(qlmbusinessnews.com Mon, 25th Sept, 2023) London, UK —
HS2 Manchester Route Under Threat: Implications for North-South Connectivity
Criticism is mounting in response to growing speculation about the cancellation of the HS2 high-speed rail link between Birmingham and Manchester. Former Chancellor George Osborne has called such a move a “gross act of vandalism,” and Greater Manchester Mayor Andy Burnham has voiced concerns about exacerbating the “north-south chasm.”
Rumors about the fate of this rail extension have intensified as the government remains silent about whether the line will continue into the North West from the Midlands. Prime Minister Rishi Sunak declined to comment on these speculations.
According to reports, a decision regarding HS2 could be reached as early as this week, just before the annual Conservative Party conference in Manchester. Conservative MP Steve Brine has suggested that canceling the project while in Manchester would be “very odd.”
HS2 aims to connect London, the Midlands, and the north of England, with construction of the initial phase from west London to Birmingham already underway. However, the project has encountered multiple delays, cost overruns, and reductions, including the cancellation of the eastern leg to Leeds in late 2021.
In March, the government announced a minimum two-year delay for constructing the line between Birmingham and Crewe, further complicating the project's timeline and budget.
The most recent official estimate for HS2 costs, excluding the cancelled eastern section, was around £71 billion. However, this figure dates back to 2019 and does not factor in the rise in costs for materials and wages since then.
Chancellor Jeremy Hunt has expressed concerns that costs are spiraling “totally out of control.”
In June, a parliamentary statement revealed that approximately £22.5 billion had been spent on the London to Birmingham leg thus far, with £2.3 billion allocated for preparations on other sections, including land acquisitions.
Former Chancellor George Osborne, in an op-ed for The Times, warned that abandoning the Manchester route, and potentially the link between west London and Euston station, would inflict “an act of huge economic self-harm” and leave the North and Midlands feeling “abandoned.”
Lord Heseltine emphasized that such a move would also significantly harm the UK's reputation. Defence Secretary and former Transport Secretary Grant Shapps highlighted the necessity of reviewing HS2 plans due to escalating costs but refrained from discussing the future of the Northern Powerhouse Rail scheme should the northern section of HS2 be scrapped.
The Northern Powerhouse Rail project aims to enhance connections between Leeds, Manchester, and Liverpool by introducing a combination of new and upgraded rail lines. It includes plans to use a section of the HS2 line from Manchester Airport to Manchester Piccadilly, as well as the proposed upgrades to Manchester Piccadilly station.
Andy Burnham cautioned that cancelling the HS2 extension could result in a deepening north-south divide. He and Manchester City Council leader Bev Craig wrote to the prime minister, suggesting that if alterations to the scheme were necessary, they might prioritize the northern section of the line, running from Manchester Airport to Manchester Piccadilly, to facilitate the construction of NPR first.
Labour has yet to confirm whether it would fund the HS2 line to Manchester should the Conservatives abandon it. Darren Jones, the new shadow chief secretary for the Treasury, expressed the Labour party's desire to build HS2 but cited the lack of comprehensive information provided by the government.
Over the weekend, more than 80 companies and business leaders, including Manchester Airports Group, British Land, Virgin Money, and the Northern Powerhouse, signed a letter urging the government to reaffirm its commitment to HS2. They stated that the mixed signals and uncertainty surrounding the project were harming the UK's reputation and supply chain.
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