Birmingham City Council Leader says HS2 delays are a ‘Betrayal of the Midlands and the north’

Birmingham faces “betrayal and mockery” to one of its most significant transport projects – HS2 – as ministers are expected to issue a statement on how inflation is impacting the project.

The delays to HS2, understood to be in part due to spiralling costs, comes as the government is expected to find £2 billion more to fund the first London to Birmingham stretch alone – a figure that has increased by approximately £200 million since March.

It is understood that parts of the high-speed network between Crewe and Birmingham are likely to be delayed or trimmed, while full running of trains into London Euston may also be held off further. The government’s official budget for the first phase of HS2 is £44.6 billion, including contingency funding, at 2019 prices.

In his statement to parliament last October, transport secretary Mark Harper admitted that the first phase of HS2 is on course to exceed its target budget, which strips out contingency cash. “HS2 Ltd has indicated that, if unmitigated, the final delivery cost is likely to exceed its target cost of £40.3 billion based upon its forecast of future spending,” he said.

It comes as building materials prices were 25% higher in 2022 than they were in 2021, according to government figures. The average annual building materials prices for 2022 were 54.4% higher than in 2015, and increased 25% from 2021. These figures do not include the price of labour.

Birmingham already faces wide public transport delays. Plans to run trams to the Digbeth area of Birmingham have been delayed by another four years until 2027, because of issues related to HS2.

Meanwhile, National Express bus drivers are set to go on strike on strike next week (16 March). The company operates 1,600 buses on routes across Birmingham, Wolverhampton, Coventry, Walsall, Dudley and West Bromwich.

Birmingham is one of the most complex and congested parts of the British rail network. Currently, the railway through central Birmingham is not equipped to meet passenger demands.

Much of phase one of HS2, London Euston to Birmingham Curzon Street, is under way, with five of 10 tunnelling machines already underground in Warwickshire, London and Buckinghamshire.

Ministers have previously stated they are committed to a high-level £96 billion rail plan drawn up last year. It includes plans for the Midlands Rail Hub – to boost connectivity and rail capacity between Birmingham and south-west England – but less is likely to be built for that money than originally anticipated.

But in January,  Bernadette Kelly, the Department of Transport’s permanent secretary warned the Commons transport select committee that rapidly rising prices entails “tough decisions” would be needed on all rail projects if HS2 was backed. Meanwhile, the eastern leg from Birmingham to Leeds has already been scrapped, prompting widespread criticism from the construction industry.

Ian Ward, the leader of Birmingham City Council, and who holds the transport portfolio at West Midlands Combined Authority (WMCA), said the Conservatives have “no vision” to deliver levelling up in the region.

He said: “This is yet another betrayal of the Midlands and the north, making a mockery of the government’s promises to level up the UK economy. HS2 has the potential to deliver economic growth across the country, but it is being undermined by the government at every turn.

“This Tory government has no vision to drive growth or for levelling up the UK economy and needs to get out of the way and allow a Labour government to deliver the vital infrastructure projects that this country is crying out for.”

The Department for Transport’s budget was frozen from 2025 in the autumn spending review, meaning a potentially significant cut in real terms. A Department for Transport spokesperson said: “Spades are already in the ground on the HS2 project and we remain committed to building the line from Euston to Manchester.”

Andy Street, mayor for the West Midlands, was approached for comment.