U.K.’s High-Speed Railway Review Panel Considers Cost Cuts: FT

(Bloomberg) -- The U.K.’s High Speed 2 project, a railway line designed to link London to cities north of Birmingham, including Manchester and Leeds, could be scaled back in an attempt to cut costs, according to the Financial Times.

A proposal to cut the route to Leeds and Sheffield is being considered by a panel led by Douglas Oakervee, an engineer who previously chaired the company building the line, the FT reported, citing people close to the panel. Prime Minister Boris Johnson’s government announced the review of the controversial railway line in August.

Axing the Leeds line and reducing train speeds by 40 miles per hour could save more than 10 billion pounds ($12.3 billion), the FT said. The panel is also exploring whether to abandon a plan to develop the track into London’s Euston station and instead end the line at a proposed new hub on the west side of the capital.

HS2 is deeply unpopular with voters along the route, who object to the construction impact and noisy trains passing near their homes. Many are in districts held by the Conservative Party, and Johnson was repeatedly asked whether he would cancel the line during his run to become premier. Critics also say costs will rise above the budgeted 56 billion pounds.

Advocates of HS2 argue that it’s an essential project not simply to speed up connections between London and other cities, but also to expand capacity on the railways.

To contact the reporter on this story: Alastair Marsh in London at amarsh25@bloomberg.net

To contact the editors responsible for this story: James Hertling at jhertling@bloomberg.net, Zoe Schneeweiss, James Amott

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