Latest Rail News

14.11.15

Lord Adonis: Businesses should help pay for HS3 because they will benefit

New major infrastructure projects like Crossrail 2 and HS3 should look at “wider sources of funding”, including private sector investment, rather than simply receiving money from the Treasury, according to Lord Adonis. 

The chair of the newly formed Infrastructure Commission told delegates at the TransCityRail North event that being “proactive rather than reactive” when it comes to major planning infrastructure investment is important. 

He added that part of the reason why Crossrail is going ahead is because of the “fairly substantial contributions” from the private sector and businesses through the supplementary business rate. 

“In the case of London, large businesses pay the supplementary business rate which goes specifically to fund Crossrail,” said Lord Adonis, the former Labour transport secretary. “That is raising about £4bn of the £15bn costs.” He specifically cited the investment made by Canary Wharf Group, Heathrow Airport and the City of London Corporation, as well as London’s council tax payers. 

He added that if these major projects are going to generate the growth anticipated then it is “much, much better to get the investment upfront and find ways of recouping it from those who are going to benefit”. 

The principle that direct corporate and other ventures should make a contribution is going to be an important one, he added.

Comments

Mark P   16/11/2015 at 17:41

Given that Liverpool's HS3 will double up as its HS2, locals paying for this is just offensive. Manchester, Leeds and Sheffield are all getting their HS2 paid for out of general taxation and so should Liverpool. Local funding should be reserved for local infrastructure, not national projects. While businesses and citizens in Manchester will get to use their local levies to pay for local schemes, Liverpool businesses and citizens would otherwise be forced to pay out to correct the government's "mistake" of excluding it in the first place. Unacceptable.

Geordie   18/11/2015 at 13:35

HS3 will never happen, as it's just an excuse to leave the likes of Liverpool off the privileged HS2 route with promises of a High Speed link sometime in the future.. Face it, the whole Phase Two of HS2 has been designed only to help Manchester and to a lesser extent Leeds. The eye-watering sums of money on tunnels into Manchester just to ensure a high speed route until the very end of the line proves this. That money, together with the nonsense of a special HS2 station for Manchester Airport, could easily be diverted to fund a 20mile spur to Liverpool. But it won't happen because Adonis and Osborne have anointed Manchester as England's second city even though its population is comparable to Liverpool, and about half that of Birmingham.

Lesf   20/11/2015 at 23:18

If the few cities that could benefit from HS2 had to pay for it they would not want it.

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