The split over High Speed 2’s price tag exploded today as Boris Johnson prepares to decide whether it can go ahead.
It’s thought the Prime Minister could make a decision on the rail link as soon as this week after a leaked review warned its cost could spiral from £56bn to £106bn.
The costs have caused a split in the Conservative Party, some of whose MPs have seats along the line while others want the money spent elsewhere.
Tory MP for Chesham and Amersham Cheryl Gillan today warned the government could be “conned” into giving HS2 the green light without knowing about the full risk to taxpayers.
According to the Sunday Telegraph, taxpayer-backed HS2 Ltd has been “revising” agreements with firms to take on more risk from private contractors.
And the project’s former strategy director Colin Morris claimed the firm was “artificially” making the estimated costs of the scheme appear lower than they might be.
(Image: WPA Pool)
Mr Morris told the newspaper the line from London to Birmingham, Manchester and Leeds was “not fit for purpose” adding: “It’s like taking a mortgage out on a house you can’t afford then expecting our children to pay for it.”
Yet sources close to HS2 hit back by telling the Observer the line could now cost £12bn to cancel – £9bn that has already been spent plus £3bn in cancelling preparation work.
And Tory West Midlands mayor Andy Street warned it was “Narnia-land” to believe the plan could be scrapped without huge cost.
He told the Observer: “If you suddenly welch on [HS2], where does it leave us as an international power?”
Brexit Secretary Stephen Barclay said his gut feeling was the project should go ahead, telling the BBC: “We have a strong commitment to levelling up all parts of the United Kingdom.
“HS2 is a key part of that – not just from speed but more from a capacity point of view in the line.
(Image: HS2/PA)
“And that is a very clear commitment we have given the North.”
Yet Downing Street sources played down his comments, insisting they did not necessarily mean the line was going ahead.
Reports today suggest Boris Johnson will hold a summit in the coming week to decide the future of the scheme.
A No10 source did not rule out a decision coming this week, while the Sunday Times reported it is expected in the next fortnight.
The first phase of HS2 to Birmingham was due to open in 2026 with Manchester and Leeds extensions in 2033.
But a leaked draft of expert Doug Oakervee’s review said it would only be finished by 2040.
An HS2 spokesman told the Sunday Telegraph: “Following the collapse of Carillion, HS2 Ltd recognised the need to engage a healthy industry while continuing to protect value for money for the taxpayer.
“Instead of artificially passing risk back and forth, as has happened on other publicly funded projects, contractors who do not meet the required performance will lose a proportion of their fee.
“This incentivises good performance and prevents windfall profits from public money.”
