Opening of HS2 line set to be delayed beyond 2033
The opening of HS2 will be delayed beyond the target date of 2033, the BBC understands. Transport Secretary Heidi Alexander is expected to tell Parliament on Wednesday that there is "no reasonable way to deliver" the railway line on schedule and within budget - but is not expected to say how long the delay will be.She is set to outline the findings of an independent review into HS2, in which a "litany of failure" has been blamed for ballooning costs.It is the latest setback for the high-speed rail project, which has been scaled back and delayed repeatedly.
Alexander is expected to say that Conservative governments presided over the cost of HS2 rising by £37bn between 2012, when the line was first approved, and the general election last year.Under the original plans, HS2 was intended to create high-speed rail links between London and major cities in the Midlands and North of England.It was designed to cut journey times and expand capacity on the railways, but has has faced myriad challenges and soaring costs.It has already been pared down to a high-speed link between Birmingham and London, with the Birmingham to Manchester leg cancelled in 2023. Confirming that decision, the then-Chancellor Jeremy Hunt said costs were getting "totally out of control".That was two years after a planned eastern leg between Birmingham and Leeds was axed.In 2010, it was estimated HS2 would cost £33bn and open in 2026.Last year, the Department for Transport said the remaining project cost was estimated at between £45bn and £54bn in 2019 prices - but HS2 management has estimated it could be as high as £57bn.On Wednesday, the transport secretary is expected to announce the findings of a review conducted by the former chief executive of Crossrail, James Stewart, which was commissioned last year to "investigate the oversight of major transport infrastructure projects".In October last year, a new chief executive, Mark Wild, was put in place as part of efforts to get control of rising costs.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
an hour ago
- Daily Mail
HS2 opening 'to be delayed by two years' after damning report 'drives costs up by £37BILLION'
HS2 is set to be delayed for another two years as a damning report reveals that costs for the project have increased by £37 billion. On Wednesday Transport Secretary Heidi Alexander is due to announce that the remaining section of the high-speed railway line between London and Birmingham will no longer be completed in the target time of 2033. She will say that the last Conservative government increased the cost of the project by £37 billion between 2012 and the general election, The Telegraph reported. The Transport Secretary is set to accept 89 recommendations from an independent review into infrastructure projects which was spearheaded by former Crossrail chief executive James Stewart. Mike Brown, former Transport for London (TfL) commissioner is set to become the new chairman of HS2 Limited - the company in charge of the project. A damning dossier of shortcomings with the project is set to be published on Wednesday. It is claimed that the document will say that the previous government spent £2 billion on the project between Birmingham, Manchester and Leeds before scrapping it and that more than £250 million was spent by HS2 Ltd on failed designs for a new station at Euston by HS2 Ltd. The company was reportedly asked to provide a cheaper alternative, but ended up nearly doubling the price in the second design. The project to build a high speed line between London, the Midlands and the North was announced in 2010 by then Conservative Transport Secretary Philip Hammond. But ever since it has been beset by controversy amid ballooning costs - including spending £100million on a tunnel for bats. This is despite there being 'no evidence' that the trains will interfere with the mammals, executive chairman chairman Sir Jon Thompson said. He claimed this is an example of the UK's 'genuine problem' with completing major infrastructure projects. The company also came under fire when £20,000 was spent on a model station made out of Lego. The company spent the equivalent of £1 per plastic brick - and used it at 20 events in two years. The toys were used to recreate a planned site to help inform communities, businesses and the public about a new train station. The Lego version turned out to be roughly the size of a kitchen table, and consultants Bricks McGee were paid to construct it. Earlier this month a whistleblower who lost his job after accusing HS2 executives of fraud over the true cost of the project won more than £300,000 in compensation. Risk management expert Stephen Cresswell repeatedly raised concerns that the cost of the high speed rail line - which could end up landing the taxpayer with a bill of more than £80billion - was being 'actively misrepresented'. The consultant was told by one HS2 executive to 'disregard' scenarios he had prepared which forecast a 'significant' increase in the price to the public, an employment tribunal heard. As a result, Mr Cresswell warned that he found himself in a 'very uncomfortable position' of having a 'very different' view to the high speed rail line company's 'documented position'. The tribunal heard that in a meeting with bosses he said 'fraud had been committed because he understood fraud to be making false statement so as to secure a benefit'. After losing his job, Mr Cresswell took HS2 to an employment tribunal, claiming he had his contract terminated and been denied other work as a result of blowing the whistle. After the rail firm admitted that he had not given adequate levels of protection following his disclosures he has now been awarded £319,070 in damages. In response, campaigners said it was not to late for Labour to consider scrapping high speed rail over years of 'catastrophic mishandling'. The Transport Secretary is set to blame the Conservatives for the rising price of the project over the past 15 years. HS2 Ltd previously said investigations into Mr Cresswell's claims found no evidence of fraud or illegal activity. In a statement it said: 'HS2 Ltd has accepted that Mr Cresswell raised concerns as a whistleblower and was not then given the appropriate level of protection when his contract came to an end. 'This is regrettable and HS2 Ltd is committed to ensuring that staff and others can raise concerns in confidence. 'This admission does not mean that HS2 Ltd accepts the specific allegations around cost estimating practices raised by Mr Cresswell. 'However, the company is under now under new leadership and a comprehensive review of its skills and structures is being carried out.' Last month a DfT spokesperson said: 'We take all whistleblowing allegations seriously and it is important that individuals are given appropriate levels of protection, which clearly was not the case for Mr Cresswell. 'There is a lot of hard work still to do to get this project back on track, which is why we are overseeing a total reset of HS2, and reviewing the programme's costs, schedule and culture.'
