UK industry reacts to scaling back of HS2

After prime minister Rishi Sunak scrapped the rest of the HS2 rail project in England due to spiralling costs, Make UK and the CBI have responded with their comments.

The government will deliver HS2 between Euston in central London and the West Midlands as planned, with a station at Old Oak Common and Birmingham Interchange and branches to central Birmingham and Handsacre, near Lichfield – where HS2 trains for Manchester, Liverpool and Scotland will join the West Coast Main Line.

Rather than delivering HS2 Phase 2 new line between Birmingham and Manchester, the prime minister says the government is taking action to deliver greater frequency and quality of transport infrastructure across the whole country.

Commenting on the scrapping of HS2, Stephen Phipson, chief executive of Make UK, said: “Whilst the announcement of investment in Northern transport infrastructure is important and very welcome, the decision to end HS2 in Birmingham is deeply frustrating as this should not have been a binary choice. The strategic benefits of linking up London, Birmingham and Manchester was not simply about passenger transport, but about creating substantial new capacity for the movement of goods and freight on today’s over-stretched network. Failing to invest for the future is something we are likely to regret in the longer term.

More importantly, the decision today sends a hugely disappointing message about our commitment to completing major infrastructure projects in the UK. For too long we have lagged behind our competitors in the investment we make in road, rail, ports, airport capacity and energy production and supply. If we are to make up that shortfall it is vital that the UK not only has a detailed, ambitious and funded Industrial Strategy, but that we commit to delivering these projects in full, and not giving up when the job is half finished. The signal that this sends to potential investors could not be clearer.”

Rain Newton-Smith, CBI chief executive, added: “The UK has incredible strengths as a destination for investment. When global boardrooms weigh up investment opportunities, the UK was always seen as a safe harbour due to our reputation for reliability. But the decision to cancel the rest of the HS2 project sends a damaging signal about the UK’s status as global destination for investment.

“Businesses and investors in the Midlands and the North have spent the last decade planning for the delivery of HS2. The commitment to invest in a new Network North programme of transport projects promises much needed investment to the region.  But a 'start from scratch' approach risks leaving those businesses in a holding pattern of poor connectivity and low productivity whilst those projects are scoped, prepped and finally delivered.”

Make UK
www.makeuk.org

CBI
www.cbi.org.uk

Company

Make UK

CBI

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