27.06.16
HS2 may no longer be ‘a priority’ after Brexit, says Lord Berkeley
The vote for the UK to leave the European Union may mean that the future of HS2 is in doubt, Lord Berkeley has said.
Thursday’s vote has created political and economy uncertainty, with David Cameron resigning as prime minister, as reported in RTM’s sister title PSE, and the pound has sunk to $1.3152 against the US dollar, the lowest since 1985.
Chancellor George Osborne indicated today that he will not announce an emergency ‘punishment budget’ but will deal with the consequences of the vote in autumn’s budget.
Lord Berkeley, chair of the Rail Freight Group and a member of RTM’s editorial board, told the Financial Times: “The priority for the government at this time will not be big sexy projects such as HS2.”
Campaigners for HSUK, an alternative high speed rail route to HS2, said the referendum result strengthened the case against the project.
In a statement, the group said: “While the financial markets and the UK at large continue to digest Friday’s shock result in the EU referendum, one thing is patently clear; now is not the time for the government to press on with an ill-conceived and economically flawed infrastructure project that could end up costing over £75 billion.”
HS2 is already subject to review to bring the project back under budget.
However, on Friday, representatives of major companies, including Alstom and AECOM, said HS2 and other major rail projects remain ‘vitally important’ to the success of the UK.
(Image c. HS2)
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