The Euston terminal for the high speed rail line may not go ahead if the Government is unable to raise enough private sector money to fund it.
Rishi Sunak has signalled that he wants this section of HS2 to be funded privately, partly through a huge housing development, rather than using public funds.
He announced on Wednesday that £6.5 billion earmarked for Euston would instead be diverted to fund transport projects in the regions.
The Standard understands that there is a back-up plan for the high speed line to stop at Old Oak Common in west London, if enough private sector funding is not raised.
If there is a small funding gap, the Government might step in to plug it to ensure the line can end in Euston.
None of the £6.5 billion of public money, taken out of the Euston scheme, will be used for the redevelopment plan around it.
New leadership will be brought in tasked with attracting private investment to build the Euston station for HS2, which is expected to have six platforms.
It could be built east-west or west-east, and given that it will be smaller than originally planned could give more scope for the conventional rail terminal at Euston.
A development corporation will be set up, as Margaret Thatcher did for the London Docklands, with special powers to develop thousands of homes. It will be modelled on the success of the Battersea Power Station and Nine Elms development.
The Prime Minister axed the Birmingham to Manchester leg of HS2, with the aim of saving £36 billion to plough into other transport projects around the country.
Labour is yet to say what it would do with the high speed line.
But Mr Sunak’s decision has been slammed by David Cameron, Boris Johnson and George Osborne, as well as Labour Mayor of Greater Manchester Andy Burnham.
He argues, though, that he is taking long-term decisions for the country which PMs for the last 30 years have failed to do.
