The review will be led by the 78-year-old major project veteran Douglas Oakervee assisted by Lord Berkeley, 79, who has been a critic of the rail scheme.

They will be supported by a panel of experts from business, academia and the transport sector to prepare a report by the autumn.

The HS2 review will consider:

• its benefits and impacts
• affordability and efficiency
• deliverability and scope
• its phasing, including its relationship with Northern Powerhouse Rail

Around £7bn has already been spent on the scheme and government said: “limited, largely preparatory works, on the project will continue in parallel with the report’s work.”

Transport Secretary Grant Shapps said: “The Prime Minister has been clear that transport infrastructure has the potential to drive economic growth, redistribute opportunity and support towns and cities across the UK, but that investments must be subject to continuous assessment of their costs and benefits.

“That’s why we are undertaking this independent and rigorous review of HS2.

“Douglas Oakervee and his expert panel will consider all the evidence available, and provide the department with clear advice on the future of the project.”

Oakervee said: “I am looking forward to working with my deputy, Lord Berkeley, to advise the government on how and whether to progress with HS2, based on all existing evidence.”

For a full terms of reference of the review click here.