The speech made by David Lammy, the Deputy Prime Minister, on 19 May 2026.
First, let me thank the fantastic panellists that we’ve just heard speak so powerfully over the past few hours on this important issue: Shifting the Power.
Whether on the border of Sudan as Foreign Secretary, visiting Sri Lanka as Deputy Prime Minister or welcoming Global South leaders to the UK from across the world what’s clear is that the 1997 style approach to international development no longer works.
Global South partners feel the overlapping crises, the shocks and the creaking of the system the hardest.
We are living through a “Great Remaking”. In a changing international order, many powers are shaping this multipolar age, and so our status quo is not fit for purpose.
We are changing our approach. Moving from the paternalism of the past to the partnerships of the future and championing the reforms required across the system.
Making it fairer, more impactful and unblocking the finance needed to turbocharge development and climate action.
It’s fantastic to see that under my dear colleague Yvette Cooper and the wonderful Baroness Chapman this work has only grown in importance – look at us all here today. But as we’ve just heard, there is much more we must do together.
Why shifting power matters
As an international community, too often we have failed in our primary task: to work in genuine partnership. Not focussed on handouts. But on shared growth.
We know that when those most greatly affected shape the solutions, decisions carry greater legitimacy, outcomes endure, and our collective impact is stronger.
As the Foreign Secretary outlined earlier, we have a responsibility to make this right, but also an interest in doing so.
As Deputy Prime Minister, I know all too well that growth, tackling the climate crisis, and the health of our citizens cannot be separated from international shocks and crises.
Because as we’ve seen all too clearly in recent years, instabilities and crises across the world have a direct impact on us here at home. From the effects of COVID-19, which continue of course to reverberate, to the floods and extreme weather that damage our towns and cities, all of it costing billions of pounds. To the impacts of global economic shocks on the cost of living. If we are to shift course, we must see a genuine shift in approach; and a genuine shift in power.
Principles for modern partnerships
We’ve heard loud and clear over these two plenary sessions a rallying cry for a central organising principle: that countries’ and communities’ own aspirations, plans and priorities must be at the heart of development cooperation.
What are the three key things we have heard we can collectively do to turn this principle into practice?
Supporting country-led development
First, we must work alongside partners as they set their own agendas, aligning our support and finance behind their aspirations for their own development.
It means coordinating behind country platforms, where countries choose them, to align support with national priorities.
It means co-creating, co-designing and co-deciding solutions as best and standard practice, where partners determine what, where and how development resources are used.
That’s why the UK wholeheartedly endorses the Call to Action to all development actors to accelerate support for locally led development, and we encourage you to join us.
Taking a whole society approach
Second, that we need to take a whole of society approach. From government to the private sector to philanthropy to civil society, including the most marginalised voices. To support the changes that countries and communities want to see.
This Government has always believed in a feminist approach to international development and foreign policy. Women and girls – in all their diversity – and women’s rights organisations as drivers of change and progress, essential to growth, peace and stability.
That’s why I commend the work of Yvette Cooper. With her leadership, the UK has made this a standalone foreign policy priority.
Building self-sufficiency and economic resilience
And finally, to deliver this, we must support partners in building self-sufficiency and fiscal resilience.
We need to redouble our efforts to ensure countries can mobilise their own finance, spend well, borrow responsibly and manage shocks effectively, to build sustainable economies.
Control over finances is control over sovereignty.
This means tackling illicit finance and corruption. Which I see as one of the great progressive causes of our times.
Illicit financial flows are estimated to total between 800 billion dollars and 2 trillion dollars every year, that’s around 2–5% of global GDP.
This is money that should be in the hands of citizens, ordinary people supporting their public services.
Instead, it lines the pockets of kleptocrats, their cronies and funds their luxury homes in capitals like this one, here in London.
Together we must move beyond an agenda simply focussed on transparency and end the era of impunity for those exploiting developing nations for their own ill-gotten gains.
It also means mobilising more private capital and the City of London is a hub of green finance and we want it to become a hub of global development finance too.
So we are working with senior leaders from across the investment community to address practical barriers to scaling investment in developing countries.
This, to me, exemplifies a move towards building genuine partnerships, new coalitions that deliver growth and opportunity for citizens here and abroad.
Reforming the international system
But none of this will be enough if we don’t also work together to change the global development system.
You will have heard from many leaders and those championing reform initiatives over the course of today; and it is clear there are already some key areas of momentum.
Greater Global South representation
First, that we must address the injustice at the heart of the system for ensuring Global South voice, that’s representative has influence and a meaningful seat at the table.
Yvette Cooper set out earlier today how the UK is working in partnership to champion this shift across the system. Whether that’s ensuring greater voice across the debt architecture through the new Borrowers’ Platform, co-chairing the current World Bank Shareholding Review, reforming the UN Security Council to include permanent representation from the African continent, India, Germany, Brazil and Japan or ensuring the OECD DAC Reform Review keeps pace with the scale of the changes to the development partnership and finance landscape. We are proud to play our part.
Building a more coordinated development system
Second, it is clear that institutions and actors must work better as a system, to get behind the aspirations of countries and communities.
Working together should be the starting point, systemic and not ad hoc.
That means going further and faster on essential reforms to support genuine collaboration between development banks, climate funds, and other institutions. Bringing together finance, expertise, and implementation at scale.
Climate and development
Third, we must prioritise and protect the parts of the system that protect us. There is no development without climate action and no climate action without development. They are two sides of the same coin.
At all levels of government, the UK remains relentlessly focused on addressing this defining global challenge. The transition to a resilient, nature positive, clean powered global economy is the growth opportunity of the 21st century.
We will not succeed in tackling the climate and nature crisis, or delivering resilient, sustainable growth, without reforming the full development and climate ecosystem.
We need a climate and nature finance architecture that works faster, smarter and more effectively. We need to mobilise more finance from all sources whilst delivering a step change in access to ensure funding reaches the poorest and most vulnerable and we need to ensure funding reaches communities on the ground and that marginalised groups are at the centre of decision making.
This is proven to deliver stronger, more effective resilience – it needs to be at the core to shifting the power.
That is why we have always supported the vision of Least Development Countries to get more finance and decision-making power flowing to locally led climate action and to communities on the front line.
Looking ahead
Finally, that we must look ahead to the system we need for the future, and define that future together:
We as politicians, as leaders, must take greater responsibility to set out a common vision.
To re-inspire hope that we can tackle the collective challenges we face, for the betterment of my citizens and yours.
As we’ve heard today, there is much more to do on this agenda to deliver a true paradigm shift.
But we are committed, as partners, as reformers, to stay the course. What do we know?
We know that relationships grounded in old hierarchies no longer work and instead we need to base our relationships on mutual respect as equals. So how do we get there?
We know there is more to do. But when I look around this room, I see people, governments and organisations that are committed to do the work to realise our ambitions.
We are not all the same of course. We do not agree on everything. But together, we can build new coalitions which give us all a seat at the table.
We must take the discussions of this week and turn them into concrete actions. It is about restoring confidence that cooperation can deliver. This is what shifting the power means in practice; more trust, more legitimacy, more impact.
The press release issued by HM Treasury on 20 May 2026.
The government has launched a consultation on the details of the new High Value Council Tax Surcharge, to make the system fairer for households.
Government launches next step in reforms that will tackle historic unfairness and see high value properties pay their fair share
New surcharge on the top 1% of most valuable properties will put money into communities and local services across the country.
First announced at Budget 2025, the reforms will rebalance the system which has been unchanged since 1992.
The government has launched a consultation today (May 19) on the details of the new High Value Council Tax Surcharge to make the system fairer for households across the country.
The move, announced at Budget 2025, will ensure those with the 1% most valuable properties pay their fair share – helping to fund vital local government services and implementing a significant reform to improve fairness within England’s property tax system.
Council tax has remained untouched for decades and has not been readjusted as property values increase. That means that under this flawed system, a multimillion pound mansion could be paying less council tax than a small family home.
Today the government is setting out the details for the new charge on owners of residential property in England worth £2 million and above to address this unfairness. The consultation also outlines how properties will be identified, valued and placed in a band for the surcharge.
Dan Tomlinson, Exchequer Secretary to the Treasury, said:
“A £10 million mansion in Mayfair should not be paying less council tax than an ordinary family home in Darlington or Blackpool.
“This change tackles historic unfairness, so that those with the most valuable properties pay their fair share, helping to rebalance the system and putting money back into communities up and down the country.”
