Transport Secretary Mark Harper has said he will look at plans to revive the northern section of HS2 through private investment with “an open mind”.
Speaking at a Conservative Home conference in central London, the minister said he and Rishi Sunak had given a “commitment” to the Tory mayor of the West Midlands, Andy Street, to examine any proposal he brought forward – after the government decided last year to scrap the leg between Birmingham and Manchester.
Mr Harper confirmed that Mr Street and Labour’s mayor of Greater Manchester, Andy Burnham, had now commissioned a study into how it could be done through partnerships with business, following reports over the weekend.
And while the transport secretary said he was “somewhat sceptical” about whether the private sector could take on the project without cash from the public purse, he promised to meet the two regional leaders, adding: “I will listen to them.”
The prime minister announced his plan to axe the northern leg of HS2 during the Conservative Party conference in 2023, saying the “economic case” for the line had “massively weakened with the changes to business travel post-COVID”.
But he was met with fierce opposition from both Mr Street and Mr Burnham, with the latter accusing the government of treating people in the north of England as “second-class citizens”.
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Image: Transport secretary Mark Harper speaking in central London on Tuesday
Rail minister Huw Merriman was also at Tuesday’s event, and asked by Sky News if he was as “openminded” to the private investment plan as Mr Harper, he said: “As a Conservative, I always welcome private sector investment in the railway.”
However, in what appeared to be a warning to the mayors, he added: “Our plan is clear. They might have something else they want to actually bring forward, we will see what it is, that’s their proposal.
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“Our plan is we are not taking HS2 further north. Eventually, we will then look to sell that land off, so we’ll need to make sure… there is no overlap on what other people [want] to do themselves.
“That is our plan, then we are going to invest in all these projects across the North and the Midlands that I just think ultimately will deliver more regional growth to every part of the country that needs it.”
Image: Mayor of the West Midlands Andy Street opposed the cancelling of HS2 during the Conservative Party conference
When Mr Sunak made the announcement to scrap HS2 in October, he insisted “every single penny” of the £36bn being saved would be spent on “hundreds of new transport projects in the North and the Midlands, and across the country” – launching his flagship Network North project to collate the schemes.
But rather than just public transport plans, Mr Harper today confirmed £8.3bn of those savings would be focused on road improvement schemes.
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Asked by Sky News if it was right to divert HS2 cash from rail projects to roads, Mr Harper said: “We are rebalancing a little where we spend the money.
“Sixty percent of the journeys people make are by car, 4% of journeys that are made are by bus and 2% of journeys that are made are by train.
“So I think spending a third of the total transport budget on one train line was disproportionate. So what we are doing is rebalancing that funding.”
Pushed again on how it would encourage more people back on to public transport – a goal Mr Harper reiterated today – he told Sky News: “We are still spending a significant amount of the £36bn we have saved from HS2 on rail but we are spending some of it on improving our roads, enabling people to use buses.
“I think that is the right balance – more projects delivering more quickly for more people across the entire country.
“I just think we have rebalanced the transport spending better – still supporting public transport, still encouraging active travel, but also recognising most people use roads and we should put a significant investment into that as well.”
Rail minister Mr Merriman backed the transport secretary – despite earlier telling the conference rail was the “green, clean way to get around” and younger people were not taking up driving licences in the same numbers “because they see the train as their mode of transport”.
Image: Rail minister Huw Merriman also attended the Conservative Home transport conference
He told Sky News: “We need our roads. And the fact is, if I cycle on the roads at the moment – or even driving the couple of miles to my station – then I am afraid to say the potholes are so vast.
“It is a series of ‘s’ bends and it is really dangerous because people are just avoiding them.
“I absolutely understand the need to take some of that money and put it across [roads]. But the important thing is it is all being spent on transport and everything should feed into each other as a system.”
Gaza and transatlantic trade are set to dominate talks between Donald Trump and Sir Keir Starmer when the pair meet in Scotland on Monday.
Downing Street said the prime minister would discuss “what more can be done to secure the ceasefire [in the Middle East] urgently”, during the meeting at the president’s Turnberry golf course in Ayrshire.
Talks in Qatar over a ceasefire ended on Thursday after the US and Israel withdrew their negotiating teams.
Mr Trump blamed Hamas for the collapse of negotiations as he left the US for Scotland, saying the militant group “didn’t want to make a deal… they want to die”.
