Industry rallies to warn Treasury on cost of HS2 backtrack

Aaron Morby 5 years ago
Share

Leading contractors and consultants are warning Government over the full cost to the economy of cancelling or scaling back plans for HS2.

A comprehensive 52-page report “Why Britain Needs HS2” has been submitted to Treasury ahead of the upcoming Comprehensive Spending Review.

It comes as fears grow that the next Prime Minister may be tempted to cancel or scale back the vast project.

The High Speed Rail Industry Leaders group of more than 15 leading consultants and contractors including Costain, Bouygues, Laing O’Rourke and Skanska, is concerned that the debate in recent months about whether the project should proceed has never been louder.

Industry leaders warn that cutting HS2 would cost 9,000 jobs working on the project already, with tens of thousands more to be created when the mega scheme gets into full swing.

It also warns the project is essential to achieving the Government’s net zero carbon emissions target by 2050, as well as closing the north-south productivity divide.

On the issue of costs, the report finds that the project will only amount to 0.4% of public spending. This is the same as the £50bn+ that the fuel duty freeze has cost the public purse since 2010.

Jim Steer, HSRIL Director said: “This report shows beyond question that HS2 is a great way to bring this country back together, with dozens of towns and cities set to benefit, even ones that will never see a HS2 train.

“Its capacity will form an essential part of any national plan to tackle the climate emergency and reach net zero carbon.

“HS2 must be delivered in full. The evidence is overwhelming. There is no Plan B for tackling the north-south transport divide.”

The report also says that pitting HS2 against Northern Powerhouse Rail is a false choice.

Plans for Northern Powerhouse Rail, linking the northern cities and for Midlands Connect with its new rail hub, would have to return to the drawing board, since both are predicated on HS2.

Development strategies and private sector investments in Birmingham, Manchester, Liverpool, York, Darlington, Newcastle and Leeds would disintegrate.

An estimated 47 towns and cities are either on HS2 line-of-route or will get better rail services using capacity released on the existing network.

Dozens more towns benefit


Towns and cities benefitting from direct rail connections to HS2 hub stations: Slough, Maidenhead, Heathrow, Barnsley, Bangor, Llandudno, Holyhead, Bradford, Harrogate, Skipton, Scarborough, Rochdale, Bolton, Huddersfield, Runcorn, Blackburn, Burnley, Accrington, Barrow, Workington, Whitehaven, Dumfries, and Sunderland.

22 places are set to benefit from better services on existing lines using capacity released by HS2: Watford, Milton Keynes, Coventry, Wakefield, Rugby, Nuneaton, Tamworth, Lichfield, Doncaster, Retford, Newark, Peterborough, Stevenage, Shrewsbury, Telford, Wrexham, Blackpool, Middlesbrough, Hull, Wolverhampton, Grantham, and Cambridge.

Latest news

Morgan Sindall bags £60m raft of NHS projects

Mid and South Essex NHS Trust plans six projects
13 hours ago

Peri buys shoring and temporary bridge specialist Mabey Hire

Scaffolding and formwork specialist expands offer
18 hours ago

Vinci/McAlpine go-ahead for £312m Midlands hospitals revamp

Shrewsbury and Telford Hospital NHS Trust gets full business case approval
21 hours ago

Lendlease puts construction arm up for sale

After two decades of global expansion Lendlease retreats to Australia
2 days ago

Mount Anvil seals Isle of Dogs estate rebuild

Firm will build 300 new homes at East London's Tiller Road Estate
21 hours ago

Northumbria Uni invites bids for £75m CHASE project

12-storey student block to be demolished for new Centre for Health and Social Equity
20 hours ago

Civils firm Akela appoints former Robertson director as MD

Framework expert Robert Ogg to lead growth at Scottish contractor
21 hours ago

McLaren to build new Hertfordshire primary school

Contractor to prioritise local suppliers on High Leigh Garden Village site
20 hours ago

Developer picked for Stafford town centre regeneration

ION Developments will draw up detailed plans for mixed-use Eastgate scheme
21 hours ago

Former Crossrail boss Mark Wild to lead HS2

Wild to bear down on spiralling costs and bring rejigged scheme in on time
2 days ago

Receivers in at £125m Manchester tower developer

Domis Construction walked away from scheme following doubts over funding
3 days ago

Costain A1 £260m dualling job finally gets go-ahead

Ministers sat on planning inspectors report for nearly three years
2 days ago

Election delays decision on Lower Thames Crossing

Planning decision on £1.2bn Luton airport expansion also pushed back six months
2 days ago

Caddick steps-in at former Lane End housing job

Contractor to restart phase of £262m scheme hit by administration
2 days ago

Plans in for Leeds iconic Tetley building revamp

Former brewing giant's HQ to become indoor market and offices
2 days ago

BAM wins first phase of North Devon hospital revamp

New staff accommodation to kick-off hospital redevelopment
2 days ago

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
7 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
6 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
6 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
6 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
6 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
7 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
7 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
7 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
7 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
7 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
7 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
1 week ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
1 week ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
1 week ago

Contractor services