Boris Johnson is facing a backlash from MPs, mayors and a coordinated local newspaper campaign as he’s poised to scrap the eastern leg of the HS2 rail project between Birmingham and Leeds.
The prime minister is this week expected to confirm a watering-down of plans for both HS2 and a new Leeds to Manchester rail line.
Ahead of an anticipated scaling back of the projects, likely to be confirmed when the government’s “Integrated Rail Review” is announced on Thursday, Mr Johnson has been hit by anger from northern politicians.
Tracy Brabin, the Labour mayor of West Yorkshire, wrote to the prime minister to urge him to stick with delivering HS2’s eastern leg “in full”, as well as to build a new rail line from Leeds to Manchester.
Following reports that the Leeds-Manchester section of the £39bn Northern Powerhouse Rail project will be delivered through upgrades to existing track, rather than a new line via Bradford, Ms Brabin wrote: “The government has a choice to make.
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“It can choose to unlock the potential of the North, or it can let us down once again, limiting your levelling up ambitions.”
South Yorkshire mayor Dan Jarvis said ministers were “either serious about levelling up or not” and warned that those he represents “will not be fooled by half-measures and spin”.
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Conservative MP Kevin Hollinrake, who represents Thirsk and Malton in North Yorkshire, told the i newspaper that scaling back rail plans would show the government is “not willing to put our money where our mouth is”.
Labour’s Naz Shah, MP for Bradford West, said: “This is Boris pulling the whole damn rug from under our feet and ripping up the floor behind him.”
Shadow transport secretary Jim McMahon accused ministers of attempting to “quietly back out” of infrastructure schemes that they had “committed to dozens of times”.
In his Conservative Party conference speech last month, Mr Johnson vowed: “We will do Northern Powerhouse Rail, we will link up the cities of the Midlands and the North.”
In February last year, on HS2 and Northern Powerhouse Rail, Mr Johnson told MPs: “Both are needed, and both will be built – as quickly and cost-effectively as possible.”
As well as the backlash from politicians, a string of northern newspapers have published the same front page on Tuesday calling for the government to deliver on Northern Powerhouse Rail and HS2 in full.
One of those newspapers, the Manchester Evening News, said on its website: “Today the North calls on government to finally put its money where its mouth is.
“With ministers poised to release their long-delayed plan for railway investment this week, we warn it is time to replace rhetoric with reality where the north of England is concerned.
“Enough’s enough. The prime minister has been prepared to use chronic central government neglect of northern England to his political advantage. It is time to keep his side of the bargain.
“Where rail investment is concerned, that does not mean a smattering of piecemeal upgrades dressed up as a transport revolution, ready for deployment on leaflets at the next election.
“It means new inter-city lines to and across the North, a move supported both by Northern leaders and the Conservative manifesto.”
The Manchester Evening News was joined in the campaign by five other newspapers; The Gazette in Teesside, The Journal and The Chronicle in Newcastle, the Huddersfield Examiner and the Hull Daily Mail.
At a Downing Street news conference on Monday, the prime minister advised people to “wait and see” the results of the Integrated Rail Review on Thursday.
But he said it would be “absolutely fantastic” for the North, the North East, the North West, and the Midlands.
A former Post Office executive has said she was forced to block ex-boss Paula Vennells’ phone number after the ex-CEO called multiple times asking for help to avoid an independent inquiry into the Horizon IT scandal.
Lesley Sewell, previously the company’s head of IT, told the Post Office inquiry on Thursday that former CEO Ms Vennells had reached out to her four times between 2020 and 2021.
Ms Sewell said that she blocked Ms Vennells’ number due to discomfort with the contact.
In her witness statement to the probe, Ms Sewell said that one of Ms Vennells’ emails referenced the need to fill in memory gaps regarding Horizon and “Project Sparrow”, a committee addressing issues with forensic accountants who identified flaws in the accounting system.
“Paula contacted me on four occasions in total. I recall blocking her number after the last call as I did not feel comfortable with her contacting me,” Ms Sewell said.
“I had not spoken to Paula since I had left POL [Post Office Limited] in 2015.”
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According to Ms Sewell’s testimony, former chief executive Ms Vennells said that she had “been asked at short notice” to appear before a parliamentary select committee on “all things Horizon/Sparrow and need to plug some memory gaps”.
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Ms Sewell says Ms Vennells added: “My hope is this might help avoid an independent inquiry but to do so, I need to be well prepared.”
Ms Sewell, who struggled to contain her emotions and broke down in tears while giving her oath at the start of her inquiry evidence, was offered support and breaks as needed by chairman Sir Wyn Williams.
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Sir Wyn told the former executive: “Ms Sewell, I appreciate this may be upsetting for you, Ms Price will ask you a number of questions in a proper and sensible manner, but if at any time you feel you need a break, just let me know, all right?”
The Post Office has faced significant scrutiny following the ITV drama Mr Bates Vs The Post Office which highlighted the Horizon IT scandal.
The faulty system led to the prosecution of more than 700 sub-postmasters between 1999 and 2015, with many still awaiting full compensation despite government announcements regarding payouts for those with quashed convictions.
London City Airport will on Thursday name its first permanent female chief executive as it targets approval of an expansion plan that would create nearly 1,500 jobs.
Sky News understands that the Docklands airport has told staff that Alison FitzGerald, who has been co-CEO since January alongside finance chief Wilma Allan, has landed the role.
She replaces Robert Sinclair, who left in January after six years to become boss of the High Speed 1 rail link.
The airport is owned by a consortium of Canadian pension funds and Kuwait’s sovereign wealth fund, which have backed a plan to increase its annual passenger traffic from about 6.5m to 9m.
It is appealing against Newham Council’s rejection of a planning application that would see it extend operating hours at the site, which is popular with City commuters.
The airport’s proposals include no increase in the annual number of flights and, in what it claims is a first for a UK airport, a commitment that only cleaner, quieter, new generation aircraft will be allowed to fly in any extended periods.
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The appeal is being reviewed by the Independent Planning Inspector.
Its change of leadership makes London City the second of the capital’s airports to name a new CEO in quick succession, following the arrival at Heathrow of Thomas Woldbye last year.
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“London City delivers one of the best passenger experiences in the UK and I’m committed to building on this success even further,” Ms FitzGerald said.
Representatives of Thames Water’s multinational syndicate of shareholders are poised to quit as directors of its corporate entities after refusing to inject the billions of pounds of funding required to bail it out.
Sky News has learnt that a number of board members at companies connected to Kemble Water Finance, Thames’s parent, are expected to resign in the coming days.
City sources described the move as “the logical next step” after the owners of Britain’s biggest water utility said they would not commit more than £3bn to help upgrade its ageing infrastructure and shore up its debt-laden balance sheet.
A default on part of Thames Water‘s holding company debts last month has raised the prospect that the company is heading towards special administration, a form of insolvency that would effectively leave the government liable for managing a utility firm which serves nearly a quarter of Britain’s population.
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Thames Water under threat
Thames Water is owned by a group of sovereign wealth funds and pension funds from countries including Abu Dhabi, Australia, Britain, Canada and China.
A number of the investors are represented on boards which sit at various points in the group’s labyrinthine capital structure.
It was unclear on Wednesday whether Michael McNicholas, a representative of the giant Canadian pension fund Omers and who sits on the board of Thames Water Utilities Limited, was among those in the process of stepping down.
Along with the rest of the privately owned water industry, Thames Water faces a crucial moment next month when Ofwat, the industry regulator, publishes its draft determination on companies’ five-year business plans.
The draft rulings will be subject to negotiation before final versions are published in December.
Thames Water and a spokesman for Kemble declined to comment.