The claims, first reported by i newspaper, were brought forward by whistleblowers and centre on allegations that self-employed workers were being misclassified as salaried staff, leading to inflated charges and the submission of potentially fake payslips.

In response, HS2 Ltd has suspended one subcontractor, the Danny Sullivan Group, from receiving new contracts while the investigation continues. A second firm, also under scrutiny, had its suspension lifted following a period of remediation, but remains under enhanced monitoring.

Both companies were providing staff to Balfour Beatty VINCI (BBV), one of HS2’s main contractors. BBV has since implemented additional monitoring and control measures in light of the allegations.

A spokesperson for HS2 Ltd stated: “HS2 Ltd treats all whistleblower allegations seriously, and we are aware of the claims made in relation to labour suppliers. An investigation was launched earlier this year into a number of different allegations.”

The Department for Transport (DfT) echoed this stance, saying: “The Government and HS2 Ltd take all whistleblower allegations extremely seriously and have a zero-tolerance attitude towards fraud, bribery, and corruption.”

Danny Sullivan Group responded to the claims by stating that it takes the allegations “extremely seriously” and is cooperating fully with the investigation. There is currently no indication that the police or HMRC are involved in the matter.

The HS2 project, announced in 2009 and greenlit in 2012, aims to significantly cut journey times between London and Birmingham and increase capacity on the national rail network. However, it has been marred by delays, scaling back of its original scope, and escalating costs. Initially planned to extend to Leeds and Manchester, the Leeds leg was dropped in 2021, and the Manchester extension was cancelled in 2023. The line will now terminate in Birmingham.

Cost estimates have ballooned over time. In November 2023, the government estimated HS2’s cost at £45–£54 billion (based on 2019 prices), while HS2 Ltd projected up to £66bn. Adjusted for inflation, the Public Accounts Committee (PAC) has warned that the final cost could reach £80bn, with some reports suggesting up to £100bn.

Despite its challenges, the project has reached significant construction milestones. About 75% of tunnelling between London and Birmingham is complete. Earlier this month, a major breakthrough was achieved with the completion of the first bore of the 3.5-mile Bromford Tunnel near Birmingham—a key part of the line’s approach into the city. Around 31,000 people are currently employed across the 140-mile route.

In a separate development, the mayors of Greater Manchester and the West Midlands have announced plans for a privately funded rail link between their regions to replace the scrapped HS2 northern leg.