HS2 offering 'very poor value for money' after Rishi Sunak scrapped northern leg
The HS2 rail line will offer “very poor value for money” after Rishi Sunak cancelled the northern leg, MPs have warned.
The PM was accused of betraying the North after he scrapped the proposed high speed rail line from Birmingham to Manchester at the Conservative Party conference in October. A report by the Commons’ Public Accounts Committee has now warned that the total costs of the project between London and Birmingham now "significantly outweigh benefits" following the decision to stop trains travelling at high speed any further north.
It warned there are “many as-yet unknown ramifications” of the decision to scrap the HS2 northern leg including the disposal of land and property no longer needed and impacts on other rail projects dependent on the cancelled phases.
The committee also raised questions about how the high-speed trains will operate as part of the network as they will likely have to slow down on existing tracks that are designed for slower trains. It noted that the Department for Transport has judged that completing Phase 1 "was value for money" partly due to avoiding £11billion in cancellation costs.
Dame Meg Hillier, the Labour chair of the committee, said: “Can we seriously be actively working towards a situation where our high-speed trains are forced to run slower than existing ones when they hit older track? Most importantly, how can the Government now ensure that HS2 deliver the best possible value for the taxpayer?"
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Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said: “The fact that the business case for the remaining bit of HS2 has plummeted since the Northern leg was cancelled will not surprise the government. The Department for Transport has already admitted as much.
“The Oakervee Review, published when Rishi Sunak was Chancellor, made clear it was the Northern sections of the route to Leeds and Manchester which justified the cost of the section into London. Instead the North is paying the price of having to placate vociferous local opponents with expensive tunnels through the Chilterns. The government has a lot of work to do to put some meat on the bones of its Network North plans.”
A spokesman for HS2 Ltd said: "We've been clear about our cost challenges, which have been compounded by significant levels of inflation. HS2 Ltd is now under new leadership and implementing changes across the programme aimed at controlling costs and learning the lessons of the past."
A DfT spokeswoman said: “We disagree with the Committee’s assessment. Their estimated cost figure for Phase One also does not reflect our decision to secure private funding for Euston, or the direction not to proceed beyond the Midlands.
“The Permanent Secretary has already written to the Committee chair setting out her assessment on value for money, and we have repeatedly made clear we will continue to deliver HS2 at the lowest reasonable cost, in a way that provides value for taxpayers.”
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