The government is considering the funding for HS2 and may shelve the northern part of the high-speed rail project. Grant Shapps, the defence secretary and former transport secretary, stated that it would be “crazy” not to revisit the project’s finances, considering the significant spending on COVID-19 responses and the Ukraine conflict. He emphasized the need to examine whether the project can be delivered efficiently and affordably for taxpayers. Shapps also mentioned that a decision will be made in due course and that there should be a limit to how much money is invested without reconsideration.
Shapps further expressed the necessity of prioritizing spending after the substantial costs incurred due to COVID-19 and the Ukraine conflict. He acknowledged that there is a balance of funds required for crucial sectors such as health, education, and defense. In light of the financial consequences and inflation resulting from these events, Shapps emphasized the importance of reevaluating the HS2 project.
HS2, originally established in 2009 with the aim of connecting London, the Midlands, and the north of England, has experienced significant cost increases over time. The estimated cost of £37.5 billion in 2009 prices has escalated, with reports suggesting that costs may now exceed £100 billion due to recent inflation rises.
Speculation has arisen that Prime Minister Rishi Sunak is considering abandoning plans for the HS2 high-speed rail link from Birmingham to Manchester due to rising expenses. Critics, including former Prime Minister Boris Johnson, business leaders, and Labour mayors of Greater Manchester and London, oppose this decision. However, Chancellor Jeremy Hunt has expressed concerns that the project is “out of control.”
Critics argue that abandoning the project in the north would perpetuate the north-south divide and leave the region with outdated infrastructure compared to the south. Andy Burnham, the mayor of Greater Manchester, criticized the government for treating the north as “second-class citizens” and failing to fulfill promises of “leveling up” the region.
In conclusion, there is ongoing debate regarding the funding and feasibility of the HS2 project. The government is reassessing the project’s finances, considering the substantial spending on COVID-19 and Ukraine. The decision to proceed or shelve aspects of the project will be determined after evaluating the project’s affordability and impact on taxpayers. Critics argue that abandoning the project would further exacerbate regional disparities and hinder efforts to bridge the north-south divide.