HS2: Revised Timetable and Budget

Lindsay Hoyle Excerpts

Tuesday 14th March 2023 Commons Chamber

[Huw Merriman]

I thank my hon. Friend the Chair of the Transport Committee for his questions. I will provide some answers, but there will no doubt be further detail to discuss as we go through the session.

On my hon. Friend’s question about the increased project costs, they chiefly relate to the opening section of the line in phase 1, which is the part that is under construction at the moment. We are spending about £600 million a month on phase 1 construction, which is at its peak. He rightly talks about inflation; the Office for National Statistics shows that construction inflation is running at about 15%, which is why we have an issue with costs. He is right to say, however, that we need to bear down on costs. Yesterday, I met the chief executive of HS2 Ltd. I am delighted with the appointment of the chairman, Sir Jon Thompson, who has a background in finance. Certainly, it is within HS2’s requirements to ensure that, where we have inflationary pressures, it fills the gap by bearing down on costs.

My hon. Friend asked what finishing Old Oak Common to Curzon Street “as soon as possible” means. As I stated in my opening remarks, we expect that, by 2033, passengers and communities will benefit from high-speed rail services between those two stations. He asked about the reason for the Euston delay. Euston was always scheduled for delivery after the opening of phase 1, which is why we are prioritising Old Oak Common. We will not proceed with construction at Euston in the next two years, due to affordability and profiling issues, but we will use that time to work with partners to ensure an affordable and deliverable design.

My hon. Friend asks for detail on HS2 east, the integrated rail plan and the Leeds route study. I will be writing to him on the back of the integrated rail plan report this month and further information will be tabled in the six-monthly HS2 report, which is due in May. On the Leeds route strategy, it has been cleared by the Department and we expect it to be published soon.

My hon. Friend is right to say that the industry needs certainty, and I believe he asked whether we can be certain that this is the last change to the project. Although the pandemic and Putin’s illegal invasion of Russia were not anticipated, we expect these HS2 plans to be the plans that deliver it from London to Manchester.

[Mr Speaker]

I call the shadow Secretary of State.

[Louise Haigh (Sheffield, Heeley) (Lab)]

Eighteen months ago, the Government slashed Northern Powerhouse Rail, binned HS2 to Leeds and sold out the north of England. Here we are again: huge changes affecting billions in investment and jobs announced at 5 pm on Thursday—minutes before the House rose.

We now know why the Secretary of State was desperate to dodge scrutiny: I have a leaked document written by his most senior officials that blows apart his claims and lays bare the consequences of the decisions he has hidden from. His chief justification for the delays to HS2 was to “balance the nation’s books”, but his Department admits what he will not—that the delays themselves will increase costs. It admits that they will cost jobs and that construction firms could go bust; it cannot rule out slashing high-speed trains that serve Stoke, Macclesfield and Stafford altogether; and it suggests that HS2 could terminate on the outskirts of London until 2041.

Is it not time that the Minister came clean that this absurd plan will hit jobs, hurt growth and cost taxpayers even more? As his own officials ask,

“you have already changed the design once, which wasted money. What will be different this time?”

Even the Government have lost faith in this Government, and little wonder. Is there anything more emblematic of this failed Government than their flagship levelling-up project that makes it neither to the north nor to central London? Last year they crashed the economy, and once again they are asking the country to pay the price. Does this announcement not prove once and for all that the Conservatives cannot fix the problem because the Conservatives are the problem.

--- Later in debate ---

[Huw Merriman]

To make it absolutely clear, we remain committed to the delivery of HS2 from London Euston up to Manchester. The extra time that can be afforded—that was a great conversation I had with the council leaders and Mayors—will be used to assess and improve the design, if necessary, but we will not be taken off the track of London Euston to Manchester. I look forward to more contributions from my hon. Friend, who knows I am committed to delivering transport in his area, and I do see HS2 as part of that solution.

[Mr Speaker]

I call the SNP spokesperson.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

I almost feel sorry for the Minister—almost. Mr Speaker, you will know that the north of England has seen cut after cut not just to HS2, but to any real modernisation of its rail network, with HS2 to Leeds cancelled and Northern Powerhouse Rail cut to the bone. We on the SNP Benches have supported HS2 because we believe increased sustainable connectivity is to all our benefit. However, what we have now is a gold-plated commuter line of just over 100 miles for two cities in the south of this island, costing nearly £50 billion, while the rest of the country is expected to fight for scraps from the table.

Combined with the announcement of slashed funding for active travel, which leaves England, outside of Greater London, receiving less than £1 per person per year—30 times less than Scotland—that makes it clear that the Government regard transport funding outside the M25 as nothing more than a rounding error. Thankfully, we in Scotland have a Parliament and a Government investing in our rail network, investing in active travel and taking transport decarbonisation seriously, so can the Minister tell me in which decade high-speed rail will reach the Scottish border?

--- Later in debate ---

[Lilian Greenwood (Nottingham South) (Lab)]

I was 45 when the Tory-led Government gave HS2 the go ahead. Since then, as the Minister knows, it has been repeatedly chopped, changed and delayed. I will be 57 next week. How old will I be when it gets to Nottingham?

[Mr Speaker]

That is a trap.

[Huw Merriman]

Mr Speaker, it is another trap I do not wish to walk into, beyond saying that with regard to the plans going eastward, which will allow for much faster services to London and Birmingham from Leicester and Nottingham, we will set out more detail both in the response I have to give to the Chairman of the Transport Committee on that aspect of HS2 east and in the parliamentary report. We announced that in the integrated rail plan, which did change matters. It is important that we now give better delivery, so we can indicate timescales and costs.