HS2 will be built as far as Crewe by 2027, the government has confirmed, to increase the benefit to the north six years before the full £55.7bn high-speed rail network is completed.
A government paper published on Monday endorsed revised plans drawn up by David Higgins, the chairman of HS2, to continue building to take in a major new rail hub at Crewe in the first phase of construction, which will cut 45 minutes off the journey to London.
Ministers will publish the exact route of the second part of the network, to Manchester and Leeds, next autumn. Plans for a new interchange in Leeds city centre will also be published on Monday.
A consultation will open on compensation and assistance for people who own property on the new stretch of route between Birmingham and Crewe.
Confirmation of the investment comes days after a spending review where George Osborne was forced to increase Network Rail’s £38.3bn five-year budget by £2.5bn to keep its programme largely on track, but significant rail upgrades will still be delayed until the next decade – including electrification of the Midland mainline to South Yorkshire.
But the chancellor has been at pains to stress his commitment to the north and his “northern powerhouse” plan, setting up a new body, Transport for the North, whose first chairman, John Cridland, the former CBI boss, will be installed on Monday.
Osborne said: “Bringing forward this part of the HS2 route by six years is a massive step in the right direction for the northern powerhouse, where high-speed rail will play a big role in connecting up the entire region with the rest of the country.
“It’s fantastic to announce someone of the calibre of John Cridland to take on the important role of chairing Transport for the North.”
The new body is to integrate transport in the region, starting with a plan to introduce Oyster-style ticketing across rail, bus, metro and trams.
The transport secretary, Patrick McLoughlin, said HS2 would bring additional rail capacity to cities across the north-west and in Scotland, helping support growth and jobs. He added: “Bringing HS2 to Crewe ahead of time is a tremendous opportunity for the north to feel the benefits even sooner.
“We continue to make good progress on our plans for the rest of HS2 phase two serving Manchester, east Midlands, South Yorkshire and Leeds and will make a decision on the route in autumn 2016.”
Higgins said the decision to accelerate the second phase of work was a “significant milestone” in the development of HS2, and said a “gratifying consensus” was growing in cities along the northern route over where new stations should be built.
But the cost of HS2 – revised up by another £5bn on Wednesday to £55.7bn, at 2015 prices – has provoked more controversy in a week when the chancellor was slashing welfare and other departmental budgets.
Ministers have admitted that 46 staff working at HS2 Ltd earn more than the prime minister – even though no spades have yet gone in the ground and royal assent has not been granted for the project.
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