HS2’s Euston leg poised to be given green light despite cost concerns
The Government is poised to approve the extension of HS2 into Euston station, despite concerns it could saddle the taxpayer with billions of pounds in extra costs.
The move will ensure that the high-speed rail route runs into the centre of London rather than ending at Old Oak Common in the west of the capital.
Chancellor Rachel Reeves will reportedly use her first Budget next month to approve funding for the project, which will also include a multi-billion-pound transformation of Euston.
A Government source told The Sunday Times: “HS2 just wouldn’t work if the terminus was not at Euston. The station is also well overdue for investment and has become a dystopian mess and a stain on London.”
Further support from the Treasury for HS2 is expected despite the rail project already being £20bn over budget. And Ms Reeves is considering changing how the Government’s fiscal rules are calculated to free up £50bn for large-scale infrastructure projects.
The spiralling costs of HS2 prompted Rishi Sunak, the former prime minister, to scale back the route last year, raising uncertainty over the 4.5-mile section between Old Oak and Euston. If HS2 does not run into Euston, passengers will have to change at Old Oak Common to reach central London.
It is not yet clear whether Labour has made headway in attracting the private financing that the Conservatives had made a prerequisite for the Euston expansion, which is expected to cost billions of pounds.
However, a Government source said Ms Reeves was likely to approve the Euston extension without finalising the financing arrangements. Without private backing, it will be down to the taxpayer to foot the bill.
As part of any Euston expansion, the Government must also decide whether to retain Mr Sunak’s slimmed-down plans for a six-platform HS2 terminus or reinstate the original blueprint for an 11-platform layout, with a new Tube station.
Labour has been under pressure to make a swift decision on the Euston leg after two 1,700-tonne boring machines were delivered from Germany last month. The company responsible for overseeing HS2 has warned that the machines cannot be left underground indefinitely and that drilling must begin early next year.
Louise Haigh, the Transport Secretary, earlier this month told the Evening Standard that HS2 would never have been built solely to link Birmingham with Old Oak Common.
She said: “Clearly Euston is going to be part of the wider picture but we will be making a decision soon on the tunnelling and the development.”
Separately, Ms Reeves is also thought to be preparing to approve a new rail link between Liverpool and Manchester that would run via Manchester airport.
A Government spokesman declined to comment.