Revaluations of properties worth more than £2 million will be carried out every five years, with the next revaluation being held in 2033, ensuring that the tax remains fair and up to date with house prices.
The consultation also sets out proposals for taxpayers to review the valuation of their property. The charge, which will affect less than 1% of properties, will come in from April 2028 and is expected to raise around £430 million per year to support funding for local government services.
Further information
The consultation launched today will run for eight weeks and taxpayers, local government, tax experts, legal professionals and those in the property industry are encouraged to respond.
The consultation will specifically seek views on:
· the design of the tax surcharge
· proposed scope of the tax surcharge
· a deferral mechanism, to support those who cannot pay
The comments made by Ellie Reeves, the Attorney General, on 19 May 2026.
Adam Leddra is a dangerous sexual predator. He knew his victim was only a teenager but completely disregarded her age, preying on her vulnerabilities to unleash some of the most horrific sexual abuse.
I welcome the court’s decision to increase his prison sentence and protect any more victims from harm. I want to commend the victim’s bravery for coming forward to help bring this perpetrator to justice.
The press release issued by the Attorney General’s Office on 19 May 2026.
Adam Leddra, from Fatfield in Washington, had his sentence increased to four years after the Solicitor General Ellie Reeves KC MP referred his case to the Court of Appeal under the Unduly Lenient Sentence scheme.
The court heard that Leddra met his victim on social media in June 2012 when she was 15 years old and he was 19.
Leddra began grooming the teenager online before he sexually abused the victim on several occasions.
He coerced the teenager through emotional blackmail to share indecent images and Leddra gave the victim a sexually transmitted infection.
When police arrested Leddra, he said he did not remember the victim, while denying he sexually abused her or coerced her into sexual acts.
The court heard that Leddra had previous cautions for possessing indecent images of a child and was jailed for 20 months in 2014 for similar offences against two other girls.
The victim provided impact statements to the courts where the teenager said she had suffered post-traumatic stress disorder and that Leddra took advantage of her vulnerability and difficult home life.
The Solicitor General Ellie Reeves KC MP said:
Adam Leddra is a dangerous sexual predator. He knew his victim was only a teenager but completely disregarded her age, preying on her vulnerabilities to unleash some of the most horrific sexual abuse.
I welcome the court’s decision to increase his prison sentence and protect any more victims from harm. I want to commend the victim’s bravery for coming forward to help bring this perpetrator to justice.
On 23 December 2025 at Newcastle Crown Court, Adam Leddra was sentenced to two years and nine months’ imprisonment after he pleaded guilty to two counts of sexual activity with a child, and two counts of causing or inciting a child to engage in sexual activity.
Leddra also received a 10-year Sexual Harm Prevention Order and an indefinite restraining order.
On Tuesday 19 May 2026, the Court of Appeal increased Adam Leddra’s sentence to four years.
The press release issued by the Foreign Office on 19 May 2026.
Statement by Ambassador James Kariuki, UK Chargé d’Affaires to the UN, at the UN Security Council meeting on Ukraine.
This Council exists to uphold international peace and security.
Yet we meet again because the actions of a permanent member over the last two weeks have made one thing clear: Russia has no interest in peace.
Despite repeated global calls for a ceasefire, President Putin has continued his deadly attacks on Ukraine, accepting a ceasefire only when it suited him: a pause long enough to protect his Victory Day parade.
The moment the parade ended, the killing resumed. 24 people killed by a single strike on a block of apartments. Russia is lashing out in desperation. A state that needs a spectacle to mask its insecurity, and missiles to silence diplomacy, is not acting from confidence. It is acting from fear. Fear that Ukraine will endure and Russia’s aggression will fail.
This disregard for life extends to those trying to save it. As we’ve heard today, last week, a clearly marked UN vehicle on a humanitarian mission in Kherson was struck twice by drones, endangering humanitarians delivering vital aid. This is not an isolated incident. OCHA reports over 50 incidents affecting humanitarian personnel and operations so far this year. These attacks are straining a response on which millions rely.
President Putin continues to choose deadly violence because he is desperate. Russia has killed over 150 civilians this month alone. His objectives remain unmet after over four years, and conditions at home continue to deteriorate. Russia’s economy is increasingly subsumed by defence spending. Yet he continues, despite clear evidence that Ukraine is resisting effectively and imposing significant costs.
As the Council marks Protection of Civilians week, we remind Russia of their obligations under international law. We echo the Secretary General’s call for a comprehensive ceasefire, and a just and lasting peace.
But peace begins with truth: this war could end the moment Russia stops its invasion.
President Putin cannot achieve his goals by military means.
Russia is losing more soldiers than it is recruiting.
And at the rate it is seizing territory, it would take decades to achieve its war aims.
So he is desperate to convince us all that Russia’s victory is inevitable. That our support is a lost cause. But no one is falling for it. Europe’s support is here to stay.
The press release issued by the Office for Equality and Opportunity on 19 May 2026.
UK to serve as host nation for the European International Day Against Homophobia, Biphobia and Transphobia (IDAHOT+) Forum in London in May 2027.
London is set to become the global stage for progress on LGBT+ rights, with the UK announced as next host of the European International Day Against Homophobia, Biphobia and Transphobia (IDAHOT+) Forum in 2027.
Lord Collins of Highbury, government spokesperson for equalities, is in Copenhagen for this year’s forum and is scheduled to formally accept the UK as next year’s host nation.
The UK announces a funding package of £21 million to advance global LGBT+ rights through civil society partnerships.
For the first time, the UK, in partnership with the Council of Europe, will serve as the host nation for the European IDAHOT+ Forum in London in May 2027. The forum will convene governments, civil society organisations, policymakers, and advocates from across Europe, turning London into a focal point for international co-operation and progress on LGBT+ equality.
Breaking down barriers to opportunity is a key priority for this government, and hosting the forum in London will strengthen the UK’s position as a leading international voice for equality, inclusion, and opportunity for all across Europe and beyond.
The UK has been a consistent and active participant in the European IDAHOT+ Forum since the forum’s inception in 2013, reflecting a long-standing commitment to advancing LGBT+ equality. Representatives from the UK government, including the Minister for Equalities, are attending this year’s forum in Copenhagen, Denmark.
In addition to being selected as next year’s host nation, the government has today announced funding to advance international LGBT+ equality. By combining this funding with diplomatic action, the programme aims to establish human-rights-compliant legal frameworks and resilient local movements globally to ensure that LGBT+ people everywhere can live lives that are equal, safe, and free.
Foreign, Commonwealth & Development Office (FCDO) Minister for Multilateral and Human Rights, Chris Elmore MP, said:
This investment reaffirms the UK’s commitment to defending the human rights and freedoms of all people, including those who are LGBT+.
We will continue to work in partnership – using our diplomatic influence and development expertise – to help ensure that everyone, everywhere can live their lives without fear of violence, persecution or discrimination.
Lord Collins of Highbury, government spokesperson for equalities, said:
As I attend this year’s forum in Copenhagen, I welcome the growing momentum behind LGBT+ equality. The UK is proud to build on that momentum by unveiling a new funding package to support civil society partnerships and advance LGBT+ equality worldwide.
Alongside this new funding, hosting next year’s European IDAHOT+ Forum represents a major opportunity for the UK. It will bring together the continent’s expertise, lived experience, and leadership to drive action at scale and reflects our commitment to international leadership on LGBT+ equality.
We look forward to welcoming our international partners to next year’s event in London.
The government has made substantial progress in improving the welfare and safety of LGBT+ individuals across the UK. This has been demonstrated through making anti-LGBT+ hate crimes an aggravated offence under the Crime and Policing Act, providing £0.5 million funding for specialist LGBT+ domestic abuse services, and continuing work to implement a full, trans-inclusive ban on conversion practices.
Notes to editors
The European IDAHOT+ Forum is one of the major European annual events that brings together member states of the Council of Europe, government representatives, policy makers, experts, and academics, as well as representatives from national and international organisations. As the main state-organised European LGBT+ conference, it primarily aims to promote co-operation between governments but also between governments and civil society organisations.
The UK’s £21 million funding commitment is designed to address the root causes of violence, persecution and exclusion faced by LGBT+ people globally. This approach aligns with the UK Strategic Framework on International LGBT+ Rights (2026 to 2029). The amount is £21 million over 3 years (2026 to 2029) – £19.5 million ODA (official development assistance), and £1.5 million non‑ODA.
