Transport Secretary Mark Harper said he’s delaying construction of the Birmingham to Crewe leg of the UK’s high-speed rail project after inflation pushed up costs.
(Bloomberg) — Transport Secretary Mark Harper said he’s delaying construction of the Birmingham to Crewe leg of the UK’s high-speed rail project after inflation pushed up costs.
“We will rephase construction by two years, with an aim to deliver high-speed services to Crewe and the North West as soon as possible after accounting for the delay in construction,” Harper said Thursday.
Harper’s written statement to Parliament also said the government would delay plans by two years for a new crossing of the river Thames to the east of London.
Business groups were disappointed by the hold-up to HS2, which has been estimated to cost more than £100 billion ($119 billion). The Confederation of British Industry said that while the statement brought clarity, it “will ultimately reduce investor and contractor confidence in the rail sector.”
The London Chamber of Commerce and Industry said that cutting the scale and delaying the project would undermine British productivity and growth. Martin McTague, chair of the Federation of Small Businesses, said “other crucial infrastructure projects must not now suffer the same fate.”
Louise Haigh, the opposition Labour Party’s shadow transport secretary, said “the North is yet again being asked to pay the price for staggering Conservative failure.”
The government will prioritize getting services running on the initial stretch of the so-called HS2 line, between Old Oak Common in west London and Birmingham Curzon Street station.
Ministers remain committed to taking the service into central London’s Euston Station, but will “take the time to ensure we have an affordable and deliverable station design,” Harper said.
(Updates with detail on river crossing and business reaction.)
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