The HS2 rail project could be delayed among a number of potential options being considered to curb rising costs, the project’s boss has said. However, confidence remains that the Crewe to Manchester phase will not be scrapped as part of any potential cost cutting plans.
The high-speed rail line from London to Manchester has been plagued by delays, cost increases, and more, over many years with the head of the project again signalling that discussions are taking place on how savings could be made. HS2 chief executive Mark Thurston has said in a recent BBC interview that the impact of inflation on the project over the past year has been "significant… whether that’s in timber, steel, aggregates for all the concrete we need to use to build the job, labour, all our energy costs, fuel".
The cost of the project has ballooned since it was first outlined in 2010, rising from the region of £33bn to an estimate of at least £71bn, although some estimates are much higher. Work on the project is well underway, however, with phase one, from London to Birmingham, around 40 per cent complete.
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The line would then be extended from the West Midlands to Crewe in Phase 2a, before connecting from Crewe to Manchester in phase 2B. Although some reports have suggested this last phase could potentially be scrapped as part of cost cutting measures.
Mr Thurston told the BBC HS2 was in discussion with suppliers and the Government on finding ways to minimise the soaring costs. He said: "We’re looking at the timing of the project, the phasing of the project, we’re looking at where we can use our supply chain to secure a lot of those things that are costing us more through inflation."
His comments come after rail minister Huw Merriman told MPs on Thursday the Government remained “absolutely committed” to the project. He told the House of Commons: “We are absolutely committed to delivering HS2 trains from London to Manchester and, of course, going over to the east as well.
"But of course we have to look at cost pressures, it’s absolutely right that HS2 focuses on costs, that should be expected of the Government and the taxpayer, we’ll continue to do so. But… I am absolutely committed, as is the Secretary of State (Mark Harper) and the entire department, to delivering HS2 and the benefits for this country."
Henri Murison, chief executive of the Northern Powerhouse Partnership, echoed this confidence that the line to Manchester will be built. In an interview on the BBC Today programme this morning (March 3) he said inflationary and other cost pressures being felt were not unique to HS2.
"I think it all sounds eminently sensible and I think the challenge is that this isn’t unique to HS2. I’m very sympathetic with Mark and his team I think they’re doing the best they can. But, in reality if we built this project more quickly and not messed about as we have over the years with numerous reviews in the Johnson years, and various other distraction we would have built more of it. And, the sad thing is the longer we’ve taken the higher the costs will escalate and that’s not just unfortunately from the cost of inflation," he said.
He added: "When you make changes to projects it also adds costs. There was £100m of design work on Euston Station that has had to be thrown in the bin, largely in order to redesign it. So, when you make changes you also increase costs. Some of the critics and sceptics I’m afraid have also directly increased the costs of the project because of the changes they’ve insisted on."
Asked about how confident he is that the Crewe to Manchester leg will not be scrapped to cut costs, he said he "remained confident". "We have already cut elements of the project off. The part of the project that had the biggest return on investment, the new Leeds line, has already been cancelled and there are now no plans to get trains to Leeds," he said.
"So we’ve already had to lob bits off the project to save money and actually that reduces the value for money to the tax payer because it means that very expensive section between Birmingham and London won’t bring benefits to the rest of the UK anymore, it won’t bring benefits to most of the east of the country north of the East Midlands. That is already reducing its benefit to the UK."
Adding: "Where it’s needed we will have to spend more to get the things we need if it’s in the economic interests of the country. And I think with the current chancellor and the most likely next chancellor agree with me which is why I remain confident about HS2 getting to Manchester and about NPR across the Pennines which is also critical not just to northern productivity and growth but to the whole of the UK succeeding over the next two to three decades."
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