FF News
2 hours ago
- FF News
The Stablecoin Sandwich: A Better Way to Move Money Across Borders
Cross-border payments remain one of the most expensive and opaque aspects of international business. Fintech Finance reports that global corporations move $23.5 trillion across borders and pay an estimated $120bn in transaction fees annually. With slow settlement times, high FX fees, and complex compliance requirements, many companies are seeking faster and more transparent alternatives. What traditional cross-border payments get wrong Despite living in an era of instant communication and cloud-based everything, cross-border payments are still burdened by outdated infrastructure. Much of the friction stems from reliance on legacy systems like SWIFT and correspondent banking networks, which introduce delays, fees, and opacity into every transaction. These systems were never designed for the speed and scale of today's global digital economy. The list of issues that businesses face when making payments in 2025 is a long one: delays, hidden fees, poor FX rates, limited transparency, access issues, failed payments… These inefficiencies aren't just a nuisance. They create real business risk and operational drag. Consider the following scenarios: A tech firm in London needs to pay its developer team in Argentina weekly. FX volatility and delays mean developers are paid late, and the firm must overfund to account for slippage. An online education platform in Singapore pays tutors across Africa. Bank coverage is patchy, and students complain when class schedules are affected by delayed payouts. A French import/export company struggles to make timely supplier payments in Turkey due to capital controls and high intermediary costs. In each of these cases, the core problem is the lack of a direct, efficient, and programmable value-transfer mechanism. Enter, a modern-day solution, the 'stablecoin sandwich.' What is a stablecoin sandwich? A stablecoin sandwich is a cross-border payment strategy that wraps a blockchain-based stablecoin transfer between two fiat currency conversions. The process begins by converting the sender's fiat currency (e.g., GBP) into a stablecoin (e.g., USDC). That stablecoin is transmitted over a fast, low-cost blockchain network, like Solana, before being converted back into the recipient's local fiat currency (e.g., INR). Think of it as putting a stablecoin in the middle of two fiat 'slices', a transaction sandwich, crafted to avoid the sogginess of traditional banking rails. No one likes a soggy sandwich. This structure isn't just more appetising, it's more efficient. It delivers: Faster settlement: Cross-border payments that typically take 2–5 days via SWIFT can now be completed in minutes or hours, depending on network choice. Lower fees: While traditional correspondent banking can incur fees of 3–6% per transaction , stablecoin transfers often cost a fraction of that, especially on efficient Layer 2 networks. Greater transparency: Transactions are recorded immutably on-chain, allowing for real-time tracking and automated reconciliation. More importantly, it enables businesses to bypass congested correspondent banking networks, which still underpin most traditional international payments. According to the BIS , nearly 40% of cross-border transactions rely on just a handful of major correspondent banks, creating concentration risk and liquidity bottlenecks, especially in emerging markets. In contrast, blockchain-based rails use decentralised infrastructure that routes payments through faster, borderless channels. However, the fiat off-ramp still depends on access to local currency. That's where Bitpace plays a key role: we partner with licensed financial entities and local payout nodes to ensure liquidity is available, where it's needed for clients. This decentralised but regulated approach shifts the burden away from slow, centralised institutions and toward programmatic, API-driven liquidity networks optimised for scale, speed, and compliance. The stablecoin sandwich is especially powerful in regions where traditional banking infrastructure is patchy, restricted, or expensive. In Sub-Saharan Africa, for instance, the average cost of sending $200 is 8.5% . Stablecoin pathways offer a modern workaround, enabling access to liquidity without the inefficiencies of legacy financial networks. How it works: The technical filler The stablecoin sandwich is built on three core steps: on-ramp, transfer, and off-ramp. Each step is designed to reduce cost, increase speed, and maximise transparency. Here's how the process works in practice: Fiat on-ramp: The sender begins by converting their local fiat currency (e.g., GBP) into a stablecoin (e.g., USDC) using a trusted payment service provider (PSP), crypto exchange, or an integrated payment gateway such as Bitpace. Blockchain transfer: Once the stablecoin is issued, it is transferred via a blockchain network. The choice of network, Layer 1 or Layer 2, depends on speed, cost, and regional infrastructure. Each has trade-offs in terms of latency and transaction fees. For example, the Ethereum network can be used for high security and liquidity. Fiat off-ramp: Once the stablecoin arrives, it is converted into the recipient's local currency (e.g., INR) through a licensed partner or PSP connected to local banking rails. Bitpace coordinates this process end-to-end through a network of verified payout nodes in key markets. Because stablecoins are largely 1:1 backed when issued by regulated entities and held in transparent reserves, and are not subject to the volatility of other crypto assets. They serve as a safe, fast medium of value transfer, especially for B2B use cases. In B2B use cases, such as payroll, treasury transfers, supplier payments, and digital export