Rishi Sunak and Jeremy Hunt reviewing how HS2 costs ‘can be controlled’
Rishi Sunak and Jeremy Hunt are looking at how costs of HS2 “can be controlled” and no decision has been taken on whether to axe the northern leg, a minister said.
The prime minister is said to be “alarmed” by the spiralling costs of the high speed rail project, after being presented with figures suggesting the overall price could pass £100bn if it is constructed in full.
Asked about the reports, Chris Philp, policing minister, told Sky News: “Well it’s [the cost] gone up a lot. It’s roughly tripled, I think, since it was first conceived.
“So no decisions have been taken about the remaining stages of HS2 but I do know the chancellor and prime minister are looking at how the cost can be controlled.“
Politics Live: Keynote speech on final day of Lib Dem conference
He also insisted the people of Manchester are “definitely not” second-class citizens, as Labour Mayor Andy Burnham has claimed following speculation the Birmingham to Manchester leg of the journey is set to be scrapped.
“The commitment to the Midlands, the North, the levelling up agenda is absolutely undimmed,” Mr Philp said.
“What this review is about is making sure the costs are controlled and I think any taxpayer anywhere in the country would want to see that kind of prudence apply.”
Ministers have refused to guarantee the HS2 line to Manchester will go ahead as planned since a report in The Independent this month said it was due to be axed because of rising costs.
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Rishi Sunak refuses to comment on HS2 ‘speculation’
Mr Burnham today refused to rule out legal action if the route is scrapped, saying HS2 has been integral to the economic development plans of Manchester and other parts of the north for the past 15 years.
Asked on GB News if he could take legal action he said: “All options would be on the table.”
He added: “We aren’t going to lie down and accept the way Whitehall has always treated the north of England.
“We are fighting back, we are getting organised…they will be hearing from us.”
Mr Sunak, who on Monday did nothing to quell fears he is preparing to either scrap or delay the leg, has told allies he is not prepared to watch the cost continue to rise, according to The Times.
The newspaper said he is concerned about a lack of cost controls and high salaries at the company overseeing the project after he was shown figures suggesting the overall price could top £100bn.
Mr Sunak is also said to be considering terminating the line in a west London suburb rather than in Euston, in the centre of the capital, to save money.
However, the possible downscaling of the project has been met with a fierce backlash from across the political spectrum.
Tory former chancellor George Osborne and ex-Conservative deputy prime minister Lord Heseltine were among grandees warning that scrapping the Manchester route would be a “gross act of vandalism” which would mean “abandoning” the North and Midlands.
Norman Baker, a former Lib Dem transport minister who signed off HS2 during the coalition government, called for an inquiry into the chaos of the project “to make sure it doesn’t happen again”.
The new US owners of Birmingham City football club joined a chorus of business criticism warning that limiting HS2 would damage confidence in government promises to deliver long-term plans.
Read More:
HS2 explained: What is it and why are parts being delayed?
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It was initially thought a decision on HS2 would be made ahead of the Conservative Party conference this weekend, but the prime minister is reportedly going to delay an announcement until the autumn statement in November.
He could announce a string of regional transport improvements in an effort to limit the political fallout, reports suggested.
Esther McVey, the Conservative MP for Tatton in Cheshire and a long-standing critic of HS2, said she would prefer to see investment “go into the local infrastructure across the North” so that cities are better connected.
She told BBC Radio 4’s Today programme that HS2 is “sucking the money and the life out of our local transport”.
Ms McVey said: “Thank goodness that the prime minister is looking at HS2’s spiralling costs, because what might have been feasible at £37bn really is not at £120bn going northwards.
“Things have significantly changed since lockdown. People will now sooner jump on a Zoom to save time and money. So it’s the right thing to do and yes, stop it as soon as possible.”
Sir Keir Starmer continues to face the threat of a major rebellion during a key vote on welfare reforms later – despite making last-minute concessions to disgruntled Labour MPs.
Work and Pensions Secretary Liz Kendall has confirmed that all existing claimants of the personal independence payment (PIP), the main disability benefit, will be protected from changes to eligibility.
The combined value of the standard Universal Credit allowance and the health top-up will rise “at least in line with inflation” every year of this parliament.
And an additional £300m for employment support for sick and disabled people in 2026 has been announced, which will rise every year after.
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Welfare cuts ‘needed to be made’
Ms Kendall has also promised that a consultation into PIP – “co-produced” with disabled people – will be published next autumn.
She said the U-turn on welfare cuts will cost taxpayers about £2.5bn by 2030 – less than half the £4.8bn the government had expected to save with its initial proposals.
Modelling by Ms Kendall’s own department, released yesterday, suggested the proposals would push 150,000 more people into poverty by 2030, down from the 250,000 estimated under the original plan.
But after announcing the U-turns, Labour MPs were still publicly saying they could not back the plans as they do not go far enough to allay their concerns.
Disabilities minister Stephen Timms would not say he was “confident” the proposals would pass the Commons when asked on Sky News’ Politics Hub with Sophy Ridge.
“We’ve got a very strong package, I certainly hope it passes,” he replied.
Read more: What are the concessions to the welfare reform bill?
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‘Disabled people thrown under the bus’
A total of 86 charities united yesterday to call on MPs to reject the reforms, saying they will harm disabled people and calling it “a political choice”.
The likes of Oxfam, Child Action Poverty Group, Mind and Shelter said the bill has been brought to a vote without consulting disabled people and without any assessment “of its impact on health and employment outcomes”.
When asked to name “a single” disability organisation in favour of the reforms, Ms Kendall declined to do so.
Several Labour MPs indicated they would still vote against the changes, leaving the government in the dark over how big a rebellion it still may face.
Ms Kendall tried to allay their fears, telling MPs: “I believe we have a fair package, a package that protects existing claimants because they’ve come to rely on that support.”
Richard Burgon presented a petition to parliament yesterday evening against the cuts, signed by more than 77,000 people.
Several Labour MPs questioned why the vote was going ahead before the review into PIP is published – including Rachael Maskell, who said she could not “countenance sick and disabled people being denied support” and added: “It is a matter of conscience.”
Connor Naismith said the concessions “undoubtedly improve efforts to secure welfare reform which is fair”, but added: “Unfortunately, I do not believe these concessions yet go far enough.”
Labour rebel Nadia Whittome said the government was ‘ignoring’ disabled people
Nadia Whittome accused the government of “ignoring” disabled people and urged ministers to go “back to the drawing board”.
Ian Byrne told the Commons he will vote against the “cruel cuts” to disability benefits because the “so-called concessions go nowhere near far enough”.
The vote will take place this evening, with coverage on Sky News’ Politics Hub live blog and on TV.
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