Northern leg of HS2 to Manchester will be scrapped
The northern leg of the HS2 line is set to be scrapped, Sky News understands.
Rumours had been circling for weeks that the high-speed rail line between Birmingham and Manchester was going to be axed by the prime minister and chancellor due to soaring costs.
Even the reports – which have been denied by Number 10 – led to a huge backlash from all sides of the political spectrum, including from former Conservative prime ministers Boris Johnson and Theresa May.
A Downing Street spokesperson said: “These reports are incorrect. No final decisions have been taken on Phase 2 of HS2.”
The development threatens to attract controversy and overshadow Rishi Sunak’s first Tory conference as leader and prime minister as the party faithful gathers in Manchester for the annual event.
The first indications that the leg to Manchester could be scrapped came after The Independent reported that ministers were considering shelving the northern phase because of concerns about spiralling costs and severe delays.
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The newspaper said a cost estimate revealed that the government has already spent £2.3bn on stage two of the railway from Birmingham to Manchester, but that ditching the northern phase could save up to £34bn.
Sky News understands the Department of Transport (DfT) has worked up a package of alternative projects – rail, bus and road schemes – which could be funded from money saved by scrapping the Manchester to Birmingham leg of the project.
But Andy Burnham, the Labour mayor of Greater Manchester, accused the government of treating people in the north of England as “second-class citizens” with regards to HS2.
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‘Second-class citizens on transport’
He told Sky News’s Sunday Morning With Trevor Phillips: “An east-west line is really important for north of England, as well as north-south. Why is it always that people here are forced to choose? That we can’t have everything, ‘you can have this or you can have that but you can’t have everything’?
“London never has to choose between a north-south line and an east-west line and good public transport within the city.
“Why is it that people in the north are always forced to choose, why are we always treated as second-class citizens when it comes to transport?”
Number 10 is trying to shut down an announcement it is not ready to make public
Ahead of today, Downing Street drew up a plan for announcing a decision on scrapping the northern leg of HS2 in Manchester.
It would involve a cabinet meeting here at conference, possibly a visit by the PM and the announcement itself.
Earlier today, I was told a decision had been made. This would have been at the heart of government’s inner sanctum, with this communicated only to a small number.
All the internal government documentation on HS2 is numbered to try and capture leakers, with press spokesman not in the loop.
It has also not yet gone to cabinet – we would know if this had happened.
Therefore Number 10 can legitimately say that no final decision has been made – as some decisions have, we are told.
This revelation – as the chancellor was due on stage – could not be more disruptive for conference, meaning HS2 is eclipsing yet another day of the coverage.
Number 10 are now trying to shut down an announcement they are evidently not ready to make in public.
That is why they have issued the following: “These reports are incorrect. No final decisions have been taken on Phase 2 of HS2.”
We await the next twist in the tale.
He was joined in his criticism by Mr Johnson, who said delaying or scrapping the northern leg of HS2 would be “betraying the north of the country and the whole agenda of levelling up”.
The ex-prime minister’s intervention came on on the eve of the party conference.
In a series of interviews on Thursday, Rishi Sunak repeatedly refused to be drawn on the future of HS2, saying: “I’m not speculating on future things.”
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Are Tories planning ‘rail betrayal’?
But writing in his weekly Daily Mail column, Mr Johnson appealed to his former chancellor to show Britain still has “the requisite guts and ambition” to invest in infrastructure and labelled the aim of saving money “deluded”.
Mr Johnson – who made levelling up a centrepiece of his 2019 manifesto and government – said when he heard reports the northern leg was set to be delayed or cancelled, he let out a “long, low despairing groan”.
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He wrote: “Cancel HS2? Cut off the northern legs? We must be out of our minds.”
Andy Street, the Conservative mayor of the West Midlands, has also warned against any downscaling of HS2.
Asked about the reports by Sky News at the conference in Manchester, he said: “You must ask the PM – I’m confident he’ll do the right thing.”
Delivery of the high-speed railway has been a core pledge of the Conservative government, but it has been plagued by delays and ever-increasing costs.
The initial opening date of 2026 has fallen back to 2033, while cost estimates have spiralled from about £33bn in 2010 to £71bn in 2019 – excluding the final eastern leg from the West Midlands to the East Midlands.
It is not just the northern section of the project that has encountered trouble.There are also doubts about the future of Euston station in London and whether services will terminate there or at Old Oak Common in west London.
Victims of the infected blood scandal will get £210,000 as an interim compensation payment from as early as this summer, the government has announced.
Cabinet minister John Glen told parliament the initial payment will be given to people living with the effects of contaminated blood “within 90 days, starting in the summer”.
Infected people who die between now and the payments being made will get the money sent to their estates, he added.
Mr Glen said: “As the prime minister made clear yesterday, there is no restriction on the budget. Where we need to pay, we will pay.
“We will minimise delays, we will address the recommendations of Sir Brian Langstaff with respect to that – speed and efficiency, and removing as much complexity as possible.”
The minister did not confirm the cost of the compensation package, but former justice secretary Robert Buckland said it could be upwards of £10 billion.
Mr Glen’s announcement came the day after a report into the scandal was published following a seven-year inquiry.
More than 30,000 Britons were infected with HIV and Hepatitis C from contaminated blood products in the 1970s and 1980s. More than 3,000 people died.
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Reaction to government’s response
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Blood scandal: A look at the details
Mr Glen also announced:
• The Infected Blood Compensation Authority – an “arm’s length body” – has been established to administer compensation, with Sir Robert Francis KC as the interim chair
• Anyone directly or indirectly infected by NHS blood, blood products or tissue contaminated with HIV or Hepatitis C, or developed a chronic infection from blood contaminated with Hepatitis B is eligible for compensation
• If someone would have been eligible but has died, compensation will be paid to their estate
• When a victim has been accepted onto the scheme, their affected partners, parents, siblings, children, friends and family who acted as carers of them can claim in their own right
• People who are registered with an existing infected blood support scheme will be automatically eligible for compensation to minimise the distress of proving they should be
• There will be five types of compensation: an injury impact award, social impact award (to acknowledge the stigma or social isolation from being infected), autonomy award (for disrupted family/private life), care award (for past and future care needs), and financial loss award (for past and future financial losses caused by being infected)
• Compensation will be offered in a lump sum or periodic payments
• The family of anyone who has died will get a single lump sum
• Any payments will be exempt from income, capital gains and inheritance tax
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• Payments will not count towards means tested benefit assessments
• All recipients can appeal their compensation
• Final payments will start before the end of the year
• No immediate changes to existing infected blood support scheme payments – they will continue until 31 March 2025 and will not be deducted from new compensation
• From 1 April 2025, any support scheme payments received will be counted towards final compensation
• Nobody will receive less in compensation than they would have received in support payments.
Sir Brian Langstaff lead the review into the scandal
Sir Brian Langstaff, chair of the inquiry, found the scandal was “not an accident” and its failures lie with “successive governments, the NHS, and blood services”.
He said the response from governments of different stripes and the NHS “compounded” victims’ suffering.
This included the “deliberate destruction of some documents” by Department of Health workers, in what Sir Brian described as a “pervasive cover-up” and “downright deception”.
“It could largely, though not entirely, have been avoided. And I report that it should have been,” he said, adding the “scale of what happened is horrifying” for victims and their families.
Victims and their families welcomed the report following decades of not being believed.
Rishi Sunak offered a “wholehearted and unequivocal” apology to the victims following the report’s publication, saying it was a “day of shame for the British state”.
He promised compensation would be given to victims and those affected, adding: “Whatever it costs to deliver this scheme, we will pay it.”
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