Reports this morning claim that the government is set to partly reverse Rishi Sunak’s decision to cancel HS2 north of the West Midlands, by building Phase 2A to Crewe.

It is said that the Prime Minister could announce the change of heart in the New Year.

Legal powers to build this section already exist, and land has been acquired in many places.

The report, which first appeared on LBC, follows advice last week from the High Speed Rail Group that completing HS2 to Euston and also restoring the section between the West Midlands and Crewe could make the line much more valuable to a potential concession-holder.

The Group includes major contractors like Hitachi, Alstom and Siemens and is supported by the high speed rail lobby group Greengauge21. It says the full route could be worth £20 billion to a leaseholder, but much less if the line only connects Old Oak Common with Birmingham, and that the difference could more than pay for the Euston section, which could also be revived.

HS1 is already leased until 2040, and the Group says a similar model could be applied on HS2.

A separate scheme had also been suggested by Greater Manchester Mayor Andy Burnham and former West Midlands Mayor Andy Street, who have put forward a proposal to build a less ambitious line with a lower speed, which could cut costs by as much as 40 per cent.

The reports that Phase 2A could go ahead after all have already attracted critics like the right-wing TaxPayers’ Alliance. Its chief executive John O’Connell said: ‘A decision to reverse changes to HS2 would only further derail the public finances, all for the sake of a massive white elephant that taxpayers simply can’t afford.

‘The case for HS2 has long since been torn to shreds by uncontrollable costs, changes to rail usage and the much greater need for investment in alternative projects.

‘If Labour want to fill the black hole in the budget they’d be better off pulling the plug on the whole scheme.’ 

The Department for Transport has not commented on the latest claims in detail, saying only: ‘Transport is an essential part of the Government’s mission to rebuild Britain and grow our economy. We are committed to improving rail connectivity across the North, working with local leaders to do so.’