Rachel Reeves ‘plans to sign off HS2 flight to Euston’ despite multi-billion pound price tag… amid signs she will rewrite budget rules in Budget to borrow more

It is believed Rachel Reeves is preparing to sign off the HS2 flight to Euston, despite alarm over the multi-billion pound price tag.

The chancellor is expected to approve the construction of the line to the central London hub after months of speculation.

The reports come amid signs that Ms Reeves will rewrite fiscal rules in the budget so the government can build up additional borrowing.

Liabilities and other debts of the Bank of England could be reclassified to give ministers another £30 billion of leeway – or perhaps even more.

Questions were raised over the future of Euston station when Rishi Sunak canceled the Birmingham-Manchester section of the HS2 program last year.

Rachel Reeves is believed to be preparing to sign off HS2 flight to Euston despite alarm over multi-billion pound price tag

Questions were raised over the future of Euston station when Rishi Sunak canceled the Birmingham-Manchester section of the HS2 program last year

With the bill for the hub’s redevelopment rising to £5 billion, there were rumors that the high-speed link could instead terminate at Old Oak Common on the outskirts of west London.

Passengers would have to complete their journey to central London on the Elizabeth Line, with critics saying this would be ‘insane’.

However, according to the Sunday Times, a Euston route and a new rail link will be added Manchester and Liverpool will be approved by the Chancellor.

A government source said: ‘HS2 simply wouldn’t work if the terminus wasn’t in Euston. The station is also already overdue for investment and has become a dystopian mess for London.”

Ms Reeves previously pledged to meet the Tories’ stipulation that public sector net debt should fall in the fifth year of a forecast period.

Any move to change the debt calculation would raise concerns after government borrowing reached 100 percent of GDP for the first time since 1961

But the calculation of that debt could be changed. Options being considered for the budget include removing the Treasury’s losses on the Bank of England, phasing out its quantitative easing program from debt calculations, and keeping new bodies such as Great British Energy off the books.

Officials could also be directed to place more emphasis on the long-term returns from borrowing infrastructure investments.

However, such a move would raise concerns after government borrowing reached 100 percent of GDP for the first time since 1961. It would also not solve the pressure on year-on-year spending, because the extra money would be one-off.