Government gives green light to HS3

CHANCELLOR George Osborne will tomorrow use the Budget to give the green light to HS3.

He will commit funds to a raft of projects recommended by the Lord Adonis-led National Infrastructure Commission (NIC) to deliver infrastructure fit for the next generation.

The two biggest announcements will be Government backing for the HS3 rail project between Leeds and Manchester, with a full blueprint to be drawn up by next year, and Crossrail 2 in London, which will be the subject of legislation planned to be introduced in this Parliament.

In what the treasury is hailing as a “major boost” for the Northern Powerhouse, the subject of a detailed report from the NIC, there will be £300m in the Chancellor’s Budget tomorrow for the following projects:

• Taking forward HS3 between Leeds and Manchester with £60m to develop detailed plans to reduce journey times towards 30 minutes, as well as plans for improving links between the North’s other major cities
• Exploring options for a Trans-Pennine tunnel between Sheffield and Manchester with £75m to develop plans, as well as looking at options to enhance the A66, A69 and the north-west quadrant of the M60
• Delivering significant improvements to roads with £161m for Highways England to accelerate upgrades to the M62 between junction 10-12 Warrington to Eccles and junction 20-25 Rochdale to Brighouse.

Chancellor George Osborne said: “With the difficulties we see in the global economy, we’ve got to make Britain fit for the future.

“Now is the time us to make the bold decisions and the big investments that will help us to lead the world in infrastructure, and create jobs, push up living standards and boost our productivity for the next generation.

“That’s what my Budget this week sets out to do.”

“We set up the National Infrastructure Commission to think for the long term, plan for the future and help us lead the world.

“I want to thank Lord Adonis and the National Infrastructure Commission for their excellent work in setting out the long term priorities for London and the Northern Powerhouse, which I am determined to deliver.”

In addition to kick-starting the two rail schemes, the Chancellor will launch a new £1.2bn fund to release brownfield land to build more than 30,000 starter homes across the country.

This programme will help councils build homes for first-time buyers, and is part of a wider drive to deliver the biggest affordable house building programme since the 1970s. The Government will go further in releasing public sector land for housing, with a particular focus on land around stations.

It is expected that overall, the Chancellor will use the Budget to bring forward capital spending in this Parliament, to invest in the Government’s priorities and boost jobs and productivity.