The construction industry has reacted with dismay to the government’s announcement that the Birmingham to Crewe leg of HS2 will be delayed by two years due to rising costs.
Transport secretary Mark Harper told parliament that phase two of the high-speed railway connecting north-west England, plus the Lower Thames Crossing road project, were being held back for 24 months due to soaring inflation.
“These headwinds have made it difficult to deliver on our capital programmes, and we recognise that some schemes are going to take longer than expected,” he said. “Refocusing our efforts will allow us to double down on delivering the rest of our capital programme. This will place our transport investments on a sustainable footing and allow us to support the government’s priorities of halving inflation, growing the economy and reducing debt.
However, the news of the delay has been poorly received in the built environment sector and across the wider economy.
John Foster, programme director, policy unit, CBI
“Having been subject to significant revisions and years of uncertainty, business will at least have the clarity needed to enable them to plan effectively. But this news will ultimately reduce investor and contractor confidence in the rail sector.
“To mitigate further loss of confidence, it is critical that government tackles the inflationary pressures which are biting hard across the infrastructure sector. Delays to projects may create short-term savings, but they can ultimately lead to higher overall costs and slow down the UK’s transition to a better, faster and greener transport network.”
Jonathan Spruce, trustee for policy and external affairs, ICE
“Public infrastructure projects like HS2 are critical for economic growth, and meeting levelling-up and net-zero goals. They are an investment in our future, not a cost.
“The UK needs to think strategically about what we want our transport system to deliver. In the longer term, a national transport strategy, with a clear investment plan, would help ensure that the country gets the transport infrastructure it needs; reliable ways to get where we need to go, in a way that’s better for the planet.”
Chris Cassley, policy manager, Construction Plant-hire Association
“It’s disappointing and frustrating that, just weeks after the chancellor reassured the construction industry that there would be no delay, the government has announced the construction of sections of HS2 will be delayed to save money.
“This undermines confidence in the wider project itself, and at a time when we need construction as a long-term driver of sustainable growth, raises questions towards the government’s commitment to future infrastructure projects.”
Henri Murison, chief executive, Northern Powerhouse Partnership
“HS2 is an investment in our future prosperity, which is why it’s a mistake for the Treasury to put capital projects in the same category as day-to-day spending on items like welfare benefits. The shadow chancellor has a different proposed way of treating borrowing for investment – which could have avoided forcing this decision on the current transport secretary.
“Delaying projects – whether it’s train lines or hospitals – doesn’t make them cheaper, it only holds back economic benefits and increases the overall scheme costs further in the long run.
“We’re paying a huge price for the endless dithering during Boris Johnson’s premiership, and the wider damage done by cancelling the leg to Leeds, with still no plan for how to get services to Yorkshire and beyond.”
