Rishi Sunak and Jeremy Hunt in talks to abandon HS2 phase two as costs soar

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Rishi Sunak and Jeremy Hunt discuss abandoning stage two of the HS2 rail project as costs soar and serious delays occur.

A cost estimate, seen by The Independent, reveals the government has already spent £2.3 billion on the second stage of the high-speed railway from Birmingham to Manchester , but that abandoning the northern phase would save up to £34 billion.

The documents, discussed at a meeting at No 10 on Tuesday titled 'Chancellor and Prime Minister Bilat”, suggest that the £2.3 billion is no longer recoverable, even if it is written off. The Independent understands negotiations are ongoing.

It comes as the chancellor attempts to find more economic headroom as he faces increasing pressure from Conservative MPs to propose tax cuts before the next election.< /p>

The document, referring to a meeting between Sunak and Hunt, was caught outside the Treasury on Tuesday

(Political Photos)

It would be another blow to the troubled project which has already been scaled back north of Birmingham, with a branch line planned to be built towards Leeds which is now expected to stop in the East Midlands.

The remaining parts of the project have been long delayed due to soaring construction costs, with work now suspended on the final section to Euston station in London.

And the government's own infrastructure watchdog warned in July against the project. was “unachievable”.

Press photographers stationed outside the Treasury on Tuesday captured a glimpse of documents referring to a meeting between Mr Sunak and Mr Hunt.

The page included the costs of each part of phase two, as part of a "savings table" showing how much each room is expected to cost and how much money has been spent so far.

A government spokesperson said: “You would like...