Reaction to cancellation of HS2: ‘Disappointed and disheartened’

ICE director of policy Chris Richards said: “The lesson from today’s announcement on HS2 is the UK must change how it approaches planning and delivering infrastructure.

“The stop/start approach the country takes to major infrastructure benefits no one. We need long-term plans, supported by evidence, long-term thinking on financing options, and robust and consistent policy to achieve desired outcomes.

“The Prime Minister outlined several projects and schemes in his speech. Many of these projects aren’t new, and many have been previously caught in this stop/start cycle of decision-making, which drives up costs. This is likely to happen again.

“Changing direction and switching projects delays businesses and communities from benefitting from infrastructure investment. These positive outcomes are how we should be measuring success, not just by lowest cost to deliver.

“The National Infrastructure Commission will publish its second National Infrastructure Assessment in a few weeks. Before politicians rush off to make the same mistakes again on infrastructure, they should pause, look at the Commission's advice and use this as a long-term plan to prioritise investment and rebuild credibility.”

National Infrastructure Commission chair Sir John Armitt said: “High Speed 2 was part of a long term strategy with clear objectives to link up some of the country’s largest cities. It had been planned for almost 15 years and under construction since 2017.

“The decision to stop the legs north and east of Birmingham is deeply disappointing, leaving a major gap in the UK’s rail strategy around which a number of city regions have been basing their economic growth plans.

“A High Speed 2 route between Manchester and London via Birmingham, alongside Northern Powerhouse Rail, would have enabled increased capacity and better connectivity both north-south and east-west.

“While it is welcome that the money will be redirected into rail and other transport projects for the North and Midlands, it’s not yet clear how the collection of schemes announced today will address the gap left behind by HS2.

“It will be for government to show it can turn the schemes into a coherent, long-term rail strategy and deliver it in a cost effective manner, in partnership with local leaders.”

Midlands Connect chairman Sir John Peace said: “We are disappointed and disheartened by the HS2 announcement.

“We must not start from scratch, we must work at pace to deliver HS2 Phase 1 all the way to Euston. There are also lessons to be learnt from the HS2 story so far.

“The Midlands Rail Hub and road programmes including the A5 which have been announced today resonate with us, these are our transformational East-West priorities for the region, which we recommended and have been progressing with Government.

“We are now calling for more detail on timescales and plan of action, and asking for a high-level urgent meeting with ministers, to ensure these plans and the benefits for the Midlands are delivered as quickly as possible.

“We will now work, like we always do, cross-party and in an open and collaborative way with all involved.”

Mace Group chairman and chief executive officer Mark Reynolds said: “HS2 will not deliver the growth and capacity we need without it terminating in central London – and so it is positive news for the country and the industry that the Prime Minister has committed once again to build the new station at Euston, working with the private sector to find a solution that works for everyone.

“His proposed Euston business and development zone may work, but the detail will be critical. We know there is a deliverable and cost-effective solution to Euston Station that can be built within the existing budget, allowing the station to open much earlier; enabling housing and placemaking to be offered sooner; and most importantly that delivers the best value to the taxpayer.

“We look forward to working with the Government to bring those proposals forward. It is important that we push on ahead with delivering the station at speed, providing clarity to industry on the pipeline of work and avoiding further disruption to the local community.

“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.”

Transport for the North chair Lord McLoughlin said: “The cancelling of the northern leg of HS2 is naturally disappointing. It’s undeniable that this will be seen by many as a missed opportunity for the region, and the country as a whole. Only last week, northern business and political leaders came together at our TfN Board to speak with ‘one voice’ to reaffirm our position that HS2 and NPR in full are vital to truly transform the North.

“The announcement of investment in the region is obviously welcome. And we will look to work with government to fully understand the implications for the North of the proposals set out today in the Prime Minister’s speech, and consult with our Board on the best way forward in light of this new change of policy. There are still quite a few areas that require further clarification from the Department for Transport, which we will be seeking from them.”

Rail Freight Group director general Maggie Simpson OBE said: “Scrapping HS2 whilst still allowing its trains to run on the existing network is the worst of all possible decisions.  The West Coast Main Line simply does not have the capacity for these extra trains alongside current services and rail freight growth, and investment will now be required to upgrade the route to ensure all trains can be accommodated.

“The private sector rail freight operators and customers who have already invested in new facilities and equipment also need urgent assurance that they will be able to access the rail capacity they need to bring new services onto rail.”

Railway Industry Association chief executive Darren Caplan said: “Many of the Railway Industry Association’s members will be extremely disappointed by the Government’s proposal announced today by Prime Minister Rishi Sunak to scrap HS2 between Birmingham and Manchester. This follows the previous scrapping of the Eastern Leg to Leeds, the Golborne Link to enable High Speed trains to get to and from Scotland, and the ‘pausing’ of the Old Oak Common to Euston stretch.

“The Government cites cost as its main reason for scrapping Phase 2, yet it should be remembered that this was the Government’s own scheme, built to its own specifications, and that the chopping and changing of the scope and timing of the project – adding considerably cost and delay – was entirely of the Government’s own making. Every time the scheme is rescoped it increases the cost.

“Scrapping HS2 Phase 2 is simply unnecessary and squanders the full benefits of Phase 1. The Government can work with metro mayors, the railway industry, rail suppliers, and other stakeholders, to agree a cost-effective way forward, including encouraging private investment to take pressure off the public purse.

