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Business Live with Ian King: Northern leg of HS2 to be scrapped, Sky News understands

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Watch Business Live with Ian King as the northern leg of HS2 is to be scrapped, Sky News understands.

This follows reports and speculation over a number of weeks that Rishi Sunak was set to axe the Birmingham to Manchester leg due to soaring costs.

The prime minister and chancellor have repeatedly refused to comment on the future of the high-speed rail line - but ministers have spoken often of the ballooning costs and said it was "under review".

While, Chancellor Jeremy Hunt has reiterated the government's commitments to make benefits sanctions harsher - while also committing to raising the national living wage above £11 an hour.

In his speech to the Conservative Party conference in Manchester, the senior minister also revealed a plan to save £1bn by freezing the expansion of the Civil Service and reducing the level of staffing to pre-pandemic levels.

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