Opposition to HS2 grows as IoD calls the project a “grand folly”
BUSINESS organisation the Institute of Directors (IoD) has added its voice to what appears to be a growing campaign to get the the HS2 high-speed rail project cancelled.
It brands the project “a grand folly.”
The IoD is calling on the Government to abandon the project – which would see Birmingham and London linked by 225mph trains by 2026 and links to Leeds and Manchester six years later.
The intervention from IoD director general Simon Walker follows a survey of the organisation’s members that suggests businesses are not convinced by the economic case for HS2.
A survey of IoD members found that just 27% feel the high-speed rail project represents good value for money and 70% say the scheme will have no impact on the productivity of their business.
Including the cost of rolling stock (£7.5bn), the total cost of HS2 is now estimated by the Government to be £50.1bn, though opponents of the scheme suggest the final figure could be far higher.
Walker said: “Businesses up and down the country know value for money when they see it, and our research shows that they don’t see it in the Government’s case for HS2.
“Some of the specific claims that the Government has used to support its economic case for the project have been challenged by our members, who by and large do not feel that their business will benefit.
“The IoD cannot support the Government’s current economic case for HS2 when so many of our members are doubtful of the benefits.
“We agree with the need for key infrastructure spending, but the business case for HS2 simply is not there. The money would be far better spent elsewhere and in a way that will benefit much more of the country. Investment in the West and East Coast main lines combined with a variety of other infrastructure projects would be a far more sensible option.
“Station upgrades, inter-city improvements, tunnels, electrification and capacity improvements should all be considered alternatives.
“It is time for the Government to look at a thousand smaller projects instead of falling for one grand folly.”
The IoD’s opposition to HS2 follows criticism of it from former Chancellor and Transport Secretary Alistair Darling – who approved the HS2 plan when Labour was in power.
He has withdrawn his support for the project , saying it is ‘foolish’ and will ‘drain money’.
The senior MP said the cost of the project could ‘easily run out of control’, and the cash should be spent upgrading current transport links and airport capacity.
His former ministerial colleague Peter Mandelson has also expressed his opposition to the scheme.
And free market tank the Institute for Economic Affairs (IEA) has called for the HS2 project to be scrapped after suggesting it could cost around £80bn to complete.
It too is calling for the money to be spent on other transport schemes.
However, Birmingham Chamber of Commerce Group (BCCG) has hit back at critics of HS2.
Jerry Blackett, chief executive of BCCG, said last week: “Britain desperately needs a new railway and HS2 is the right project at the right time.”