The press release issued by the Home Office on 19 May 2026.
The Home Office has announced £100 million to fight child sex offences and protect victims and survivors, including £38 million for Operation Beaconport.
A historic £100 million will drive a crackdown on child sexual abuse, including tracking down vile grooming gang members, protecting victims and bringing offenders to justice. Perpetrators who thought they got away with horrific grooming gang offences will be held to account as closed cases are reopened.
Operation Beaconport will receive a tenfold cash injection, building on the £4 million the operation received when it launched last autumn. £38 million has been set aside for the National Crime Agency (NCA) and operational partners to reopen and investigate cases and put more offenders behind bars. It is focused on furthering critical work to protect victims wherever abuse takes place – in our communities, families, online and institutions.
Police forces in England and Wales will also have greater access to pioneering artificial intelligence (AI) technology to weed out and bring predators to justice more rapidly. To support this, the Tackling Organised Exploitation Programme, led by the National Police Chiefs’ Council (NPCC), will receive £9.3 million this year.
This includes a suite of advanced, AI-enabled intelligence tools, ensuring all forces, regardless of size or local resources, can use cutting-edge technology to pursue offenders faster and better safeguard victims.
This enables officers to analyse large datasets, translate foreign-language material in seconds, and identify patterns and relationships between suspects. By reducing manual processes and unifying access to proven tools, the programme focuses on accelerating investigations and creates a more consistent, intelligence-led national response.
£11.7 million will also back the Undercover Child Abuse Online Network, which targets predators in the darkest corners of the internet and stops abuse before it happens. The network tracks and identifies offenders, intervenes early and drives arrests and prosecutions. Their work helped safeguard 1,748 children between April 2024 and 2025, with 1,797 arrests also made.
Today’s funding sits alongside the Independent Inquiry into Grooming Gangs, which seeks to root out past failures wherever they occurred. It is laser‑focused on grooming gangs and will explicitly examine the role of ethnicity, religion and culture of the offenders and the response of institutions.
Shabana Mahmood, Home Secretary, said:
The grooming gangs scandal is one of the darkest moments in our country’s history – where the most vulnerable people were abused and exploited at the hands of evil child rapists.
There will be no hiding place for the predatory monsters who committed unimaginable crimes of child sexual abuse and exploitation. We will track down these vile rapists and put them behind bars.
Last year, the police delivered record levels of enforcement – with 10,693 prosecutions and 8,681 convictions for child sexual offences. This investment increase means forces can take this vital work even further, reach more victims and stop more offenders in their tracks.
A further £8.9 million will go towards a key part of the NCA’s work targeting the highest-risk offenders like Jamie Beckett who was sentenced to 23 years after he sexually abused 7 vulnerable children by offering cash for medical appointments in exchange for indecent images.
NCA investigators were able to bring him to justice through an investigation which traced complex digital and financial trails. Increased NCA funding will enable even faster and stronger investigations to bring more high‑harm predators like Beckett to justice.
NCA Director of Child Sexual Abuse and Exploitation Investigations Jav Oomer said:
We welcome the continued Home Office funding to support the NCA’s vital work in tackling the highest harm offenders, whether they operate in our communities or online, and will use the full force of our capabilities to protect children.
We continue to see the increasing complexity and severity of CSA offending, with offenders becoming more technologically sophisticated, but also producing more severe and more sadistic material.
NCA co-ordinated efforts across UK policing result in almost 1,000 arrests and 1,200 children being safeguarded each and every month.
Adult survivors who, as children, experienced sexual abuse will also be supported through £3.2 million of funding to help rebuild their lives through the National Support for Adult Survivors.
The grooming gangs scandal is one of the darkest moments in this country’s history, where the most vulnerable were abused at the hands of evil child rapists and let down by a system meant to protect them.
That is why part of the Operation Beaconport funding will strengthen how police forces investigate these crimes, ensuring a consistent response wherever abuse is reported and better, trauma‑informed support for victims.
The remaining spend will be spread across a series of vital work through law enforcement and partner agencies to address child sexual exploitation and violence against women and girls.
Chief Constable Becky Riggs, National Police Chiefs’ Council Lead for Child Protection and Abuse Investigation said:
Protecting children and young people and supporting all victims and survivors of abuse and exploitation must be at the heart of everything we do. This investment is a significant step forward in ensuring that anyone who has experienced these crimes is met with a response that is compassionate, consistent and trauma informed.
No single agency can tackle child abuse and exploitation alone. The strength of this approach lies in the way policing and law enforcement are working together with partners across government and specialist services to build a truly whole-system response.
By bringing together expertise, intelligence, and support services, we are better equipped to prevent harm, safeguard victims and survivors, and pursue those responsible for these crimes in all their forms.
The additional investment in advanced technology, through the Tackling Organised Exploitation Programme, will transform the pace at which we can identify and disrupt offenders. By enabling us to analyse large volumes of digital material more quickly and effectively, we can act faster to protect those at risk and bring perpetrators to justice sooner.
Above all, this funding helps ensure that all victims and survivors are seen, heard, and supported – whether their experiences are recent or non‑recent, online or offline. It strengthens our collective ability to respond with care, consistency, and determination, as we continue to improve how we disrupt these devastating crimes.
Gabrielle Shaw, Chief Executive, National Association for People Abused in Childhood, said:
This funding is a positive and necessary step towards improving the national response to child sexual abuse and exploitation. Meaningful investment in preventing abuse and supporting survivors is essential if victims and survivors are to receive the protection, care and justice they deserve.
As a thematic co-lead for victim and survivor engagement within the CSE taskforce, NAPAC is heartened by the collaborative approach that government, policing and the third sector are taking to deliver better outcomes for survivors. There is still a long way to go, but progress is being made at a national level.
The speech made by Yvette Cooper, the Foreign Secretary, in London on 19 May 2026.
Thank you very much. It is a great pleasure to be able to welcome everyone at here, in London, for the Global Partnerships Conference, and a huge pleasure, especially to be able to co-host this conference with South Africa, just as our two countries worked together last year on the replenishment of the Global Fund, helping to secure over £11 billion pounds in pledges to fight aids, tuberculosis, and malaria. And it is a pleasure, too, to co-host with the Children’s Investment Fund Foundation and British International Investment – the pioneering organisations that have done so much to advance the priorities that we all share.
This conference was designed to be a bit different from the normal international ministerial events that we hold. And so, I just wanted to start by acknowledging the incredible range of depth of experience, of expertise in this room and around this conference centre. From civil society, youth activists, major investors, philanthropists, tech entrepreneurs, experience of development past and ideas and interests for the future. The collective wisdom and insight that we need to harness together in the face of the most unprecedented global challenges. And I know that there’s many individuals, organisations, in this conference, who have long standing commitments to lifting people, communities, and countries out of poverty. And we’ve seen huge progress as a result of that incredible dedication. Over one and a half billion people, worldwide, lifted out of extreme poverty in recent decades. Healthy life expectancy around the world increased by over five years in just a decade. Over 100 million more children going to school, and nations benefitting from stronger job creation and growth. And as the British Foreign Secretary, I’m proud that the UK has played its part in that story of transformation, working with partner governments, and with many of you here today. And as we look forward now, as many of those same values that have underpinned that progress are enduring. Our sense of our shared humanity, that fundamental moral purpose to stand up against global disease and hunger, and to support those trapped in crises caused by conflict or climate change. And the deep distress we share, and injustice, and unfair inequalities that hold people back.
But we are here today because we know that change is needed. Because we know we need to do things differently. At a time when our world is more volatile, more contested, more unstable, than ever, and when our multilateral system is under strain. And we meet against the backdrop of the Strait of Hormuz crisis. A strait of water through which 90 ships a day used to pass but for the last three months, it’s been more like five. Heating oil for Asia, stuck in the Strait, fertilisers for Africa, stuck in the Strait, 20,000 seafarers, 800 ships just stuck in the Strait. The price effects felt on the other side of the world. The global economy is being held hostage and the global South is paying the biggest price. It’s affecting the planting season, too. The agricultural clock is ticking, and damage is already being done that will affect crop yields and food prices well into next year. As the World Food Programme has warned, some 45 million people in the global South are at risk of being pushed into acute hunger this year. The world risks sleepwalking into a global food crisis. And we cannot risk tens of millions of people going hungry because Iran has hijacked an international shipping lane.
