The cost of abandoning HS2 north of the West Midlands has topped £2 billion, according to HS2 Ltd.
In its latest annual report, for 2023-24, the government’s developer said it had written off costs of £1,003 million which had been spent on Phases 2A to Crewe, Phase 2B to Manchester and the new station at London Euston.
This total consisted of £713 million on Phase 2A, £137 million on Phase 2B West and £153 million on Euston station. In addition, there was a further £1,074 million in costs previously incurred on Phase 2, plus almost £95 million spent north of Birmingham since the Crewe and Manchester sections were cancelled, giving a total of approximately £2,172 million.
The £95 million spent since Prime Minister Rishi Sunak cancelled Phases 2A and 2B last October included ‘remediation, reinstatement, and costs of exiting the phase with an orderly, regular, and safe cessation of activities’, according to the report.
The changes at London Euston, which have yet to be confirmed or funded, reduce the size of the proposed station from 10 to six platforms. The report explains: ‘The company is no longer expected to gain an economic benefit from the specific design work already completed on the 10-platform station. Accordingly, the company has impaired the value of the work that can no longer be used by reducing the asset value and declaring the expenditure [£152.9 million] as a loss.’