HS2 has revealed more than £2bn in costs linked to Rishi Sunak’s decision to downgrade the high-speed rail line.
In the annual report of HS2 Ltd, the company revealed that it had written off £1.1bn in costs incurred during “phase two” of the project, which was due to link Birmingham to Manchester, only for the leg to be abandoned last year.
The company also disclosed a further £1bn in accounting charges relating to the project’s reduced ambitions, which will lower its expected future income.
In total, the business announced £2.17bn in one-off costs associated with scaling back the infrastructure project.
Sunak axed the second leg of the HS2 project in October last year at the Conservative party conference in Manchester, provoking dismay in a city that was due to benefit from the new rapid link.
The decision followed a series of long delays and rising estimated costs that had caused the high-speed line’s price tag to balloon to £71bn.
While the decision met with anger in regions that were due to benefit from the project, Labour has said it would not reverse the previous government’s decision.
The annual report also revealed that HS2’s former chief executive, Mark Thurston, was paid £652,569 for his final year, including a £34,345 bonus. Thurston announced his resignation in 2023 after six years.
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At the time his departure was announced, HS2 was still expected to run to Crewe and Manchester.
More details soon.