HS2 to Manchester axed in favour of ‘Network North’

Published

2 years ago

October 5, 2023

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Rishi Sunak has confirmed the long-rumoured decision to scrap the northern leg of HS2 – a decision branded “wrong” by former prime minister David Cameron.

Reports the planned high speed rail line would end in Birmingham – rather than continuing up to Manchester – have been circling for weeks, with sources telling Sky News on Monday the decision had been made.

But the prime minister has spent days dodging the question, only making the announcement as he gave the closing speech to this year’s Conservative Party conference.

HS2 axe branded betrayal of the north – politics latest

Mr Cameron, who coined the phrase Northern Powerhouse alongside former chancellor George Osborne, swiftly criticised the decision, saying it was the “wrong one”.

The former prime minister said the move would “help to fuel the views of those who argue that we can no longer think or act for the long-term as a country; that we are heading in the wrong direction”.

But Mr Sunak defended the move by promising to spend the billions of cash savings on hundreds of other transport schemes across the country instead.

They will include:

• The ‘Network North’ project to join up northern cities by rail

• A ‘Midlands Rail Hub’ to connect 50 stations

• Keeping the £2 bus fare cap across the country

But a number of the projects appear to have been announced before and critics have suggested Mr Sunak is reviving schemes he was responsible for cancelling.

HS2 will still go to Euston despite suggestions it could end in the west London suburb of Old Oak Common, rather than in the centre of the capital.

PM ‘ending this long-running saga’

Speaking from a former railway station in Manchester, where the Tories’ annual event was held this year, Mr Sunak told members getting infrastructure right was key to driving growth, but a “false consensus” had emerged, with projects “driven by cities at the exclusion of everywhere else”.

He said HS2 was “the ultimate example of the old consensus”, saying the cost had doubled and the “economic case” for the line had “massively weakened with the changes to business travel post-COVID”.

The prime minister added: “I say, to those who backed the project in the first place, the facts have changed.”

“So I am ending this long-running saga. I am cancelling the rest of the HS2 project.”

Mr Sunak said scrapping phase two to Manchester would free up £36bn, and “every single penny” would be spent on “hundreds of new transport projects in the North and the Midlands, and across the country”.

But the government’s new “focus” would be on a project called Network North, which would “join up our great towns and cities in the North and the Midlands”.

The fully electrified line would see trains make the journey from Manchester to Hull in 84 minutes, to Sheffield in 42 minutes and Bradford in 30 minutes.

Irony of Rishi Sunak’s long-term vision is the short-term calculation behind it

He may have been prime minister for a year, but his speech to the Conservative Party conference in Manchester felt almost like the moment Rishi Sunak introduced himself for the first time.

A speech rich in announcements and packed with messages about Rishi the man and his values.

He and his team knew the speech would be critical to resetting his stuttering leadership.

And you could see that in the overarching theme he returned to throughout – whether it was his description of his childhood, his political priorities or the sort of leader he wants to be, the ultimate message was ‘take a look at me again’.

That theme is a tacit acknowledgement that after nearly a year in office, working tirelessly hard, there has been very little apparent change in the public’s appetite for the Conservative Party led by him.

This was the first, and perhaps the only chance, that Mr Sunak will get to lay the foundations of his leadership pitch before a general election.

Read Beth Rigby’s full analysis here

Listing other transport pledges, Mr Sunak said he would “protect” the £12bn project to link Manchester and Liverpool, build a tram in Leeds and upgrade the A1, A2, A5 and the M6.

He also promised to extend the West Midlands Metro, electrify the North Wales main line and 70 further road schemes.

‘Once in a generation opportunity lost’

Mr Cameron took aim at Mr Sunak rejecting the “consensus” that had built around HS2 and said the decision “throws away 15 years of cross-party consensus, sustained over six administrations, and will make it much harder to build consensus for any future long-term projects”.

“I regret this decision and in years to come I suspect many will look back at today’s announcement and wonder how this once-in-a-generation opportunity was lost,” he added.

Mr Cameron’s concerns were echoed by regional leaders including Greater Manchester mayor Andy Burnham, who said the HS2 announcement was “no way to treat our city when they are in our city”.

He said the government had not announced a “coherent plan” but a “transport plan patched together in hotel rooms at a party conference with no input with northern leaders or mayors”.

