Politics
Government should look into HS2 Lite
One of the fundamental injustices inherent in the British economy is the disparity known as the north-south divide. Regardless of the government in power, this inequity remains. Boris Johnson's much-vaunted upgrade turned out to be a mirage. Will next week's first Labor budget deliver anything other than financial probity and fiscal rectitude?
THE reduction to the absurd One of the government's latest indifferences to the North was Rishi Sunak's decision to cancel the HS2 high-speed train line from Birmingham to Manchester. Europe's busiest passenger and freight corridor. Adding insult to injury, he traveled to Manchester to do it.
The irrationality of the decision became clear when the government monitored the National Audit Office found that faster trains from London to Birmingham would have fewer seats than existing services, reducing capacity by 17 per cent. The solution, apparently, was to incentivize people. . . do not travel by train. A replacement bus service was put in place from the start.
Yet last weekend the Labor Party reports refused that it could relaunch the northern part of HS2, even if he could find the money to extend the line from its west London terminus to Euston, adding billions to current costs. Once again, money for the South, but not for the North.
This is extremely short-sighted. The NAO warns that this poorly prepared project will mean that the full benefits of the first phase of HS2 will not be realized, limiting economic growth and increasing environmental costs. THE National Infrastructure Commission and the Public Accounts Committee accept.
There is a way out of this. Mayors of Manchester and the Midlands, chambers of commerce leaders, university vice-chancellors and many infrastructure companies have developed HS2 Lite: a new, slightly lower speed line that would deliver 85% of the benefits of HS2 but at only 60 per cent of the cost. Former Conservative chancellor George Osborne, who attacked Rishi Sunak's cancellation of the northern arm of HS2 as an act of infrastructure vandalismsupports the idea.
The new plan It would use the 592 million plots of land and thousands of properties that the previous government had purchased along the Northern route and save the 100 million it would cost for sanitation works there. The mayors say their plan is expected to unlock up to $70 billion in economic growth per year, contributing substantially to regional economies and providing a strong financial return to the Treasury.
Partnerships with the private sector could bring the government 20 billion in revenue and contribute to the government's objective of 75 percent rail freight growth by 2050, essential to national carbon reduction targets. The alternative is that demand on the West Coast Mainline and the M6, already one of the UK's most congested motorways, will exceed capacity within a decade, creating new obstacles to economic growth.
Rachel Reeves won't find the money in her budget speech next week. But it could set up a steering group in which central government, local authorities and the private sector would come together to develop a feasibility study, to be reported within six months. Labour's mantra about the importance of economic growth will be meaningless if that growth is limited to the London area. It is also a question of social justice.
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