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Economic Development

Chancellor Rachel Reeves announces massive £25.3bn funding for HS2 in spending review

Chancellor Rachel Reeves has pledged billions to upgrade the Transpennine route and the East-West rail route, but HS2 is set to cost more than both combined

How HS2 trains could look (Image: PA)

HS2's massive funding allocation overshadows all other railway investment commitments announced by Chancellor Rachel Reeves in her Spending Review.

Reeves committed £3.5bn to the Transpennine route upgrade and £2.5bn for East-West rail as part of the Spending Review.

The Chancellor also outlined plans to advance the º£½ÇÊÓÆµ's ambitions for Northern Powerhouse Rail, the Liverpool-Manchester rail route known as 'High Speed 3'.

In total, the government has set aside £10.3bn for investment into railway enhancement projects, not including HS2.

The highly controversial high-speed railway project connecting London and Birmingham is set to receive more than double that amount on its own, with £25.3bn agreed as part of a four-year settlement, as reported by .

"This funding will support the full reset of the HS2 programme under the leadership of the new chief executive, addressing longstanding delivery challenges," the government stated.

Details of how Northern Powerhouse Rail will be funded will be disclosed in the Infrastructure Strategy, and are heavily reliant on the outcome of a review into HS2's costs.

Reeves indicated her plans for the scheme would be detailed "in the coming weeks".