The Government is being urged to avoid becoming 'penny wise and pound foolish' after it was confirmed Manchester's HS2 link would be delayed by two years. Transport secretary Mark Harper announced the move tonight (March 9).
He confirmed construction of the Birmingham to Crewe railway line would not begin for a further two years in a bid to cut costs, before the Crewe to Manchester leg could follow in the next phase. But Lord McLoughlin, chair of Transport for the North, is warning the Government it could still see the bill for HS2 rise following the decision.
“This is a disappointing announcement," he said. "But I was reassured by the Transport Secretary that we are still getting HS2 to Manchester, and the recommitment to [the proposed east-west railway] NPR is welcome.
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“However, it needs to be understood whether or not these cost savings can be realised while still achieving the same desired outcome and conditional outputs. The government needs to avoid being penny wise and pound foolish, as delays don’t necessarily lead to savings, and in fact can drive costs upwards.
“Nevertheless, the political leaders of the North who sit on our Board have made their collective position very clear - we must transform the North by building both HS2 and NPR in full. Taken together, both projects unlock the North’s economy from the existing position of poor infrastructure that has held it back.
"It is the communities and businesses across the North of England who are suffering most by any delay or inaction in delivering on these schemes.” Lord McLoughlin's concerns echo comments made by Labour's shadow transport secretary Louise Haigh, who insisted 'delays pile costs up in the long run'.
Mr Harper says the move follows 'significant' inflation which has affected the cost for HS2. He said: "We continue to take the High Speed Rail (Crewe – Manchester) Bill through Parliament, and the Crewe-to-Manchester section will also form the foundations for improved rail services in the North through Northern Powerhouse Rail.
"The Government is committed to delivering HS2 Phase 2a between Birmingham and Crewe. We have seen significant inflationary pressure and increased project costs, and so we will rephase construction by two years, with an aim to deliver high-speed services to Crewe and the north west as soon as possible after accounting for the delay in construction."
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