The controversial HS2 could be scrapped after it was revealed a new review of the high-speed rail project will “whether and how [it] should proceed”.

On Wednesday morning, Transport Secretary Grant Shapps published the terms of reference and timetable for the government-commissioned independent review.

Shapps with “oversight from the Prime Minister and Chancellor of the Exchequer” by the autumn.

The project has been dogged by setbacks and spiralling costs and could come in at some £30 billion more than the £55.7bn budget.

Shapps said: “The Prime Minister has been clear that transport infrastructure has the potential to drive economic growth, redistribute opportunity and support towns and cities across the UK, but that investments must be subject to continuous assessment of their costs and benefits.

“That’s why we are undertaking this independent and rigorous review of HS2.

“Douglas Oakervee and his expert panel will consider all the evidence available, and provide the department with clear advice on the future of the project.”

Phase 1 of HS2 is planned to run between London and Birmingham from December 2026, while a second Y-shaped phase will launch in two stages.

Phase 2a from the West Midlands to Crewe is due to open in 2027, followed by Phase 2b from Crewe to Manchester, and Birmingham to Leeds, in 2033.

HS2 trains will also serve destinations on conventional lines beyond the new high-speed network, including York, Newcastle, Liverpool, Glasgow and Edinburgh.