MPs call for brakes to be put on HS2 rail link

The Treasury Select Committee said a “more convincing” economic case was needed for the Government’s flagship high-speed rail project, which the Treasury now estimates will cost £42.6bn – a 17 per cent increase on previous projections – amid predictions that the bill could be as high as £80bn.

Newly-appointed Shadow Transport Secretary and Wakefield MP Mary Creagh last night urged David Cameron to “get a grip of HS2”.

However, the Government was adamant that the project was “on course” and “under control”.

A Department of Transport spokesman said: “HS2 is absolutely vital for this country if we are to meet the urgent capacity needs we face.

“The project is on course, under control and will be delivered within the agreed budget.

“We are confident that our analysis is robust. The case for HS2 will be further improved when we publish shortly the updated strategic case – including cost benefit analysis – which will show high value for money for the project.”

The Government was forced to issue the latest defence of HS2 after MPs recommended the controversial link should “not proceed” until fresh evidence is produced to show how it would deliver major benefits, such as jobs and regional economic growth.

Committee chairman Andrew Tyrie said: “There appear to be serious shortcomings in the current cost-benefit analysis for HS2. A more convincing economic case for the project is needed.

“We need reassurance that it can deliver the benefits intended and that these benefits are greater than those of other transport schemes – whether in the department’s project pipeline or not –which may be foregone.”

Business and economic leaders in the region were today united in their backing of the project, and suggested the latest criticisms were short-sighted.

Leeds Council chief executive Tom Riordan said the project would provide “a welcome boost across many Northern cities and towns in the same way that Crossrail is currently benefiting London”.

“If the same spotlight had been shone on major infrastructure projects like the Channel Tunnel or the regeneration of St Pancras and King’s Cross stations they may never have happened, and why should the North not be backed by the same ambition?” he said.

Mark Goldstone, of Leeds, York and North Yorkshire Chamber of Commerce, said: “Government are right to keep an eye on costs but it mustn’t be diverted from the fact that by the mid 2020s the East Coast main line will be at capacity despite all potential upgrades and improvements.

“If we are going to see economic growth across the whole country and not just focused in London and the South East, then we will need rail infrastructure that can meet forecasted demand in long- distance rail travel and free up capacity for freight and regional commuter travel.”

Ms Creagh added: “David Cameron has to get a grip of HS2 costs, as this report from the Tory-dominated Treasury Select Committee makes only too clear. Labour supports the idea of a new North-South rail link, but under this government HS2 has been totally mismanaged and the costs have shot up to £50bn.”

Echoing comments by Shadow Chancellor Ed Balls, she said Labour would not take the “irresponsible approach” adopted by the coalition, adding: “We need to ensure it is the best way to spend £50bn for the future of our country.”