The UK government has confirmed the cancellation of the northern leg of the HS2 high-speed rail project from Birmingham to Manchester.
Speaking at the Conservative party conference today, prime minister Rishi Sunak said the government would invest the savings – some £36 billion – in other new transport projects in the Midlands and North of the country.
"Every region outside of London will receive the same or more government investment than they would have done under HS2, with quicker results," said Sunak.
However, amid concerns that the HS2 line from Birmingham – already under construction – would stop short of central London at a new transport hub in Old Oak Common, Sunak confirmed it will continue to Euston station in the centre of the capital.
After reports surfaced earlier this week that the northern leg was under threat amid spiralling costs, Clive Wratten, CEO of the Business Travel Association, said it would be a "deplorable act of carelessness" from the government.
"Cancelling the key northern hub makes a mockery of the levelling-up agenda," said Wratten. "Once again, connected business travel across the UK is sacrificed by those in power negligent of the needs of those outside London."
Also commenting on the development, Scott Davies, CEO of the Institute of Travel Management, said: "ITM recognises the need to balance public sector finances, but there still needs to be regional infrastructure investment as the strategic importance of rail to the business travel industry is only set to increase.
He added: "The UK needs significantly more efficient rail connectivity regionally and nationally not only to support economic growth and job creation, but also to drive more sustainable travel to meet the government’s net zero targets. The money saved by scrapping phase 2 therefore needs to be invested in improving regional rail connectivity especially in the north of England."
The project has been dogged by delays and a rapidly increasing budget, with the eastern leg of HS2 between the East Midlands and Leeds already being scrapped two years ago.
HS2 services are due to commence between West London’s Old Oak Common station and Birmingham Curzon Street in 2033.