Industry body tables ‘high speed realism’ proposal

The High Speed Rail Group has made a submission to the Treasury spending review consultation, seeking to “unfreeze” the HS2 leg between Birmingham and Crewe.

HSRG, a group made up of rail and rail infrastructure companies and consultants, said it is advocating for a cost-efficient and deliverable path forward for HS2 that will maximise the project’s economic benefits within a constrained budget, accelerate delivery, and ensure a substantial financial return to the Treasury.

Himself acknowledging a “long-running saga” of repeated delays and rising costs on the phase one London to Birmingham leg, then-prime minister Rishi Sunak ditched the northern part of the project in October 2023.

With Labour now in power, HSRG is asking the government to:

• Re-scope HS2 to a “Euston-Crewe core,” providing additional capacity between London, the West Midlands and the North West.
• Fund the connection from the West Midlands to Crewe, without which it said HS2 will add to rather than relieve pressure on the over-capacity West Coast mainline.
• Fund and deliver a streamlined, cost-effective Euston station, “with a simple, functional design” that can be delivered ahead of the area’s regeneration.

Both of those funding requests, said HSRG, can be delivered at £4bn lower than previous cost estimates, a reduction of around 35%.

In additional asks, HSRG requested that safeguarding and land acquisition be extended for the Crewe leg – for which Parliamentary powers are in place – with a rapid review carried out to identify cost-saving opportunities.

The group also called for a long-term vision for rail, deferring any decisions around potential HS2 extensions where Parliamentary powers have not yet been secured.

Looking to flip the discourse towards the upside of the project, HSRG also asked that market assessment be undertaken to explore payback options for the HS2 infrastructure expenditure, taking learnings from HS1.

The group said that estimates suggest that a concession for a London–Birmingham & Crewe railway line could generate between £7.5bn and £10bn.

HSRG’s full members include Arup, Hitachi, Alstom, EKFB, Costain, STRABAG, Align JV, AtkinsRealis, RIA, Siemens, Jacobs, Aecom, HS1, Systra, Mott MacDonald, Amey, Avanti West Coast, Arcadis, Unipart Rail, and UK Power Networks Services.

Dyan Perry, chair of HSRG, said: “HS2 is at a crossroads. If delivered correctly, it will unlock national transport capacity, generate a multi-billion pound return to the Treasury, drive economic growth across the UK and enhance regional connectivity. However, if cut short, the Government risks wasting substantial investments to date, short-changing the national account and squandering HS2’s far reaching socio-economic benefits.

“HS2 has already stimulated significant investment in the UK’s supply chain, workforce skills, and infrastructure expertise to name just a few benefits. To secure the long-term advantages of a modern, high speed rail network, we strongly urge the Government to adopt our recommendations and take decisive action to restore financial control and accelerate delivery. By investing in our infrastructure now, we set the UK up for long term growth and economic success.”

Although the report acknowledges it is too late to change core designs, simplification could still help. The 30-page report welcomes how newly appointed HS2 chief executive Mark Wild has identified some of the key problems with phase one, such as starting construction without mature designs; civil engineering contracts that were too large and so left all the risk with government; and an unachievable 2019 baseline.

With regional leaders agreeing that “doing nothing is not an option,” another rail project still on the table is the plan for a Midlands-North West rail link advanced by the respective metro mayors of Greater Manchester and the West Midlands last autumn. Proposed as a part-privately-funded venture, this would involve a new rail link between Lichfield and High Legh.

Arup led on this report, titled “Opportunity through connectivity: catalysing growth through a Midlands-Northwest Rail Link”. GM Mayor Andy Burnham described the 80km proposals as “more affordable, practical and viable than HS2”.

The second phase of the 2025 spending review is scheduled to be published in late spring this year, following the first phase’s release in the 2024 Autumn Budget.

• View the High Speed Rail Group’s submission here