23.09.16
Despite enthusiasm, HS2 ‘has the weakest economic case of all projects’
The economic justification for HS2 has been slammed in a letter from the chair of the Treasury Select Committee to the transport secretary.
Andrew Tyrie told Chris Grayling that the DfT has failed to “comprehensively examine” whether increasing conventional rail capacity would offer better value for money.
The DfT has claimed the higher cost of HS2 is justified by the economic benefits of faster journeys between UK cities, but Tyrie points out that reports from the Treasury Select Committee and the University of Leeds Institute for Transport Studies have found no clear evidence supporting this.
Tyrie’s letter, in which he also criticises Grayling for failing to provide “clear answers” about the economic case for airport expansion, said: “HS2 has the weakest economic case of all the projects within the infrastructure programme, yet it is being pushed through with the most enthusiasm.”
The chairman also argued the government has not explained why it regards a 2003 feasibility study from the Strategic Rail Authority as offering evidence for using the Chilterns as a high-speed rail route.
He said the DfT has not reviewed opportunities for reducing the cost of HS2 by constructing a line with a lower maximum speed, despite the House of Lords Committee recommending this over a year ago.
He then concluded: “The case for providing sufficient detail to enable other ways of improving rail capacity including at lower speed - to be fully assessed, remains very strong.”
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.
As part of the efficiency plan, the line will now stop at Sheffield Midland instead of Meadowhall in order to save £1bn, although the West Yorkshire Combined Authority has criticised the proposals.
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. It is also not yet clear if the project will be cancelled because of funding shortfalls as a result of the UK’s withdrawal from the European Union.
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