HS2 decision a slap in the face to levelling up agenda - Chamber

Business leaders in Greater Birmingham today described Rishi Sunak’s decision to scrap the Birmingham to Manchester leg of HS2 as “a slap in the face to the levelling up agenda”.

It comes after the Prime Minister confirmed the high-speed railway network would finish in Birmingham, rather than continuing to the north.

During his speech at the Conservative Party Conference yesterday, Mr Sunak defended the move by promising to spend more than £30 billion on hundreds of other transport schemes, including a ‘Network North’ project to join up northern cities by rail, a Midlands Rail Hub to connect 50 stations, keeping the £2 bus fare cap across the country and a series of road upgrade and repair initiatives.

Cash was also pledged to expand the West Midlands metro network.

Greater Birmingham Chambers of Commerce expressed disappointment at the decision on HS2 and said it remained to be seen whether the Prime Minister’s new transport plans would be come a reality.

Chief executive Henrietta Brealey said: “Yesterday’s announcement is a slap in the face to the levelling up agenda. HS2 will no longer solve the very issue it was created to: overcrowding on the West Coast mainline, a lack of capacity for direct and freight services on our rail network between the Midlands and North.

“Meanwhile, trust in the government to deliver on its commitments to major infrastructure investments, including the raft of alternative spending outlined yesterday, is at an all-time low.

“The practical ramifications for turning the taps off for a project of this scale and introducing new ones will also be laid bare in the coming months – years of planning, consultation and potential delays will simply lead to more costs.

“We take some positives from the announcement, including the commitment to connect the remaining HS2 network into central London. It would have been baffling to do anything else.

“This will continue to bring some clear benefits to the Greater Birmingham region.  The commitment to invest £9.7bn in the Midlands, including on the Midlands Rail Hub and local projects such as the metro extension are also welcome.

“The West Midlands mayor has presented a credible alternative option to scrapping the remainder of the HS2 network by leveraging private sector expertise and investment. This should be seriously considered before abandoning the project entirely given the practical challenges of doing so.”

Meanwhile, the Prime Minister also made several education pledges, including a new Advanced British Standard which will combine A-levels and T-levels and tax free bonuses of up to £30,000 for teachers of “key subjects” over the first five years of their careers.

He also vowed ton end to “rip-off degrees” – limiting the number of students that can be recruited on to degree courses which are judged to not deliver good outcomes.  

Emily Stubbs, policy and projects manager at the GBCC, said: “Proposed investment in education, particularly further education provision and the announcement of tax-free bonuses for teachers are very much welcomed. 

"However, the introduction of a new 'Advanced British Standard' to replace both A Levels and T Levels raises questions about the value of planned improvements and a risk of disengaging employers. The graduated roll-out of T Levels isn't yet complete.

“This replacement qualification could take a decade to implement and its announcement will add further confusion to what the Chambers' Local Skills Improvement Plan identified is an already-complex skills landscape.

“The Prime Minister's promise to end "rip off" degrees might be considered dismissive of the many opportunities provided by engagement in higher education.

“While we await further detail on how the value of degrees will be assessed, it will be important that those setting proposed restrictions consult with higher education institutions and recognise nuance in what should be considered 'good outcomes' for students.”