New HS2 threat as costs rise again and govt sharpens axe

 

HS2 again faces the prospect of being cut back after a senior minister cited it as ‘a significant investment’ that will be reviewed, with the Government certain to cut capital spending to help close its budget deficit.

Speaking on Times Radio on Sunday, levelling up secretary Michael Gove was asked about the possibility that the planned high speed rail link could be cut.

He replied: ‘I am sure everything will be reviewed,’ adding: ‘I do think HS2 is a significant investment.’

He went on to say: ‘But I think long-term capital investment in making sure this country is better connected is a good thing. And ideally you don’t want to cut that long-term capital investment because it helps contribute to economic growth and greater opportunity.

‘But when we face the particularly economic problems that we have at the moment, I’m sure that some capital spending will be cut.’

In the latest six-monthly report to Parliament on the scheme last week, new transport secretary Mark Harper told MPs that the projected costs of Phase 1 of the scheme had risen by £1.9bn above its target cost of £40.3bn (at 2019 prices) but remained within its overall budget of £44.6bn.

However, press reports have suggested that this higher figure is likely to be breached.

Mr Harper said the approximate cost range for the elements of the scheme committed to by the Government – phases 1, 2a, and the Western Leg of phase 2b (Crewe to Manchester) – is between £53bn and £71bn at 2019 prices. This range does not include the shortened phase 2b Eastern Leg, which he said is at an early stage of development, with cost estimates subject to further work from HS2 Ltd and Network Rail.

He added that the forecast date for initial services from Birmingham to Old Oak Common remains within the range of 2029 to 2033, while Phase 2a (West Midlands to Crewe) remains on track to be delivered between 2030 and 2034 and the opening date range for phase 2b Western Leg, remains 2035 to 2041.

The Telegraph reported that new 225km/h trains for HS2 will be ‘driverless’ under specifications given to manufacturers by ministers, although there will be a supervisor in the cab.

It said trains will be centrally controlled under an automatic train operation system currently being trialled in Japan.

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