HS2 will run to London Euston after chancellor commits to funding

HS2 trains will be able to run all the way to Euston after the chancellor, Rachel Reeves, committed to funding tunnelling work to the central London station.

She said the government would “get a grip” on HS2 between London and Birmingham, and guarantee funds to start work on the 4.5-mile twin-bore tunnel from Old Oak Common station in west London into Euston.

Reeves did not specify the level of public funding the tunnelling work would receive, but it has previously been estimated at around £1bn.

Reeves said in her budget speech that the transport secretary, Louise Haigh, had “set out a plan of how to get a grip of HS2”.

Reeves said: “Today, we are securing delivery of the project between Old Oak Common and Birmingham, and we are committing the funding required to begin tunnelling work to London Euston station. This will catalyse private investment into the local area, delivering jobs and growth.”

The fate of the high-speed rail network’s southern terminus had been uncertain since Rishi Sunak announced the axing of HS2’s northern leg in 2023. He said the last few miles into Euston would only be built if private finance paid for it, saving up to £6.5bn.

There was widespread doubt, however, that such funding alone would come in time to secure the rail link. A Commons public accounts committee report in February declared MPs were “highly sceptical” that the government would be able to attract private investment on “the scale and speed required” to successfully extend HS2 to Euston.

Tunnel boring machines bought from Germany were recently lowered into place at Old Oak Common.

Reeves words suggested private finance would probably be needed for the redevelopment of Euston station itself, the projected cost of which has risen to nearly £5bn.

Initial plans for the station, to incorporate HS2 platforms as well as conventional rail services to cities in the north, were scrapped in 2020, and it is still unclear how the site and surrounding area will be redeveloped.

The mayor of London, Sadiq Khan, said: “After all the dither and delay from the previous government, confirming that HS2 will terminate at Euston will mean the capital can finally realise the full economic benefits of the project.”

Reeves also confirmed existing plans to upgrade the TransPennine line and build East West rail, with the first services from Oxford to Milton Keynes next year.

Supporting budget documents published by the Treasury said the government “was maintaining momentum on Northern Powerhouse Rail by progressing further planning and design works to support future delivery”.