The Government has finally conformed the Birmingham to Crewe leg of high speed railway HS2 will be delayed by two years to cut costs after weeks of speculation.
In a further blow for the flagship rail project, the line’s new station at Euston could also be delayed as an alternative "affordable" design is worked on.
Transport secretary Mark Harper announced the decision, blaming significant price rises but claimed the Government remained committed to HS2 linking London with the Midlands and North of England. HS2 has been beset by delays and cost rises. Since 2010, the cost of the line has more than doubled from £33bn to £71bn.
John Foster, Programme Director, Policy Unit, CBI said: “The HS2 network will connect eight of the nation’s 10 biggest cities, creating jobs, opportunity and prosperity throughout the country whilst at the same time playing a key role in reducing road emissions and congestion.
“Having been subject to significant revisions and years of uncertainty, business will at least have the clarity needed to enable them to plan effectively. But this news will ultimately reduce investor and contractor confidence in the rail sector.
“To mitigate further loss of confidence, it is critical that government tackles the inflationary pressures which are biting hard across the infrastructure sector. Delays to projects may create short-term savings, but they can ultimately lead to higher overall costs and slow down the UK’s transition to a better, faster and greener transport network.”
But the Government is also facing mounting criticism of the decision to delay.
Michael Fabricant, Conservative MP for Lichfield, said communities deserved answers on what such delays would mean.
“I shall be asking the Government whether this marks the end of HS2 north of Birmingham for good and whether HS2 will make good the damage already done in southern Staffordshire including to my Lichfield constituency,” he added.
“Simply saying the project is delayed is not good enough. The area has been blighted by whole fields turned into construction sites.
“Anyone driving along the A38 between Birmingham and Burton can see for themselves the work going on near the city of Lichfield. Will these sites now be abandoned or completed?
“If they are to be abandoned, will there be remedial work to restore the countryside? And what of compensation for my constituents who have had their lives and businesses wrecked by the construction work?”
In a further blow to the Government’s infrastructure programme, a major plank of its moves to boost the construction industry, several high-profile road schemes have also been put on hold.
The A27 Arundel Bypass and A5036 Port of Liverpool Access in the Roads Investment Strategy (RIS 2) both face a range of challenges including environmental considerations and ongoing design changes, and so will be developed in RIS 3 (covering 2025-2030) to allow time to ensure stakeholders’ views are fully considered. The schemes earmarked for RIS3 (2025-30) will continue to be developed and considered for inclusion within RIS 4, which will run from 2030-2035. Given many of these schemes were previously expected towards the end of RIS 3, this extra time will help ensure better planned and efficient schemes can be deployed more effectively.
As one of the largest planning applications ever, the Lower Thames Crossing, backed by £800 million to date, will also be slowed down by 2 years. This will allow more time to take into account stakeholder views and prepare an effective and deliverable plan, while helping to meet inflationary pressures and deliver the planning processes properly.
With over £20 billion spent on Phase One already, the government will prioritise delivering the opening stage of HS2, with the first high-speed rail services running between new stations at Old Oak Common in west London and Curzon Street in Birmingham by the early 2030s. Transport secretary Mark Harper maintained this will be transformative for passengers and communities, ensuring that the earliest benefits of HS2 are retained – creating jobs, attracting investment and sparking housing and commercial regeneration along and beyond the route.
“We know the power of transport as an engine for sustainable economic growth,” he said. “That’s why – even in this tough economic climate – this government sees transport investment as a down payment on the country’s future and is committing £20 billion over each of the next 2 years to improve the UK’s transport network.
“But we can’t ignore the current realities. Putin’s war in Ukraine has hiked up inflation, sending supply chain costs rocketing. The responsible decisions I’ve outlined today will ensure we balance the budget at the same time as investing record sums in our transport network to help halve inflation, grow the economy and reduce debt.”
