Doubts over HS2’s economic impact for the North

More time should be spent on studying the viability of the HS2 route from Birmingham to Manchester and Leeds, says a Government report into the high-speed rail project.

The review, which has not yet been published but has been seen by the Financial Times, says work on the extension from the West Midlands to the North should be paused for six months to examine whether a mix of conventional and high speed trains would best serve the region.

Costs of HS2 have also been predicted to soar to as much as £106bn, claims the review by former HS2 chairman, Doug Oakervee, compared with the £81-£88bn estimates in a report by current HS2 chairman Allan Cook last September.

The Oakervee report says that “on balance” the scheme should proceed on the London to Birmingham phase, and than to Manchester and Leeds by 2040 – seven years behind schedule – subject to “a number of qualifications”.

It recommends that “further work” is needed to assess HS2’s impacts on regional growth.

And it said it is “hard” to say what economic benefits will come from building it.

It claims that HS2 would need further investment in local transport, adding that “transport investment alone will not ‘rebalance’ the UK economy”.

The prime minister is expected to make a decision within weeks on whether to proceed with construction on the first phase of HS2.

The Financial Times said the report warns there are no alternative “shovel-ready” projects ready and that, with £8bn spent so far, it should proceed.

Another report into HS2, by the National Audit Office, is due to be released by the end of this month.

Earlier this month Lord Tom Berkeley, the deputy chair of an inquiry into the high-speed rail line, claimed costs have now soared to £108bn.

The Labour peer has also claimed MPs have been been “misled” about the costs which were £55bn in 2015.

The peer was the deputy chairman of the independent Oakervee Review into HS2, which was set up by the government.

But he has now withdrawn his backing for the report.

“The aim must be to give these areas the same standard of commuting service as the south east, whilst, at the same time, improving the existing lines from London northwards,” he said.

Penny Gaines, chair of Stop HS2 said: “The case for HS2 has always been poor, and is simply getting worse.

“It is time for this white elephant of a project to be cancelled as quickly as possible.”