To ask His Majesty’s Government what assessment they have made of the likely immediate and long- term economic impacts of their decision to further delay HS2.
My Lords, yesterday the Secretary of State for Transport laid a Written Ministerial Statement reaffirming the Government’s commitment to building HS2 from Euston to Manchester. The Government will proceed with the opening stage of HS2 at pace. Due to inflationary pressures and supply chain challenges, the next two years will be used to rephase construction and focus on delivering phase 2a from Birmingham to Crewe in the most cost-effective way. A further update to Parliament will be made in May.
My Lords, this chaos just will not do. Throughout the north and the Midlands, tens of thousands of jobs and billions in economic growth are dependent on HS2, but this is all cast in doubt by a vague announcement slipped out last night in the hope that no one would notice. This chaos and chronic indecision are holding the country back and only adding to the bill for taxpayers in the long run—even the head of HS2 admits that delays will not save money. Can the Minister confirm today when the Crewe to Manchester route will be delivered? When can communities and businesses on this route have the certainty they need? Will the redesign of Euston include cutting platforms, likely killing off the eastern leg for good? If he cannot answer these questions, can he at least explain why the Government did not foresee that inflation would likely impact on the biggest infrastructure project in Europe?
First, I will deal with the issue of the Statement being issued yesterday. There was some excitement in the media about this, and my right honourable friend the Secretary of State thought it best to put out a Statement. I fully accept that it is regrettable that it was delivered at the time it was. That was probably not in the best interests of either House; be that as it may, that is what happened. Secondly, on the question of the Crewe to Manchester route, we are committed to bringing high-speed infrastructure to Manchester as soon as possible, and we are not changing our assumptions on when the phase 2b western leg will be delivered.
My Lords, is this Statement not yet another sign of the Government levelling down rather than levelling up? It is a carefully crafted Statement drafted to let us down gently. Delays always raise costs and do not save money, and they go against the need for consistent capital spending to help sustain vital growth. What is the consequence for the Barnett spending formula for Wales now that the benefits of HS2 for Wales are being pushed further back and may now never happen?
My Lords, in the current economic climate, the Government are taking an honest and very pragmatic view. We have to realise the circumstances that we find ourselves in at the moment. On the Barnett consequences for Wales, I am afraid that I do not have those sorts of figures in front of me, but I will ensure that the noble Lord gets an answer to that question.
My Lords, will my noble friend accept that the claim that phasing the work over a longer period is going to save money will be met with some incredulity by those with experience of the management of large projects? Teams are dispersed; engineering expertise is sent elsewhere. Is it not really the case that the project is being dismembered and may never now be resurrected or, at least, it will be a wholly new project if it ever is?
I thank my noble friend for that question. No, I do not accept the premise that it is being dismembered. As I said, it is a question of pragmatism and of the economic situation that we find ourselves in. The Government are taking a reasoned view to deal with it.
My Lords, in the light of the Statement, can the Minister at least reassure the House that this railway line will reach Euston in the form in which it was originally intended and not stop at Old Oak Common?
I can. The Government are committed to delivering the line to Euston and are currently evaluating how best to do it. I can assure the noble Viscount that the Government are committed to that.
My Lords, does the noble Lord not accept that this announcement is being greeted with great disappointment on all sides of the House? This was a project for which there was substantial cross-party consensus. One of the failings of Britain over the years has been in carrying through major projects that could be economically transformative. I come from Cumberland, in the north. The HS2 project offered the prospect of investment, which will now not take place. Look at the investment taking place in Birmingham as a result of the prospect of HS2. The north is now being deprived. Does he not recognise that this is the end of the Conservatives’ ambitions to hold on to the red wall?
No, I do not accept that. I can only repeat that our ambition remains for the first high-speed services to run between Old Oak Common in west London and Birmingham Curzon Street by 2033. We are committed to it. I repeat that we find ourselves in an economic climate that perhaps will cause delay, and the Government have taken a very pragmatic view.
My Lords, I echo the disappointment that HS2 is not going to reach the north of England any time soon. I understand that the Government committed in the Statement to a further £100 million in the remaining spending period—I do not know how long that covers. What projects in the north will benefit from that £100 million? If my noble friend is not able to tell us today, can he write to me?
I am not in possession of that information. I will ensure that my noble friend gets an answer to her question. There will be an update in May, and it is quite possible that the answer will be contained in that.
My Lords, I thank the noble Lord for being here today, but it is obviously disappointing that we have not got the Minister here. It is partly, I am sure, because of the way this was handled in the first place, with the announcement last night, which was not, as the noble Lord acknowledged, the best way to do things. Has the noble Lord seen the comments from the National Infrastructure Commission, headed by Sir John Armitt, from John Smith from GB Railfreight, and from Henri Murison from the northern powerhouse, who described the decision as “half baked”, “disappointing” and “a false economy”? Will the noble Lord comment on those remarks?