HS2 train services between west London and Birmingham will not start running for at least another 10 years, the Transport Secretary confirmed on Tuesday.
Heidi Alexander also revealed the controversial project is now expected to cost up to £102.7 billion.
Ms Alexander told the Commons: “It gives me no pleasure to say the expected cost of completing HS2 is now between £87.7 billion and £102.7 billion, priced in 2025.
“Two-thirds of this increase is down to past misunderstanding of the work required, underestimation and inefficiency, issues within the control of HS2 Ltd, some of its suppliers, and previous governments.
“The remaining third is linked to inflation, which was not factored into previous cost estimates regularly enough.”
The first high speed services are expected to begin running between Old Oak Common and Birmingham’s Curzon Street station between May 2036 and October 2039.
HS2 services between Euston Station and Handsacre Junction in Staffordshire will not start until between May 2040 and December 2043.
Handsacre Junction is where HS2 trains are planned to leave the dedicated high-speed tracks and merge onto the conventional West Coast Mainline.
Services were originally planned to launch this year.
Ms Alexander also announced that HS2 trains will run slower than planned to save money.
She said the maximum speed of services will be 320km/h (199mph), down from the original design of 360km/h (224mph).
Ms Alexander claimed past administrations “spent most of HS2’s budget without laying a single metre of its track”.
She added: “Let me remind the House of the litany of failure we inherited in July 2024.
“Costs soared by £37 billion under the previous government alone, billions of taxpayers’ money was sunk into Phase Two work for the sections north of Birmingham before they were abruptly cancelled.
“Huge contracts were handed out without improvement in price, despite the Oakervee Review’s recommendation to negotiate a better position.
“Instead of signalling the country’s ambition, HS2 became a symbol of this country’s decline and after more than five years of construction and over £40 billion spent, the country was no closer to having an operational HS2 railway than when construction first began.
“That is the shocking legacy of the previous government and I’m afraid it gets worse – I can today confirm the previous government spent most of HS2’s budget without laying a single metre of its track.”
Announcing the new date ranges, Ms Alexander added: “Lessons have been learned from the Stewart Review, meaning HS2’s cost and schedules are now built on more solid foundations with credible estimates published as ranges to ensure they better stand the test of time.
“Colleagues may feel that they’ve heard all of this before, and I understand that scepticism, but it is different this time.
“HS2 Ltd have now used the same experts and methods behind the successful Crossrail reset. They have priced future work against what we have learned so far and their homework has been checked by an independent panel of experts.”
She also has warned that cancelling HS2 could cost almost as much as it would to finish it.
“I realise that there will be those who will say this is all too much and we should just cancel the whole thing,” she told MPs.
“However, I can confirm today that it could cost almost as much to cancel the line as it would to finish it, while delivering none of the benefits, with half-finished structures strewn across the English countryside, a relic to what could have been.
“And so this Labour government is clear. We will deliver HS2 to completion, because this country can build big things. We just need competent people at the helm to deliver them.”
Conservative shadow transport minister Jerome Mayhew said the Government was right to take action to reduce costs
He praised the chief executive of HS2 Limited.
“Errors were made and should be rectified and I’m glad the Government continues to support Mark Wild and his team as they work towards opening HS2,” he said.
Mr Mayhew also asked whether the figures include costs for redeveloping Euston station, signalling and rolling stock. He also pressed Ms Alexander on how reducing the top speed would save money.
Ms Alexander replied: “This will mean that trains on HS2 are running as fast as bullet trains in Japan.
