Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Would a £10bn VAT cut really save hospitality?

      Business professionals discussing strategies in a modern office setting with diverse team collaboration visible

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Platitudes in women’s sport are empty, patronising and offensive

      Business professionals in a conference room discussing strategy with a presentation screen displaying key market trends.

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Fogo de Chao nominated for Best Casual Dining Toast award

      Fogo de Chão restaurant exterior with vibrant signage and bustling entrance at popular city location

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Wednesday 27 September 2023 7:06 am  |  Updated:  Wednesday 27 September 2023 7:08 am

HS2: Five Labour mayors including Burnham and Khan to demand PM keeps project on track

By: CityAM Reporter

Add as a preferred source on Google
The government has been urged to fund Elizabeth Line trains, in order to avoid further job losses at the UK's largest rail assembly factory.

Five Labour mayors will gather in Leeds to issue a joint plea to the Prime Minister not to cut HS2 further.

Rishi Sunak is facing a political backlash over reports he is weighing axing the Birmingham-Manchester leg of HS2 amid soaring costs.

On Tuesday, Home Office minister Chris Philp said Mr Sunak was reviewing how the cost of HS2 could be “controlled” but that no decision had been made on whether to axe or delay the rail project’s northern leg.

On Wednesday, Labour mayors Andy Burnham, Sadiq Khan, Tracy Brabin, Oliver Coppard and Steve Rotheram will call for HS2 to be spared from further cuts in a joint declaration.

On top of the meeting with the Northern mayors, London mayor Mr Khan is also expected to speak at a Transport for the North board meeting about the benefits of the project for London and the South East.

Reports have suggested that Mr Sunak has been warned the price tag for the high-speed railway may have soared past £100 billion, even though ministers have already moved to pause parts of the project and even axed the Leeds leg.

Construction delays of up to two years between Birmingham and Crewe could postpone central London service until the 2040s, as a two-year pause at Euston due to soaring costs will leave Old Oak Common as the only London station for Birmingham Curzon Street services from 2029 to 2033.

Mr Burnham, the Labour mayor of Greater Manchester, said that curtailing the project would be a “decision of epic proportions for our part of the world”.

However, in a letter to Mr Sunak, he and Manchester City council leader Bev Craig also said they were willing to discuss delaying the northern leg of HS2 if the Government commits to building an east-west route.

“If you are adamant on making changes to the scheme, we could be open to a discussion about prioritising the Northern section of the line, between Manchester Airport and Manchester Piccadilly, so that it enables NPR (Northern Powerhouse Rail) to be built first,” they wrote.

Read more

Labour has not delivered on planning reform, manufacturers say

Rachel Reeves at construction site, inspecting housebuilding progress, highlighting Labours commitment to housing developm...

“We believe the north of England needs new north-south and east-west rail infrastructure and should not be forced to choose between them in the same way that London hasn’t been forced such a choice.”

Meanwhile, several senior Conservatives, including former chancellor George Osborne and ex-deputy prime minister Lord Heseltine, have warned that scrapping the Manchester leg of HS2 would be a “gross act of vandalism” and “abandon” the North and Midlands.

Another ex-chancellor, Lord Hammond, told The Times the project risked becoming a white elephant if it was not finished, while former transport secretary Patrick McLoughlin said that scaling it back would be “completely wrong”.

Mr Sunak may now put back announcing a decision until the autumn statement in November.

Some have been concerned that details coming this week would cast a shadow over the Conservatives’ party conference which starts on Sunday in Manchester.

There have been indications he could announce a string of regional transport improvements in an effort to limit the political fallout, including bringing forward Northern Powerhouse Rail between Manchester and Leeds.

Downing Street said there is precedent to delaying aspects of the high-speed rail scheme because of “affordability pressures”, pointing to high inflation.

In October, the Government estimated the cost of the Manchester leg at up to £71 billion. In June, they reported that £22.5 billion had already been spent on the initial leg to Birmingham, and approximately £2.3 billion had been allocated to subsequent phases, encompassing expenses related to both labour and land.

All these figures were calculated using 2019 prices, and they would have substantially increased due to inflation, reflecting rising costs of materials and wages.

Press Association – Martina Bet

Read more

New HS2 budget to blow £33bn hole in public finances

HS2 construction worker inspecting tunnel progress, showcasing infrastructure development and engineering expertise

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Transport & Infrastructure

Related Topics

  • HS2

Trending Articles

  • As it happened: Stocks sink after Fed and Bank of England opt for hawkish hold; Oil price tumbles

  • FTSE 100 Live: Pound dips and stocks slip as Andy Burnham victory triggers political uncertainty

  • City investors raise alarm on Burnham’s Chancellor pick

  • Inheritance tax enquiries surge to six-year high after HMRC clampdown

  • More Big Four blues as Deloitte plans to slash UK audit roles

More from CityAM

  • Economic benefit of Heathrow expansion slashed by 90 per cent

    Transport & Infrastructure
    Heathrow and several European airports are suffering from a cyber attack.
  • Judge rejects Gatwick Airport bid to block new relaxed runway slot rules

    Legal
    Gatwick Airport terminal bustling with travelers and staff under bright signage and flight information displays
  • TfL dispel concerns over Queen’s tennis final tube havoc

    Sport Business
    Without specific context from the article, Im unable to generate an accurate alt text. Could you provide more details from...
  • Hopes rise for decision on Heathrow’s third runway plan

    Transport & Infrastructure
    Heathrow boss Thomas Woldbye is expected to lay the groundwork for what is the largest private investment programme in Heathrow's history.
  • Flying at Heathrow will cost ‘significantly more’ due to third runway bid

    Transport & Infrastructure
    Heathrow and several European airports are suffering from a cyber attack.
  • Heathrow slams regulator plans to ‘take UK backwards’ by slashing investment

    Transport & Infrastructure
    Heathrow Airport's expansion was estimated to cost up to £62bn as of last year.
  • ‘Bogus claim’: Ryanair hits back at watchdog probe into family seating policy

    Transport & Infrastructure
    Elon Musk and Ryanair CEO Michael O’Leary face off amid acquisition rumors in a business meeting setting
  • Wizz Air ‘resilient’ after route cancellations wipe out profit

    Transport & Infrastructure
    Wizz Air reported a hefty drop in annual profit as it grapples with long-running supply chain issues and conflict Ukraine and the Middle East.

CityAM Canada — business, markets and opinion for Canadian readers.

Sections

  • Business
  • Markets
  • Tech
  • AI
  • Economics
  • Opinion
  • Cities

Company

  • About
  • Contact

Legal

  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 CityAM Canada. All rights reserved.
Terms · Privacy · Cookies