HS2 could cost up to £22bn more than its previous budget and may be delayed by seven years, the company building the high-speed railway has said.

The future of the long-running project was thrown into doubt last month after it was revealed an independent review will consider whether it should continue.

In a written statement to parliament on Tuesday, Transport Secretary Grant Shapps said HS2 Ltd chairman Allan Cook does not believe the project can be delivered within its £55.7bn budget. This was set in 2015 prices and is equivalent to £62.4bn today.

Image: Opponents of HS2 say it is too expensive and environmentally damaging

Instead, it is estimated HS2 needs a total budget "in the range of £72bn to £78bn" in 2015 prices, or £81bn to £88bn today, Mr Shapps said.

The transport secretary also warned that Mr Cook does not believe phase one of HS2 can be delivered by 2026, and instead recommends a "staged opening" between 2028 and 2031.


The minister added that Mr Cook expects Phase 2b of HS2 - the full high-speed line between London and Manchester and Leeds - to open between 2035 and 2040 - a delay of up to seven years from the previous date of 2033.

A report by Mr Cook stated that the original HS2 plans "did not take sufficient account" of the effect of building a high-speed line through areas that are densely populated and with challenging ground conditions.

He said the project's budget has "proved unrealistic", but added: "At the same time the benefits have been understated."

It comes after the Department for Transport announced a "rigorous" inquiry into the high-speed rail link, with the findings due to be revealed this autumn.

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If finished, HS2 would connect London, Birmingham, Leeds, Manchester, Liverpool, Sheffield, Edinburgh and Glasgow with up to 18 trains an hour at a top speed of 225mph.

But opponents say the scheme is too expensive and environmentally damaging.

A spokesman for HS2 Ltd said: "The assessment makes clear that HS2 remains a compelling strategic answer for Britain's future transport needs, relieving overcrowding and congestion on our roads and railways, and reducing the carbon footprint of the UK.

"It will drive economic growth and regeneration in our regions, and bring Britain closer together."