20 Aug 2013

HST cost could hit £73 billion

Treasury officials are privately warning that the cash cost of the controversial High Speed 2 rail line will hit £73bn. FT article


  1. £73bn in 2033 prices including interest. That's like saying that you won't buy a house as by the time you've paid off the Mortgage it will have cost you twice as much as you could have paid for it if you had paid cash.

  2. A very bad feature of HS2 is that it will be under construction for the best part of a decade, with interest charges building up, before any revenue arises. With a project like the Channel Tunnel this was unavoidable, but a route that was meant to be providing additional capacity ought to be planned in such a way that the benefits could be realised as soon as at least one third of the construction had been completed.