1 | 0.0 |
| Civils | 31.2 | 5.2 | 5.2 | 0.0 |
| Stations | 4.8 | 1.0 | 1.0 | 0.0 |
| Systems | 0.3 | 0.2 | 0.2 | 0.0 |
| Indirects | 4.1 | 0.5 | 0.5 | 0.0 |
| Land and Property | 3.7 | 0.2 | 0.2 | 0.0 |
| Former Phase 2 | 2.6 | 0.1 | 0.1 | 0.0 |
| Overall Total | 46.8 | 7.2 | 7.2 | 0.0 |
Notes for the table
- The figures set out in the table have been rounded to the nearest £100 million to aid legibility. Due to this, they do not always tally.
- Spend to date includes a £0.5 billion liability (provision) representing the department’s obligation to purchase land and property.
- To ensure operational alignment, On Network Works expenditure which was previously reported under Systems is now being reported under Stations.
Schedule and cost infographics
Diagram 1 programme sequence – from Old Oak Common to Curzon Street Station
Diagram 2 updated cost of HS2, including Euston
