Transport secretary Patrick McLoughlin (pictured) has dismissed reports that there will be a massive overspend on the High Speed 2 rail project.
The Institute of Economic Affairs has claimed that project is set to cost £80 billion – almost twice the current budget of £42.6 billion. While a report in the Financial Times said that civil servants were preparing for HS2 to go £31 billion over budget.
But McLoughlin said that the £42.6 billion budget including contingency costs and that he hoped the project would eventually come in at a lower cost.
The high-speed rail line will initially link London and Birmingham from 2026 followed by two branch lines to Manchester and Leeds which are scheduled to open in 2032.
“The budget is £42 billion and I announced that to Parliament - that has not changed and that is for building 351 miles of brand new railway,” said McLoughlin.
“I cannot take account for what some people are supposedly saying in unattributed briefings.
“What I do know is that actually we have a very big problem as far as capacity on the railways is concerned.”
hs2.org.uk