Mr Burnham went on to say the current plan would not solve the problem of bottlenecks and lack of capacity on the railway network in the north, which covers from Liverpool in the west to Hull in the east.

He also accused the government of failing to turn its transport pledges into reality and suggested that previous statements had been made “with political intentions in mind to try and win votes here”.

West Yorkshire Mayor Tracy Brabin called the decision “yet another betrayal of the North which will punish passengers and businesses alike”.

Mr Sunak accepted he would face criticism for the decision – having already been slammed by Tory grandees, regional politicians and businesses before the announcement was even made.

He addressed one critic in particular – the Tory mayor in the West Midlands, Andy Street – saying he was a man he had “huge admiration and respect for”, Mr Sunak added: “I know we have different views on HS2.

“But I know we can work together to ensure a faster, stronger spine: quicker trains and more capacity between Birmingham and Manchester.”

Sunak has rolled the dice

Tamara Cohen

Political correspondent

@tamcohen

Rishi Sunak’s speech was packed with policy – on banning smoking, replacing A-levels with a new qualification – though not for quite a few years – and of course the long awaited axing of HS2 to fund regional transport upgrades.

There were also some indications of campaign attacks on Labour – in particular with his references to trans issues, and Sir Keir Starmer’s previous positions on Brexit.

A year out from an election, these are long term plans that may never happen, if voters don’t want to keep the Conservatives in the short term.

But Sunak has rolled the dice on the idea his party can regenerate for the future.

Mr Street confirmed he would not resign from his post despite being “incredibly disappointed” about the HS2 decision.

He said he had “thought incredibly long and hard about what my future in the Conservative Party should be”, but had decided to remain a member.

“The West Midlands must be at the heart of the UK’s modern transport network and reap all the benefits that will bring,” he said.

“The prime minister has today reached out to work with me to make that happen and to turn my back on that offer would be doing a serious disservice to my region.”

Politics

Court grants 60-day pause of SEC, Ripple appeals case

Published

28 mins ago

April 16, 2025

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Court grants 60-day pause of SEC, Ripple appeals case

An appellate court has granted a joint request from Ripple Labs and the Securities and Exchange Commission (SEC) to pause an appeal in a 2020 SEC case against Ripple amid settlement negotiations.

In an April 16 filing in the US Court of Appeals for the Second Circuit, the court approved a joint SEC-Ripple motion to hold the appeal in abeyance — temporarily pausing the case — for 60 days. As part of the order, the SEC is expected to file a status report by June 15.

Law, Ripple, SEC, Court — *April 16 order approving a motion to hold an appeal in abeyance. Source: PACER*

The SEC’s case against Ripple and its executives, filed in December 2020, was expected to begin winding down after Ripple CEO Brad Garlinghouse announced on March 19 that the commission would be dropping its appeal against the blockchain firm. A federal court found Ripple liable for $125 million in an August ruling, resulting in both the SEC and blockchain firm filing an appeal and cross-appeal, respectively.

However, once US President Donald Trump took office and leadership of the SEC moved from former chair Gary Gensler to acting chair Mark Uyeda, the commission began dropping multiple enforcement cases against crypto firms in a seeming political shift. Ripple pledged $5 million in XRP to Trump’s inauguration fund, and Garlinghouse and chief legal officer Stuart Alderoty attended events supporting the US president.

Despite support for the end of the case coming from both Ripple and the SEC, the August 2024 judgment and appellate cases leave some legal entanglements. Alderoty said in March that Ripple would drop its cross-appeal with the SEC and receive a roughly $75 million refund from the lower court judgment. It’s unclear what else may result from negotiations over a settlement in appellate court.

New leadership at SEC incoming

Acting chair Uyeda is expected to step down following the US Senate confirming Paul Atkins as SEC chair on April 9.

During his confirmation hearings, lawmakers questioned Atkins about his ties to crypto, which could create conflicts of interest in his role regulating the industry. In financial disclosures, Atkins stated he had millions of dollars in assets through stakes in crypto firms, including Securitize, Pontoro and Patomak.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

Politics

Italy finance minister warns US stablecoins pose bigger threat than tariffs

Published

9 hours ago

April 16, 2025

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Italy finance minister warns US stablecoins pose bigger threat than tariffs

Italy’s minister of economy and finance warned that US stablecoin policies are more concerning than President Donald Trump’s tariffs, citing the potential for these crypto assets to undermine the euro’s dominance in cross-border payments.

