Senior figures in the built environment industry have reacted angrily at the government’s plans to scrap the northern leg of the HS2 high speed rail link.
In a speech at the Conservative Party conference earlier today [4 October], Rishi Sunak confirmed that the Birmingham to Manchester leg of HS2 would be ditched.
The prime minister blamed the huge costs of delivering the project and long delays and pledged to “reinvest every single penny” of the £36bn saved in transport projects across the country.
Although Mace group chairman and CEO Mark Reynolds welcomed the government’s commitment to building the new HS2 station at Euston “conversely, the decision to not build new high-speed rail north of Birmingham to Manchester will seriously undermine business and investor confidence in the UK and our ability to deliver on our promises – as well as having a chilling effect on the UK’s construction industry.
“The use of the expected £36bn saving to create Network North instead is a bold statement, and we look forward to seeing the detail of the hundreds of planned new rail and road projects. It is now more important than ever that government release an updated Infrastructure and Construction Pipeline to give confidence to investors and allow the sector to plan and invest in jobs, skills and equipment to meet the announced demand.”
Mark Allan, chief executive officer of Landsec, added: “As a major investor in Manchester we’re disappointed that HS2 will not continue as planned to the city. It will be critical that the replacement projects are now seen through to completion and with the pace promised.
“More broadly we’re concerned about what the cancellation says about our ability, or lack of, as a country to deliver major infrastructure projects. It is now very difficult for any investor – domestic or international – to have confidence in our ability to deliver what we say we’re going to deliver. If we want to boost investment into the economy, spread growth around the country and deliver a better quality of life for people living and working around the UK, we need to change the way we get things done.”
Richard Flenley, partner at Charles Russell Speechlys, said: “Once hailed as the great project to increase connectivity between London, the North and Scotland, the future for HS2 seems bleak after confirmation that government is pulling the plug on the northern leg – another blow to the Levelling Up agenda, and the basis for HS2’s creation in the first place.
“The impact on homeowners and businesses whose properties have been threatened by potential acquisition cannot and must not be forgotten. If the northern leg does not proceed, will those adversely impacted to date be compensated? To learn that part of the scheme will now be cancelled – after years of property owners feeling stuck in a state of limbo – will leave many feeling that this has all been for nothing.
“Whatever decision is made about HS2’s future and the Levelling Up agenda, the adverse impact of HS2 has already been felt – and for some, they now won’t see any benefits. This calls in to question how ‘fit for purpose’ the law currently is at striking a fair balance between enabling major infrastructure projects and the interests of those business and homeowners who may (or may not) face compulsory acquisition of their properties at some point in the future.”
Danny Hope, regional director – North West at Hydrock, said: “HS2 was more than just a railway line. It was a symbol of hope and opportunity for the north. A chance to level up the playing field and close the economic gap with the south – something the Conservatives promised to achieve during their 2019 election campaign.
“Now, that chance feels lost. Unless the north is bailed out through a combination of local authority and private sector investment, we’ve been left behind once again. We were given hope with talks of levelling up, but in hindsight we’ve been blinded by hollow Whitehall rhetoric. The government’s chopping and changing with policies like Levelling Up and investment zones have ultimately become muddled, ineffective and now, axed. It’s a betrayal of everything that the government promised the north. It’s a betrayal of our people and our future.
“While investment in localised infrastructure, such as Network North and the upgrades to the energy coastline, is welcomed, the government is missing the point that these are solutions to two distinctly different needs: HS2 is unequivocally integral to joining the country up and bringing long-term economic value at a macro level; while improving local services brings value at a micro-level.
“I urge the government to reconsider this decision. It’s not too late to save HS2 and drive growth across the whole country. This, more than anything, is a long-term decision for a brighter future.”
Pamela Chesterman, planning partner at Irwin Mitchell, added: “The pledge for Levelling Up continues to be pushed to one side. One of the key arguments in favour of HS2 was that it would improve transport links between the north and south of England, making it easier and faster for people to travel and do business. However, even with HS2, journey times between London and Manchester would still be around an hour and a half.
“I cannot argue that continuing to spend billions on a scheme that has potential to cut travel times by 30 minutes does seem ludicrous during the various crisis we are all enduring, but this is the spin the government is now giving it. The reduction in travel time is one very obvious bonus, but had it delivered what it set out to, then the benefits would have also included longevity in stock and infrastructure, environmental enhancements and safer stations and connectivity for all users.
“The regional mayors are already talking about how discussions with foreign investors are losing some momentum having heard during the last fortnight that the intention was to scrap HS2 north leg. It seems a certainty now that it has been confirmed that the foreign investors will have to rethink their strategies for UK investment, particularly where their business model requires connectivity and infrastructure.
In a statement, the Royal Institution of Chartered Surveyors, said: “The RICS manifesto called for investment in regional rail infrastructure, and we look forward to more detail on Network North. Investors will be looking for certainty and sustainability, and plans should be developed with regional communities. Key to this will also be any further plans to address the housing shortage.
“As facts on climate change have not changed and neither has the need to support the next generation, we are hopeful that the new network will embrace sustainable practices. RICS and our members are equipped to support this, and we highlight our recent launch of our world-leading standard for consistent and accurate carbon measurement [Whole Life Carbon Assessment standard].
“RICS have long called for infrastructure that supports communities and growth led by employment. Our latest construction survey has however continued to show skills shortages in construction, and the skills agenda will be critical to delivery of these projects. Industry must take a multifaceted approach to address the skills crisis and ensure greater diversity, equity and inclusion.”
