Reports have emerged stating that the HS2 project is set to be revived, connecting London Euston to Crewe. Initially planned to link London, Birmingham, Manchester, and Leeds, the project was halted after the cancellation of phase two by the former government. ‘Phase 2a’ was intended to connect the West Midlands to Crewe, while ‘Phase 2b’ was set to run from Crewe to Manchester.
It is now believed that Keir Starmer is preparing to reverse the cancellation of ‘Phase 2a’, which already has parliamentary approval. This move would see the line extended from London beyond Birmingham to Crewe. The UK Government has been lobbying the Treasury for the revival of the original HS2 plans, although HS2 Ltd is not expected to oversee the project; instead, a private sector consortium will take charge.
The projected cost of phase 2a in 2015 was around £3.72 billion, which amounts to approximately £5 billion today. The financial implications of the HS2 project on Wales have been subject to debate, with claims that Wales missed out on substantial funding due to the project’s classification as an “England and Wales” scheme. This classification meant that Wales did not receive funding through the Barnett Formula, unlike Scotland and Northern Ireland.
Former Prime Minister Rishi Sunak previously announced the cancellation of parts of HS2 from the midlands to Manchester. Plaid Cymru estimated the loss to Wales at around £4 billion, while Wales’ former finance minister, Rebecca Evans, stated that Wales had actually missed out on £350 million. Despite calls for Wales to receive its fair share of funding, the Treasury has indicated that it will not reconsider the consequential given to Wales.
Following the general election, pressure has mounted on the Labour Party in Wales to advocate for fair funding relating to HS2. Despite assurances from the First Minister and the finance minister that their stance has not changed, the Treasury has remained firm on its decision regarding funding adjustments. In 2023, Rishi Sunak redirected funds earmarked for HS2 towards other transport projects, citing escalating costs as the reason for abandoning the remaining HS2 scheme.
As discussions continue surrounding the funding and implementation of the HS2 project, its potential revival from London Euston to Crewe marks a significant shift in the UK’s infrastructure landscape. The impact on Wales and its funding allocations remains a key point of contention, as political figures navigate the complexities of balancing national projects and regional interests.