HS2 Ltd, the company behind the high-speed rail project, has revealed £2bn in costs associated with Rishi Sunak’s decision to downgrade the project. This includes writing off £1.1bn in costs related to the abandoned phase two linking Birmingham to Manchester. The decision to scale back the project was made last year, leading to accounting charges that will reduce expected future income for the company.
Following the decision to downgrade HS2, construction workers and the media awaited the tunnel boring machine’s breakthrough, symbolizing the challenges faced by the project. The decision to cancel the second leg of HS2 was met with dismay in Manchester, one of the cities that would have benefited from the new rapid link. The ballooning costs of the project, amounting to £71bn, prompted the government to make the decision to cut back on the infrastructure project.
Meanwhile, McDonald’s reported a drop in global sales for the first time since 2020, with consumers reining in their spending due to surging inflation. The fast-food chain has implemented discounts to attract customers, focusing on boosting footfall and revenue, particularly in the US market.
In other news, junior doctors have been offered a 20% pay rise over two years by ministers, potentially putting an end to strikes. Additionally, UK consumers cut back on credit card borrowing in June, reflecting how the cost of living crisis is affecting household spending habits. The Post Office inquiry continues, with former chair Neil McCausland describing the business as “badly run and messy” during his tenure.
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