HS2 could cost up to £106 billion, according to a widely leaked government-commissioned review yesterday that recommended the rail link should be abandoned north of Birmingham.

An inquiry led by former HS2 Ltd chairman Doug Oakervee reportedly found there is “considerable risk” that the high-speed rail project’s cost will rise by up to 20 per cent.

The report also recommended suspending work on HS2’s rail link to Manchester and abandoning plans for a new high-speed track north of Birmingham.