HS2 Cancellation and Network North

Huw Merriman Excerpts

Wednesday 17th January 2024 Westminster Hall

[The Minister of State, Department for Transport (Huw Merriman)]

It is a pleasure, as always, to see you in the Chair, Mr Davies. I thank my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) for securing this important debate on HS2 phase 2a and Network North, and for the manner in which he set out his case.

As has been mentioned, on 4 October last year, the Prime Minister announced that phase 2a of HS2, along with phase 2b—the western leg—and HS2 east, would be cancelled, and that funding would be redirected towards alternative transport projects in the north and midlands through Network North. Let me give a bit of the background and rationale. The HS2 programme accounted for over one third of all Government transport investment. That prevented us from spending money on other genuine priorities, and it could be argued that, if we were not investing in the areas that matter to people, we were doing little to improve the journeys that people make the most.

Network North will drive better connectivity across the north and midlands, with faster journeys, increased capacity, and more frequent and reliable services across rail, bus and road. Rather than delivering phase 2a, the phase 2b western leg and HS2 east, the Government are redirecting £36 billion to hundreds of transport projects across the country, one of which, of course, is in Shipley.

[Wera Hobhouse]

Will the Minister give way?

[Huw Merriman]

I will come to the hon. Member shortly.

Every region is now set to receive the same or more transport investment, on an unprecedented scale. We will still deliver HS2 between Euston and the west midlands as planned: 140 miles of new railway and new stations at Old Oak Common and Birmingham interchange. HS2 tracks will end with two branches in the north: one to Curzon Street station in central Birmingham and one to Handsacre, near Lichfield, where HS2 trains for Manchester, Liverpool and Scotland will join the west coast main line.

Delivery is well under way, and there are 350 active sites. Initial high speed services will start between 2029 and 2033, and will run between Old Oak Common in west London and Birmingham Curzon Street. We will appoint a development corporation, separate from HS2 Ltd, to manage the delivery of the project at Euston, and create a transformed Euston quarter that will potentially offer up to 10,000 homes.

I turn now to land and property safeguarding with regards to the disposal that will come into effect now that phase 2a is not being completed, and I will then come to point made by the hon. Member for Portsmouth South (Stephen Morgan)—that it is not possible at the moment for the Labour party to determine what it will do. If he listens to this part, he will realise it is entirely possible. We know it is just a smokescreen: the Labour party cannot make a decision because it does not know what to do.

Safeguarding on the former phase 2a of HS2 between the west midlands and Crewe will be lifted very shortly. The lifting of safeguarding does not in any way trigger the start of a sell-off of property already acquired. HS2 Ltd has ceased the issuing of any new compulsory purchase notices on phase 2a and is now working to close out all transactions across phase 2 that were outstanding on 4 October. Where we can agree with property owners to withdraw from an agreed acquisition, we will do so, but in many cases we are under a legal commitment to proceed. In others, we have discretion and we are examining those on a case-by-case basis, considering the circumstances of the claimant and the implications for the taxpayer to identify the right way forward.

We are currently developing the programme for selling land acquired for HS2 that is no longer needed, and we will set out more details in due course. We will take the time to develop this programme carefully to ensure that it delivers value for money for the taxpayer and does not disrupt local property markets. Under what are known as the Crichel Down rules, land and property acquired through compulsory purchase or under statutory blight, and which is no longer required, should in certain circumstances be offered back to its former owner at its current market value. We will of course engage with all affected communities throughout this process.

Therefore, the choice will be quite clear for the Labour party. As I said, the safeguarding will shortly be lifted, and the land is not owned by the Secretary of State; it is owned by other property owners who are stymied at the moment from doing what they may want to do with it because safeguarding is imposed. No land will be sold off until we are ready. It is perfectly feasible for the Labour party, if it supports HS2 going ahead, to say that it will put the safeguarding back on, which would be relatively straightforward. As none of the land will have been sold, it can just continue.

However, the Labour party will not say that because it does not know whether it wants it to go ahead. The hon. Member for Portsmouth South mentioned going to Manchester and not committing to HS2 phase 2a or 2b, but that is exactly what the Leader of the Opposition did last week. He went to Manchester and said, “We will not proceed with that project.” Even worse, I am going talk to all these projects, and hon. Members are here to talk them up, but where are the Labour MPs to talk up these projects across the north and the midlands? Nowhere to be seen. Those projects have not been committed to, so where will the £36 billion that we have committed to these projects go? The silence is deafening.

[Wera Hobhouse]

Will the Minister give way?

[Huw Merriman]

I am not going to give way because I am going to come to the hon. Lady shortly. I want to refer to the points that my hon. Friend the Member for Stoke-on-Trent South raised on the local causes. He said that he is delighted with the decision on Meir station—I was delighted to join him up at Meir to see the site— and since then, he has been really successful in his campaign. That project aims to provide a new station in the town of Meir on the existing Crewe-Derby line, and it was awarded initial funding to develop a strategic outline business case as part of the first round of the restoring your railway ideas fund. The full business case is expected to be submitted in July of this year, and decisions on further funding for the project will be made within the context of the broader programme. As he knows, his station is mentioned in Network North; we are committed to it.

