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HS2 funding

This page sets out the funding breakdown for the HS2 project.

The Government has committed funding for the delivery of Phase One (London to West Midlands) and Phase 2a (West Midlands to Crewe).

Phase 2b (Crewe to Manchester, and West Midlands to Leeds) is under review by the Government as part of its Integrated Rail Plan and has no confirmed budget.

HS2 Minister Andrew Stephenson MP’s 6-monthly report to Parliament provides an overview of the funding and schedule for the HS2 project.

Estimated cost ranges by Phase

The National Audit Office has recommended the use of ranges for indicating cost (and schedule) forecasts for major projects.

  • Phase One: £35-45bn, including contingency of £9.6bn
  • Phase 2a: £5.2-7.2bn

Phase One: London to West Midlands

High speed trains will travel between London and Birmingham on 134 miles of dedicated track. They will pass through 31 miles of tunnels and over 10 miles of viaducts, delivering quicker journeys on more trains with more seats. Royal Assent was granted for Phase One of HS2 on 23 February 2017.

In April (2020), the Full Business Case for the first phase of the scheme between the West Midlands and London, ‘HS2 Phase One’, was approved.

The overall budget for Phase One, including Euston, is £44.6 billion (2019 prices).  This includes a contingency of £9.6bn for managing the risk and uncertainties that are an inherent part of delivering major projects.

The projected delivery into service date range for Phase One is 2029 to 2033.

Phase 2a: West Midlands to Crewe

The Phase 2a line will run from the northern end of Phase One at Fradley in the West Midlands to Crewe in Cheshire. At Crewe, services will join the existing rail network to create direct services to places including Liverpool, Manchester, Preston, Carlisle and Glasgow. Royal Assent was granted for Phase 2a of HS2 on 11 February 2021.

The Government’s latest updated cost estimate for Phase 2a is £5.2-7.2bn (in 2019 prices). These arrangements will be formalised at the next fiscal event, expected to be later in 2021.

The projected delivery into service date range for Phase 2a is 2030-2034.

The Phase 2a Accounting Officer Assessment summary (May 2021) provides an overview of the cost and schedule ranges for Phase 2a.

Phase 2b: Crewe to Manchester, West Midlands to Leeds

The Government has published the Integrated Rail Plan for the North and Midlands, which sets out updated proposals to deliver HS2 Phase 2b, Northern Powerhouse Rail, Midlands Rail Hub and other rail programmes more effectively.

As such, there is not yet a confirmed budget for this Phase of the HS2 railway.