Bond plea to tackle blight on HS2 route

The property bond would guarantee that owners of land, homes or businesses along the route would not lose out financially if the market value dropped because of the HS2 rail line.

A proposed route through Yorkshire for the line was published earlier this year and the Country Land & Business Association (CLA) argues that is already causing uncertainty for business owners.

CLA North regional director Dorothy Fairburn said: “A property bond scheme, which would guarantee the value of properties affected by HS2, would shore up the situation.

“So we are calling on Transport Minister Simon Burns to make good his promise to launch a consultation on such a scheme to get the ball rolling.

“Time is of the essence. The more speculation there is about HS2 in the media, the more difficult it becomes for rural businesses under the dark shadow of possible compulsory purchase to operate effectively.”

The CLA argues that with construction work on the second phase of HS2, from Birmingham to Leeds, not due to start for more than a decade property along the route could be hit by planning blight long before compensation for loss of land or buildings becomes available.

The Government has set up an exceptional hardship scheme but this only applies to people who can demonstrate they have an “urgent need to sell”.

Ministers argue a property bond scheme cannot go ahead for phase two until the precise route is confirmed.

Transport Minister Simon Burns said: “We are committed to fairly compensating those who are affected by HS2 with generous and comprehensive measures which go above and beyond what are required by law. We will be announcing details of our compensation consultation, including a property bond option, for phase one of the route between London and Birmingham shortly.

“On phase two to Manchester and Leeds, we are currently consulting on the route that the high-speed line will take following which there will be a compensation consultation. Both phases currently have an exceptional hardship scheme in place to help those people who need to move house but cannot do so at a fair price because of HS2.”

The first phase of HS2 will see a high-speed rail line built between London and Birmingham. In the second phase, HS2 will split into two lines, with one branch carrying services to Manchester and another serving new stations At Meadowhall near Sheffield, and the centre of Leeds.

The whole project has been the subject of sustained attacks in recent weeks, with business organisation the Institute of Directors questioning the economic case for the scheme, which the Government estimates will cost taxpayers £42.6bn.

A report by the Institute of Economic Affairs think-tank estimated the final cost will be closer to £80bn. However, the project continues to enjoy strong support across the North from campaigners who argue that the current rail network will run out of capacity unless a new line is built.

Comment: Page 14.