The letter was shared today (25 September) by the High Speed Rail Group, which represents 21 organisations including the Railway Industry Association, Siemens Mobility, High Speed 1 and Thales GTS UK.
The high-speed rail project is intended to run between London, the Midlands and the North. The first line, between London and Birmingham, is already being built, while a planned extension to Leeds was cancelled in November 2021.
The other northern extension, to Manchester, has come under scrutiny in the last week. Former transport secretary Grant Shapps told the BBC yesterday it would be “crazy” not to review the plans as costs rise for the already massively over-budget railway, while prime minister Rishi Sunak is reportedly keen to end the initial line at Old Oak Common in West London, six miles from the planned terminus of Euston.
Construction of the entire project was originally estimated to cost up to £36bn. The first phase from Euston to Birmingham is now expected to cost £44.6bn, according to The Guardian.
“Nothing is more important in business than certainty and confidence,” said the High Speed Rail Group in the letter. “That is the basis on which we invest and we grow, and the basis on which we employ people and develop their skills. Our growth supports the government’s promise on taking office last year to grow the economy and create better paid jobs.”
Previous “clarity and certainty” provided by Sunak and Jeremy Hunt was therefore welcome, the leaders said. HS2 is the biggest public infrastructure investment project in the country, they added.
“Delivering big infrastructure properly means committing in the long term, giving certainty to the businesses building it and planning to rely on it in future. At the Autumn Statement, only 10 months ago, the chancellor committed unequivocally to HS2 Phase 2, stating that ‘smart countries build on their long-term commitments rather than discard them... we will deliver... HS2 to Manchester.’
“We agree that you were right to make this long-term commitment. Discarding it now will have serious implications for the UK economy. When further uncertainty arose around HS2 earlier this year, the chancellor once again intervened to offer business certainty and confidence. When asked whether HS2 would reach Euston, chancellor, you insisted you did not see ‘any conceivable circumstance’ it would not.”
Addressing the prime minister, the group said he had been “clear” in his support for HS2 over the years, including telling MPs in March “I think it’s important that we get the big infrastructure projects right, that we do them properly.”
“In light of the above, the renewed speculation over the last week has been deeply alarming and destabilising to the industry as a whole,” the letter said. “It is a particular blow to the 30,000 people working to deliver this vital infrastructure each and every day, and the many thousands of businesses in the North West who are currently investing in the area based on HS2 reaching Manchester.
“The reputation of the UK as a place to invest and do business has already suffered in recent years. Statements by some politicians have had the effect of undermining the UK’s reputation for certainty, confidence, and predictability of decision-making in our country. Together, you have both worked hard to address these reputational challenges since taking office one year ago.
“This hard work would be undone if the rug is pulled from under HS2. The scope of the project has already changed three times in the last three years, with the removal of the Eastern Leg, the removal of the Golborne Link and then the two-year deferral of certain works. Every change of scope both adds to the costs – the two-year deferral alone will cost at least £380m, with hundreds of jobs already being cut because of that decision. At the same time, it reduces the benefits of the scheme, weakening the business case.”
The industry leaders concluded: “Perhaps most important of all, from a business perspective, these constant changes to a flagship infrastructure project add to the perceived risk of the UK as a place to do business, as well as adding to the cost of each and every infrastructure project in the future. At a time when we need to compete globally harder than ever, and we need to deliver infrastructure more efficiently than in the past, we cannot overstate how harmful this is.
“We ask that you move urgently to quell the speculation and reaffirm your commitment to the delivery of HS2 Phase 2, from Manchester to Euston in full, to sustain the growth in widespread economic benefits this project is already delivering.”
Speaking to BBC News this morning, Sunak said he would not comment on speculation over HS2 changes.
“What I would say is we're absolutely committed to levelling up and spreading opportunity around the country,” he said. “And transport infrastructure is a key part of that, but not just big rail projects, but also local projects, improving local bus services, fixing potholes, all of these things make a difference in people's day-to-day lives.”
A decision could be made as soon as this week, the BBC added.
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