Bosses want full-speed ahead on HS2 amid fears over rising costs

Lord Berkeley said HS2 would be poor value for money and bad for the environment: Press Association Images

Bosses today called on the Government to stop “dithering” and press on with HS2 despite reports of rising costs on the high-speed rail project.

Costs could rise to as much as £106 billion, 20% above the previous forecast of between £81 billion and £88 billion, according to a leaked government review, the Financial Times reported today.

The review by former HS2 chairman Doug Oakervee also says work on phase two of the project, which links the West Midlands and Manchester and Leeds, should be paused for six months to rethink it. Construction bosses have written to the Prime Minister asking him to approve the project.

Adam Marshall, director general of British Chambers of Commerce, said: “Business communities in the Midlands, North and beyond want to see this crucial project move forward. Further political delay would increase costs, and hit investment plans in towns and cities across the country at a critical moment for business confidence. HS2 should be delivered, in full, with a careful eye on costs.

“There should be no blank cheque for any project, but cancelling or drastically scaling back HS2 would be a hammer blow to growth plans in so many areas.”

CBI infrastructure director Tom Thackray said: “Completing HS2 in its entirety will be a shot in the arm for businesses and communities across the country.

“As we enter a new decade is it vital we lift our aspirations and commit to The North by fully unlocking its economic potential. HS2 is key to that. The costs of not building HS2 are far higher in communities left behind, commuter trains filled to capacity and businesses struggling to grow. HS2 is key to tackling the productivity gap and helping the regions level up.

“Government should listen to the regional demand for HS2 and back it, build it, and benefit from it.”

An Institute of Directors spokesman said: "There is considerable support for HS2 among companies in the Midlands and North. While business leaders of course want to see value for money from infrastructure, we need to get better in this country about making timely decisions on major projects and delivering them on time."

Manuel Cortes of transport union TSSA said: “The dithering and speculation over HS2 needs to stop.”