HS2 is likely to reach Euston, Transport Secretary Louise Haigh has indicated, saying it “would never have made sense” for that not to happen.

The Cabinet minister said an announcement on the project will be made “soon”, and could happen around the time of the Budget on October 30.

In October last year, then-prime minister Rishi Sunak announced that extending HS2 from Old Oak Common, in the suburbs of west London, to Euston, near the centre of the capital, was reliant on private investment.

This was aimed at saving £6.5 billion of taxpayers’ money.

Major HS2 construction work at a site alongside the existing station has been halted since the previous March due to funding doubts.

The Commons’ Public Accounts Committee issued a report in February stating it was “highly sceptical” that the Department for Transport would be able to attract private investment on “the scale and speed required” to make extending HS2 to Euston “a success”.

Asked by Times Radio on Tuesday if it is affordable for HS2 to reach Euston, Ms Haigh replied: “We will be making an announcement on that soon.

“But it certainly would never have made sense to leave it between Old Oak Common and Birmingham.”

Asked if the announcement may come in the Budget, she said: “It may be made around those decisions.”