The disastrous HS2 rail project will not open as planned in 2033, a senior minister confirmed today, as a damning report reveals that its costs have soared by an astonishing £37billion.

Transport Secretary Heidi Alexander branded the building of a new line linking London and Birmingham with the North an 'appalling mess' and told MPs she saw 'no route' to getting trains running in eight years' time.

Instead the scheme will now focus on saving taxpayers' money even if it means delaying its opening, she told the Commons this afternoon.

She warned that phase 1 of the project between London and Litchfield could end up being 'one of the most expensive railway lines in the world' after years of cost overruns and delays.

And she warned there was evidence of sub-contractors defrauding the scheme.