Future of £56bn HS2 rail link thrown into doubt

The future of the £56bn HS2 rail link has been thrown into doubt by Boris Johnson’s government.

The government has ordered a review into the scheme and the findings will include whether the project should go ahead.

Leaders in the North West including Andy Burnham and Steve Rotheram have long been backers of the scheme.

However, critics have pointed to the ballooning costs of the link which would double the amount of rail services between London and the North.

The first phase to Birmingham is due to open in 2026 with Manchester and Leeds extensions planned for 2033.

There have been warnings in some quarters that the cost of the scheme could increase by as much as £30bn.

The review, announced today, will look at how much the link will cost as well as deliverability and scope.

The findings will be presented to the government in the autumn.

The review is being led by the former Crossrail chairman Douglas Oakervee.

HS2 Phase Two

Transport Secretary Grant Shapps said: “The Prime Minister has been clear that transport infrastructure has the potential to drive economic growth, redistribute opportunity and support towns and cities across the UK, but that investments must be subject to continuous assessment of their costs and benefits.

“That is why we are undertaking this independent and rigorous review of HS2.

“Douglas Oakervee and his expert panel will consider all the evidence available, and provide the department with clear advice on the future of the project.”

The British Chambers of Commerce still want the scheme to go ahead.

Director General Adam Marshall said: “There is a strong economic case for delivering all phases of HS2.

“For far too long businesses across the UK have had to cope with heavily congested Victorian-era railways – with passengers and freight traffic vying for priority.”

CBI Director of Infrastructure Tom Thackray said: “The business message on HS2 is clear-cut – back it, build it, benefit from it. The debate has gone round the houses too many times.

“While it’s always helpful to review major projects like HS2 to ensure that value for money is delivered, the business case is well known.

“The approval of HS2 Phase One led to record levels of Foreign Direct Investment in the West Midlands, with more than 7,000 new jobs created in Birmingham as a direct result of HS2, and over 100,000 more. We have seen and are continuing to see similar benefits right across the proposed route.

“We firmly believe that committing to HS2 in full, once and for all, will spread the flow of investment across the Midlands, the North of England and into Scotland.

“The current poor connectivity in the North is a major obstacle to encouraging companies from growing in the region and is a barrier to inward investment.”

Bill Addy, chief executive of Liverpool BID Company, which represents 1,500 businesses in Liverpool city centre, said: “The indecisiveness on HS2 by this current Government knows no bounds.

“This latest announcement once again spreads doubt, uncertainty and frustration among business leaders in the north, particularly across Liverpool city region who have had to shout louder than anyone to get the government to listen to the strong and convincing case that HS2 without Liverpool is nothing short of lunacy.

“As I have said several times, for the north to become the economic powerhouse that it can, there has to be a continued investment into a solid connectivity plan for our city region – home to one of Europe’s most advanced container ports.

“Following the Transport Secretary’s disappointing announcement today, my real fear now is that come the end of the year Liverpool City Region will be left behind.”

A spokesperson for Manchester Airport Group said: “The High Speed 2 line to Manchester will be a vital part of rebalancing the UK economy and creating better transport links to, from and across the North.

“It is imperative that both HS2 and Northern Powerhouse Rail are delivered as quickly as possible and connected by a hub station at Manchester Airport to realise the full economic potential of both schemes.
“Connecting the country more effectively, both North-South and East-West, would drive economic growth across the UK, and do the most to rebalance our economy.
“MAG would like see work on the northern leg of HS2 accelerated – and delivered in tandem with Northern Powerhouse Rail – to allow the benefits of better connectivity in the North to be felt much sooner.
“We look forward to welcoming Douglas Oakervee and the review team to Manchester Airport to further discuss these issues.”

 

 

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