The BBC are reporting this morning that the construction of the High Speed Line between Manchester and Birmingham could be delayed due to esclating costs
The reports say that the delay will primarily affect sections from Manchester to Crewe and Birmingham to Crewe.However, industry sources have also indicated that some of the design teams working on the Euston end of the line may be affected and contractors are looking at whether they need to redeploy staff working on that site.
The Treasury say spreading the cost over longer period will make it more affordable and will help reduce the annual spend and so help Chancellor hit target of seeing debt fall as a % of GDP within the next five years .
At least £2bn more will be needed for the first London-Birmingham stretch alone since the last official update in October, well above the contingency sums in the initial £44.6bn funding
London-Manchester trains were supposed to start to run some time between 2035 and 2041, but that timescale could be pushed back potentially by another four years.
Last year, Transport Secretary Mark Harper said the date range for the western leg of Phase 2b, connecting Crewe with Manchester, remained between 2035 and 2041.
Louise Haigh MP, Labour’s Shadow Transport Secretary, responding to further delays to HS2, said:
“Tens of thousands of jobs, and billions in economic growth are dependent on this project.”
“The North is yet again being asked to pay the price for staggering Conservative failure.”
“Conservative chaos and chronic indecision is holding back jobs, growth and costing the taxpayer.”
“This is the biggest project in Europe and delays pile costs up in the long-run – Ministers now need to come clean on precisely how much their indecision will cost taxpayers and the North.”
