Campaign Reply: HS2

Thank you for contacting me about HS2.

The Government gave approval for HS2 in 2020 and construction on Phase One is now well underway. It is already supporting around 30,000 jobs and working with 3,000 businesses in its supply chain, 97 per cent of which are UK-based. There will be two branches: one to central Birmingham; and one to Handsacre, near Lichfield, meaning passengers will be able to travel on HS2 trains through to Manchester, Liverpool and Scotland, joining the West Coast Main Line for the rest of their journeys.

This phase of HS2 will have a significant impact on journey times from Birmingham to central London, with a reduction of half an hour, from around 80 minutes to 49 minutes. It will also reduce the journey time between London and Manchester by nearly half an hour (down to 100 minutes), facilitated through an upgrade of Handsacre Junction which will allow more trains to reach key destinations north of Birmingham. Additionally, it will have a transformative effect on rail capacity: nearly doubling capacity up to 250,000 seats per day between London and Birmingham.

As costs have escalated on the project it is only right that the Government considered the future phases of the project. After analysing the most up to date data the Prime Minister confirmed that the Government will not proceed with Phases 2a, 2b and HS2 East. Most recent estimates show that the line to Manchester might not be in operation until as late as 2041 – 18 years from now. Meanwhile, benefits analysis illustrates that the rising costs and changed travel patterns post-covid have had a significant impact on the benefits of the project. The original assessment suggested HS2 would return £2.30 in economic value for every £1 we invested, now that calculation suggests it is 80 pence for every £1 invested by the taxpayer.

The decision to not proceed with the latter stages of HS2 will provide a transformative opportunity for transport infrastructure. Every pound that is saved from not proceeding with further phases of the scheme will instead be reinvested in hundreds of transport projects across the country, totalling £36 billion of investment. Every penny of the £19.8 billion committed to the Northern leg of HS2 will be reinvested in the North; and every penny of the £9.6 billion committed to the Midlands leg will be reinvested in the Midlands; while the full £6.5 billion saved through a new approach at Euston will be distributed to every other region in the country.

This new funding will significantly benefit the areas that HS2 was originally intended to support through Network North. This includes £3 billion for a plan to connect the great Northern cities, such as Liverpool, Manchester, Leeds, Newcastle, Sheffield, Hull, and Bradford. Bradford will also receive £2 billion for a new station and railway improvements, which will result in a 30-minute journey to Manchester via Huddersfield. Additionally, there is £2.5 billion allocated for a new West Yorkshire mass transit system, improving connections around Leeds. This funding is in addition to the £12 billion allocated to enhance connectivity between Manchester and Liverpool.

These projects are indicative of a new approach, that the best way to improve transport across the country is not investing a third of the transport budget in one project but rather improving the everyday local transport people want and use the most. This is reflected in an analysis by The Rail Needs Assessment for the Midlands and the North by the National Infrastructure Commission, which found that packages focusing on regional travel could deliver £2.5-£4.5 billion more in productivity benefits than those focusing on links between regions. This represents a 20-25 per cent difference. Additionally, the funding will allow upgrades to local bus networks and roads, with a record investment of £8.3 billion to address the issue of potholes.