George Osborne insisted he was “passionately in favour” of the planned high speed rail line linking Birmingham with London and the North, following a .
The Chancellor said the line,, would “transform the economic geography of our country and help spread rising prosperity to the Midlands and the North of England”.
But he insisted building the new £42 billion line would not prevent investment in other parts of the rail network, telling his audience: “We are delivering the biggest programme of investment in our railways since Victorian times, the biggest programme of road building since the 1970s.”
The comments, in a major speech on the economy, follow the publication of a report by the Commons Public Accounts Committee, which warned the apparent benefits of the line were dwindling while the planned costs had increased.
READ MORE: {}
MPs said said there was insufficient evidence that HS2 is “the most effective and economic way of responding to future demand patterns, that the figures predicting future demand are robust and credible and that the improved connectivity between London and regional cities will enhance growth and activity in the regions rather than sucking more activity into London”.
Evidence used to show the benefits to commuters was so out of date that it failed to recognise that business travellers are able to work on trains using laptops and other mobile devices, the inquiry found.
Committee chair Margaret Hodge questioned whether building the planned line, initially running from London to Birmingham by 2026 before being extended to Manchester and Leeds in 2033, was the best use of money available to upgrade Britain’s railways.
Speaking to the BBC, she said: “The question my committee would ask is if you’ve got £50 billion to spend on the railways, should you be spending it here? Wouldn’t it be better to ease the commuter congestion on this line by looking at longer trains, longer platforms, more frequent trains?”
But the cross-party consensus in favour of building the line shows no sign of breaking. Maria Eagle MP, Labour’s Shadow Secretary of State for Transport, accused the Government of failing to “get a grip” on the scheme, but added: “Labour remains firmly committed to building a new north-south rail line because it is the only credible way to tackle the growing capacity problems on our rail network.
Most Read
“There is no reason why the new north-south rail line cannot be delivered within the budget that has now been set, but there can be no blank cheque and Ministers must ensure it remains on budget and on track.”
rejected the commitee’s findings as “hugely misleading”.
Jerry Blackett, chief executive of Birmingham Chamber of Commerce Group, described the project as an “engine for growth, helping to generate jobs, rebalance the economy and secure the country’s future prosperity”.
He added: “The Public Accounts Committee’s report is hugely misleading because HS2 will give the capacity we need, running up to 18 trains per hour with each carrying as many as 1,100 passengers, and more than doubling the number of seats between London and Birmingham.”
He added: “Alternatives to HS2 have been assessed and they confirm they will not deliver HS2’s objectives. There are no alternative options which provide the step change in capacity that HS2 will deliver.”
Transport Secretary Patrick McLoughlin said: “The case for HS2 is absolutely clear: without it, the key rail routes connecting London, the Midlands and the North will be overwhelmed.
“The project will free up vital space on our railways for passengers and freight, generate hundreds of thousands of jobs and deliver better connections between our towns and cities.”
Network Rail has warned that it would not be possible to upgrade the West Coast Main Line to meet demand for rail travel and freight.