28-Jan-2013

51M RESPONDS TO THE DEPARTMENT FOR TRANSPORT

ANNOUNCEMENT ON THE HS2 NORTHERN ROUTE

The following statement has been issued to the media and to communications colleagues in the 51m alliance for further circulation.

We agree with the Prime Minister that what this country needs is investment and growth in our infrastructure but we need it now, not in 2033. Behind the ‘spin’ the reality is that the Business Case for HS2 has collapsed, the capacity argument has been exposed in the High Court and the economic benefits are not supported by any serious economists. HS2 will cost taxpayers an eye watering £33bn, equivalent to the country’s entire defence budget, and yet has been shown conclusively to be poor value for money.

Martin Tett, Leader of Buckinghamshire County Council and Chairman of the 51m Alliance of 18 local authorities opposed to HS2 said: “There are far better, quicker and cheaper ways of upgrading our existing rail network to provide the capacity needed. These would free up capital to invest in regional road and rail infrastructure projects that people actually need and use around the whole country. This would bring growth and jobs now when they are needed”.

“A major concern that we have is that many towns and cities will be shocked to discover that they will actually receive a poorer train service if HS2 is built. Stations such as Toton Sidings and Meadowhall are far from city centres. West Coast Main Line and Midland Main Line services to many existing stations are certain to be reduced. At the same time HS2 will blight the lives, property and businesses of tens of thousands of people. Houses will be unsaleable and jobs lost across the Midlands and elsewhere. Only those directly on the route will receive compensation. Those nearby will have to wait until 2034 at the earliest to see if they get anything”.

Notes -

Yesterday, ahead of the government announcing more details on the HS2 project, Dr Richard Wellings, Head of Transport at the Institute of Economic Affairs, also said: "The extension of High Speed 2 to the North of England is very bad news for taxpayers and the wider economy. The project’s £34 billion-plus bill – over £1,000 per household - will destroy jobs and force businesses to close across the UK, including in the North. Many areas along the route may also be affected by planning blight.

"The government is deluded if it thinks HS2 will regenerate the North. The region’s long-term economic problems will not be solved by faster rail links to London. Towns such as Doncaster already enjoy fast links, but remain among the poorest places in the country. Indeed, HS2 will be used as an excuse to waste billions more on flawed regeneration schemes in northern cities, at further expense to taxpayers.

"High Speed 2 is being driven forward by politics, not economics. It is a loss-making scheme with a very weak business case based on a series of flawed assumptions. If the government wishes to boost the economy through infrastructure investment, it should allow private investment in profitable projects such as Heathrow expansion and road schemes with very high rates of return."
Source:”HS2 has a very weak business case” - Institute of Economic Affairs
27 Jan 2013

NEWS ABOUT THE HEATHROW SPUR

Heathrow Spur – this has not been announced at this stage. See the notes from the HS2 Limited website below. For full details please click on the following link -  http://www.hs2.org.uk/phase-two/high-speed-two-phase-two

Extract from the HS2 Limited website  - Note on Heathrow spur

As stated in January 2012, the Government believes that the HS2 network should link to Heathrow and its preferred option is for this to be built as part of Phase Two.  However, the Government has since established an independent Airports Commission, chaired by Sir Howard Davies, to recommend options for maintaining the country’s status as an international aviation hub.

The Government has therefore taken the decision to pause work on the spur to Heathrow until after 2015 when it expects the Airports Commission to publish its final report.  The proposals for the Heathrow spur and station are not planned to be part of the Phase Two consultation.  However, there would still be the opportunity to consult separately at a later point and include the Heathrow spur in legislation for Phase Two without any impact on the delivery time if that fits with the recommendations of the Commission.

To avoid severe disruption to the Phase One line after it has opened, however, the Government would consider carrying out the preparatory construction work needed to preserve the option of our preference serving Heathrow in the future. Including this work now could save significant disruption and cost at a later point.

Heathrow spur and Exceptional Hardship Scheme consultation

Alongside the Phase Two announcement, the Government has also launched a consultation on an Exceptional Hardship Scheme for Leeds, Manchester and the proposed Heathrow spur. The scheme aims to assist eligible residential and small business owner-occupiers whose property value may be affected by the initial preferred route options for these lines and who can demonstrate that they have an urgent need to sell.

Though the Heathrow spur is not part of the initial preferred route for Phase Two, the Government recognises the impact that the release of information about the recommended Heathrow route may have on property owners and therefore is willing to consider applications from property owners potentially affected by it under the proposed Exceptional Hardship Scheme (EHS) for Phase Two.

The Minister of State for Transport will write to the small number of people whose land may be required or whose properties are at risk of demolition should the recommended Heathrow route be built, to explain the situation to them and, in respect of property owners, to confirm that the Phase Two EHS would be open to them. The Government will also write to people whose land or property is above a proposed tunnel on the Heathrow spur route to make them aware of it.

You can find more details on the Exceptional Hardship Scheme consultation for the proposed routes to Manchester, Leeds and Heathrow on our dedicated pages<http://www.hs2.org.uk/have-your-say/consultations/phase-two/exceptional-hardship-scheme>