London business leaders are warning that the HS2 extension to Euston is “vital” as the high speed rail project continues to be mired in uncertainty.
Then Prime Minster Rishi Sunak cancelled the Birmingham to Manchester leg of the scheme last year as costs soared.
When the expected bill for the project in the capital spiralled to nearly £5billion, there were reports trains would have to terminate at Old Oak Common in west London and passengers forced to continue their journey into Euston via the Elizabeth Line.
However, new Chancellor Rachel Reeves is rumoured to be preparing to sign off the link running to north London despite the multi-billion pound price tag.
In a letter to Rail Minister Lord Hendy, BusinessLDN chief John Dickie warned that not completing the project would risk the area losing £41billion in economic output and thousands of new homes.
He said: “The design of the tunnels has been agreed and tunnel boring machines contracted, with one already on site and the second expected soon…Given costs already incurred, and with existing infrastructure and site teams in place, there will never be a cheaper time to build this tunnel than now.
“If the decision is further delayed it would lead to significant remobilisation costs.
“Failure to complete this section would further curtail North-South capacity and reduce the future value of HS2 as a key national infrastructure asset.
“According to HS2’s 2023/24 annual report, it could also affect the organisation’s ability to safely operate and maintain Old Oak Common station and train services across HS2, the Great Western Main Line and the Elizabeth line.”
He added: “Connecting Euston to the high-speed rail network, with an integrated station to provide a good passenger experience, is vital to delivering the promise of regeneration in the area.”
The Sunday Times reported last week that Ms Reeves is preparing to approve plans for the required 4.5-mile tunnel link and for an overhaul of Euston station.
A government source said: “HS2 just wouldn’t work if the terminus was not at Euston.
“The station is also well overdue for investment and has become a dystopian mess and a stain on London.”
Ex PM Mr Sunak had said the Euston link would be built using private finance.
But Sir John Armitt, chair of the National Infrastructure Commission, poured cold water on the proposal, saying that the Government will still “need to be ready to fund the core civil engineering” works.
London Mayor Sadiq Khan has struck an optimistic tone that the Euston link will go ahead
He said: “In my first two terms as mayor, it would’ve been unthinkable to call a minister, pitch an idea and for them to then approve it.
“But this government – not yet three months old – has already consented to our plans to build 350 new homes at Cockfosters station and to breathe new life into Oxford Street.
“And while I don’t want to tempt fate, it’s looking increasingly positive that HS2 will come to Euston. This - for me - is but a glimpse of the London we can build.”
