HS2 Manchester leg in doubt amid government concerns over rising costs

The Prime Minister and Chancellor are understood to be in talks over scrapping the Manchester leg of the HS2 high-speed rail line in a bid to curb rising costs of the project, according to the Independent newspaper.

Journalists at the paper have learned of the discussions that could see the rail link terminate at Birmingham, rather than continuing on to Crewe and Manchester, and to a hub in the East Midlands. Original plans for the route have already been scaled back amid rising costs of the project, estimated to exceed £100 billion if delivered in full – the Eastern leg between Birmingham and Leeds has already been reduced to end at a hub station in the East Midlands between Nottingham and Derby. In London, work to bring the line into Euston station has also been pushed back, with the first trains only running from Old Oak Common, six miles out of Central London.

While work is already underway to construct phase 1 of the route between London and Birmingham, phase 2a, between Birmingham and Crewe, and 2b, from Crewe to Manchester remain in the later stages of planning. Phase 2a has already secured Royal Assent, however, final plans for the Crewe to Manchester leg of HS2 continue to progress through Parliament, which makes it easier to cancel than other parts of the route. The Independent estimates that while over £2 billion has already been spent on HS2 North of Birmingham, scrapping both phases 2a and 2b could save the Treasury £34 billion.

Public statements from the Government have continued to express commitment to delivering HS2, however, political and business leaders in the North have reacted strongly to the rumours that plans would be cut back further.

Sharing the Independent’s article on social media, Greater Manchester Mayor Andy Burnham hit out at the Government’s management of the project and highlighted the North-South divide in infrastructure investment; he said:

“The southern half of England gets a modern rail system and the North left with Victorian infrastructure. Levelling up? My a**e.

“The Government is guilty of gross mismanagement of HS2 and of making the North pay for their failure. Once again, passengers here are seen as second-class citizens.”

Henri Murison, chief executive of the Northern Powerhouse Partnership lobbying group, told the MEN:

“Any decision to curtail this project any further would do serious damage to the government’s relationship with the business community, both Northern-based businesses and inward investors, who have made long-term investment decisions based on previous promises.

“Cancelling Phase 2b would also make it impossible to improve east-west connectivity across the North as promised in the Integrated Rail plan.

“It would remove the most critical remaining section of Northern Powerhouse Rail between Manchester Piccadilly and Manchester Airport which is vital for getting passengers from Liverpool across the Pennines.

“Given that Phase 1, the most expensive bit of the route, is already underway and that the strongest benefit-cost ratios are found in the Northern sections, it makes no sense to stop now.

“Our country’s inability to deliver infrastructure, whether it’s hospitals or rail lines, is a huge problem for raising productivity long-term and our global reputation.

“The Shadow Chancellor has already committed to treating to day to day spending differently to capital spending to support long-term economic growth – the government should do the same.”