The government says it has already spent £2.3 billion on phase two to date, at 2019 prices, including property purchases. Photo: Christopher Furlong/Getty Images Europe
The Government is left with almost 1,000 properties acquired to make way for the northern link of HS2 after Rishi Sunak canceled that part of the project.
The future of properties and contracts Up to £1.1 billion was left in limbo after the Prime Minister officially confirmed that the section of the line from Birmingham to Manchester, officially known as stage two, would be abandoned.
The decision comes despite the fact that HS2 Ltd, the state-owned subsidiary in charge of the troubled megaproject, has already spent significant sums buying the land needed to build the route, as well as design and preparatory work.
The government says , which has so far spent £2.3 billion on the second phase at 2019 prices, including property purchases.
People living in houses along the originally proposed route — from London to Birmingham, Manchester and Leeds in a 'Y' shape — have been able to either voluntarily sell their properties or buy them compulsorily.
HS2 Ltd to date spent £587 million buying land and buildings for sections that would run from Birmingham to Manchester and Leeds.
954 properties were acquired. Of these, 185 were on the planned section from Crewe to Manchester and a further 530 on the section from Birmingham to Leeds.
Among them was a mansion sold by comedian John Bishop for £6.8m in 2019.
Where possible, HS2's policy was to rent houses back after buying them, but in many cases the houses were left empty.
The decision to abandon the northern section of the rail project will raise questions about what happens to the properties now, as the government said on Wednesday it would seek to sell those no longer needed.
Some land has been acquired. near Manchester and Leeds is still needed for other rail projects.
Meanwhile, the future of contracts to build the second phase of HS2, worth more than £1 billion, is now in doubt.
< p>Official documents released by HS2 show that development contracts for the second phase are already worth £1.1 billion.
The deals include a project management contract worth no more than £250 million awarded to US engineering companies. giant Bechtel
Another professional services contract worth up to £500 million was shared between Mott MacDonald, WSP Aecom, Ineco and Arup.
Keir was also awarded a £100 million contract for «ancillary works» on the route between Birmingham. and Crewe, while Balfour Beatty won a £100 million contract for «early environmental work» and a £50 million contract for ground surveys at the same site.
Two other contracts, each worth £50 million £ sterling were awarded to WSP and a consortium including Mouchel Limited, Arup, AECOM and WSP for rail system design and land related services such as landowner liaison.
Separately, construction giant Mace has been awarded a joint £500m contract to build HS2's Euston station.
The scheme has now been taken over by an unnamed development corporation and it was not clear yesterday whether Mace would remain on the project.
An Arup spokesman said: «We will work with HS2 to explore how existing contracts can be extended or phased out as would be expected in the normal course of business.»
Mace Insisted saying it was «positive news» that the Prime Minister had confirmed the Euston terminus of HS2 would go ahead, adding: «We look forward to working with the Government to progress these proposals.»
< p>A government spokeswoman said that HS2 Ltd would engage with its supply chain to “explore the implications” of canceling stage two before providing an update to Parliament.
Other companies have been contacted for comment.
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