Shapps insists promises ‘being fulfilled’ despite cutting HS2 line and northern rail downgrade
Grant Shapps has said promises the government made to the North on rail are “absolutely being fulfilled” despite the eastern leg of HS2 to Leeds being scrapped and plans for Northern Powerhouse Rail being downgraded.
The transport secretary told Sky News that the government’s new £96bn Integrated Rail Plan for the North and the Midlands will deliver “faster” train journeys both earlier and cheaper than the original HS2 plans would have done.
But ministers have been widely criticised – including by individuals within the Conservative Party – for reneging on promises to upgrade links and instead proposing a scaled-back plan for the region.
Passengers had hoped the time of rail journeys from Bradford would be cut
Analysis: Travellers have cause to feel let down over new rail plan
One senior Tory criticised the government for “selling perpetual sunlight” and delivering “moonlight” for people in the north of England.
Labour leader Sir Keir Starmer said: “The north of England has been betrayed.”
And speaking to Sky News on Friday, shadow Northern Ireland secretary and MP for Sheffield Heeley said: “For this transport secretary to pretend to the people of the North that they are delivering what they promised is quite frankly nothing less than an insult to their intelligence.”
Addressing reporters on Thursday, Prime Minister Boris Johnson described the announcement as “a much better plan” and said it was “total rubbish” to suggest he was breaking his former promises on rail connections.
What PM has said before about rail plans
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‘North of England has been betrayed’
Unveiling the new plan in the Commons, Mr Shapps confirmed that the eastern leg of HS2 will no longer go all the way to Leeds. It will instead stop in the East Midlands near Nottingham.
But on Friday morning, the transport secretary denied plans for the eastern leg are being scrapped, telling Sky News that to say otherwise is “not accurate reporting”.
He claimed some complaints were from “largely Labour leaders who are completely misleading people” – despite several Tory MPs also expressing their disappointment with the plan.
The government unveiled its new Integrated Rail Plan on Thursday
Plans for HS2 were originally meant to connect London with the city centres of Birmingham, Manchester, and Leeds.
The transport secretary told MPs the new £96bn rail plan will instead deliver three high-speed lines – HS2 Crewe to Manchester, Birmingham to East Midlands Parkway, Warrington to Manchester – but not HS2 to Leeds or Northern Powerhouse Rail Leeds to Manchester.
The government’s own chart shows rail times will be improved but will fall short on original plans in some areas
Justifying the revised project, Mr Shapps said it “will bring benefits at least a decade or more earlier”, adding that under the original scheme, HS2 would not reach the North until the early 2040s.
“We will provide a journey time of 33 minutes from Leeds to Manchester, a significant, a very significant, improvement,” he told MPs, adding that the new project “will provide a better service than the outdated plan for HS2 a decade ago”.
But Conservative chairman of the Transport Select Committee Huw Merriman told the Commons the government’s new plan “compromises some fantastic projects that will slash journey times and better connect our great northern cities”.
The prime minister said the announcement on rail links in the North is the greatest thing to happen ‘this century’
Another Conservative MP, Craig Tracey, said it is “really difficult” to share the optimism in the announcement because it is “very disappointing to hear that HS2 will not be scrapped in full”.
Fellow Tory MP Robbie Moore pointed out that Bradford – the seventh-largest city in the UK – will still not have a mainline station under the new plans.
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New rail plan ‘a monumental achievement’
Conservative MP for Thirsk and Malton in Yorkshire, Kevin Hollinrake, added that the original HS2 project could have been a great economic boost for Bradford.
But Mr Shapps said the “landmark” programme would still deliver and promised work will start “by Christmas”.
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Labour: ‘Great train robbery’ for North
Mr Shapps said the government will “study how best to take HS2 trains into Leeds”.
Northern political leaders had warned the government will pass up huge economic benefits and betray promises to voters if, as expected, it cancelled the eastern leg of HS2 and a new Manchester-Leeds line.
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The cyber attack on Jaguar Land Rover (JLR), which halted production for nearly six weeks at its sites, cost the company roughly £200m, it has been revealed.
Latest accounts released on Friday showed “cyber-related costs” were £196m, which does not include the fall in sales.
Profits took a nose dive, falling from nearly £400m (£398m) a year ago to a loss of £485m in the three months to the end of September.
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Revenues dropped nearly 25% and the effects may continue as the manufacturing halt could slow sales in the final three months of the year, executives said.
The impact of the shutdown also hit factories across the car-making supply chain.
Slowing the UK economy
The production pause was a large contributor to a contraction in UK economic growth in September, official figures showed.
