HS2 contractor Hitachi Rail is drawing up plans for job cuts at its UK plant after ministers’ decision not to sign off on new train orders left the manufacturer facing a six-month drought of work.

Hitachi, whose UK factory employs 700 people and supports a further 1,400 jobs in the supply chain, suffered a body blow last week after the Department for Transport declined to approve an order of new trains for Avanti West Coast after two years of discussions.