HS2 delay will discourage British investment, says infrastructure expert
The UK’s decision to delay the HS2 rail line will discourage British investment at a time when the US mainland Europe are pushing forward with major spending on green technology, according to the chair of the National Infrastructure Commission.
Sir John Armitt said the delay to HS2, a high-speed line that aims to increase British rail capacity, contrasted with the heavy investments by the US and EU on decarbonisation.
“That investment is going elsewhere,” Armitt said on BBC Radio 4. “We need all the investment we need in this country. Making these sort of announcements simply dims the prospect and causes uncertainty in people’s minds.”
Joe Biden’s $369bn (£308bn) Inflation Reduction Act has fuelled a subsidy race between the US and EU, leaving the UK scrambling to catch up.
Ministers on Thursday confirmed that HS2 would be delayed. The transport secretary, Mark Harper, said the decision was due to “significant inflationary pressure and increased project costs”. The delay will spread the cost over a longer period.
Parts of the planned line between Birmingham, Crewe and Manchester will be “rephased” by two years. The line to Crewe may not be open until 2036, and Manchester not until 2043.
Critics of the project point to long delays and the fact that the budget has already grown significantly. Some people affected by construction plans are also opposed. Simon Clarke, the Conservative MP, said he had “serious doubts as to value for money and cost control” on HS2 after scrutinising it at the Treasury.
However, Armitt said the delay would increase the total cost of the project by drawing out the process and prevent businesses from investing.
“It will increase the end cost,” he said. “That impacts the confidence and certainty people
Read more on theguardian.com![Arbitrum [ARB]: Dismay, hope, and the scarcity of interaction](https://finance-news.co/storage/thumbs_400/img/2023/4/5/62949_fyviu.jpg)
