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Margaret Hodge: 'HS2 economic justification is very questionable'

Margaret Hodge MP, Chair of the Committee of Public Accounts, has said the economic justification for HS2 is "very questionable".

It comes as the Committee of Public Accounts issued a withering assessment of the HS2 high-speed rail project, warning costs were spiralling whilst benefits were dwindling.

The Transport Secretary, Patrick McLoughlin, said the case for the £50 billion project was "absolutely clear," as rail routes would be "overwhelmed" by rising passenger numbers.

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MPs call for more evidence to back HS2 investment

MPs from the Commons public accounts committee have called for the Department of Transport to provide more detailed evidence to support the estimated £50 billion investment. Presenting the committee's findings, chairperson Marget Hodge said:

The pattern so far has been for costs to spiral - from more than £16 billion to £21 billion plus for phase one - and the estimated benefits to dwindle.

In my committee's experience, not allowing enough time for preparation undermines projects from the start.

National

Transport Secretary: Case for HS2 'absolutely clear'

Transport Secretary Patrick McLoughlin has rejected the findings of the Commons public accounts committee, which criticised the costs and benefits of the HS2 high-speed rail network.

Read: Public spending watchdog attacks HS2 rail project

Mr McLoughlin said without HS2 key rail routes would be 'overwhelmed' by rising passenger numbers. Credit: Press Association.

Mr McLoughlin said the case for the £50 billion project was "absolutely clear," as rail routes would be "overwhelmed" by rising passenger numbers. He said:

"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.

"HS2 is a vital part of our plan to give Britain the transport infrastructure it needs to compete.

National

Public spending watchdog attacks HS2 rail project

The HS2 high-speed rail project has come under renewed attack by the Commons public accounts committee, who have accused the Department of Transport of failing to present a "convincing strategic case" for the £50 billion project.

The high-speed rail project has come under fresh attack from the Commons public accounts commitee

The public spending watchdog raised a number of questions about the apparent benefits and warned the costs were spiralling.

More: Institute of Directors pulls support for HS2 rail link

HS2 will 'suck talent, jobs and people' out of the North says MP

Grimsby MP, Austin Mitchell, told members of the Public Accounts Committee last night that he saw no evidence that the £42 billion HS2 scheme would help to bridge the north-south divide.

Instead, he told the Permanent Secretary for the Department of Transport, Philip Rutnam, that he was 'trying to justify a policy, in principle, that was plucked out of the air,' (video below). Rutnam replied that it was an essential project as trains are filling up.

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Government is "touting HS2 boondoggle"

George Osborne will try and say ,,, that we need infrastructure investments and therefore it follows that because HS2 is an infrastructure investment, we need HS2. This overly simplistic argument is now the only thing Government has got left to tout this boondoggle with because every other argument: that’s it’s needed for capacity, that it’s got green credentials, that it’ll be a magic wand to cure the north-south divide, that it’s got a good business case, or that other countries are doing it have been knocked down.

Every one of the stock arguments for HS2 has been knocked down, and all they have left is to stamp their feet and say ‘We want our train set.’”

– Stop HS2 Campaign Manager Joe Rukin

New attempt to block HS2

HS2 "white elephant" claims Credit: Calendar news

There's a new attempt today to block the controversial plans for the high speed railway connecting Yorkshire and London. Thirty five Tory MPs have signed a motion aimed at derailing legislation to pave the way for the new rail link which they claim will be an expensive white elephant.

The motion, signed by politicians from four parties reads: "This House declines to give a second reading to a Bill which authorises preparatory expenditure on a railway without specifying further detail of the route and a limit on expenditure."

Costs and benefits of HS2 'still uncertain'

The project to bring high speed rail services to Yorkshire has around a £3 billion funding gap according to the National Audit Office.

The controversial new HS2 link will cut the journey time from Leeds to London to just an hour and 20 minutes and is due to be completed by 2033. The government spending watchdog says Ministers have yet to decide where three-point-three billion pounds worth of funding for the project is coming from.

Geraldine Barker from the National Audit Office and Rail Minister Simon Burns say the project is still in the early stages.

HS2: Concerns of Audit Office

It's too early in the High Speed 2 programme to conclude on the likelihood of its achieving value for money. Our concern at this point is the lack of clarity around the Department's objectives. **The strategic case for the network should be better developed at this stage of the programme. It is intended to demonstrate the need for the line but so far presents limited evidence on forecast passenger demand and expected capacity shortages on existing lines.

It is also unclear how High Speed 2 will transform regional economies by delivering jobs and growth. The Department is trying against a challenging timetable to strengthen its evidence and analysis, which at present provide a weak foundation for securing and demonstrating success in the programme in future.

– Amyas Morse, head of the National Audit Office
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