The UK government is anticipated to officially approve over £1bn of public funding for the construction of the HS2 Euston tunnels linking Old Oak Common and Euston
According to the Financial Times, the government is expected to release over £1bn in funding for the 4.5-mile HS2 Euston tunnels within a few weeks.
Despite Rishi Sunak’s decisive and controversial reshaping of the £67bn railway project, the tunnelling required to connect HS2 into central London has remained uncertain.
Euston’s redevelopment is being funded by private-sector capital
One Whitehall official told the Financial Times that ‘alternative funding’ mechanisms, including a retrospective levy on developers, could ultimately pay for the tunnelling.
“Essentially Euston’s redevelopment is being made possible by private sector capital, and that applies for work going forwards but it also applies for work going back in time”, they added.
The government halted HS2 London’s terminus in March 2023
The government halted progress on HS2’s London terminus and the associated tunnels in March 2023 to allow sufficient time to ensure the station design is both affordable and feasible for implementation.
Subsequently, in October, the prime minister announced further constraints on the plan by cancelling the high-speed line north of Birmingham.
Additionally, the government declared its intention to assume responsibility for the Euston development and seek £6.5bn of private investment to construct the tunnels and station.
The government has refused to comment on the Financial Times’ ‘speculative’ story about the tunnel.