And so that is why we need to act together in our response. The World Bank, the IMF, other institutions have an unparallelled ability to deliver emergency finance at a scale that’s needed to cushion the immediate impacts of the crisis. And with others, the UK has been using our voice and shareholder role to press for a step change in response, coordinated across the global financial system. We need faster coordinated action, multilateral development banks operating as a coherent whole, not just in parallel, aligned programming, quicker disbursement, specific support. to fertiliser markets, working closely with UN agencies. And with the World Food Programme, we’re already helping preposition food supplies, because we have to get ahead of the risks, not wait for the suffering to unfold before us.
But aid can’t operate alone. And that’s why Britain has led diplomatic efforts to press for the immediate reopening of the Strait, convening partners to defend the principle of the law of the sea, and why we’re preparing alongside France, a multilateral maritime mission to reassure shipping and get to trade moving when an agreement is in place, and supporting the negotiations, to fully reopen the Strait, free from restrictions and tolls, to get the global economy moving again. But the Hormuz crisis holds up a mirror to our wider challenges. This shows the importance of acting early and in partnership to mobilise support. The importance of political and policy responses to tackle the causes of crises, not just to mitigate their impacts. The importance of the rule of law. In this case, freedom of navigation, for prosperity and development, not just for order and stability. And the urgent need to address the underlying weaknesses in our economic resilience and our precarious food and energy security.
For us in the UK, that means, first and foremost, accelerating the clean energy transition. Instead of the fossil fuel roller coaster, the security independence. An economy of British owned renewable energy. Because renewable energy can’t get stuck in the Strait of Hormuz and can’t be hijacked by hostile states. This is a choice we are making for ourselves, but it is also true for many other countries as well. And so, in responding to this crisis, we should be turbocharging that shift, and it’s why I’m so pleased that we can announce today the BII’s investment, the British International Investment, additional investment, to deliver over £4.6 billion of climate investment in emerging markets to support the green transition, and to build energy security, too.
The reason that this matters is because the Strait of Hormuz is no outlier. Coming so soon after the energy price shock, the grain supply threats when Russia invaded Ukraine, or the supply chain crisis in COVID. This reflects a new era of geopolitics and geoeconomics, an era of global great power competition and global volatility, but also concurrent crises, from conflict, climate, from communicable disease. Where our interconnected world that has helped lift nations out of poverty and drive growth is turned against us to become a source of great vulnerability. At a time when violent conflict is on the rise around the world and greater than any time since the Second World War. And we’ve seen new levels and patterns of displacement and migration, tied also often to climate change as extreme weather and record temperatures destroy livelihoods. And also the new uncertainties from the pace of technological change. As AI, frontier technologies offer profound potential to give us new solutions around healthcare, around development, around economic growth. But also real risks of compounding global injustice and insecurity unless we respond. And, of course, a multilateral system in need of reform. At a time when development budgets in many donor countries, including here in the UK, are under financial strain or facing reductions.
So, in the face of these challenges, bold new approaches are needed, and we need to be honest that as well as keeping up with changing times, we need to address some of the deficiencies in some of the traditional ways we’ve done development in the past. The external blueprints, the paternalism, the policies that increased dependency rather than building resilience, and the reflex to act for others, rather than getting firmly behind local needs and priorities. So, as part of the UK’s response, we’ve held honest exchanges with partners about what we should do differently. And heard clearly the need and the demand for greater voice and agencies, for countries and communities to shape decisions that affect them, including global institutions and the global financial system.
As Mia Motley, the farsighted Prime Minister of Barbados has put it, seats at the table of decision making, where we can be seen, heard, become active agents in our own cause and lead our own development. And that lies behind the shifts that my friend and fellow minister, Baroness Jenny Chapman, has been leading in our UK development approach, as she will set out to you earlier this morning. Moving from donor to investor, from grants to expertise, putting partnership, and the focus on local needs at the centre of what we do, and putting those shifts hardwired into this conference today and tomorrow. Because the framing is about partnerships. Collective action on common challenges, on mutual respect, learning, and accountability. And a joint document that is not about traditional aid pledges, but about focussing on mobilising finance technology and new coalitions. And I want to pay tribute to Jenny and the FCDO team for bringing this event together.
So let me just then highlight three areas of what this looks like. On development finance, shifting the centre of gravity from traditional measures around public funding towards mobilising much wider investments and different forms of capital investment and support. For example, developing local capital markets to attract and allocate finance effectively, as we’ve done in Ethiopia, through support to their first public stock exchange, so that Ethiopian companies can tap into new funding. With UK Insurance sector, pioneering new private partnerships, that can help countries respond more quickly and effectively to natural disasters. And working through the most impactful bits of the multilateral system, such as the World Bank’s International Development Association, where every pound we invest unlocks four pounds of additional finance. Whilst backing calls for the reforms of the global financial system, including by tackling unsustainable debt, through expanding the common framework, and making it meet countries’ needs more quickly. We’re backing through Africa’s institutions to raise far more funding at scale. With our 650-million-pound contribution to the African development fund, helping leverage in up to 1.6 billion in grants and concessional loans, including issuing bonds on the London Stock Exchange for the first time. And moving from into also providing expertise, such as the tax advice that has helped Ghana, generate, an additional 100 million in revenue to invest in its own education and health priorities, far more than a traditional UK aid programme could have provided.
The second shift is to make sure we focus. our humanitarian and grant aid on the countries and the communities that need support most. Conflict is now one of the biggest drivers of extreme poverty across the world. Already over half of extreme poverty is concentrated in conflict affected, fragile states. And so, alongside our aid allocations to areas like Sudan and Lebanon, Palestine, were prioritising conflict resolution in each of those areas too. A focus that also supports our interest because conflicts that rage unresolved radiate instability across regions and continents. And it’s in our collective interest to support global health too. When we see the Ebola outbreak spread in and around the DRC, flagged by the WHO as being of clear international concern. And we also need a reset of the whole humanitarian system, as proposed, by UN Humanitarian Chief, Tom Fletcher, and organisations like the International Rescue Committee, rigorous prioritisation and shifting the power and resources to local partners that really understand the local contexts and needs. And UN reform, too, to help the UN play its indispensable role, to be more efficient, or effective and coherent, refocused on the core priorities and results in line with the UN 80 reform initiative.
But finally, I want to mention a further focus. that is about our values and also our shared interests. Because amidst the plethora of global emergencies, we can risk neglecting one that blights the safety and prosperity, equality, and freedom of half the world, including here in the UK. And that’s why the UK government has made tackling violence against women and girls a national mission. setting an unprecedented mission, a push to harm violence against women and girls in the UK in a decade. But we believe it also needs to be a global focus. Because at a time when one in every three women and girls, worldwide, will experience physical or sexual violence, these are not simply the statistics, but life scarred and generations that can bear those scars. And having heard firsthand on the Sudan-Chad border earlier this year, in Adre, some of the most harrowing stories of rape and sexual violence. We know that that kind of violence can pass through and scar whole generations and communities for years to come. And so tomorrow, here at this conference, we will say more about our upcoming international campaign, and the new coalition we seek to build involving multiple countries here at this conference.
So, in closing, let me thank you for being here and for all the discussions and the conversations about this event. This part of London is no stranger to being the basis for international cooperation. We’re holding this conference just a couple of miles from Greenwich’s Royal Observatory, from which the world agreed how to measure time. And that agreement, to create a single primary meridian, unlocked cooperation on trade or commerce, on global interactions. And here today, in a different time, on different terms, as an international community, with states, company, civil society, all represented, we’re discussing, again, the cooperation on the critical issues that will shape the coming decades, signing our jointly endorsed, Global Partnerships Compact. And I hope this shared endeavour that will carry us forward, whether it’s at the Hamburg Sustainability Conference, the multilateral events, or into the UK’s G20 presidency next year. Let me finish where I started, with the potential interest of all of those here, from so many different countries and backgrounds, to bring those partnerships across the world and across our communities together. For a world free from poverty, on a liveable planet, because we know it’s the partnerships that we build across the world, that make each and every one of us stronger at home.
The press release issued by the Department for Transport on 19 May 2026.
Transport Secretary sets out new HS2 costs and timelines after a full review, taking control of the project to cut waste, speed up delivery and save billions.
Transport Secretary announces new delivery timeframes and costs for HS2 after years of mismanagement
new plans could save billions in cost and years in construction time while delivering services at same speed as Japanese bullet trains
construction milestones hit ahead of schedule and back office roles slashed under reset, as analysis reveals it could cost as much to cancel the project as to complete it
The Transport Secretary today (19 May 2026) declared an end to an ‘era of neglect’ on High Speed Two (HS2) as she set out plans to reset the project, delivering the railway as quickly as possible and at the lowest reasonable cost.
