The HS2 high speed rail line appeared almost certain to go to Euston as No10 stressed it was “how not if”.
Transport Secretary Louise Haigh has given the strongest signal yet that the high speed trains will run all the way to Euston rather than stopping at Old Oak Common in west London.
She said on Tuesday: “It would never have made sense to leave it between Old Oak Common and Birmingham.”
“Euston was always planned to be part of the picture for HS2. We are hoping to make an announcement on that very soon.”
That announcement is expected to come when the Chancellor delivers her first Budget on October 30.
Asked about the situation on HS2, the Prime Minister’s official spokesman said on Wednesday: “As the Transport Secretary said the plan was always for the HS2 route to continue to Euston and it was a question of how not if.
“But we are reviewing the position that we have inherited on HS2 and we will set out further decisions and plans on that in due course.”
Chancellor Rachel Reeves is having to juggle competing priorities with the public finances being in a dire state.
She has already warned of looming tax rises and more public spending cuts, after winter fuel payments were axed for all pensioners apart from those on pension credit.
But business chiefs in the capital are stressing how vital it is economically for the HS2 line to run to Euston, rather than stop at Old Oak Common and passengers then having to switch to the Elizabeth Line to reach central London.
John Dickie, chief executive of the London business group BusinessLDN, said: “It is good news that the Transport Secretary has given the green light for HS2 to reach Euston and it’s now important the Chancellor gets on board ahead of the Budget.
“It will also be vital to establish a development vehicle to drive growth and ensure that the surrounding area is redeveloped in a way that works for local communities, commuters and the country as a whole.”
Karim Fatehi, chief executive of the London Chamber of Commerce and Industry, added: “We are relieved to hear the Transport Secretary signal that the HS2 railway line will likely be extended, as was originally planned, to London Euston.
“We now look forward to the Chancellor’s Budget at the end of the month, and will continue to work with ministers and the Mayor of London on behalf of our members to ensure that the full potential of the new line is felt by businesses across the capital.”
Last year then Prime Minster Rishi Sunak cancelled the Birmingham to Manchester leg of the HS2 scheme as costs soared.
His Conservative government also sought to find private investment to fund the final link to Euston.
But it was not clear if this could be found, fuelling doubts over whether the line would reach Euston.
Ms Reeves is expected to sign off the extension to Euston, though it is not clear yet how it will be funded by the Labour government.
Meanwhile, Cabinet minister Lisa Nandy said Ms Haigh is looking “very seriously” at how to increase rail investment in the north amid reports a “HS2-light” railway line could be built between Birmingham and Crewe.
Asked about a report in The Times suggesting this line will go ahead, Culture Secretary Ms Nandy said: “I think the difficulty that the Transport Secretary and the Chancellor have is that the last government seriously overcommitted to projects that they had no idea how they were going to fund from the public finances, and so it’s meant some very tough decisions.
“I can’t obviously pre-empt what’s going to be in the spending review, which the Chancellor will announce in a matter of weeks.
“But I know it’s something that the Transport Secretary is looking at very seriously.”
