Report claims cost of HS2 will hit £80bn

THE HS2 rail project could cost more than £80bn – almost double the current estimated cost of £42.6bn, a think tank has claimed.

The Institute for Economic Affairs (IEA) expects lobbying by local councils
for extra infrastructure and design changes will ramp-up  the cost of the
project which aims to lash journey times from the North West to London
and ease capacity concerns.

The IEA argues that HS2 should be scrapped and investment ear-marked
for the project spent on other transport schemes.

The company behind HS2 argues though said the scheme would create
an “economic asset” and provided “significant value”.

Stage One of HS2 will initially link London and Birmingham and will open around 2026. There would then  be a Y-shaped second phase to Manchester to the West and  Leeds via Sheffield planned by 2032.

The IEA said in its report, that the cost of new trains would be £7.5bn. And it said changes to the route “to keep voters on side” were likely to add another £30bn to the current estimated cost of £42.6bn, which includes “contingency” money.

Author Dr Richard Wellings said it was now “time the government abandoned its plans to proceed with HS2”

“The evidence is now overwhelming that this will be unbelievably costly to
the taxpayer while delivering incredibly poor value for money,” he said.

Emma Antrobus, of the Greater Manchester Chamber of Commerce disagreed, stating that after “decades of under-investment in transport”, the scheme is much needed.

She said building HS2 would improve connections between cities and “free up enormous amounts of capacity on the current rail network” for passengers and freight.

A Department for Transport spokesman said: “HS2 is absolutely vital for
this country, providing a huge economic boost which will generate a
return on investment that will continue paying back for generations to
come.

“Without it, the key rail routes connecting London, the Midlands and the
North will be overwhelmed. HS2 will provide the capacity needed in a way that will generate hundreds of thousands of jobs and billions of pounds worth of economic benefits.”