Following years of mismanagement, the Transport Secretary has convened the team that delivered the Elizabeth Line and set out new costs and timeframes for the project, including efforts to cut construction costs and get passengers on trains sooner.
The government announced today the project is now expected to cost between £87.7 and £102.7 billion, with two thirds of the increase due to works being missed from the scope of the original project plan, underestimation by previous governments, inefficient delivery – and the remaining third due to inflation.
The government has also confirmed HS2 will run at 320 km/h (200 mph), aligning with speeds across Europe and Japanese Bullet trains. In previous plans, HS2 trains were set to run at 360 km/h (225 mph) but with no existing track to test trains at that speed in Great Britain, adding to spiralling costs and build time.
The change in speed could deliver savings of up to £2.5 billion and at least a year in delivery time, so communities can start to benefit sooner.
The first trains are now expected to start between Old Oak Common in west London and Birmingham Curzon Street between 2036 and 2039. An estimate of the full scheme from London Euston to Curzon Street and a connection to the West Coast Main Line, is between 2040 and 2043.
HS2 Ltd Mark Wild’s ongoing reset has borne fruit – with 6 major construction milestones reached earlier than planned in the last year – as well as eliminating 300 bureaucratic roles, and scrutinising contracts to ensure taxpayers get value for money.
The government is committed to delivering HS2 in full between Birmingham and London, with a new assessment revealing it could cost as much to cancel the project as it would to complete it, while delivering none of the benefits.
Transport Secretary, Heidi Alexander, said:
Taxpayers, passengers and communities along the route have been let down by years of mismanagement on HS2.
I share their anger about the waste and mess, but I am proud that this government has worked with HS2’s new senior team to get this project off life support and on the road to recovery.
We will get the job done but we will also take every opportunity to save time and money in the process, getting a grip on delivery, controlling costs, and stripping out the complexity that’s plagued the project in the past.
We can and must build big infrastructure projects in Britain. But we also need competent people in charge of them. This is the same team that delivered the Elizabeth Line. We have done it before, we will do it again.
Delivering HS2 will mean more trains on the West Coast Main Line corridor, and more reliable and faster journeys, saving passengers around 30 minutes between London and Birmingham compared with current services, and doubling peak long-distance, fast rail capacity between the capital and West Midlands.
HS2 will deliver houses, jobs and growth. Recent forecasts show it is already contributing £20 billion to the economy over the next decade around its station sites and depot in the West Midlands and west London, plus 63,000 new homes and over 49,000 new jobs in these areas.
Commercial development at Euston is estimated to add £41 billion to the economy over the next 3 decades and support 34,000 new jobs, with high-tech tunnelling machines now working under Londoners’ feet to make HS2 to Euston a reality. Over 6,100 contracts have been awarded to UK businesses, with more than half of these to small and medium-size enterprises.
CEO Mark Wild and Chair Mike Brown have started to turn HS2 Ltd around and have delivered 6 major construction milestones ahead of schedule over the last 12 months, including:
the sliding of a road bridge for the A46 over the HS2 line of route in April 2025
the installation of beams and overbridges near Calvert in Buckinghamshire in August 2025
the completion of boring the 3.5-mile Bromford tunnel in Birmingham in October 2025
Mark Wild, Chief Executive of HS2 Ltd, said:
I recognise this will be unwelcome news for local communities and taxpayers, and I share in their disappointment that it will take longer and cost more to bring HS2 into service.
Resetting HS2 was the only way to regain control of the project. We have turned a corner in the last 12 months with significantly improved levels of productivity, helping us to deliver major milestones ahead of schedule. We’re also progressing with plans to bring HS2 into line with other high-speed railways in Europe – further reducing the project’s complexity without compromising on benefits.
Better journeys, more capacity on the network, and economic growth are all vital to the country’s future prosperity, and that’s exactly what we will deliver. Driven by the hard work of 31,000 people on the ground, HS2 is finally getting back on track.
The HS2 reset is fully funded within the Department for Transport’s current Spending Review settlement, with no additional borrowing. Funding beyond 2029-30 will be set at future Spending Reviews and will be underpinned by the government’s non-negotiable fiscal rules.
The statement made by Heidi Alexander, the Secretary of State for Transport, in the House of Commons on 19 May 2026.
Overview
Today, alongside my oral statement in the House, I am publishing this government’s latest report to Parliament on High Speed Two (HS2).
Over the past year, Mark Wild and HS2 Ltd have worked closely with my department and other partners in government to assess the remaining scope of work, and to estimate thoroughly how long it will take and how much it will cost to complete the project. The government has accepted his advice on the revised cost and schedule for completing HS2, and I am now sharing these figures publicly.
The expected cost of delivering HS2 is now in the range of £ 87.7 – 102.7 billion. This is expressed in a mixed price base, including the cash outturn of works to date and the costs of future work excluding inflation. This represents £ 70.9 – 82.2 billion in an equivalent 2019 mixed price base – a stark increase on the previous cost range of £35 – 45 billion (2019 prices) set under the previous government.
These ranges cover the cost of the whole programme, stretching from London Euston to Birmingham Curzon Street and to the connection to the West Coast Main Line at Handsacre Junction, which will enable HS2 services to continue to the Northwest and Scotland. This includes the indicative expected cost of delivering HS2 to Euston, some of which we intend to fund through private finance and other sources.
Regarding schedule, the delivery of HS2’s opening stage is now expected between May 2036 and October 2039. This will see the first trains running between Old Oak Common in west London and Birmingham Curzon Street. We estimate that the full scheme, including both Euston to the south and Handsacre Junction to the north, will open between May 2040 and December 2043.
Two thirds of this expected cost increase are a combination of necessary works that were missed from the scope of the original project plan, under-estimation and inefficient delivery. These are issues that were within the control of HS2 Ltd, some of its suppliers, and previous governments, and these lessons are being applied following the James Stewart Review.
A third of the cost increase is linked to inflation, which has significantly impacted the British economy over the past five years. The cost estimate for the programme was updated in the past to account for inflation, but not regularly enough. To reflect inflation more accurately in the future, including any impacts arising from the current conflict in the Middle East, we will update the price base every two years in line with future Spending Reviews.
As I set out in my interim Parliamentary Report in March, I asked HS2 Ltd CEO Mark Wild to present the government with options to reduce the complexity and over-specification of HS2 in order to bring down costs and delivery timelines. HS2 Ltd, in collaboration with my department, has reported on the initial outcomes of this work, and following robust assurance and consideration at a Ministerial Task Force, I have accepted the recommendation to bring HS2 into line with proven leading European high-speed operating standards, including operating HS2 at up to 320 kilometres per hour (kph), as it supports our endeavour to bring HS2 into operation safely at the lowest reasonable cost.
HS2’s initial work on speed specification suggests that by aligning with other top railways in Europe we could potentially save between £1 billion and £2.5 billion over the life of the delivery programme, by reducing testing and commissioning time, opening earlier and with reduced costs compared to existing plans. The main savings come from avoiding the risks associated with certifying a railway at a speed not operated anywhere in the world.
This is an initial assessment that will mature further as the work is refined into a full programme baseline, but HS2 Ltd, and my department, are confident this will make it more likely that HS2 is delivered at the lowest reasonable cost. This change provides an opportunity to reduce the risks involved in delivering HS2 by aligning the speed and systems used with tried-and-tested operations in the UK and Europe – simplifying the remaining work to be delivered. The reduction in top speed will be modest and brings HS2 in line with the fastest high-speed services already operating in Europe, relying on proven technology and systems. Initial assessments indicate that journey times from London to Birmingham will increase by 3 minutes, and will still be 30 minutes faster than the current service, whilst delivering the capacity we need and supporting future economic growth along the line, and around the stations.
Mark Wild has set his organisation the challenging ambition of delivering the programme at a cost of £ 93.2 billion and an initial opening date of late 2037 for trains running between Old Oak Common and Birmingham Curzon Street. This ambition deliberately sits within the lower half of the ranges to drive better and more efficient delivery. We support it, which gives him a clear mandate to drive down costs and improve productivity.
As the reset progresses and a full delivery baseline is developed, I recognise that additional information might result in HS2 Ltd reporting above this ambition in the future. If that is the case, the ambition will remain useful to incentivise better productivity within the ranges I have published today.