settlements, this balance of speed, stability, and programmability makes stablecoins a compelling instrument for moving value at a global scale. Crypto sandwich use cases Many suppliers in Africa, Asia, and LATAM face delays in receiving payments through traditional banks, often waiting 3 days or more for funds to be settled, which are further diminished by FX spread losses. A stablecoin sandwich enables same-day delivery of funds with better FX rates, improved visibility, and full auditability. Example: A UK-based e-commerce firm pays a textile manufacturer in the UAE. GBP is converted to USDC, sent via the Solana network, and instantly settled in AED through a local partner. Remote talent marketplaces struggle with payout delays and high intermediary fees. With the stablecoin sandwich model, talent in over 100 countries can receive funds in minutes, in their preferred local currency or even as stablecoins. Example: A London-based design agency pays contractors in the UAE. Payments are routed through Bitpace, converting GBP to USDC, sent over the Ethereum network, and withdrawn in AED. Stablecoins offer programmable liquidity. Businesses can hold them during global settlement cycles to manage timing mismatches and use Bitpace to hedge or convert when rates are most favourable. Example: A UK-based SaaS firm with clients in the UAE receives revenue in AED. They convert to USDC to hold until rates are favourable, then settle GBP expenses in the UK, all without touching legacy FX platforms. Exporters of digital goods (think SaaS, gaming, digital art) often don't need the friction of banking systems. A stablecoin sandwich allows these businesses to sell to global buyers and receive clean, fast payments they can either hold or cash out. Example: An indie game studio in England receives royalties from the UAE. Bitpace enables them to accept AED via USDC rails, convert to GBP, and settle in their UK business account. Why the sandwich works The stablecoin sandwich is not just a workaround, it's an upgrade. It removes the weakest parts of traditional cross-border payments (slow banks, expensive FX, opaque routing) and replaces them with the strengths of crypto (speed, transparency, and programmability). At Bitpace, we've seen this model deliver real-world efficiency gains for our clients, without the regulatory or volatility concerns often associated with crypto. Under frameworks like the EU's MiCA regulation, UK's FCA DP23/4, or Brazil's PL 4401/2021 and CVM/BCB division of roles, stablecoins will be issued by regulated e-money institutions, backed by 1:1 fiat reserves, and subject to rigorous audit requirements. This clarity is already attracting institutional players who want the benefits of crypto rails, without the volatility of speculative assets. As the market matures and stablecoin regulation (like MiCA) brings further clarity, I believe this sandwich will become the default meal for modern global payments. Final thoughts With global B2B payment volumes expected to surpass $150 trillion by 2025 , the pressure is on to modernise infrastructure. The stablecoin sandwich offers a path forward: one that combines the trust of fiat, the efficiency of crypto, and the compliance of licensed platforms like Bitpace. Let's make moving money as simple and fast as sending an email (or making a sandwich). We're building the rails for compliant, real-time global value transfer. If you're a business, PSP, or financial institution looking to stay ahead of the curve, join us.
Powys County Times
2 hours ago
- Powys County Times
Transport Secretary to draw ‘line in the sand' over HS2 as she reveals failings
The Transport Secretary is set to lift the lid on the lack of oversight that contributed to the spiralling costs of HS2. Heidi Alexander will tell the Commons on Wednesday that she is drawing a 'line in the sand' over the beleaguered rail project, as the Government attempts to reset how major infrastructure is delivered. Ministers plan to learn from the mistakes of HS2 so that they do a better job when it comes to projects like Northern Powerhouse Rail and the Lower Thames Crossing, it is understood. 'HS2 has made Britain a laughing stock in terms of its ability to deliver big infrastructure projects, and it has to end. This will set out the way we will do that,' a Government source told the PA news agency. The result of two reviews into HS2 are expected to be announced alongside the Transport Secretary's statement. The first of these is an interim report by Mark Wild, the chief executive of HS2, who was appointed late last year. He will assess the construction of the project's first phase from London to Birmingham. A second, wider review into the governance and accountability of HS2, led by James Stewart, will also report back. This is expected to set out what has gone wrong with the project, and what ministers can learn for future infrastructure projects. As she addresses MPs, the Transport Secretary is expected to address allegations of fraud by contractors to HS2 which have emerged recently. Earlier this week, it emerged HS2 Ltd reported a sub-contractor working on the rail line to HMRC following an internal probe. During the statement, Ms Alexander is also set to announce a new chair of HS2. The current chair, Sir Jon Thompson, previously announced he would stand down in the spring of this year. His replacement will be Mike Brown, according to The Daily Telegraph newspaper. Mr Brown is the former commissioner for Transport for London, who helped to oversee the deliver of Crossrail, the transport project which became London's Elizabeth Line. HS2 was originally due to run between London and Birmingham, then onto Manchester and Leeds, but the project was severely curtailed by the Conservatives in power due to spiralling costs.
