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The project’s official expected start of services was still set at 2029 to 2033 before today.

Beyond announcing the delay, Alexander alleged “parts of the supply chain have been defrauding taxpayers” and blame the previous Conservative government for the shocking performance of the project.

While the project was originally initiated by a Labour government, it has mainly been developed by successive Conservative cabinets.

Alexander discussed how Boris Johnson’s administration was advised in 2020 by the Oakervee review for key contracts to be renegotiated before signing them although they were signed anyway.

She said: “After a decade and a half of Tory timelines planned, then delayed, routes drawn up, then canceled budgets calculated, then blown promises made, then broken, we inherited a project that had lost the trust of the public, that created an image of a Britain woefully unable to deliver big infrastructure project.

“Phase 1 could end up becoming one of the most expensive railway lines in the world, with projected costs soaring by £37bn under previous Conservative governments, and £2bn of taxpayers money sunk into Phase 2 work before it was canceled by the previous government.

“There was also clear evidence of poor management despite the 2020 Oakervee review advising that government halt construction contracts pending improvements in price and simpler engineering.

“They pressed ahead regardless. It has been no less than a litany of failure, and today I’m drawing a line in the sand, calling time on years of mismanagement, fraud reporting and ineffective oversight.”

She further claim how a Euston ministerial task force set up by Rishi Sunak’s parliament never met for any meetings and that two designs for Euston station costing £250M were commissioned by Conservative government’s but both were dropped.

Alexander further told Parliament there is “no reasonable way to deliver” the plan to build HS2 Phase 1, which is due to connect London and Birmingham with a high-speed rail line, on even the most recent budget and timeline. With the original price tag set at £30bn in 2010, the costs have since spiralled out of control. A report from the Financial Times released in December last year put the most recent figure at £80bn but a Rail Magazine article in May stated services were anticipated to start in 2036 at the earliest, with 2039 looking more likely, while the estimated final cost was heading over £100bn.

These were the reportedly early assessments of HS2 Ltd chief executive Mark Wild in a preliminary report to ministers shortly after he took up the role in 2024.

Wild confirmed at the tail end of 2024 that he was undertaking a “fundamental reset” on the HS2 project to fully ascertain the current financial situation.

Alongside the scathing comments in Parliament today, Alexander has also confirmed the release of two reports.

One will be a review that has been conducted by Wild to assess the construction of Phase 1 of the project.

Wild’s report states the project cannot be completed to the most recent budget and timeframe. A new cost figure or deadline will not be announced.

Alexander said: “The review commissioned in October of last year by my predecessor was a tough, independent look at how the Department for Transport and government delivers major projects. The government not only welcomes the review, but we have accepted all the recommendations.”

The second review Alexander will release is authored by former Crossrail chief executive James Stewart “to “investigate the oversight of major transport infrastructure projects”. The Stewart Report was commissioned in December 2024 and will lay out 89 recommendations, principal amongst these a desire for HS2 to renegotiate its contracts with budget and timescale accountability written in.

Alexander said: “Billions of pounds of taxpayers’ money have been wasted by constant scope changes, ineffective contracts and bad management.

“It’s an appalling mess. But it’s one we will sort out.”

Former commissioner for Transport for London Mike Brown is due to be announced as the new chair of HS2 Ltd, to replace Jon Thompson.

Alexander will also state she will update Parliament on the progress of HS2 every six months. Plans for the Euston Station redevelopment are due to be announced in Thursday’s Infrastructure Strategy.

Sector commentary

Railway Industry Association (RIA) Chief Executive Darren Caplan said: “The Railway Industry Association welcomes today’s clarification from the Government on HS2. It is now essential that HS2 Ltd’s CEO Mark Wild is given the time and space he and his team needs to carry out a ‘reset’ of the programme to deliver this project, so crucial to increasing UK rail capacity to the benefit of towns, cities, communities and the country’s economic needs for decades to come.

“RIA agrees it is important following the announcement that the lessons of the past are learnt, when it comes to avoiding the temptation to specify dates and costs prematurely on major infrastructure projects. And we support the appointment of Mike Brown as HS2 Chair. Mike Brown has been involved at the highest levels with rail related infrastructure in the past, and we wish him well in this new role.”

A spokesperson from the High Speed Rail Group (HSRG) said: “HS2 has long required a fundamental reset, and today’s reports mark an important step in that direction. Under the leadership of Mark Wild, the project is being refocused after years of instability, where repeated chops and changes to scope have inflated costs and disrupted delivery. This reset begins the difficult but essential task of restoring confidence in one of the UK’s most vital infrastructure projects.

“The supply chain remains fully committed to supporting HS2 Ltd in delivering the project with greater efficiency and improved productivity. Work is already underway to ensure it is delivered as cost-effectively as possible going forward.”

“HSRG also welcomes the appointment of Mike Brown as Chair of HS2 Ltd. His leadership experience at Transport for London will bring valuable expertise as he helps to rebuild a strong and collaborative relationship between HS2 Ltd and the Department for Transport. This partnership will be essential to the success of the reset and the project’s long-term future.

“Rail infrastructure remains key to turbo-charging the economies of our regional cities. If delivered successfully, HS2 will unlock national capacity, enhance regional connectivity, and drive long-term economic growth across the UK, setting the whole country up for future success.”

Building Cost Information Service (BCIS) head of data services Karl Horton said: “Cost inflation is a significant risk across all major infrastructure projects. The longer schemes are delayed for, the more costs spiral – that’s just a matter of fact.

“HS2 is no different and has become victim to the familiar foes of planning and approval delays, rampant post-Covid inflation and labour and supply chain disruptions as much as the likes of Hinkley Point C have.

“For context, between January 2012 and July 2024, BCIS’s Rail Cost Index rose by 44% and is forecast to have increased another 2% in the last 12 months, since the General Election.

“Our General Civil Engineering Index also crept up by 48% in the same period and is forecast to have risen by another 1% in the last year.

“This movement alone shows just how much the cost of construction has surged, and how impossible it is to lay blame for delays on HS2 at one door.

Today’s report is a wake-up call. We are on the cusp of an infrastructure flood, so it’s imperative all new work accounts for construction-specific cost movement throughout appraisal, design and construction.

“Lessons must be learned from HS2 and ensuring market conditions are factored into cost estimates is a good starting point.

“Delayed legacy projects are a brick wall between economic stagnation and the UK’s future as a hotspot for infrastructure development and private investment.

“The government’s best bet is to investigate outstanding infrastructure projects, address cost underestimates swiftly, and reset the precedent for major project planning.”

Transport Salaried Staffs’ Association (TSSA) general secretary Maryam Eslamdoust said: “Our union is pleased to hear that the government is committed to the delivery of what remains of HS2, after too much chopping and changing over the route and station design in the past.

“We also appreciate that public money must always be wisely spent. However, it’s also vital that the government sets out a new timetable for when HS2 will be up and running and get it done as soon as possible.

“Doing so will not only help restore public confidence but draw a line under the lost opportunities of the shambolic Conservative years in office.

“It’s time now to look to the future and all that HS2 can be for our country – growing the economy at local, regional and national levels, based around clean and green high-speed rail.

“This is not just about trains, but jobs, investment, connecting towns and cities, boosting productivity, levelling up regions, and attracting businesses. There is not a moment to lose.”

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