The HS2 rail line “will be reviewed” as part of next month’s cost-cutting Budget, a Cabinet minister said yesterday.
Michael Gove warned the Government will have to make “painful” decisions following the “mistakes” of recent weeks.
Ahead of the Autumn Statement, the Prime Minister and Chancellor Jeremy Hunt are considering up to £50billion of spending cuts and tax hikes to fill a gaping black hole in the nation's finances.
During an interview on Times Radio yesterday, Mr Gove was asked why not cut HS2, the Government's major high speed rail line project.
"I am sure everything will be reviewed" he replied, before adding: "I do think HS2 is a significant investment."
HS2 was originally meant to connect London with Birmingham, Manchester and Leeds. Work has already started on the first phase, linking London and the West Midlands.
But last year it was announced that the section to Leeds would be scrapped.
On whether the project is still worth it, even without its eastern leg, the Levelling Up Secretary said: "In a way your question is the answer, which is that we've already had to make economies.
"But I think long term capital investment in making sure this country is better connected is a good thing.
"And ideally, you don't want to cut that long term capital investment because it helps contribute to economic growth and greater opportunity.
"But when we face the particularly economic problems that we have at the moment, I'm sure that some capital spending will be cut."
Mr Gove insisted people "deserve the truth" which is "as a result of different factors, including mistakes that were made at the mini-budget, we have got to make some decisions, which will be painful".
Whitehall sources last night played down Mr Gove's comments, as they insisted he was "talking about ensuring that HS2 keeps within its budget".
A Government spokesman said: “HS2 is underway, within budget, and supporting 28,000 jobs. The Government remains committed to delivering it on time and to budget.
“As the latest report to Parliament sets out, current cost pressures are covered within the existing budget and we continue to identify areas where savings and efficiencies can be made.”
