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The chair of HS2 Ltd is set to step down, the Department for Transport (DfT) has announced as it revealed yet another cost rise for the project.

Sir Jon Thompson, who was a veteran civil servant before taking his role at the government-back delivery body, will step back from his role in the spring after four years on the board.

In a statement, transport secretary Heidi Alexander thanked Thompson for providing 鈥� strong leadership during challenging times for the project鈥�.

The news came alongside the DfT鈥檚 six-monthly update to parliament on the progress of HS2, which revealed that the predicted cost of the scheme at completion had risen to stand at between 拢54bn and 拢66bn.

This compares to the previous estimate of between 拢45bn and 拢54bn.

But Alexander said the latest estimate, which was presented to HS2鈥檚 board in June, did not take into account the new government鈥檚 work to reset the project or factor in private financing for Euston.

鈥淲e do not think these figures are accurate or reliable,鈥� she added.

Alexander, who recently took on the secretary of state role from Louise Haigh, said the coming months would see 鈥渇resh leadership鈥� under HS2鈥檚 new chief executive Mark Wild, with the government working 鈥渢o grip budgets and deliver the line cost-effectively for passengers and taxpayers鈥�.

Wild, who was previously responsible for delivering the Crossrail project, formally began as HS2 Ltd鈥檚 new chief executive at the start of the month.

>> Read more: HS2 cuts will leave line as a 鈥榤onument to British mentality鈥�, Manchester mayor says 

Wild has been asked to undertake an assessment on cost, schedule, capability and culture and to provide an action plan for delivering remaining work as cost-effectively as possible.

鈥淯ntil Mark Wild concludes this work, the government cannot be confident in the forecast outturn cost of the project,鈥� said Alexander. 

鈥淲e are, therefore, managing HS2 Ltd鈥檚 delivery through annual funding and delivery targets for this financial year and next but with reduced delegation on contingency. 

鈥淚t will also be necessary to agree longer-term funding for HS2 in the spending review, due to conclude next year.鈥�

Alexander said most costs for the project were 鈥渨ithin the supply chain鈥� and that improved cost control would require engagement with these companies.

Alexander restated that the government had no plans to reinstate the northern sections of HS2 but said the department has met with the mayors of Greater Manchester and the West Midlands about proposals for a lower cost option.

She said the government would set out its plan for strategic rail investment north of Birmingham 鈥渋n due course鈥�, including its approach to the Crewe-Manchester hybrid bill.

The update 鈥� the first since November 2023 after a year disrupted by a change in government 鈥� also revealed that the government had completed 鈥渁 small number of pilot sales鈥� of land north of Birmingham.and is developing a programme to further dispose of land.

While the forecast date for initial HS2 services between Birmingham and Old Oak Common is still between 2029 and 2033, there is still no current schedule estimate for delivering Euston.