The sections from Birmingham to Crewe and Manchester will be delayed due to rising inflation and spiraling costs. In 2021, a second route to Leeds was eliminated.
To save money, the government has announced that the construction of sections of HS2 will be delayed by two years.
The high-speed railway was initially intended to connect London and the West Midlands. With a subsequent phase extending to Northern communities.
Nonetheless, Transport Secretary Mark Harper stated on Thursday. “We have seen significant inflationary pressure and increased project costs. So we will rephase construction by two years to deliver high-speed services to Crewe and the North West. As soon as possible after accounting for the delay in construction.”
The delay will impact the northwest section of HS2. Which runs from Birmingham to Crewe and then from Crewe to Manchester.
The first segment was scheduled to be extended between 2030 and 2034 to help improve transportation in the north of England. But the window has been moved from 2032 to 2036, and Manchester will not receive service until the 2040s.
Mr. Harper stated in a written ministerial statement that the government is “prioritizing HS2’s initial services” between Old Oak Common in West London and Birmingham Curzon Street.
He also hinted at delays when delivering services to central London, saying. “We will address affordability pressures to ensure a manageable overall expenditure profile.
“Therefore, we will take the opportunity to ensure that we have an affordable and deliverable station design. Delivering Euston alongside high-speed infrastructure to Manchester.”
This means that it could be more than a decade before high-speed services halt at Euston. With passengers instead expected to travel for a half-hour on the Elizabeth Line.
Mr. Harper also announced a succession of setbacks to key road projects. As a result of cost-cutting measures that threaten to derail “leveling up” initiatives.
In November 2021, a scheduled extension to Leeds was already canceled.
Labour said the newest delay meant the North was “paying the price” for government failures.
Shadow transport secretary Louise Haigh said: “Tens of thousands of jobs and billions in economic growth hinge on this project.
“The North is once again being urged to pay for the staggering failure of the Conservatives.
“Conservative disorder and indecision are impeding job growth and costing the taxpayer.
“This is the largest undertaking in Europe, and delays accumulate costs over time. Ministers must now divulge exactly how much their indecision will cost taxpayers and the North.”
Sarah Owen, a Labour MP who raised a point of order in the House of Commons. Also criticized Mr. Harper for “avoiding scrutiny.”
She stated that the cabinet minister “should have had the decency to come to this House and explain to members why they are doing this” as opposed to releasing a written statement “at nearly 5:00 p.m. on Thursday”
Commons speaker Lindsay Hoyle also criticized how the delay was communicated, with his spokesperson stating, “The Speaker has consistently told the government that major policy announcements should be made to the House first so that members can ask questions on behalf of their constituents, rather than hearing about them via the media.”
Delay ‘could result in higher costs
Delivery of the high-speed railway has been a central commitment of the Conservative government, but it has been beset by delays and rising costs, from an estimated £33 billion in 2010 to £55.7 billion for the entire project in 2015.
By 2019, the estimated cost had risen to at least £71 billion. Excluding the concluding eastern leg from the West Midlands to the East Midlands.
It is believed that ministers are delaying the construction of the northern section to spread the cost over a lengthier period, making it more affordable annually.
Chancellor Jeremy Hunt will release his spring budget next week with Rishi Sunak’s goal in mind. To reduce government debt as a percentage of GDP within five years.
However, the Confederation of British Industry (CBI) stated that the delay would undermine rail industry confidence. And it could ultimately result in higher overall costs for HS2.
The news “will inevitably reduce investor and contractor confidence in the rail sector.” According to John Foster, program director of the CBI’s policy unit.
“The government must address the inflationary pressures that are severely affecting the infrastructure sector to prevent a further erosion of investor confidence,” he said.
“Project delays may produce short-term savings, but they can ultimately result in higher overall costs. And impede the United Kingdom’s transition to a better, faster, and greener transportation network.”
HS2 a ‘colossal blunder’
Ian Ward, the leader of Birmingham City Council, described the delay as “another betrayal of the Midlands and the North, making a mockery of the government’s hollow promises to rebalance the British economy.”
Delaying construction “would be a sensible decision,” according to Conservative MP and former Treasury secretary Simon Clarke.
Having observed HS2’s progress as chief secretary, I have grave concerns regarding value for money and expense control,” he said.
Greg Smith, the Conservative member of parliament for Buckingham, demanded that the government “accept the entire affair was a monumental error and scrap it, in its entirety.”
Just last week, rail minister Huw Merriman told the House of Commons that the government is “absolutely committed” to delivering HS2, but that “cost constraints” must be examined.
Mark Thurston, the chief executive officer of HS2 Ltd, stated that the project had been “significantly impacted” by rising inflation-related costs for constructing materials, fuel, and energy.
HS2, the UK’s largest infrastructure project, has been backed by all parties for over a decade.
However, the government reportedly intended to implement drastic adjustments last month that would nearly halve the number of high-speed trains per hour and slow down services to save money.
At the time, the Department of Transport (DfT) stated that it “does not comment on speculation” and that the government “remains committed to delivering the project.”
Chancellor Jeremy Hunt stated in January that he did not foresee “any conceivable circumstance” in which the original plan would not be adhered to, in response to rumors that the high-speed line could terminate before reaching central London.
There were rumors that the final leg of HS2 into Euston could be scrapped and replaced with a new hub at Old Oak Common in the suburbs of northwest London, where the train is scheduled to halt before continuing to Euston.
The government did not deny the reports or the possibility that a two- to five-year delay to the entire project. Which is presently scheduled for completion between 2029 and 2033, was being considered due to record-high inflation-related costs.