Sir Keir has tried to forge close personal ties with the president, frequently praising his actions on the world stage despite clear foreign policy differences between the US and UK.
The two leaders are expected to discuss this agreement when they meet, with the prime minister likely to press the president for a lowering of outstanding tariffs on imports such as steel.
Prior to the visit, the White House said the talks would allow them to “refine the historic US-UK trade deal”.
Extracting promises from the president on the Middle East may be harder though.
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Despite some reports that Mr Trump is growing frustrated with Israel, there is a clear difference in tone between the US and its Western allies.
As he did over the Ukraine war, Sir Keir will have to walk a diplomatic line between the UK’s European allies and the White House.
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The UK, French and German leaders spoke over the weekend and agreed to work together on the “next phase” in Gaza that would see transitional governance and security arrangements put in place, alongside the large-scale delivery of aid.
Under pressure from members of his own party and cabinet to follow France and signal formal recognition of Palestine, Sir Keir has gradually become more critical of Israel in recent months.
On Friday, the prime minister said “the starvation and denial of humanitarian aid to the Palestinian people, the increasing violence from extremist settler groups, and Israel’s disproportionate military escalation in Gaza are all indefensible”.
Government sources say UK recognition is a matter of “when, not if”, however, it’s thought Downing Street wants to ensure any announcement is made at a time when it can have the greatest diplomatic impact.
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Cabinet ministers will be convened in the coming days, during the summer recess, to discuss the situation in Gaza.
The UK has also been working with Jordan to air drop supplies, after Israel said it would allow foreign countries to provide aid to the territory.
Downing Street says Ukraine will also likely be discussed in the meeting with both men reflecting on what can be done to force Russia back to the negotiating table.
After the meeting at Turnberry, the prime minister will travel with the president to Aberdeen for a private engagement.
Mr Trump is also expected to meet Scottish First Minister John Swinney while in the country.
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“A wave of new cafes, bars, music venues and outdoor dining” could come to the UK – as the government unveils plans to overhaul planning rules and “breathe new life into the high street”.
Under the proposals, ministers also want to reform licensing rules to make it easier for disused shops to be converted into hospitality venues.
In a statement, Chancellor Rachel Reeves said she planned to scrap “clunky, outdated rules… to protect pavement pints, al fresco dining and street parties”.
The reforms also aim to prevent existing pubs, clubs, and music venues from suffering noise complaints when new properties hit the market.
Developers who decide to build near those sites will be required to soundproof their buildings.
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As part of dedicated “hospitality zones”, permission for al fresco dining, street parties and extended opening hours will be fast-tracked.
The government says the reforms aim to modernise outdated planning and licensing rules as part of its Plan for Change, to help small businesses and improve local communities.
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The rough plans will be subject to a “call for evidence” which could further shape policy.
Business Secretary Jonathan Reynolds said the proposals will “put the buzz back into our town centres”.
“Red tape has stood in the way of people’s business ideas for too long. Today we’re slashing those barriers to giving small business owners the freedom to flourish,” he said.
The hospitality industry has broadly welcomed the changes but argued tax reform was also essential.
Kate Nicholls, chairwoman of UKHospitality, described the proposals as “positive and encouraging”.
However, she added: “They can’t on their own offset the immediate and mounting cost pressures facing hospitality businesses which threaten to tax out of existence the businesses and jobs that today’s announcement seeks to support.”
While supporting the reforms, Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), had a similar message.
“These changes must go hand in hand with meaningful business rates reform, mitigating staggering employment costs, and a cut in beer duty so that pubs can thrive at the heart of the community,” she said.
In July, BBPA estimated that 378 pubs will shut this year across England, Wales and Scotland, compared with 350 closures in 2024, which it said would amount to more than 5,600 direct job losses.
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Pubs closing at a rate of one a day
Bar chain Brewdog announced this week that it would close 10 sites, partly blaming “rising costs, increased regulation, and economic pressures”.
Andrew Griffith MP, shadow business secretary, said: “Though any cutting of red tape for hospitality businesses is welcome, this is pure hypocrisy and inconsistency from Labour.”
He said the government was “crippling the hospitality industry by doubling business rates, imposing a jobs tax and a full-on strangulation of employment red tape”.