The UK government has launched an independent review into “whether and how” the HS2 high speed railway linking London and the north should proceed, following a campaign pledge by Boris Johnson.
Led by Douglas Oakervee, the former chair of HS2 Ltd, the review will consider the benefits and impact of the infrastructure project, as well as its affordability, deliverability and scope. The findings will be delivered to Mr Johnson, chancellor Sajid Javid and transport secretary Grant Shapps by the autumn.
Mr Shapps said: “The prime minister has been clear that transport infrastructure has the potential to drive economic growth, redistribute opportunity and support towns and cities across the UK, but that investments must be subject to continuous assessment of their costs and benefits.”
The review panellists include Tony Berkeley, the former chair of the Rail Freight Group, mayor of the West Midlands conurbation Andy Street, chairman of Network Rail Peter Hendy, economist Andrew Sentence, chairman of Transport for the North John Cridland, civil engineer Michele Dix and academics Tony Travers and Stephen Glaister.
During the recent Conservative party leadership contest, Mr Johnson was under pressure from grassroots activists to jettison the project. Although he expressed concerns about rising costs, he said he would “hesitate” to scrap HS2.
“I do think it’s only responsible as an incoming government, with all the controversy surrounding the spend on HS2, which will probably be north of £100bn, it’s only responsible to have a short review without interrupting the timetable at Curzon Street [the HS2 terminus in Birmingham] or anywhere else,” he said in July.
The cost of HS2 is expected to rise by as much as £36bn, according to an internal review by Allan Cook, HS2 chairman, putting the final bill between £70bn and £85bn.
While Mr Shapps left open the possibility of scrapping the project, one rail industry insider said there was a widespread expectation that HS2 would still go ahead, albeit with marginal tweaks and potentially a greater focus on the second phase of the railway which aims to improve links to northern cities.
“The review is all about politics and keeping the Conservative party’s base happy. The rail industry generally expects it will produce relatively small changes and just try to spend more in the north sooner,” the person said. “The fact Doug Oakervee is chairing it is a big enough clue about where it’s heading.”
Adam Marshall, director of the British Chambers of Commerce, said that businesses believed that economic case for HS2 remained “strong”.
“While no project should have a blank cheque, business communities across the UK will be concerned about the potential for further delays to HS2. This review must work at pace with our business communities to improve and hone this crucial infrastructure project, which is so important to business confidence.”
Henri Murison, director of the Northern Powerhouse Partnership, said the railway remained vital for boosting connectivity for northern cities such as Leeds, Manchester, Newcastle, Preston and Glasgow.
“HS2 is a vital project to help rebalance the economy and make us more productive . . . the Northern Powerhouse Partnership will be engaging positively with the review to make the case for why HS2 is so necessary,” he said.
