According to a review of the scheme reported to The Times, the HS2 rail project should go ahead despite costs ballooning to £88 billion and a dramatic drop in the benefit to taxpayers.
The leaked document recommends that the incoming government commit to the full high-speed rail network — the biggest infrastructure project in Europe — but admits that it is “not affordable” within the £56 billion budget set in the 2015 government spending review. The new estimate of £88 billion is likely to be revised upwards again, the report notes.
It will increase pressure on Boris Johnson to confirm whether a Conservative government would go ahead with the network. The prime minister has sought to delay a decision until after the general election.
Estimates of the benefits to taxpayers have been cut from £2.30 for every £1 spent in 2017, to between £1.30 and £1.50 for every £1 spent this year. The report blames failures in procurement of civil engineering services on the increased costs.
However, the report found that HS2 would benefit cities in the North and Midlands due to increased connectivity and endorsed continuation of the scheme.
The report by former HS2 Chairman, Douglas Oakervee, also claims that without HS2, large ticket price increases may be necessary to manage peak time capacity on existing services. The report also failed to identify suitable alternatives for the project.
Henry Murison, Director of the Northern Powerhouse Partnership, welcomed the report:
“The Northern Powerhouse independent review on HS2 said that there were no identified credible alternatives to HS2 in order to deliver the same capacity, and that it has the potential to unlock greater growth in the North and Midlands. It is welcome that their recommendations are mirrored by the government’s own Oakervee Review.”
He went on to call on political leaders to support the programme during the current general election campaign, saying:
“Conservative, Labour and Liberal Democrat candidates in the North are committing to back the ‘Connecting Britain’ campaign of business and civic leaders. All their leaders must unequivocally do the same.”