04.10.16
Chambers urge chancellor to commit to HS2 Eastern Leg
Businesses have urged the chancellor to confirm the government’s commitments to the HS2 Eastern Leg, as he outlined plans to ensure Britain has world class infrastructure to maintain the country’s competitiveness at the Conservative Party Conference.
The chief executives of the chambers of commerce in the East Midlands, the North East, Leeds, Sheffield and Barnsley and Rotherham wrote to Philip Hammond urging him to promise a speedy delivery of the route.
The Eastern Leg will run between Birmingham and Leeds, via Sheffield and the East Midlands, and then north to Newcastle and Edinburgh.
Chris Hobson, director of policy at the East Midlands chamber of commerce, said: “The letter makes clear to Mr Hammond that businesses along the route of the HS2 Eastern Leg are united in wanting this major infrastructure development to go ahead.
“The economic benefits have been clearly identified and we don’t want to see the East Midlands and other parts of the country on the Eastern Leg route miss out on this opportunity for growth.
“It is vital that government confirms its commitment to HS2 Eastern Leg and, just as importantly, the location of the station hubs, so that linked infrastructure projects can be planned for cohesive and concurrent development.”
The chambers, representing 11,000 businesses, said it is estimated HS2 will deliver a £4.1bn boost for the region.
Their letter says HS2 is “a key tenet” of a “vision for a successful UK outside of the European Union”. The businesses stated that that they are “fully committed” to the opportunities HS2 offers and said that plans are being developed to improve connectivity within regions, in order to ensure that areas outside city centres also experience the benefits of HS2.
A recent report from the Public Accounts Committee found that HS2 has still failed to provide a clear completion date for phase 1 of the project or a cost for phase 2.
Andrew Tyrie MP, chair of the Treasury Select Committee, has also warned transport secretary Chris Grayling that HS2 “has the weakest economic case of all the projects within the infrastructure programme”.
Sir Jeremy Heywood, the head of the civil service, is currently conducting a review of HS2 to try to ensure it stays within its £55bn budget, including saving £1bn by moving its Sheffield stop from Sheffield Midland to Sheffield Meadowhall.
Clive Heaphy, HS2’s director of finance and operations, has admitted that HS2 is “worried” about the long-term impact of the UK’s vote to leave the EU.
However, since the referendum, both Grayling and new prime minister Theresa May have stressed the government’s ongoing commitment to HS2.
During his speech at the Conservative Party Conference, Hammond said he is committed to putting the National Infrastructure Commission “at the very heart of our plans to renew and expand Britain’s infrastructure”.
While the chancellor did not mention HS2, he said: “Ensuring we have world class infrastructure is vital to maintaining our competitiveness, but it is a very long-term agenda.”
He also pledged the Treasury’s support to continue driving the Northern Powerhouse project, but added the government’s ambition was not just limited to the north.
“We want to create the conditions for success in the north, the south, and everywhere in between,” he said, adding that the Midlands Engine will also be a key part of the Conservative’s strategy going forward.
(Image c. HS2)
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