HS2 needs ‘major rethink’ as North risks being ‘short changed’

A group of peers have called for a “major rethink” on HS2, raising concerns that if the costs of the London-Birmingham section overrun, the northern sections may not be built.

A report from the House of Lords Economic Affairs Committee says that HS2 does not offer value for money and risks “short changing” the North of England.

It criticised the Government for making “little progress” in answering the questions raised in its 2015 inquiry.

In the 2015 Economics of High Speed 2 report they stated that there was a strong case for improving regional rail links in the north, but the Government “had failed to consider whether such a scheme was a better investment than HS2”.

The committee said that more than £4bn had already been spent on the first phase of HS2, which will run between London and Birmingham, and said the  scheme had put too much emphasis on cutting journey times and not enough on the economic impact on regions.

It said the first phase of the project offered “little benefit” to northern cities, despite them being in most need of better rail infrastructure.

And it said the second phase, which would improve journey times between Leeds and Sheffield, risked never going ahead because of spending overruns.

The committee says it has found evidence that the costs of HS2 appear to be “out of control” and that “nobody knows” what the final cost will be.

Lord Forsyth, chairman of the committee, said that the northern sections of High Speed 2 “must not be sacrificed to make up for overspending on the railway’s southern sections”.

It called for the Northern Powerhouse Rail scheme – a programme of northern rail infrastructure improvements – to be completed alongside HS2, saying it should be ringfenced and brought forward where possible.

Lord Forsyth said: “Commuter services in the north of England are badly overcrowded and reliant on ageing trains. Rail connections between northern cities are poor. As the committee suggested in its 2015 report, rail infrastructure in the north should be the Government’s priority for investment, rather than improving north-south links which are already good. The north is being short-changed by the Government’s present plans, especially as construction on HS2 is starting in the south. Any overcrowding relief from HS2 will mainly benefit London commuters.

“The plans for Northern Powerhouse Rail should be integrated with the plans for the northern section of HS2, and funding for the project ringfenced. This will allow rail investment in the north to be prioritised where it is most needed.

“The costs of HS2 do not appear to be under control. It is surprising therefore that the Government has not carried out a proper assessment of proposals to reduce the cost of HS2—such as lowering the speed of the railway or terminating in west London rather than Euston—which the Committee recommended in 2015. A new appraisal of the project is required.

“If costs overrun on the first phase of the project, there could be insufficient funding for the rest of the new railway. The northern sections of High Speed 2 must not be sacrificed to make up for overspending on the railway’s southern sections.”

A Department for Transport spokeswoman said: “By 2020, the government will have invested a record £13bn in transport across the North, and we have a clear plan for linking the Midlands and the North through HS2 and Northern Powerhouse Rail – the full benefits of which can only be delivered on the back of HS2.

“This is not either/or, we are clear we want both.

“HS2 will deliver additional rail capacity, significantly improve connections and provide opportunities for economic growth – with around £92bn in benefits – for people and businesses across the North.”

 

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