Government set to fund £1bn final HS2 London tunnel drive

Aaron Morby 2 weeks ago
Share

The Government is set to give the go-ahead for the final HS2 main tunnel drive under London to Euston station.

The project was halted as part of Prime Minister Rishi Sunak’s £6.5bn cost-cutting plan announced last October.

This involved axing phase 2 to Manchester and finding a private investor to pay for the final 5.4-mile TBM drive to the station and the redevelopment of Euston site through over-station development.

According to Whitehall sources, the Government has decided now to pay the upfront tunnelling cost of around £1bn to avoid further costly delays on the project.

The Government then hopes to recoup the cost through the wider development of the Euston station site once the planned development corporation secures investment from the private sector to develop the area.

Official go-ahead for the drive is now expected in weeks.

Over the last few months Skanska Costain Strabag JV has continued with preparation works to launch the two final TBMs from the Old Oak Common Box towards Euston, despite uncertainty about the Euston terminus plan, meaning the project is unlikely to be delayed due to the review of costs.

Three months ago the public accounts committee warned the Government that it had to stop dithering over how to privately fund the Hs2 London terminus and final TBM drive concluding that costs could only soar further.

Sir John Armitt, chair of the National Infrastructure Commission, had also warned last November that the Government would never get the private sector to pay for the final tunnel dig.

 

Latest news

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
1 day ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
11 hours ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
11 hours ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
11 hours ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
1 day ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
1 day ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
1 day ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
1 day ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
1 day ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
1 day ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
1 day ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
2 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
2 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
2 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
2 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
2 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
2 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
2 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
3 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
3 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
3 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
4 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
3 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
3 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
3 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
3 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
3 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
3 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
4 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
4 days ago

Contractor services