Demand for the HS2 rail project has been overestimated and it does not offer value for money, a think tank claimed today.
A report from the New Economics Foundation said spending £33 billion on the high-speed project was a gamble and evidence that it would promote economic growth or tackle the north-south divide was “limited”.
Ministers said demand for long-distance rail travel was growing and HS2 would support thousands of jobs. But the NEF said the money would be better spent on a “wider range of transport investments”. The criticism comes after a National Audit Office report questioned the business case and funding for HS2. “Demand for HS2 has likely been overestimated by oversimplified government modelling,” the NEF said. It claimed that:
£10 billion could transform rail infrastructure in northern England and the Midlands, creating new and faster east-west rail links, redeveloping stations and electrifying regional rail lines.
£10 billion could overhaul the East and West Coast main lines, increasing the speed, capacity and reliability of north-south rail travel with less environmental damage than HS2.
£6 billion could upgrade mass transport in Birmingham, Leeds, Manchester and Liverpool, including large light rail schemes and bus networks.
£4.5 billion could roll-out superfast fibre optic broadband across the country, which would boost business and reduce pressure on transport.
£2 billion could help make cities outside London better for cycling and walking.
But transport minister Simon Burns said: “Demand for long-distance rail travel has doubled to 125 million journeys a year in the past 15 years and by the mid-2020s the West Coast main line will be completely full. HS2 will provide the capacity needed in a way that will support thousands of jobs.”
