High speed rail link could cost £27bn
A HIGH speed rail service between Manchester and London is likely to cost £27.5bn, according to accountants at PricewaterhouseCoopers (PwC).
The firm’s report, Fast Forward Funding, says the rail upgrade will only happen with, “considerable assistance, involvement and financial backing” from the Government.
The report states that the scale and complexity of high speed rail means that risk cannot be carried by the private sector and Government will need to play a leading role.
PwC’s study, prepared for transport think tank Greengauge 21, sets out three potential models: Public private partnership (PPP); a fully regulated option with a provider similar to Network Rail; and open access allowing different providers to operate services on the same route.
Steve Denison, PwC’s northern chairman, said: “High speed rail is fast, comfortable and greener than many other modes of transport. Britain needs to invest in strategic national infrastructure to improve economic performance and this is why high speed rail has cross-party support.
“The current pressure on government finances means it is important that a new high speed rail network is delivered with minimal impact on the public purse and in a way that represents good value for money. Finding the right delivery and funding structure will be crucial to this.”
High speed rail, which is broadly defined by the industry as trains travelling at over 250km per hour, was launched in Japan in 1964 where there is now 6,000 km of track. The UK has only 108km of line from the channel tunnel to St Pancras.
