The High Speed Rail Group (HSRG) has set out its key recommendations to the Government in a submission to HM Treasury, ahead of the Spending Review.
The Group’s submission identifies and advocates for a cost efficient and deliverable path forward for HS2, focusing on maximising HS2’s concession value at minimum viable scope and cost.
This will maximise the project’s economic benefits within a constrained budget, accelerate delivery, and ensure a substantial financial return to the Treasury, while recognising current fiscal constraints.
HSRG is urging the Government to re-scope HS2 to a “Euston-Crewe core.”
Delivering this would act as a key driver of the Government’s economic growth ambitions, while providingadditional and urgently needed national transport capacity between London, the West Midlands and the North West.
As laid out in the submission, all of the strictly necessary HS2 infrastructure is now funded, with two exceptions that HSRG argue are of critical importance to HS2, and therefore should be funded at minimum cost without further delay:
‘Un-freeze’ the planned connection from the West Midlands to Crewe;without which HS2 will not relieve pressure on the West Coast Main Line at its biggest pinch-point. This can be delivered at a much lower cost per mile than the original HS2 Phase 2a scheme.
Fund and deliver a scaled-back, cost-effective Euston Station with a simple functional design that can be delivered ahead of the wider regeneration ambition for the area. HSRG is advocating for a 6 platform design, with the option for future expansion retained.
The necessary parliamentary powers are already in place to deliver these two projects, and HSRG firmly believes they can be delivered at a significantly lower cost. The Group estimates that costs could be reduced by 35%, unlocking potential savings of £3 – £4 billion compared to previous estimates.
Government should undertake a preliminary market assessment to explore financial payback optionsfor HS2 infrastructure investment, taking learnings from the HS1 concession model.
HSRG estimates that a concession let for a London–Birmingham & Crewe railway line could generate between £7.5 billion and £10 billion, a significant return for taxpayers. However, without Euston station and the connection from the West Midlands to Crewe, the value of a HS2 concession to HM Treasury would likely be halved.
To make this work,HSRG is asking Government to extend the safeguarding and complete outstanding land acquisition for HS2 Phase 2a between the West Midlands and Crewe without delay.
While HSRG acknowledges that broader ambitions should be set aside for now,the Government should nonetheless develop a long-term vision for the national rail network. This will help to ensure that candidate future extensions of HS2 can be accommodated at a later stage without excessive disruption, and which (if any) can now be foregone. This will allow decisions regarding proposed HS2 extensions, particularly those yet to secure parliamentary approval, to be deferred while keeping future integration options open.
These recommendations address immediate infrastructure priorities while safeguarding future opportunities for long term national rail development.
HSRG firmly believes it remains possible to deliver HS2 in a realistic and financially responsible manner, while ensuring that the project’s contribution to the growth of the national economy is delivered. By focusing on a core route which has already obtained Parliamentary Powers, identifying cost saving opportunities and adopting a suitable concession model, the UK can unlock the full economic benefits of HS2 while returning a substantial return to the public account.
Dyan Perry, Chair of HSRG, said, “HS2 is at a crossroads. If delivered correctly, it will unlock national transport capacity, generate a multi-billion pound return to the Treasury, drive economic growth across the UK and enhance regional connectivity. However, if cut short, the Government risks wasting substantial investments to date, short-changing the national account and squandering HS2’s far reaching socio-economic benefits.
“HS2 has already stimulated significant investment in the UK’s supply chain, workforce skills, and infrastructure expertise to name just a few benefits. To secure the long-term advantages of a modern, high speed rail network, we strongly urge the Government to adopt our recommendations and take decisive action to restore financial control and accelerate delivery. By investing in our infrastructure now, we set the UK up for long term growth and economic success.”