Past estimates of both cost and schedule have proven clearly inaccurate. Given the need to rebuild public trust, it was essential that we learn lessons from past failures and take the time to develop a robust set of figures, as recommended by James Stewart in his review commissioned by this government. The new estimates and their methodologies have been thoroughly assessed and scrutinised, including by a panel of experts who have successfully delivered railways internationally and domestically, like the Elizabeth Line. An Accounting Officer Assessment was produced alongside the new ranges.
However, these estimates do not disguise the fact that HS2 Ltd has already spent close to the original budget. The reset work also makes clear that progress on finishing the civil engineering for the entire line of route is at least four years behind the original schedule, and that the time required to test and commission HS2 to ensure a reliable and safe service was underestimated by another three years. The number of years left to complete the programme is roughly the same as when construction started in 2020, and it is likely we will need to spend the same amount as has already been spent to date.
It is now imperative that we proceed with the final stages of the HS2 reset so that the programme is brought under control and delivered sensibly going forward.
Despite the significant challenges, the programme is at peak delivery, with 31,000 people and thousands of UK businesses working hard to deliver HS2. Delivery progress continues to be made, with the contract for HS2’s rolling stock depot at Washwood Heath, in Birmingham, awarded to a joint venture of Taylor Woodrow Infrastructure Ltd and Aureos Rail Ltd. We are starting to see results from reset: HS2 is now being built faster and more efficiently, with six major construction milestones reached earlier than planned last financial year, and with early signs looking positive for this year’s milestones. Work will continue over the coming year, with the final stages of the reset expected to conclude in the first half of 2027. Under new leadership, HS2 Ltd is putting construction back in logical order, strengthening commercial controls, restructuring the organisation, and rebuilding the partnership with government.
When faced with such a difficult inheritance, I could have chosen to cancel the project and remediate the construction undertaken so far. The costs of doing so are considerable and could cost as much as completing HS2, and would result in no lasting benefit, abandoning ambitions for better national transport across our railway network and potentially leaving communities across our country blighted by unused infrastructure – something I am simply not prepared to do. Communities affected by HS2 do not want to live near half-finished structures that serve no useful purpose without a railway. The economic growth that HS2 is already driving in the West Midlands, and at Old Oak Common, through new housing development, job creation and local regeneration, would be significantly impacted. Instead, this government is committed to doing the responsible thing: facing the challenge head-on so that we can leave the country’s infrastructure in a better condition than when we started.
Increasing the capacity and performance of the current network will drive economic growth. The southern section of the West Coast Main Line is congested and this limits the number of trains that can reliably run, and the number of passengers who can travel. Despite large urban centres, labour productivity in the West Midlands and the North West lags behind the national average. Faster trains will transform this, and extend these benefits to North Wales and Scotland too. This government has been clear on its mission to transform infrastructure across the country, and we are pursuing reforms that will improve our ability to deliver projects. Completing the project remains vital for economic growth and the capacity of our rail network.
The same will be true of our plans for Northern Powerhouse Rail (NPR), which will deliver a turn up and go railway across the city regions of the Northern Growth Corridor – better connecting Liverpool, Manchester, Leeds, Bradford, Sheffield, and York, with faster and more regular services to Newcastle, Chester and Hull. Development work is underway and we will maintain our focus on applying the lessons from the successful delivery of the Transpennine upgrade, and from HS2, ensuring that we improve our delivery of major rail projects across the country. We also announced our long-term intent for a full new rail line connecting Birmingham and Manchester, which informed our decision on NPR. This will not be a revival of HS2 and no decisions have been taken on the specification or timetable for delivery. In the meantime, we will retain land the government has already purchased between the West Midlands and Crewe.
These new estimates, alongside cost and schedule ambitions to incentivise better delivery, provide a robust foundation for completing the final stages of the reset. Looking ahead, our focus will remain on delivering the railway safely, as soon as possible, and at the lowest reasonable cost.
Wider reset
A key focus of the HS2 reset work has been to put the building blocks of the programme back in the right order. HS2 Ltd has assessed what it will take to finish the civils works on the line of route and stations, to deliver the rail systems, and to deploy the rolling stock, test the railway and drive reliability before starting passenger services.
Over the coming year, HS2 Ltd will be developing a new Baseline for the programme to provide a clear scope of work and path to delivery. It will also form the basis for performance monitoring and reporting by the department to ensure that the project is robustly managed once the reset is complete. I have instructed my officials to update the programme’s business case to ensure that we reflect the changes in HS2’s delivery.
In the meantime, with better contract management, clearer accountability and stronger project controls, the reset is enabling us to put taxpayers’ money to better use and deliver more construction in year for less expenditure than previously. In the 2025/26 financial year, HS2 Ltd delivered over 10% more progress on construction than planned with the same amount of money.
Taking earthworks as an example, over 2025/26, HS2 Ltd moved 25.0 million cubic metres compared to a plan of 20.8 million, an improvement of 20%. Construction costs are tracking below forecast and delivery performance improved over the past year, with six major milestones on tunnels and roads completed ahead of in-year schedule. These included the sliding of a road bridge for the A46 over the HS2 route in April 2025, the installation of precast beams and overbridges over Station Road near Calvert in August 2025, and the second breakthrough on the Bromford tunnel in Birmingham in October 2025. The north portal structure at the Chiltern tunnel was completed in 12 months, several months faster than the south portal, thanks to lessons learned and innovative construction methods. The excavation of the 8.4-mile Northolt tunnel, the second longest on HS2, was completed on schedule in June 2025 despite complex ground conditions.
These improvements have been supported by HS2 Ltd introducing an improved programme control framework. Teams are using new tools and mechanisms, allowing them to better track planned works against actual progress and delivery on the ground, and enabling better problem identification and reporting of progress. Weekly performance reviews enable construction teams to identify problems quickly and resolve issues before they escalate, creating a more responsive and accountable approach. This has taken place while key health and safety indicators have also improved.
HS2 Ltd’s new management team inherited a challenging commercial position. Prior to the reset, commercial capabilities and the management of HS2’s construction contracts were not effective. HS2 Ltd’s ability to settle commercial matters progressively and contemporaneously had deteriorated and become insufficient over recent years. Consequently, large backlogs had been allowed to develop in relation to cost verification, cost finalisation and contract change.
HS2 Ltd has since concentrated on strengthening its commercial controls. New commercial roles have been created to focus on cost verification and contract management, to scrutinise every payment application, to challenge contractor claims, and to manage contracts in taxpayers’ interests. These improvements must be fully embedded in the company, and endure beyond completion of the reset, to the conclusion of the programme.
HS2 Ltd is also engaging with its key supply chain partners to review contracts, close out historic payments only where appropriate and justified, and seek opportunities to incentivise improved performance. This work will be critical to stabilising costs and enabling us to make the spend on HS2 as efficient as possible. I will update on progress in my next report.
HS2 Ltd was set up to deliver a multiphase programme and grew accordingly; this multiphase programme no longer exists. Consequently, HS2 Ltd is being transformed into a lean and accountable delivery body focused on safe delivery between London and the West Midlands at the lowest reasonable cost. Given the overlap of alignment with elements of HS2’s former Phase 2, HS2 Ltd was already developing infrastructure for Northern Powerhouse Rail between Liverpool and Manchester. To make best use of taxpayers’ money and avoid additional costs through alternative arrangements, this work will continue and is being brigaded into a separate business unit, pending longer-term decisions about delivery responsibility for this scheme. The high-level plan we recently announced for Northern Powerhouse Rail remains unaffected by the new cost and schedule ranges for HS2.
HS2 Ltd did not have the right skills, structure or culture to deliver a programme of this scale successfully. Major steps are being taken to restructure the organisation to control and deliver HS2 more effectively, including:
reshaping the corporate centre, reducing headcount by cutting 300 corporate roles and rebalancing the organisation to better support delivery teams
redirecting resources to boost frontline delivery capacity by 40%, with 168 additional roles focused on cost management, oversight and decision-making
bringing in skilled and experienced professionals across commercial, technical, assurance, controls, and finance functions to fill critical capability gaps
As a result, there has also been significant restructuring of the leadership team at HS2 Ltd. This includes appointing a new Director of Business Delivery to reshape the organisation and a Chief Commercial Officer to provide additional commercial leadership, a gap identified in James Stewart’s review. Looking ahead, the department is also working closely with DfT Operator and Network Rail to strengthen the voice of the future operator into the delivery programme and deliver HS2 as part of an integrated railway.
