The House of Lords Economic Affairs Committee argues that the government has not yet made a convincing case for why HS2 is needed.
The government sets two main objectives for HS2: increasing capacity on the railway and rebalancing the economy but the committee’s report says it fails to make a convincing case for either.
Full information on railway usage has not been made publicly available by the Government, on the grounds of commercial sensitivity, the report says. The Committee agrees with the objective to rebalance the economy but disputes the claim that HS2 is the way to achieve it. The evidence from other countries, such as France, shows that the capital city is the biggest beneficiary from high speed rail. London would most likely be the biggest beneficiary from HS2.
The Committee suggests that, if HS2 is to go ahead, the cost could be reduced by building it to run at 200 mph, as in Europe, instead of 250 mph, terminating the line at Old Oak Common or learning lessons from France to reduce the cost of construction.
The report suggests that the huge public subsidy to HS2, an estimated net £31.5 billion, conflicts with the Government’s declared objective of making rail less dependent on public subsidy. The Committee argues that such large expenditure should be considered against the background of financial restraint. It queries whether the users of the proposed line, mainly business travellers, should carry more of the cost than is currently proposed.
Commenting, Lord Hollick, Chairman of the House of Lords Economic Affairs Committee said:
“At £50bn HS2 will be one of the most expensive infrastructure projects ever undertaken in the UK but the Government have not yet made a convincing case for why it is necessary”.
“The Committee are supportive of investment in rail infrastructure, but are not convinced that HS2 as currently proposed is the best way to deliver that investment. The Government are basing the justification for HS2 on two factors – increased rail capacity and rebalancing the UK economy; we have not seen the evidence that it is the best way to deliver either”.
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