My hon. Friend mentioned Stoke and Leek, and a bid to reinstate the railway line between Stoke-on-Trent and Leek has been made to the restoring your railway programme. The proposal examines the potential for six intermediate stations on the route, and the Network North announcement included the intention to progress the Stoke-Leek restore your railway scheme to delivery. I am grateful to him for all his work on that.

Longton station is another that I visited with my hon. Friend. That original station project includes public realm, cycle hub, waiting shelters and accessibility improvements. The council has faced a number of challenges in relation to cost pressures, delays and technical issues. The estimated cost of the Longton project is now forecast at £3.5 million to £4 million, compared to £1.1 million at the time the funding was awarded. We are committed to working with Stoke-on-Trent City Council—Network Rail has entered into a development services agreement, and the council has indicated that the project is forecast to complete by September 2025. On junction 15, which my hon. Friend mentioned, improvements are being developed and delivery would be on a similar timeline as improvements to the A50. Those are all subject to a supportive business case.

On a point mentioned by my hon. Friend the Member for Lichfield (Michael Fabricant), I can assure him and my hon. Friend the Member for Stoke-on-Trent South that HS2 will be delivered with a branch to Handsacre near Lichfield. In the absence of phase 2a, Handsacre remains the only connection between the high-speed infrastructure and conventional rail. I can confirm that work is being undertaken to assess the options to enhance the railway in the Handsacre area, to support train services and capacity, making use of the £500 million set aside in Network North. I can give my hon. Friend the Member for Lichfield that reassurance, which he can pass on to our fantastic Mayor of the West Midlands, Andy Street.

I will turn to the other contributions—none from Labour MPs because they did not make any. I will start with my right hon. Friend the Member for Suffolk Coastal (Dr Coffey) and thank her for again championing the Ely and Haughley capacity enhancement project. That will increase freight trains from 36 to 42 trains a day from the port of Felixstowe, allowing trains to go into the midlands, rather than further south. Network North has confirmed its support. It is a project that I have long championed but we have been unable to put on the list due to HS2 spend. Because of this decision, we now can. The next steps are for a full business case, and we are engaging with the Treasury. I take my right hon. Friend’s point about getting back the Network Rail team on the Haughley preparation work project. That is something that we are looking at in the Department, and I thank her for her points.

I will turn to other contributions. My hon. Friend the Member for Lichfield, in addition to his other intervention, referred to funding for the cross-city line. Perhaps I can point him towards the city region sustainable transport settlements and the local integrated transport settlements, which are two funds from Network North. As well as the list of projects we have committed to deliver, we are also committed to deliver money on a devolved basis, so that local transport authorities can determine on which projects they want to spend their money.

For example, an extra £1 billion has been put into the city region sustainable transport settlements fund for the west midlands, which takes it up to £2.64 billion, allowing the west midlands to make its own choices, because there is devolution within this programme. My hon. Friend the Member for Stone (Sir William Cash) mentioned the case for new stations, showing their business case worth. He is absolutely right regarding Stone, and we hope that will be the case for Meir. I also want to thank him for his work with Trevor Parkin, and for the time he took to drive me through his constituency, so that I could see the impacts that he talked about.

My right hon. Friend the Member for South Staffordshire (Sir Gavin Williamson) asked me to go away—in the most polite terms, I am sure—and assess the west coast main line timetable. I am happy to do so and will write to him. I hear his call for more pothole funding for his roads. Every hon. Member will have seen money given to them for pothole funding. It is essential that it is spent well, and I hear his call that more should be spent.

I now come to the contribution from the hon. Member for Bath (Wera Hobhouse), which I found extraordinary. She made the case for HS2, and, of course, I agree. That is why we are delivering 140 miles of it. I find it extraordinary that I was delivering leaflets in Chesham and Amersham for the Conservative party, talking up the project on similar lines to hers, yet the entire Liberal Democrat campaign in Chesham and Amersham was to run down HS2 and call for it to be cancelled. I have no issue with individual Members campaigning against HS2 because they always have done, but for a party in a by-election to focus its entire campaign on cancelling a project only to then stand here and talk it up—sorry, only a Liberal Democrat could do that.

The leader of Plaid Cymru asked what HS2 does for Wales. The reality is that it was always an England and Wales project, which is why with Network North we are allocating £1 billion to the electrification—

[Liz Saville Roberts]

Will the Minister give way?

[Huw Merriman]

I will not give way. We are allocating £1 billion to electrification in north Wales, and we will now further that business case.

I will give my hon. Friend the Member for Aylesbury (Rob Butler) the assurance he sought. We spoke about the two road projects, and I will take that back for consideration. He has my commitment. I drove through Aylesbury last Saturday, and he knows I know it well.

I am also looking forward to visiting my hon. Friend the Member for Leigh (James Grundy) next week.

We have a plan and we know what the plan is, though people may disagree with it. My challenge to the Labour party is: what is its plan? Will it go ahead with HS2? If not, will it commit to some of these amazing projects across the country that the HS2 funding will deliver?