HS2

Lord Hendy of Richmond Hill Excerpts

Tuesday 23rd July 2024 Lords Chamber

[Baroness Randerson]

To ask His Majesty’s Government what plans they have for reviewing the impact of the decision to abandon plans to build further stages of HS2.

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

This Government are clear that transport is an essential part of our mission to rebuild Britain, and we are committed to delivering infrastructure that works for the whole country. We need a long-term approach to infrastructure and investment taking account of local transport priorities, which is what we will provide. We will review the position we have inherited thoroughly and at pace, and we will set out more detailed plans in due course.

[Baroness Randerson (LD)]

I thank the Minister for his Answer, but he will be aware that today’s National Audit Office report confirms the expensive and disastrous impact of the cancellation of HS2 north of Crewe, with a reduction in the number of seats available on trains as a result of a decision that cost half a billion pounds wasted on land that was not going to be used for development. Does the Minister agree that a full and proper review of this decision is needed by the Government so that this never happens again, and so that the opportunities for the north of England are maximised? Will the Government also review the decision of the previous Government to allocate to Wales only £1 billion of Barnett consequential funding when Wales should, by right and by fairness, have £3 billion?

[Lord Hendy of Richmond Hill (Lab)]

We will review the National Audit Office’s report, which is a report on the status of the project as it was left under the previous Government. We will have to do that before setting out more detailed plans. Personally, I am aware of the disparity in seats created by the present planned service pattern on HS2 following the cancellation of phase 2a. We will have more to say about that in the future.

In respect of the Barnett formula, heavy rail is reserved in Wales, so any heavy rail scheme that the department delivers should always be classified as England and Wales when applying the Barnett formula. That includes HS2. It is a different situation in Scotland and Northern Ireland. The Scottish Government and Northern Ireland Executive, under their devolved policy areas, do therefore receive Barnett-based funding. This is consistent with the funding arrangements for all other policy areas reserved in Wales but devolved in Scotland and Northern Ireland. That said, due to use of departmental comparability factors in the Barnett formula at spending reviews, the Welsh Government have received a significant uplift in their Barnett-based funding due to the UK Government’s spending on HS2.

[Lord McLoughlin (Con)]

The Government are committed to building HS2 up to Handsacre. Is the Minister satisfied that there is sufficient capacity beyond Handsacre up to Crewe, given what the new line will deliver to the country, and will he bear this in mind in his review?

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Lord, Lord McLoughlin, for his knowledge of the geography of the national railway network; I am aware of it myself. We will certainly have to bear that in mind with the review of the project as it now stands.

[Lord Wigley (PC)]

My Lords, to what extent has the Minister discussed this matter with the Government of Wales—the Labour Government of Wales in Cardiff—who are totally convinced that Wales is entitled to a Barnett consequential in line with the consequential payments to Scotland? The arguments that he has used today are nothing but an excuse to avoid payment. Will he please link up with his Labour colleagues in the Welsh Government to sort this matter out so that Wales can get the resources it needs?

[Lord Hendy of Richmond Hill (Lab)]

I have a meeting with the Cabinet Secretary for Transport in Wales in my diary. I am sure that he will raise that matter.

[The Lord Bishop of Leeds]

My Lords, one of the mysteries of HS2 was that you could get to places like Leeds 16 minutes quicker, but you could not get anywhere else when you got there because of deficiencies in the northern network. What confidence can we have that any other plans that come forward will be realised and improve the situation in the north?

[Lord Hendy of Richmond Hill (Lab)]

Reintroducing the High Speed Rail (Crewe - Manchester) Bill is the first step in doing so, by providing powers to develop, construct and operate railway infrastructure that is key to improving interregional and northern rail connectivity, which, of course, generates economic growth, jobs and housing.

[Baroness Butler-Sloss (CB)]

What are the Government going to do about the urgent situation between Manchester and Leeds, which has been made very apparent by the National Audit Office?

[Lord Hendy of Richmond Hill (Lab)]

A project is already in execution to improve railway connectivity between Manchester and Leeds, the trans-Pennine route upgrade. It is currently valued at some £11 billion and is in the course of delivery.

[Lord Watts (Lab)]

My Lords, when the last Government cancelled High Speed 2, they said that they would transfer the money into northern schemes but, as we know, a lot of it was spent in other areas. Can the Minister guarantee that when the review takes place, he will make sure that the north gets its fair share of transport infrastructure?

[Lord Hendy of Richmond Hill (Lab)]

Reintroducing the High Speed Rail (Crewe - Manchester) Bill will be great evidence that the Government are thinking of improving easy-west connectivity in northern England and continuing the work that the trans-Pennine upgrade is already starting for a modern, high-speed and high-capacity railway all the way across between Liverpool, Hull and other places on the east coast.

[Lord Scriven (LD)]

My Lords, when do the Government expect the fourth largest city in England, Sheffield, to have back its direct train to Manchester Airport, its main international airport?

[Lord Hendy of Richmond Hill (Lab)]

I am afraid I cannot recall exactly what the position is, so I shall write to the noble Lord and tell him where we think we are with it.

[Lord Foulkes of Cumnock (Lab Co-op)]

Does the Minister recall that the original plan was that HS2 should go all the way to Scotland?

[Lord Foulkes of Cumnock (Lab Co-op)]

It was. Has the Minister tried recently to go up the west coast main line to Glasgow? If he did, he would realise that there are capacity problems. Something needs to be done to try to restore that awful decision, one of many made by that Government who used to be opposite.

[Lord Hendy of Richmond Hill (Lab)]

I am familiar with the west coast main line from my previous job. I have often travelled on it and am familiar with the limitations in how it performs and the number of trains that you can get on it. Incidentally, I was also the author of a review of the connectivity of the United Kingdom, and I made some recommendations about the connectivity of England and Scotland. This Government are very mindful of that, and it will be part of the review of the current state of HS2 as we have inherited it.

[Baroness Redfern (Con)]

My Lords, there is still a lack of progress in agreeing outstanding compensation claims, especially in respect of injurious affection claims and the time it has taken to hand back land that was taken on a temporary basis. As time is of the essence, what further measures are being put in place to speed up the process and remove the outstanding backlog?

[Lord Hendy of Richmond Hill (Lab)]

I am not familiar with the details, so I shall write to the noble Baroness and explain the position as we see it.

[Lord Faulkner of Worcester (Lab)]

My Lords, a number of questioners have asked about the new route across the north from Manchester to Leeds and Hull, but does my noble friend agree that, following the cancellation of HS2 north, the main capacity problem is between Handsacre and Crewe and on services to Manchester and Liverpool? How many of the properties that were bought by the previous Government have now been sold? Have any of them remained in the Department for Transport’s ownership? Is there any chance that that will enable and accelerate the possibility of some new route coming into place on the Handsacre to Crewe line and relieving overcrowding?

[Lord Hendy of Richmond Hill (Lab)]

I thank my noble friend for his question. My understanding is that the number of properties sold is none. The capacity of the west coast main line north of Handsacre Junction is one of the many issues that we have inherited resulting from the decisions of the previous Government. The prioritisation of the High Speed Rail (Crewe - Manchester) Bill is recognition that east-west connectivity is immediately necessary for growth, jobs and housing. We will of course bear in mind the case that my noble friend makes for better connectivity north of Handsacre as we do the review.