Shapps: Costs have accelerated... we'd be crazy not to reassess HS2

IT would be "crazy" and "irresponsible" not to reassess the spiralling costs of high-speed rail link HS2, Cabinet Minister Grant Shapps insisted yesterday.

- Michael Knowles

Rishi Sunak and Chancellor Jeremy Hunt are expected to meet this week to decide whether to scrap a large chunk of the project.

A decision on the fate of the leg north from Birmingham to Manchester is expected within days and former transport secretary Mr Shapps F said the scheme risked sucking money away from local projects.

The Defence Secretary said the Government could not write an "open-ended cheque" if costs were "inexorably going higher and higher".

Mr Shapps said: "We have seen the costs accelerate a lot. Of course, inflation has been part of that.

"There are various different estimates and that's one of the things that the Government wants to check, particularly on the costs now post the inflationary picture out of the war in Ukraine. I have to say that it would be irresponsible to simply spend the money, carry on as if nothing had changed, if there has been a change in had that fiscal picture." He added that when previous commitments been made, "no one knew we'd be in a war in Europe right now with all of the consequences, all of the costs, and all of the inflation. And any government that doesn't go back and then look at it is crazy".

Government sources insisted no decision has been taken but Mr Hunt believes the costs are "out of control". Officials fear the project, that started construction under former PM Boris Johnson, could £100billion cost more than up from £30billion when MPs first approved the scheme in 2010.