Economy

Cheaper ‘HS2-light’ line beyond Birmingham considered by ministers

Ministers are exploring plans to build a more cost-effective “HS2-light” railway line between Birmingham and Manchester, after the original high-speed rail project beyond Birmingham was scrapped.

This new proposal, which aims to improve capacity while reducing costs, is being considered as part of a broader review of the country’s infrastructure needs.

The “HS2-light” line would involve constructing a section between Birmingham and Crewe that allows trains to travel faster than on the West Coast mainline but slower than HS2, potentially cutting costs by up to 40%. The government believes this solution is necessary to resolve the impending “capacity crunch” on the West Coast mainline when HS2 begins running in the 2030s. Without new infrastructure, rail capacity between Birmingham and Manchester could decrease by 17%, according to the National Audit Office.

The proposal comes after Transport Secretary Louise Haigh confirmed that HS2 would terminate at London’s Euston rather than Old Oak Common. Senior government sources suggest the plan could move forward after the spring’s three-year spending review, with funding potentially supported by fiscal rule changes to be announced by Chancellor Rachel Reeves in her upcoming budget.

The plan aligns with proposals put forward by Labour mayors Andy Burnham and Richard Parker. They argue that building a new line north of Birmingham is critical for improving both passenger and freight capacity between the Midlands and the north of England. Their report, led by former HS2 Ltd chairman Sir David Higgins, calls for a line connecting Lichfield in Staffordshire to High Legh in Cheshire, with links to the planned east-west Northern Powerhouse Rail.

Henri Murison, chief executive of the Northern Powerhouse Partnership, highlighted the urgent need for the new line, calling it the only viable solution to the region’s capacity issues. He said, “A solution which connects the north and Birmingham with a new line will also link Leeds and the northeast.”

Senior figures within the government have acknowledged the need for action, with one source noting, “There is a realisation in government that what they’ve got at the moment is a complete dog’s breakfast and that something needs to be done.”

The final decision on the “HS2-light” line is expected in the coming months, as ministers assess the best way to move forward with the UK’s rail infrastructure plans.

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