HS2 will not now go further than Birmingham, Rishi Sunak confirmed today, and the £36 billion saved will be spent on rail and road upgrades between the West Midlands, Manchester, and Liverpool.
Unveiling the decision at the Tory party conference, the PM said that things had changed and that “every penny saved” would be spent on new transport projects.
“Every region outside of London will receive the same or more government investment than they would have done under HS2, with quicker results," Sunak said.
What companies are affected by HS2 axe
London does get something, the PM committed to the line finishing at the Euston terminus but under new management there.
“There must be some accountability for the mistakes made, for the mismanagement of this project," he said.
"We will instead create a new Euston development zone."
Sunak committed to the £12bn West Coast rail upgrade, though this won’t be a speed link, and also called on the West Midlands mayor Andy Street to help devise plans for a regional Metro network.
Other pledges include building the Leeds tram, electrifying the North Wales main line, and upgrades to the A1, the A2, the A5 trunk roads, and the M6.
"I challenge anyone to tell me with a straight face that all of that isn’t what the North really needs."
Mace, a contractor for the HS2 connection to Euston, said: “The decision to not build new high-speed rail north of Birmingham to Manchester will seriously undermine business and investor confidence in the UK and our ability to deliver on our promises – as well as having a chilling effect on the construction industry.”
Union GMB said the decision would "send a shockwave through the construction industry and railway supply chain, costing hundreds of jobs".