Background to the report

The High Speed Two (HS2) programme aims to deliver a high-speed, high-capacity railway between London and Birmingham. The Department for Transport (DfT) sponsors the programme and is responsible for funding and oversight. High Speed Two Limited (HS2 Ltd), an arm’s-length body of DfT, is responsible for building the railway and bringing it into service. A new body, Euston Delivery Company Limited, is responsible for the HS2 station and related work at Euston, where the railway will end in London.

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The HS2 programme has not gone as planned. DfT and HS2 Ltd reset the programme in 2020 and the development of Euston station in 2020 and 2023. In 2023, the government cancelled Phase 2 of the railway beyond Birmingham. The programme is now smaller than originally planned, while costing more and taking longer to complete. Both we and the Committee of Public Accounts have previously reported on the issues that have led to the resets. HS2 Ltd and DfT are now resetting the programme again. This began in January 2025 and is expected to end in spring 2027. HS2 Ltd expects to spend £153 million on the reset, having spent £101 million by the end of March 2026 (in nominal prices).

There is also work underway to reset work at Euston and close down Phase 2. HS2 Ltd has continued with construction in parallel with the reset. As at the end of March 2026, DfT and HS2 Ltd have spent £46.8 billion (in nominal prices) on the programme, including on the cancelled Phase 2.

Scope of the report

This report examines whether HS2 Ltd and DfT are taking reasonable steps to plan, assure and implement the reset of the HS2 programme. We last reported on HS2 in July 2024, following the cancellation of Phase 2 of the programme. We are reporting now while the reset is underway to support Parliamentary scrutiny. This report examines and assesses progress relating to the following:

  • Resetting Phase 1
  • Resetting work at Euston station
  • Closing down Phase 2

We carried out fieldwork between March and May 2026. Much of the work we examine remains in progress. We have not examined how HS2 services will integrate with the rest of the rail network once the HS2 railway is fully completed. We expect to report further on progress with the HS2 programme in the future.

Conclusions

DfT and HS2 Ltd are resetting the HS2 programme to avoid further cost increases and delays. They are taking a considered approach, but significant work remains before they can complete the reset. In particular, they need to establish a robust baseline for cost and schedule, complete commercial renegotiations, develop plans at Euston and ensure that HS2 Ltd has the right capabilities in place. DfT and HS2 Ltd are aiming to complete the reset by spring 2027 but it is crucial that they get it right this time following past failures. They should ensure that they do not proceed with putting the plans into action until they are confident everything is in place to deliver against them.

With the programme now potentially costing up to £102.7 billion, DfT must also renew its focus on maximising the benefits from its expenditure on HS2. This is particularly important at Euston, which is expected to both enable HS2 trains to terminate in central London and support a wider regeneration of the area. DfT will need to work closely with other government departments and with local authorities to fully realise the benefits from the railway.

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View press release (29 Jun 2026)

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