“Today’s nuclear option is defeatist and sends a terrible signal to potential overseas investors that the UK simply cannot deliver large national transport infrastructure schemes. For companies with existing contracts, the implications of the Prime Minister’s proposal to release £6.5bn from the Euston site and create a development zone are particularly unclear. Already, multinational railway businesses will be making plans to rationalise their workforces and investments in a way that will be detrimental to the country’s rail supply sector specifically and UK plc more widely. This also blows a hole in the Government’s levelling-up and decarbonisation agendas – none of the replacement regional schemes referred to will have the same impact of building the HS2 in full.

“Going forward, the Government needs to safeguard the full HS2 route for future generations, and pass the relevant Bill in the King’s Speech next month. It needs to work to rebuild trust with the railway industry, for example providing reassurance that the £36bn investment it mentioned in regional transport projects announced today, such as Midlands Rail Hub and the electrification of the North Wales mainline, will go ahead following the short-notice cancellations of HS2’s Phase 2, Eastern Leg, Golborne Link, and the Old Oak Common to Euston ‘pausing’. And the Government needs to redouble its efforts to deliver certainty in rail by pushing on with rail reform, publishing the Rail Network Enhancements Pipeline for the first time in four years, setting out a plan for rolling stock, including a pipeline for new and refurbished trains, explaining its plans to decarbonise UK rail, including a rolling programme of electrification and fleet orders of hydrogen and battery trains, and give more freedom to bring forward private investment.

“Whilst we in the railway industry are of course concerned at the announcement made by the Prime Minister today, we now need to ensure the HS2 Phase 2 scheme can be taken on by future generations, that there will be rebuilt trust in Government rail announcements given the recent history, and provide more certainty generally, to enable rail businesses to plan their workforces and resources in the weeks and months ahead.”

Institute for Public Policy Research (IPPR) North director Zoë Billingham said: “The government has played fast and loose with HS2 and scrapping the Manchester leg is a betrayal of the North.

“Transport is the backbone of rebalancing our regions. New promises heard today to redeploy HS2 funding – across the whole country – not only undermines levelling up but also lacks credibility.

“Northern Powerhouse Rail and HS2 are in the long-term interest of the country. This is a double blow for the North.”

Sir Robert McAlpine CEO Paul Hamer said: “If we hope to build affordable infrastructure that offers value to the UK and stimulates economic and social growth, we need to take a longer-term view on infrastructure investment. With HS2 prized as the UK’s flagship levelling up project, it’s disappointing that the economic and political climate has deterred this ambitious project to improve and rebalance the overall economic health of the country from inception to completion.

“Infrastructure is one of the key pillars of economic longevity and improvement. Whilst it is promising for industry and the country to see the alternative infrastructure investments proposed, proposals must now be accompanied by robust delivery plans to ensure intentions are viable and we are still building towards a better future, rather than taking a step back.”

Ramboll UK managing director Philippa Spence said: “The axing of the northern leg of HS2 is a devastating blow. Major Capital Projects like HS2 have an incredible economic multiplier effect which enables skills growth and world-leading innovation in technology and construction techniques. When such projects are cut, there is a ripple effect on jobs and growth through many sectors. We haven't seen the likes of anything as significant as the recent infrastructure rollback the government is leading for a long time, so will the replacement Network North deliver the growth we need?”

“The scale of the pause or reversal on major infrastructure projects such as the northern leg of HS2 has a ripple effect on skills. Companies in the construction sector who are reliant on it will suffer as a result. The ability to bring in early career staff, be they graduates or apprentices, gets curtailed and that then has knock-on effects that can roll forward for decades.”

Tim Seal, Head of Construction at law firm Ridgemont, said: “Today’s decision removes a big piece of work for the construction industry and will be a source of disappointment and uncertainty for many businesses that were gearing up for Phase 2 of HS2. This is particularly the case for companies that have already landed contracts for Phase 2.

“They will need to scrutinise their agreements to see where they stand from a legal perspective. In particular what does the termination clause say about terminating the contract where the Government shelves the project?  It may well have been drafted to limit or exclude the contractor from having a right of recourse, which would make it difficult for affected businesses to dispute the termination of their HS2 contracts.”

Urban Transport Group director Jason Prince said: “Many of our member city regions have designed local transport schemes around the promise of larger infrastructure projects, whether HS2 or otherwise. Our members need the confidence that once schemes are announced, they are delivered. The same logic applies to the raft of transport projects unveiled by the Prime Minister today.

“Fundamentally, transport is about more than simply moving people from A to B. It is about creating economic growth and thriving communities for people to live and work in. This can only happen through certainty of long-term investment.”

Mineral Products Association (MPA) chief executive Jon Prichard said: “Scrapping the next leg of HS2 is the latest and largest example of the Government’s commitment being unreliable, with projects continuously falling victim to political games. Future prospects for our industry and the wider UK economy should not hinge on the latest political opinion, but on evidence-based policymaking and long-term strategic thinking. Using infrastructure spend to balance the books, without looking at the wider economic, social and environmental impacts is short-sighted.  Pretending that this is a strategic decision simply does not tally with the facts.”

MPA director of economic affairs Aurelie Delannoy said: “Delivery of public infrastructure has been poor for years, with delays, descoping and cancellations being the Government’s modus operandi. Our members’ investments, based on expected demand, rest on business confidence, which is eroded by decisions such as this. HS2 north of Birmingham is the biggest such disappointment to date, but it’s part of a concerning trend, given similar decision taken on roads projects earlier this year.”