Chamber rejects concerns over HS2 costs and insists scheme needs to be built

Business leaders insist the HS2 rail project needs to be built for the benefit of the Northern economies.

This was in response to Lord Tony Berkley, the former deputy chairman of the Government’s independent review into the project, who claimed that Parliament had been “misled” over the true costs of the project which aims to connect London with the North and the Midlands.

Lord Berkley says the costs could now be three times the original estimate of £34bn, in 2012.

Last August the Government launched an independent review into HS2 amid mounting concerns about rising costs, led by former HS2 chair, Doug Oakervee.

A leak of the report in November appeared to suggest the scheme was still worthwhile, but Lord Berkeley asked that his name be removed from the conclusions.

He has now released his own assessment in which he says HS2 is no longer offering value for money to the taxpayer.

He said: “It is my belief that there is overwhelming evidence that the costs of the HS2 project are out of control, the benefits are overstated and that it potentially will not be delivered to Leeds and Manchester for another 20 years.”

However, responding to his claims, Chris Fletcher, policy, campaigns and comms director at Greater Manchester Chamber of Commerce, said: “It is hardly surprising that a critic of HS2 would produce another series of statements calling into question the project as well as making sweeping and incorrect statements about what ‘the North’ needs as regards transport.

“Put simply HS2 and Northern Powerhouse Rail both have to be built – not either or – and both schemes supplemented by the continued investment into existing services and infrastructure.

“Costs obviously have to be monitored – no one should expect a blank cheque – but the figures we are seeing now reflect decades of different governments sitting on their hands, choosing the easy option of not making the necessary investments whilst passenger numbers and demand has leapt forward.

“Those calling for huge investment on existing lines and services as a solution should note that even after the final stage of the West Coast upgrade in 2005 – never fully completed due to cost overruns and which caused huge disruption to rail traffic – increasing demand has outstripped those improvements and are at the root of why HS2 is needed.”

He added: “Increased capacity right across the rail network, from commuter lines through to inter city routes, is needed, backed up by a long-term commitment to proper funding and operational plans where the passenger is put first.

“The Oakervee review will be the official document that steers government decision making, it isn’t a ‘given’ and should it get the green light we urge government to look urgently at ways to bring forward build dates and look at getting key parts of the project delivered quicker, such as stations, to give an immediate boost to local economies.

“The sooner the benefits start to roll out the better.”