Plans to revive the cancelled HS2 rail line from Birmingham to Manchester, endorsed by Labour MP Andy Burnham, involve slower train speeds and a potential rise in local business rates, according to a recent report and statements from involved parties. Burnham, the MP for Makerfield and former mayor of Greater Manchester, has proposed reintroducing the project through a mix of public and private funding modeled on the Crossrail scheme in London.

The proposal centers on a 50-mile new rail route between Lichfield in Staffordshire and High Legh in Cheshire, which would utilize land originally secured for HS2 phase two, cancelled in 2023 by the Conservative government. The revived line would link Liverpool and Manchester to the London-to-Birmingham HS2 route, which is currently projected to be operational no earlier than 2036. The original HS2 phase two was estimated to cost £36 billion before cancellation, but updated assessments suggest the cost could now be substantially higher.

The 2024 report, commissioned by Burnham during his tenure as mayor and overseen by Sir David Higgins, former chair of HS2 Ltd, and engineering consultants Arup, advocates a "blended funded approach." Unlike the original HS2 London-to-Birmingham segment, which was nearly wholly publicly financed, the new plan encourages greater private sector involvement in construction and operation. It highlights potential savings by using simpler track designs, less costly structures, and operating trains at speeds of just under 200 mph rather than the previously planned 250 mph top speed.

Delivery could occur in stages, with initial work focused on the Lichfield to Crewe section, targeted for completion by the 2030s. The project would require additional land acquisition north of Crewe. Funding considerations include the possibility of increasing local business rates, drawing on the model used in London where businesses contributed nearly one-third of Crossrail’s £19 billion cost via business rate supplements. Property developers might also play a financial role, although the report acknowledges that some central government funding commitment would remain necessary.

Supporters such as Henri Murison, chief executive of the Northern Powerhouse Partnership, commend Burnham for addressing the gap left after the HS2 cancellation, viewing the proposal as a credible alternative that could improve connectivity across Northern England. Conversely, critics question the feasibility and cost-effectiveness of the plan. Trevor Parkin, a chartered mining engineer with direct involvement in technical assessments, estimates current costs could approach £60 billion. Andrew Gilligan, a former transport adviser involved in the original HS2 cancellation decision, expressed skepticism, suggesting the revived route would offer limited savings and that Burnham’s pledge may be difficult to fulfill if he attains government leadership.

Separately, the government’s ongoing HS2 project "reset"—intended to reassess costs, governance, and timelines—has reached an expenditure of £101 million, with total spending expected to rise to £153 million. The National Audit Office reported significant consulting fees driving this figure and noted that reducing train speeds to lower costs might undermine potential long-term economic benefits by an estimated £1.3 billion. Officials at HS2 Ltd maintain that the reset is necessary to improve project management and efficiency, highlighting recent on-the-ground construction milestones achieved ahead of schedule. The Department for Transport reiterated that this effort aims to facilitate faster, more efficient construction despite the project's persistent challenges.