Grant Shapps has hinted at a change to plans for HS2, as the northern section of the rail project looks set to be scrapped.
Sky News understands the high-speed line planned between Birmingham and Manchester will be binned by the prime minister due to concerns over the cost of the much delayed project.
And it is still unclear if the final section between Old Oak Common in west London and the planned central destination in the capital at Euston will go ahead.
Speaking to Sky News’ Sunday Morning with Trevor Phillips show, Mr Shapps would not confirm the reports, but he suggested there could be a change to the “sequencing” and “pace” of HS2 from the government due to the soaring price tag.
“Money is not infinite,” said the former transport secretary, who is now in charge of the Ministry of Defence.
“All of these big decisions where budgets are, particularly in the case of HS2, inexorably going higher and higher and higher, and your viewers are having to pay that bill, it is absolutely right that the government looks at it and says, hold on a minute, is this just a sort of open-ended cheque or are we going to make sure this project gets delivered to a pace and a timetable that actually works for the taxpayer?
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“We take those long-term decisions seriously, but we don’t think any amount of money, no matter how big the budget gets, that you should just carry on ploughing it in. There has a point where you say hold on a minute, let’s just take a break here.”
Mr Shapps also pointed to the impact of COVID and the Ukraine war on the public purse.
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“The country has to respond to the circumstances,” he said. “We did not know there would be coronavirus, a one in 100 year event… we didn’t know there would be a war on in Europe… so of course, if circumstances change, you have to look at the sequencing of the big infrastructure cash that you spend.
“Any government that doesn’t do that, any opposition that claims you don’t need to is not fit to govern this country.”
But the expected announcement was slammed by Labour’s mayor of Greater Manchester, Andy Burnham, who said people in the north of England were “always treated as second class citizens when it comes to transport”.
He told Sky News: “This was the parliament where they said they would level us up. If they leave a situation where the southern half of the country is connected by modern high speed lines and the north of England is left with Victorian infrastructure, that is a recipe for the north/south divide to become a north/south chasm over the rest of this century.
“That is why people here are fed up with false promises and also watching now what seems to be the desperate acts of a dying government. This is not right and not fair to people here who were given so many promises.”
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Mayor of Greater Manchester, Andy Burnham, attacked the decision to scrap the northern leg of the high speed rail line.
HS2 was first touted by Labour in 2009, but it was the coalition government that signed off the plan, designed to connected the South, Midlands and North of England with state of the art infrastructure.
Despite billions being poured into the project, it has been beset by delays and rising costs – with the eastern leg scrapped entirely and work between Birmingham and Crewe delayed due to the impact of inflation.
However, plans to scrap the northern leg have been criticised on all sides of the political spectrum.
Former Tory prime minister Boris Johnson called it “desperate” and “Treasury-driven nonsense”, while one of his predecessors, David Cameron, is said to have privately cautioned against it, with an ally telling the Times that HS2 was “a totemic Conservative pledge”.
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Her personal poll rating, minus 47, is worse than the lowest ebb of Iain Duncan Smith’s fated leadership and worse than when Boris Johnson resigned.
To rub salt into the wounds, a Sky News/YouGov poll this week found that the majority of Tory members think Robert Jenrick should be the leader, while half don’t think she should lead them into the next general election.
Being leader of the Opposition is often described as the hardest job in politics, but for Badenoch, with Reform stealing the march as the party of the right, it looks pretty much impossible.
For someone who needs to try to win people over, Badenoch has a curious style. She likes to be known as a leader who isn’t afraid of a fight and, at times, she approached our interview at the Conservative Party conference as if she was positively looking for one.
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A few times in our interview when I asked her a question she didn’t like, or didn’t want to answer (it is my job to ask all politicians hard questions), she seemed tetchy.
And when I deigned to ask her whether she admired Nigel Farage, she criticised me for asking the question. She asked why I was not asking her if I admire Sir Keir Starmer or Sir Ed Davey.
Her approach surprised me, as I had asked the prime minister exactly the same question a week before. He’d answered it directly, without arguing over why I had asked it: “I think he is a formidable politician,” said Sir Keir.
Badenoch told me she didn’t understand the question, and then told me she wasn’t interested in talking about him. It made for an awkward, ill-tempered exchange.
The facts remain that Farage is topping the polls, helped by Labour’s collapsing support and the Conservatives’ deep unpopularity.
And in the run-up to our interview, Reform drip-fed the news that 20 Tory councillors were defecting to Farage’s party.
There is open talk in Badenoch’s party about whether the Tories will need to try to come to some sort of agreement with Reform at the next election to try to see off Labour and ‘progressive parties’.
Farage says absolutely not, as does Badenoch – but many in her party do not think she has that luxury.
Andrew Rosindell, MP for Romford, told GB Newshe’ll lose his seat unless the two sides “work together” and said the right must unite to defeat the left. Arch-rival Robert Jenrick pointedly refuses to rule it out, saying only it’s “not the priority”. Meanwhile, party members support an electoral pact by two to one, according to our Sky News poll.
On the matter of whether these MPs, and party members, have a point, Badenoch bristled: “It is important that people know what we stand for. Robert Jenrick is not the leader of the Conservative Party, neither is Andrew Rossindell. I am the leader of the party and we are not having a coalition or a pact with Reform.”
When I ask colleagues if they think Badenoch is too aloof, too argumentative, too abrasive to lead this rebuild, the popular refrain for her supporters is that she is “a work in progress” and that it would be madness to change the leader again.
The question is, will she be given the time to develop? The plot to oust her is active and much of the chatter around this conference is whether she might be challenged before or after the May local elections.
There are some colleagues who believe it is better to give her more time to turn things around and, if May is truly dreadful and the party goes further backwards, remove her then.
Ahead of conference, when asked by Tim Shipman of the Spectator whether she would resign if the Conservatives go backwards in May, she said rather cryptically “ask me after the locals”.
When I asked Badenoch why she said that she replied, “let’s see what the election result is about”.
When I explained that it sounded rather like she might throw in the towel after next May and so was seeking clarification, she told me that I was asking irrelevant questions.
“Your viewers want to know how their lives are going to be better. Not be inside the Westminster bubble politics of who’s up, who’s down… It’s part of the reason why the country is in this mess. Perhaps if people had scrutinised Labour’s policies instead of looking at just poll ratings, they would be running the country better.”
But Tories are looking at poll ratings and there is a view from some in the party that if the Tories wait until another drubbing in the May local, Scottish and Welsh elections, there might not be much of a party apparatus left to rebuild from.
Image: More than half of Tory members want pact with Reform
In short, there is not a settled view on when a challenge might come, but with the party in the position it is in, talk of a challenge will not go away.
Badenoch wants to make the case that her “authentic conservatism” is worth sticking with and that the policies the Conservatives are announcing will give them a pathway back.
On borders, the Tories are trying to neutralise Reform with a very similar offer. On the economy and welfare cuts, they hope they can beat Labour and Reform.
But really, the question about this party and this leader is about relevance. The prime minister didn’t even bother to name check Badenoch in his conference speech, while Davey trained his guns on Farage rather than his traditional Tory rival.
Badenoch may not like being asked about Reform, might – in her words – not be interested in Reform, but her former voters, and the country, are. The enormous challenge for her in the coming months is to see if she can get them to look at her.