Two of England’s mayors have outlined their proposals to revive rail in the Midlands and North post-HS2, insisting they “won’t accept a do-nothing scenario”.
Greater Manchester’s mayor, Andy Burnham, and his West Midlands counterpart, Andy Street, teamed up after the government axed the northern leg of the high speed rail project last year, and are trying to find an alternative to improve services between the cities with the help of the private sector.
Now the pair have offered up three options – from smaller upgrades through to a whole new line – they believe would provide “real benefits” to both their areas.
Briefing journalists at an event in Birmingham, Mr Burnham said failing to increase capacity in the North West “would be damaging to economic growth in the regions and would mean the West Midlands and Greater Manchester would be set back”.
Image: West Midlands mayor Andy Street (left) and Greater Manchester mayor Andy Burnham
He also said it would leave the UK “with quite a serious transport headache for the rest of this century”, with both the West Coast Main Line and the M6 already “at capacity”.
The mayor added: “Having been promised Northern Powerhouse Rail with HS2 at its heart… we won’t accept a do-nothing scenario.”
Mr Street outlined the alternatives on the table following the work they carried out with a private sector consortium – including engineers, construction firms and finance experts, led by former HS2 boss Sir David Higgins.
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• Enhance the existing West Coast Main Line to “improve some of the most constrained parts” – though Mr Street warned it was the “minimal capital” option offering “minimum advantage”; • Build major bypasses to the line at the southern end, as well as between Crewe and Stockport, alongside upgrades to the existing line; • Construct a completely new and segregated line, but not built to the specification of the high-speed line in the south.
They could not commit to Sky News that there would be no need for public funding, but insisted it was “the less complicated part of the network” due to no need for tunnelling, and the transport benefits would be “huge”.
Mr Burnham also denied the ideas were “HS2 by the back door”, telling reporters they had “reluctantly” accepted the decision to scrap the second leg of the high speed project.
But Mr Street added: “We do believe there is a real benefit in one of those three or some blend between them,” added Mr Street.
Image: The mayors shared a map of where their proposals would be focused – between Birmingham and Manchester.
Both mayors also praised the approach of Transport Secretary Mark Harper to their work, saying they held a “constructive” meeting with him last week and planned further talks in March.
The minister had previously suggested he was “open-minded” to any proposals, though he remained “somewhat sceptical” about whether HS2 could be completed without public investment.
Asked by Sky News about doubts in Westminster over their project, Mr Burnham said there were schemes “around the world” that had been largely privately funded, such as the expansion of the TGV in France, showing it can work.
“Those sceptical MPs really should look up some of what’s been done in other parts of the world where infrastructure have been delivered successfully in a less costly way than the original HS2 [line] and where the private sector has played a considerable role in taking the risk off the public sector,” he said.
“This is not unrealistic or pie in the sky. There are plenty of examples.”
West Midlands mayor Andy Street also praised the approach of Mr Harper, telling Sky News: “It would have been very easy for the government to double down on the difficult decision they took at the Conservative Party conference.
“They have not done that.”
He adds: “The transport secretary has said it. He says he is ‘open-minded’ and described the meeting last week as ‘constructive’, so they are definitely willing to examine the outputs of this.”
But despite all the work with the private sector, would the final plan still need taxpayer cash?
“Not necessarily,” said Mr Burnham. “But that’s what [our] work will be looking at.”
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Building society chiefs will this week intensify their protests against the chancellor’s plans to cut cash ISA limits by warning that it will push up borrowing costs for homeowners and businesses.
Sky News has obtained the draft of a letter being circulated by the Building Societies Association (BSA) among its members which will demand that Rachel Reeves abandons a proposed move to slash savers’ annual cash ISA allowance from the existing £20,000 threshold.
The draft letter, which is expected to be published this week, warns the chancellor that her decision would deter savers, disrupt Labour’s housebuilding ambitions and potentially present an obstacle to economic growth by triggering higher funding costs.
“Cash ISAs are a cornerstone of personal savings for millions across the UK, helping people from all walks of life to build financial resilience and achieve their savings goals,” the draft letter said.
“Beyond their personal benefits, Cash ISAs play a vital role in the broader economy.
“The funds deposited in these accounts support lending, helping to keep mortgages and loans affordable and accessible.
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“Cutting Cash ISA limits would make this funding more scarce which would have the knock-on effect of making loans to households and businesses more expensive and harder to come by.
“This would undermine efforts to stimulate economic growth, including the government’s commitment to delivering 1.5 million new homes.
“Cutting the Cash ISA limit would send a discouraging message to savers, who are sensibly trying to plan for the future and undermine a product that has stood the test of time.”
The chancellor is reportedly preparing to announce a review of cash ISA limits as part of her Mansion House speech next week.
While individual building society bosses have come out publicly to express their opposition to the move, the BSA letter is likely to be viewed with concern by Treasury officials.
The Nationwide is by far Britain’s biggest building society, with the likes of the Coventry, Yorkshire and Skipton also ranking among the sector’s largest players.
In the draft letter, which is likely to be signed by dozens of building society bosses, the BSA said the chancellor’s proposals “would make the whole ISA regime more complex and make it harder for people to transfer money between cash and investments”.
“Restricting Cash ISAs won’t encourage people to invest, as it won’t suddenly change their appetite to take on risk,” it said.
“We know that barriers to investing are primarily behavioural, therefore building confidence and awareness are far more important.”
The BSA called on Ms Reeves to back “a long-term consumer awareness and information campaign to educate people about the benefits of investing, alongside maintaining strong support for saving”.
“We therefore urge you to affirm your support for Cash ISAs by maintaining the current £20,000 limit.
“Preserving this threshold will enable households to continue building financial security while supporting broader economic stability and growth.”
The BSA declined to comment on Monday on the leaked letter, although one source said the final version was subject to revision.
The Treasury has so far refused to comment on its plans.