Had car output not fallen 28.6%, the UK economy would have grown by 0.1% during the month. Instead, it fell by 0.1%.
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How cyber attack ‘effectively hacked GDP’
Read more from Sky News:
Telegraph future in limbo again as RedBird abandons £500m deal
Reacting to JLR’s impact on the GDP contraction, its chief financial officer, Richard Molyneux, said it was “interesting to hear” and it “goes to reinforce” that JLR is really important in the UK economy.
The company, he said, is the “biggest exporter of goods in the entire country” and the effect on GDP “is a reflection of the success JLR has had in past years”.
Recovery
The company said operations were “pretty much back running as normal” and plants were “at or approaching capacity”.
Production of all luxury vehicles resumed.
Investigations are underway into the attack, with law enforcement in “many jurisdictions” involved, the company said.
When asked about the cause of the hack and the hackers, JLR said it was not in a position to answer questions due to the live investigation.
A run of attacks
The manufacturer was just one of a number of major companies to be seriously impacted by cyber criminals in recent months.
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Are we in a cyber attack ‘epidemic’?
High street retailer Marks and Spencer estimated the cost of its IT outage was roughly £136m. The sum only covers the cost of immediate incident systems response and recovery, as well as specialist legal and professional services support.
The Co-Op and Harrods also suffered service disruption caused by cyber attacks.
Four people were arrested by police investigating the incidents.
Sir Keir Starmer and Rachel Reeves have scrapped plans to break their manifesto pledge and raise income tax rates in a massive U-turn less than two weeks from the budget.
The decision, first reported in the Financial Times, comes after a bruising few days which has brought about a change of heart in Downing Street.
Read more: How No 10 plunged itself into crisis
I understand Downing Street has backed down amid fears about the backlash from disgruntled MPs and voters.
The Treasury and Number 10 declined to comment.
The decision is a massive about-turn. In a news conference last week, the chancellor appeared to pave the way for manifesto-breaking tax rises in the budget on 26 November.
She spoke of difficult choices and insisted she could neither increase borrowing nor cut spending in order to stabilise the economy, telling the public “everyone has to play their part”.
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‘Aren’t you making a mockery of voters?’
The decision to backtrack was communicated to the Office for Budget Responsibility on Wednesday in a submission of “major measures”, according to the Financial Times.
The chancellor will now have to fill an estimated £30bn black hole with a series of narrower tax-raising measures and is also expected to freeze income tax thresholds for another two years beyond 2028, which should raise about £8bn.
Tory shadow business secretary Andrew Griffith said: “We’ve had the longest ever run-up to a budget, damaging the economy with uncertainty, and yet – with just days to go – it is clear there is chaos in No 10 and No 11.”
How did we get here?
For weeks, the government has been working up options to break the manifesto pledge not to raise income tax, national insurance or VAT on working people.
I was told only this week the option being worked up was to do a combination of tax rises and action on the two-child benefit cap in order for the prime minister to be able to argue that in breaking his manifesto pledges, he is trying his hardest to protect the poorest in society and those “working people” he has spoken of so endlessly.
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Ed Conway on the chancellor’s options
But days ago, officials and ministers were working on a proposal to lift the basic rate of income tax – perhaps by 2p – and then simultaneously cut national insurance contributions for those on the basic rate of income tax (those who earn up to £50,000 a year).
That way the chancellor can raise several billion in tax from those with the “broadest shoulders” – higher-rate taxpayers and pensioners or landlords, while also trying to protect “working people” earning salaries under £50,000 a year.
The chancellor was also going to take action on the two-child benefit cap in response to growing demand from the party to take action on child poverty. It is unclear whether those plans will now be shelved given the U-turn on income tax.
A rough week for the PM
The change of plan comes after the prime minister found himself engulfed in a leadership crisis after his allies warned rivals that he would fight any attempted post-budget coup.
It triggered a briefing war between Wes Streeting and anonymous Starmer allies attacking the health secretary as the chief traitor.
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Wes Streeting: Faithful or traitor? Beth Rigby’s take
Read more: Is Starmer ‘in office but not in power’?
The prime minister has since apologised to Mr Streeting, who I am told does not want to press for sackings in No 10 in the wake of the briefings against him.
But the saga has further damaged Sir Keir and increased concerns among MPs about his suitability to lead Labour into the next general election.
Insiders clearly concluded that the ill mood in the party, coupled with the recent hits to the PM’s political capital, makes manifesto-breaking tax rises simply too risky right now.
But it also adds to a sense of chaos, given the chancellor publicly pitch-rolled tax rises in last week’s news conference.
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