Speaking at an event in Milan, Giancarlo Giorgetti said that while trade tariffs dominate headlines, new US policies on dollar-backed stablecoins present an “even more dangerous” threat to European financial stability, according to a Reuters report.

US stablecoins allow users to invest in a widely accepted method for cross-border payments without opening a US bank account, Giorgetti said. He warned that the growing appeal of US stablecoins to Europeans should not be underestimated.

Giorgetti urged European Union lawmakers to take more steps to boost the euro’s position as an international currency. He added that the digital euro under development by the European Central Bank (ECB) will be essential to minimize the need for Europeans to resort to foreign solutions.

US lawmakers advance stablecoin bills

Presently, stablecoin regulation in the US remains fragmented. Instead of a unified framework, multiple agencies apply existing laws to regulate stablecoins. However, lawmakers are working to implement changes, with several pieces of stablecoin legislation progressing.

On April 2, the US House Financial Services Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. The bill is now headed to the House floor for a full vote.

The bill was introduced on Feb. 6 by Committee Chair French Hill and the Digital Assets Subcommittee Chair Bryan Steil. It would ensure that stablecoin issuers provide information on their businesses, including how their tokens are backed.

In addition, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act establishes rules that require issuers to maintain reserves backed one-to-one, comply with Anti-Money Laundering (AML) laws, protect consumers and boost dollar dominance in the global economy.

The GENIUS Act still requires approval by both chambers of Congress and a presidential signature before becoming law.

ECB exec renews digital euro push

Apart from Giorgetti, ECB Executive Board member Piero Cipollone also urged European lawmakers to intensify their efforts to combat dollar-backed stablecoin dominance in Europe. On April 8, Cipollone wrote an article expressing concerns about the growing popularity of US stablecoins.

The official suggested launching a central bank digital currency to combat this threat to the euro. He said this would aid in preserving the monetary sovereignty of the eurozone.

Magazine: Memecoin degeneracy is funding groundbreaking anti-aging research

Politics

OKX reenters US market following $505M DOJ settlement

Published

9 hours ago

April 16, 2025

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OKX reenters US market following 5M DOJ settlement

Seychelles-based cryptocurrency exchange OKX announced that it is reentering the US market.

According to an April 16 blog post, OKX will return to the United States market along with the appointment of former Barclays director Roshan Robert as its US CEO. Robert said in the post:

“Today, I’m thrilled to announce the launch of OKX’s centralized crypto exchange and OKX Wallet in the United States, alongside the establishment of our regional headquarters in San Jose, California.“

All existing Okcoin users will be migrated to the new platform, which Robert said will lead to a better overall experience. The promised improvements include deeper liquidity, lower fees and advanced trading tools.

OKX reenters US market following $505M DOJ settlement — *Source:* *OKX*

Step by step

OKX will not roll out the upgrade in one shot. Instead, the new platform will take a phased approach to onboard new customers. The exchange plans to follow the cautious approach with a nationwide launch later in 2025.

“We’re beginning with a phased rollout for new customers to ensure a smooth and secure onboarding process, with a broader nationwide launch planned later this year,“ Robert said.

OKX also promised integrations with local banks and support for major assets, including Bitcoin (BTC), Ether (ETH), USDt (USDT) and USDC (USDC). Robert noted that the company maintains a global proof of reserves for all its assets, which is published monthly by cybersecurity firm Hacken.

Hacken had not responded to Cointelegraph’s request for comment by publication time.

In addition to its trading platform, the firm is also rolling out OKX Wallet to its US-based customers. The wallet supports 130 blockchains and features a decentralized exchange (DEX) aggregator, allowing access to over 10 million tokens on platforms including Ethereum, Solana and Base.

OKX gets out of US troubles

The report follows OKX hiring former New York Governor Andrew Cuomo to advise it over a federal probe that resulted in the firm pleading guilty to several violations and agreeing to pay $505 million in fines and penalties.

The exchange admitted on Feb. 24 to operating an unlicensed money-transmitting business in violation of US Anti-Money Laundering laws. As a consequence, OKX agreed to pay $84 million worth of penalties while forfeiting $421 million worth of fees earned from primarily institutional clients.

After the investigation concluded, OKX said it would seek out a compliance consultant to remedy the problems revealed by the federal probe and improve its compliance efforts. OKX’s CEO Star Xu wrote in a Feb. 24 X post: