Cameron says HS2 boss aims to cut scheme’s £50bn bill

THE new boss of the planned high speed rail link between London and the North has been tasked with finding ways to cut the estimated £50bn cost of the scheme, David Cameron will announce today.
David CameronDavid Cameron
David Cameron

In a clear swipe at Labour, the Prime Minister will claim dithering over HS2 will “condemn Britain to the slow lane”, telling business leaders that “fortune favours the bold – not the weak and indecisive”.

The scheme needs cross-party approval if it stands a chance of being built but Shadow Chancellor Ed Balls threw Labour’s support into doubt by raising concerns about the spiralling costs, insisting he would not sign a “blank cheque”.

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Mr Cameron will tell the CBI annual conference that the first task of the project’s new boss, Sir David Higgins, will be to report on lowering costs and maximising benefits.

He is expected to say: “Our infrastructure is decades out of date and we urgently need to invest and build.

“Those who want to delay or obstruct HS2 show a lack of vision. They are playing politics with Britain’s prosperity. They are betraying everyone north of Watford.

“We can either tell our grandchildren we made big, long-term decisions to build a better country... Or we can tell them we dithered for decades while the world raced ahead. That kind of no-can-do spirit will get us nowhere. Fortune favours the bold – not the weak and indecisive. I ask everyone across politics to put their own interests aside – and put the national interest first.”

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Mr Balls will tell the conference Labour would set up an independent commission to end delays in major infrastructure projects but will reiterate Labour’s support for the route to Leeds and Manchester is “not at any cost”.

Sir David, who takes over as HS2 chairman next year, believes the scheme can be “substantially” trimmed by cutting £14bn earmarked for contingency costs.

Mr Balls will tell the CBI an infrastructure commission would end “dither and delay” in infrastructure planning and build the consensus on long-term investment.

He will say: “Labour supports HS2 and the idea of a new North-South rail link because of capacity constraints on the existing rail network.

“But our support for it is not at any cost.

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“The Labour Party cannot – and will not – give the government a blank cheque. That is what you would expect from any credible official opposition seeing a Government desperately mismanaging a project.

“As you at the CBI have said recently: ‘The increased costs of HS2 are a matter of concern. For HS2 to go ahead it has to wash its face. The value for money test has to be properly applied.’

“We agree – and we will put the national interest and the taxpayer interest first. We will take a hard-headed look at the costs and benefits of the scheme to ensure this is the best way to spend £50bn for the future of our country.”