THE cost of building England’s high-speed rail link has increased by an extra £800 million barely a month into construction.
Reshaping Euston train station is now expected to cost about £400m more than originally planned, while more asbestos was found in demolitions along the line than anticipated - adding on another £400m.
Andrew Stephenson, the minister for HS2, admitted there are new “cost pressures” but said the extra fees would be accounted for in the £5.3 billion contingency fund.
The minister said this would keep the first phase of the project, which will create a high-speed link between London and Birmingham, with an overall £44.6bn budget.
READ MORE: Can't we divert funds from HS2 to improve rail infrastructure?
Up to this point 20% of that has been spent while £11.5bn has been allocated in contracts.
Stephenson also warned that HS2 services could be delayed further due to the coronavirus pandemic and late handover from the contractors in charge of preparing the route’s line.
The first phase of the railway line was supposed to open at the end of 2026, but the target range was moved to between 2029 and 2033. Stephenson admitted there are “some pressures on the earliest date”.
He added that the cost for the second phase of the project – which would connect Birmingham with other cities in the north – could yet increase. The minister said that the total cost should be within £98bn despite previous UK Government estimates reaching as high as £106bn.
There has been speculation that the second leg of the route could be downgraded or abandoned altogether.
A spokesperson for the Department for Transport said: “While the project has faced some cost pressures in carrying out preparatory works, the government still expects HS2 Ltd to deliver Phase 1 at the target cost of £40.3bn, below the overall funding envelope of £44.6bn.
READ MORE: Row erupts as HS2 high-speed rail link cost called ‘out of control’
“As construction continues, this government remains relentlessly focused on controlling costs, to ensure this ambitious new railway delivers its wealth of benefits at value for money for the taxpayer.”
A coalition of firms known as the High Speed Rail Industry Leaders group recently called on the UK Government to examine how to connect HS2 with Scotland.
They say a new connection would boost the economies of the north of England and Scotland, and help the nations achieve their net-zero carbon targets by reducing demand for short flights.
The SNP has been critical of the Tory Government’s handling of HS2. Before construction began this year, Ian Blackford attacked the UK’s “sheet mismanagement of the project” and the “spiralling costs attached”.
He told Boris Johnson: "If the Prime Minister is truly committed to rail connectivity across these islands, he should engage with the Scottish Government to improve rail links from Scotland to the major cities in the North of England such as Manchester, Newcastle and beyond.
“With the UK Government seeking a review of the second phase to build the line in the north of England, Scotland must not be left last in line.”
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