HS2 faces fresh problems after civil servants brand it too risky

THE £33bn high speed rail link between London and the north, via Birmingham is facing fresh problems after reports civil servants have branded it too risky.

The reports suggest the civil servants have given the HS2 project a red to amber rating, meaning it faces a number of severe risks in its delivery.

The situation is a further setback to the project, which failed to receive any mention in the Queen’s Speech.

There are fears the Government, already facing poor mid-term approval ratings, is shying away from the scheme because of unrest in Conservative heartlands such as Amersham. There has been considerable unrest in the area because of claims over the environmental damage the rail scheme will cause.

However, the warning by the civil servants is also a blow to business leaders in Birmingham, who desperately want the project to go ahead because of the economic improvements it would bring to the region.

Estimates are the new service would will create around 22,000 jobs within the West Midlands and be worth £1.5bn per year to the regional GDP.

The alert is also a blow to Transport Secretary Justine Greening, who said last month that HS2 made “sound financial sense too”.

In a speech she said: “We estimate the full Y network will cost £32.7bn to build (in 2011 prices) and that it will generate benefits of up to £47bn and fare revenues of up to £34bn.

“So the HS2 sums add up.”

She said the economic case for the project went way beyond a simple benefit-cost ratio and there would be a welcome return on the money invested in HS2.

But the real economic gains would be seen in the way a national high speed rail network helped to support job creation and stimulate the economy, improve connectivity and increase capacity.

“The plain truth is that the price of not going ahead with HS2 far outweighs the cost of building it,” she said.

“In short, high speed rail matters for our country’s success and our children’s future.”