Further HS2 delays frustrating but project must be kept on track – Chamber
Business leaders in Greater Birmingham are hopeful that new leadership and a “more rigorous” approach to costing and delivery will keep HS2 on track.
It follows yesterday’s announcement of further cost increases and delays to the high-speed rail project.
Transport Secretary Heidi Alexander told the House of Commons that HS2 could cost up to £102.7bn, while the first train services will not begin running until at least May 2036.
Ms Alexander also announced the trains will be made to run at 320km/h, rather than the original target of 360km/h, to save £2.5bn.
In her statement, the Transport Secretary said the cost increase was down to “past misunderstanding of the work required, underestimation and inefficiency, issues within the control of HS2 Ltd, some of its suppliers, and previous governments”.
However, HS2 chiefs have promised a Crossrail-style reset of the project under CEO Mark Wild and chair Mike Brown, with costs and scheduling being more rigorously assessed.
Greater Birmingham Chambers of Commerce said that while the delays and increase in costs are frustrating, the project’s momentum must be maintained to ensure Birmingham and the West Midlands fully realise the benefits.
Deputy CEO Raj Kandola said: “Whilst businesses across Greater Birmingham will be rightly concerned by further delays and increases to the cost of delivering HS2, it is encouraging to see a more rigorous, evidence-based approach to costing and scheduling, alongside stronger leadership and improved financial discipline - providing a firmer foundation to keep the project on track.
“We shouldn’t lose sight of the fact that HS2 is already delivering for the West Midlands, supporting thousands of jobs and unlocking billions of pounds worth of major investment around Curzon Street, Interchange and Washwood Heath.
“The priority now must be maintaining momentum so Birmingham and the wider region can fully realise these benefits while ensuring value for money for taxpayers.”
