HS2 could cost £80bn, says think tank

A THINK tank is suggesting that the cost of the HS2 high-speed rail project to the taxpayer could be virtually double the current estimate of £42bn.

The Institute for Economic Affairs (IEA) expects lobbying by local councils for extra infrastructure and design changes will push up the cost to £80bn.

It is calling for HS2 to be scrapped and the money spent on other transport schemes.

It is the latest attack on the project which has come under fire of late from some politicians, pressure groups and environmental bodies. It has also faced – and overcome – legal appeals.

Construction on the first phase of HS2 – the London to Birmingham route – is due to start in 2016 and complete in 2026. The second phase, linking Birmingham to Manchester and Leeds is due to complete six years later.

The IEA said in its report that the cost of new trains would be £7.5bn.

And it said changes to the route “to keep voters on side” were likely to add another £30bn to the current estimated cost of £42.6bn.

This would include, it suggests, new road links, tram lines and road upgrades, extra tunnels and regeneration schemes around stations.

Author Dr Richard Wellings said it is now “time the government abandoned its plans to proceed with HS2”.

He added: “The evidence is now overwhelming that this will be unbelievably costly to the taxpayer while delivering incredibly poor value for money.”

But a Department for Transport spokesman said: “HS2 is absolutely vital for this country, providing a huge economic boost which will generate a return on investment that will continue paying back for generations to come.

“Without it, the key rail routes connecting London, the Midlands and the North will be overwhelmed.

“HS2 will provide the capacity needed in a way that will generate hundreds of thousands of jobs and billions of pounds worth of economic benefits.”