The reset has begun bearing fruit, and I expect continued progress through the financial year as work progresses on completing the delivery baseline, implementing the new commercial strategy and reshaping HS2 Ltd.
The government accepted all 89 of James Stewart’s recommendations in June last year, and since then good progress has been made in implementing them, with both the department and HS2 Ltd on track to implement the remaining recommendations by the end of the programme reset, recognising that delivering the principles of the review will be an enduring endeavour for the lifetime of the programme. I am pleased that James has agreed to join the HS2 Shareholder Board to help ensure that the principles of his review are delivered in full.
The review found that multiple layers of assurance cause duplication and delays, driven by a lack of trust. The department has worked with HS2 Ltd and government partners to implement streamlined governance. This includes using the new Mega Projects Decision Panel to replace existing approval processes and oversee the HS2 reset process, alongside the Ministerial Task Force that this government reinstated. To support effective decision-making, the department has also implemented an integrated approach to assurance, bringing cross-government partners and external experts together to scrutinise the reset and utilising experts to assure the approach. Improvements to culture and trust are being put in place across the two organisations.
The review also highlighted weaknesses in HS2 Ltd’s corporate governance. The appointment of Mike Brown as Chair of HS2 Ltd and his subsequent strengthening of the Board are significant steps in addressing this. The HS2 Ltd Board’s roles and responsibilities have been clarified, with strengthened arrangements for compliance and organisational capability; enhancing delivery expertise within the Board and the company; and ensuring robust oversight through the Board’s sub-committees.
Learning is being embedded across current and future projects through:
independent assurance reviews of major projects, including Euston, Heathrow, Northern Powerhouse Rail, East West Rail, and the A66 Northern Trans-Pennine
resetting the department’s programme of work to improve project delivery
dissemination of learning across the department, its arm’s-length bodies, and wider government
monitoring progress on wider government recommendations in partnership with the National Infrastructure and Service Transformation Authority
Following the publication of the review in June 2025, the Prime Minister asked the Cabinet Secretary to consider the Civil Service and the wider public sector’s stewardship of the HS2 programme, and whether further investigation was warranted. The Cabinet Secretary commissioned Sir Stephen Lovegrove, former National Security Adviser, to undertake a review focusing on accountability, governance and capability. The review has been published today; the government will respond to its recommendations after thorough consideration of the findings.
Oversight
We have continued to strengthen oversight structures to drive performance and accountability. We established a new Shareholder Board, chaired by the Permanent Secretary and with independent membership, to provide more effective oversight. This Board has met six times over the last year. A monthly Programme Performance Board has been established to ensure and oversee the effective delivery of HS2 against agreed schedule, cost and scope.
Alongside regular bilateral meetings between government ministers, the Chief Secretary to the Treasury and I have attended all meetings of the Ministerial Task Force to deliver effective oversight. Since my report in July 2025, it has met four times to review progress on both delivery and the reset; to agree HS2 Ltd’s commercial strategy; to agree the updated schedule and cost ranges for the delivery of HS2; and to consider the early findings of the work on HS2 speed specification.
On his appointment, I tasked Mike Brown with reviewing the capacity and capability of the HS2 Ltd Board and its effectiveness. On his recommendation, I have appointed six new Non-Executive Directors which will bolster senior leadership capability in infrastructure delivery, health and safety, business transformation and commercial relationships.
While better governance alone is not enough to bring performance back on track, effective oversight, clear accountability and purpose-driven structures will be essential in improving management of the programme’s delivery.
Expenditure
To the end of March 2026, £44.2 billion (nominal prices) had been spent on the HS2 programme. This is provided in more detail in the financial annex, based on data provided by HS2 Ltd.
Spend to date information covers the period up to the end of March 2026. Unless stated otherwise, all figures are presented in nominal prices.
At the 2025 Spending Review, the government allocated a £25.3 billion capital settlement for HS2 Ltd from Financial Years 2026/27 to 2029/30 in order to progress delivery of HS2 from the West Midlands to London Euston. The HS2 programme reset work is underpinned by this settlement, and the annual funding allocations remain unchanged.
Euston
We have made significant progress in developing affordable, integrated plans for the Euston Campus, with all partners confirming their support for an overall spatial plan. The HS2 station will include 6 platforms, supporting all foreseeable Phase 1 services. Space will also be provided for additional platforms should they be required to support a future expansion of the network. In addition, the redevelopment of the existing Euston Station will deliver a new station concourse that will accommodate current and future passenger demand on the West Coast Main Line, while replacing life-expired station assets in a cost-effective manner.
We are working at pace with our Master Development Partner, Lendlease, on a Masterplan for Euston, with an emphasis on economic growth and delivering much needed housing, and will set out a plan in due course. We are also exploring models for development across the wider Euston area with local partners.
In April 2026, the Euston Delivery Company assumed the leadership role for the Euston campus and became the single directing mind for the Euston programme, delivering a cross-campus approach to the next stage of design work. Initially, the Euston Delivery Company will sit as a business unit within the department as we build its capability. We expect the company to be stood up as a public body in the Autumn.
With our significant public commitment to funding HS2 into Euston, we believe that the additional investment required to build the new HS2 station at Euston is an exciting opportunity for private investors. As referenced in the government’s 10-Year Infrastructure Strategy, the department is exploring the use of a public-private partnership to design, build, finance and maintain this HS2 station. We are continuing to advance this work, in close collaboration with HM Treasury and the National Infrastructure and Service Transformation Authority.
In February 2026, the department launched the first stage of preliminary market engagement which sought to raise industry awareness of the project and the department’s emerging plans, assess potential market appetite and identify priority issues for the market at an early stage, to support refinement of the proposed commercial and procurement approach. Confirmation of using a public-private partnership model will be subject to achieving appropriate risk transfer and delivering value for money for taxpayers. We will also continue to explore the most effective ways to capture the value created by development unlocked through transport infrastructure and recycle it to repay public investment, including through a tax increment financing-style mechanism at Euston.
The updated cost range for HS2 published today includes an early estimate of the cost of delivering the HS2 and London Underground elements of the Euston programme, some of which we intend to fund through private finance and other sources. While at an earlier stage of maturity than the wider HS2 reset, these costs will be reviewed and refined as work progresses, and further updates will be provided as part of regular parliamentary reporting. An updated budget for Euston will be subject to further development of design and schedule. The redevelopment of the existing Euston Station concourse area is subject to separate funding via the Rail Network Enhancements Pipeline.
Progress has been made on ‘meanwhile uses’ to reduce the impact on the local community. In July 2025, the new Euston Community Hub opened in the former Maria Fidelis school and has since had over 7,000 visitors. The Hub, located at the heart of Euston, provides a dynamic space for community sector organisations and public service providers to carry out various programmes and community-led activities, initiatives and engagement. It will also serve as a central information point for residents and passengers, providing regular updates and engagement opportunities about plans to redevelop Euston. September 2025 also saw the opening of the Construction Skills Yard, where local people can gain experience of being on site, get trained on machinery in a realistic environment, and use the site facilities. The new training hub, which expands the existing Euston Skills Centre is being used to deliver skills courses and create more opportunities for residents to access local jobs in the construction industry, and on the Euston station works.
Benefits
Economic growth and housing
HS2 will provide people with more choice about where to work, and where to study. Economic growth will also be driven by increased leisure travel, as it becomes quicker and easier for people to visit friends or explore different parts of the UK.
By bringing businesses closer together, HS2 will make it easier to share knowledge and enable them to access more workers in different locations. As a result, HS2 will attract new businesses to local areas, in turn driving increased investment and economic activity.
The economic benefits of HS2 are already being seen with the programme’s four new stations acting as catalysts for significant local growth and regeneration. HS2 estimate this will support the generation of over 63,000 new homes, 49,000 new jobs and an economic uplift of £20 billion in the West Midlands and west London over the next 10 years. HS2 is supporting the early development we are already seeing in Birmingham and the West Midlands, helping to catalyse investment in exciting new areas such as the Sports Quarter.
HS2 will also have a significant impact around Euston station. Euston is one of the largest development opportunities in central London and its potential is enhanced by the connectivity HS2 will provide. Recent estimates from the London Borough of Camden suggest that by 2053 a mix of new homes and commercial development could deliver an economic uplift of around £41 billion and support the creation of 34,000 new jobs.
