The Treasury declined to rule out plans being drawn up surrounding the axing of the route from Birmingham to Manchester.
Rishi Sunak is expected to overrule the concerns of Tory grandees, business and northern leaders by announcing a scrapping of HS2 to Manchester after being presented with plans from the Treasury.
A package appeared to have been signed off by Chancellor Jeremy Hunt on Monday amid suggestions the pill could be sweetened by improvements for northern infrastructure.
Downing Street insists that “no final decisions” have been made as the Conservative Party holds its annual conference in Manchester, with Cabinet sign-off expected before an announcement.
A spokesman for Mr Hunt did not deny plans surrounding axing the northern leg from Birmingham had been drawn up in the Treasury, carefully saying: “A decision will be announced in due course.
“It’s not the Treasury’s announcement … it’s for the Prime Minister.”
No 10 said that some reports on the plans were “incorrect”, but did not set out which details were wrong and did not deny that a Cabinet meeting would be arranged.
