Confidential government documents have revealed the escalating costs of extending the High Speed 2 rail link into London’s Euston station, with the total price tag now exceeding £7.5 billion. The documents shed light on the mounting financial challenges facing this crucial infrastructure project.
The Department for Transport’s sensitive commercial papers outline a £6 billion estimate for the new HS2 station and tunnels. When combined with the additional £1.5 billion required for rebuilding the existing Euston station, the total reaches £7.5 billion. These figures, based on 2019 prices, would translate to approximately £9.4 billion when adjusted for current inflation rates.
The government’s previous claims of potential cost savings through public-private partnerships appear optimistic. While former Prime Minister Rishi Sunak suggested savings of £6.5 billion were possible, the DfT documents indicate more modest reductions between £1.4 billion and £2 billion. Similarly, initial projections of 10,000 new homes at the site have been revised downward, with development partner Lendlease planning for 2,000 to 3,000 flats.
The existing Euston station is already operating well beyond its designed capacity, handling 33 million passengers annually compared to its 1968 design capacity of 20 million. The addition of HS2 services will further strain these resources, making the redevelopment increasingly critical.
Public policy expert Tony Travers from the London School of Economics highlighted the project’s concerning trajectory, noting the extraordinary lack of clear planning and budget control since work commenced in 2017. The situation has significantly impacted local businesses and residents, raising questions about project management in one of the world’s leading financial centres.
With more than £2 billion already spent on the Euston project, the government faces mounting pressure to deliver value for money while ensuring the station can meet future capacity demands. The Department for Transport maintains its commitment to the project but has yet to provide detailed plans for addressing these escalating costs.
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