Summary

The High Speed Two (HS2) programme aims to deliver a high-speed, high-capacity railway between London and Birmingham. The Department for Transport (DfT) sponsors the programme and is responsible for funding and oversight. High Speed Two Limited (HS2 Ltd), an arm’s-length body of DfT, is responsible for building the railway and bringing it into service. A new body, Euston Delivery Company Limited, is responsible for the HS2 station and related work at Euston, where the railway will end in London. The HS2 programme has not gone as planned. DfT and HS2 Ltd reset the programme in 2020 and the development of Euston station in 2020 and 2023. In 2023, the government cancelled Phase 2 of the railway beyond Birmingham. The programme is now smaller than originally planned, while costing more and taking longer to complete. Both we and the Committee of Public Accounts have previously reported on the issues that have led to the resets. HS2 Ltd and DfT are now resetting the programme again. This began in January 2025 and is expected to end in spring 2027. HS2 Ltd expects to spend £153 million on the reset, having spent £101 million by the end of March 2026 (in nominal prices). There is also work underway to reset work at Euston and close down Phase 2. HS2 Ltd has continued with construction in parallel with the reset. As at the end of March 2026, DfT and HS2 Ltd have spent £46.8 billion (in nominal prices) on the programme, including on the cancelled Phase 2. With the programme now potentially costing up to £102.7 billion, DfT must also renew its focus on maximising the benefits from its expenditure on HS2. This is particularly important at Euston, which is expected to both enable HS2 trains to terminate in central London and support a wider regeneration of the area. DfT will need to work closely with other government departments and with local authorities to fully realise the benefits from the railway.