Budget 2024: Chancellor confirms HS2 trains will run to Euston

Chancellor of the Exchequer Rachel Reeves has approved the extension of HS2 into Euston station as part of her budget announcement.

The move will ensure that HS2 runs into the centre of London rather than ending at Old Oak Common in west London.

The extension was initially paused for two years by former prime minister Rishi Sunak as concerns over its spiralling costs were raised and private investment was sought to plug the near £4 billion cost of the 4.5-mile route.

However, it is currently unclear whether the government will foot the bill for the whole project or if it will include private investment.

HS2 is currently nearly £20bn over budget, however the Treasury announced last week that it was changing how its fiscal rules are calculated to free up £50bn for large-scale infrastructure projects.

Chancellor Rachel Reeves told parliament: “We will provide the funding required to begin tunnelling work between Old Oak Common and Euston. This will catalyse private investment into the local area, delivering jobs and growth.”

It is also not yet clear whether the Government has decided to retain the slimmed-down six platform HS2 terminus proposed by the previous government or to continue with the originally planned 11-platform layout.

Independent rail consultant William Barter who consulted HS2 Ltd said that not investing in the 11-platform layout would limit growth.

“Designing Euston so it is fit for potential growth in the future requires the full 11 platforms. Seven provides a minimal viable product, certainly for services to Birmingham and the north west but does nothing to solve potential services to the East Midlands or further services to Scotland.

“Unless we allow for that, HS2 will be forever limited to half its capacity.”

Upon the announcement of the investment, a spokesperson for the High Speed Rail Group said: "Rail investment is far more than a short-term cost: it is a driver of national growth and regional connectivity. Today’s approval to complete HS2’s critical link from Old Oak Common to Euston marks a pivotal step forward.

"We hope that an era of fragmented, short-term decision making has been ended, in favour of a move towards a cohesive vision for the future of UK rail.

"However, we cannot stop here. To fully realise the socio-economic benefits of this project, it is critical that Phase 1 is properly connected north of Birmingham to Crewe and beyond.

"Taking a long-term, integrated approach to rail delivery going forward will enable HS2 and the broader network to fuel the UK’s economy and enhance productivity for generations to come. For the first time in some years, this Budget sees that future get one step nearer rather than further away."

The new government has been under pressure to decide on the future of Euston since it came to power. This was made worse as two tunnel boring machines arrived at the station last month. Its suppliers said that they could not sit underground indefinitely.

Commenting in response to the Government’s confirmation, Alex Vaughan, CEO at Costain, said: “This is positive news that gives certainty and clarity for the UK’s largest and most complex infrastructure programme. Having the HS2 railway connected to Euston, in the heart of London, will be vital for the programme to deliver its many benefits, and will act as a catalyst for the regeneration of the Euston area.

Rail Partners chief executive, Andy Bagnall, said: "Rail Partners and its members welcome the rail investments announced in today’s budget including funding for tunnelling to London’s Euston station, which helps keep open options for HS2 in the North.

‘Filling the capacity gap left by the cancellation of the northern section of HS2 is still essential if we are to encourage more people to travel by by train and to unlock freight capacity to reduce congestion by moving goods off the roads and onto the railway."

Despite rumours earlier this month that the budget would contain the £12 billion funding for Northern Powerhouse rail project between Liverpool and Manchester, Reeves did not announce it.

Instead, Reeves said that they would be securing the delivery of the TransPennine Upgrade between York, Leeds, Huddersfield and Manchester. Reeves also recommitted to East West Rail as well as upgraded station projects at Bradford Forster Square and Manchester Victoria.