Alongside the reset, HS2 Ltd is exploring opportunities for early release of land at key locations: Old Oak Common, Interchange, Curzon Street and Washwood Heath, enabling some land holdings to be brought into use while the railway is being built. This work aims to unlock potential for new homes, retail and commercial development.
This approach means we can deliver regeneration benefits as early as possible, creating lasting economic value alongside railway construction rather than waiting until completion of the railway. Each site represents a significant opportunity to boost local economies and support this government’s growth agenda. We are working closely with local authorities, communities, stakeholders, developers and investors throughout this process to help realise these opportunities.
HS2’s economic benefits will extend beyond the new stations, as HS2 services will extend and provide better journeys to the Northwest and Scotland, with faster journeys also possible through onward connections to areas including North Wales. The delivery of this new railway will also release capacity to meet increasing demand for regional, local and freight services between London and the West Midlands, further supporting growth in the local communities along that route.
Skills and innovation
People are at the heart of HS2 and its benefits, as the programme continues to support around 31,000 jobs.
I am proud of the impact HS2 is already having on the lives of people being brought into the workforce. So far, 5,771 previously unemployed people have been brought into work since Phase 1 Royal Assent.
We are also making great progress on supporting apprentices and have achieved a significant milestone this year with 2,136 apprenticeships created since 2017, breaking the 2,000 target that had been set for the programme. These apprenticeships will have a lasting impact on the individuals who have completed their programmes and help to develop a skilled and modern workforce, leaving a lasting skills legacy for the construction industry.
Innovation also remains central to HS2’s delivery. As part of the programme reset, HS2 Ltd is working with some of the UK’s leading tech specialists – bringing in expertise from beyond the rail sector – to tackle key challenges, including improving value for money, boosting site productivity, and enhancing safety management. Through its partnership with Connected Places Catapult, the HS2 Innovation Accelerator has supported start-ups and tech innovators since 2020, delivering cost savings, funding and investment of over £250 million, creating hundreds of new jobs in science and tech and attracting investment into SMEs.
Community impacts, land and property
Community engagement
Due to the delays to delivery, the impacts of construction will be felt by communities along the line of route for longer. HS2 Ltd continues to inform and involve communities who are impacted by construction and the uncertainty caused by the project reset. Between April 2025 and March 2026, over 21,000 residents were engaged at over 3,000 meetings and events. A further 29,406 enquiries were received via the HS2 Ltd Helpdesk, which operates 24 hours a day.
During the same period, HS2 Ltd received 1,405 complaints, the vast majority of which continue to relate to the impacts of construction, including concerns about traffic and transport disruption and noise and vibration impacts. HS2 Ltd is committed to resolving complaints promptly. Of the 1,405 complaints received, HS2 Ltd resolved 100% of urgent complaints within 2 working days and resolved 98% of all other complaints within 20 working days or less.
Local funds
One of the ways in which HS2 currently offers mitigation, benefits and compensation for line-of-route communities affected by construction is through the £40 million Community and Environment Fund and the Business and Local Economy Fund. This fund will continue to be available throughout the prolonged construction period. As at April 2026, over £22.3 million has been invested in communities and businesses that have been demonstrably disrupted by the construction of HS2, delivering 405 projects that will leave an enduring legacy.
Land, property and remediation
This government has recognised the need to make faster progress in settling outstanding property compensation claims, which in the past were taking far too long to reach final settlement. HS2 Ltd has now significantly increased the rate at which claims on Phase 1 are being settled, but we have made clear to the company that further improvement is needed.
In January, the government confirmed its intention to retain existing land holdings previously acquired for HS2 between the West Midlands and Crewe, in line with its intention to ultimately deliver a new rail line between Birmingham and Manchester.
HS2 Ltd is speaking to property owners whose land has been acquired in order to progress outstanding claims. HS2 Ltd and the supply chain have begun to engage with landowners of temporarily acquired land alongside local authorities to agree necessary remediation plans. We anticipate the remediation programme will conclude by the end of 2027.
The powers to compulsory purchase land on the former HS2 Phase 2a route expired on 11 February 2026. The government has the option to seek to extend these powers in the future, if required; we will set out our future intentions on land powers, consents and safeguarding in due course.
Along the Phase 1 route, HS2 Ltd has identified a number of surplus properties for potential disposal and has begun to market these. We have already sold a small number of Phase 1 properties as part of a pilot project and anticipate selling an increasing number over the coming years as continued progress in building the railway means we are able to release properties back to the market.
Following the lifting of safeguarding between the West Midlands and Leeds that I announced in my report in July 2025, the department has commenced a programme to sell land and property that is no longer required on the former Phase 2 route, starting with 558 properties on the former Phase 2b Eastern Leg.
A delivery agent has been appointed to lead on delivering the programme and we expect open market sales to begin later in 2026. HS2 Ltd will continue to manage properties on behalf of the department.
The disposal process will comply with the Crichel Down Rules, giving former owners, or their successors, whose properties were acquired under statutory blight or compulsory purchase, an opportunity to reacquire their former property at its current market value.
This programme will be phased over several years and carried out carefully to minimise disruption to local communities, protect local property markets, and ensure value for money for taxpayers.
Wider rail network
One of the lessons we are learning from HS2 is the need to approach the infrastructure needs of the rail network as a unified system, rather than a collection of separate projects. The government’s ultimate intention to deliver a full new rail line between Birmingham and Manchester will help to maximise the national benefits of both HS2 and Northern Powerhouse Rail and safeguard future growth for the long term, by ensuring that the West Coast Main Line corridor offers sufficient capacity and good connectivity. Further work will be carried out in collaboration with local partners on what will be delivered and when, but we expect the delivery timelines for this line to follow the completion of HS2 and Northern Powerhouse Rail.
As the department prepares to establish Great British Railways (GBR) and continues to bring passenger services back under public ownership, we are considering options for how HS2 services and infrastructure will be integrated. GBR will improve services for passengers and freight users, transition the rail network towards greater financial sustainability, and unlock barriers to the delivery of future schemes. As such, I am clear HS2 needs to be delivered and operated in a way that supports these objectives.
The planned approach to HS2’s operations must align with GBR’s operating model as it develops. The HS2 service will need to align with and complement the wider rail network. Decisions on the operational model for HS2 and its interaction with GBR are being carefully considered. It is likely that transitional states will be required in order to de-risk the process and protect our ability to deliver the HS2 project and services during this period.
Financial annex
Total estimated cost range
HS2 is forecast to cost £87.7 – £102.7 billion. This is expressed in a mixed price base, including the costs of both works to date and future work excluding inflation.
As committed to Parliament in my previous report, the cost ranges provided also express spend after Q3 2019 in 2019 values excluding projected inflation. This approach ensures that costs can be reconciled against figures previously communicated to Parliament and the public.
HS2 programme ranges
£ billion
Low
High
Q3 2025
87.7
102.7
Q3 2019
70.9
82.2
Notes
Q3 2025 ranges
[1] Spend up to September 2025 is expressed in nominal to reflect the cash spent on the programme (£40.9 billion). This approach is consistent with the government’s Parliamentary reporting and HS2 Ltd’s management of costs since Notice to Proceed in 2020, in which spend prior to Q3 2019 was treated in nominal.
[2] The remaining costs-to-go are presented in the prices of the day (Q3 2025) excluding forecast general and construction inflation. When the price base of the programme is reset every two years in line with future Spending Reviews, the lower and upper bound of the ranges will increase commensurately with inflation actually incurred over this period.
[3] The ranges include the full cost of delivering HS2 to Euston, some of which we intend to fund through private finance and other sources such as tax increment financing.
Q3 2019 ranges
[4] Note the Notice to Proceed Funding Envelope was constructed by uprating expenditure between 2015 and Q3 2019 to Q3 2019 prices.
Overall nominal cost
[5] Indicatively, the provisional cash estimate based on the lower and upper bound for the overall cost of the HS2 programme is £94.3 billion – £112.4 billion in cash terms, including projected inflation forecast using HS2 Ltd’s bespoke inflation indices.
Historic and forecast expenditure
The information on HS2’s overall spend to date and budget is now being provided in nominal (cash) terms following a commitment made by the department to the Public Accounts Committee to express the costs of the programme in a more up-to-date price base and better capture the inflation incurred since 2019. The government will provide further details on the 2026 to 2027 position in cash terms as part of the standard Main Estimates report to Parliament.
This is expressed in nominal prices, including land and property.
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