Rishi Sunak has revealed that HS2 high-speed rail line from the West Midlands to Manchester is being scrapped.
In his Conservative Party conference speech in Manchester, he has set out a range of alternative projects in the north of England and Wales, which he has argued are better value for money and can be delivered more quickly.
He explains more below:
“Today we are announcing some changes on our approach to HS2. We will deliver HS2 between Birmingham and Euston as planned but we will extend it no further.
“Instead we will take every pound that would have been spent extending HS2 and invest over £36 billion into Network North – a new programme of transport improvements that will benefit far more people, in far more places, far quicker.
Why we’re making the change
Costs for HS2 have more than doubled since forecast – phase one was originally meant to cost £20 billion but latest estimates are up to £45 billion.
And the project has been repeatedly delayed.
It was supposed to be operational by 2026 and opened in full by 2033, but now the line to Manchester is forecast to be opened in 2041, in 18 years’ time.
And the pandemic has completely changed the way we travel. While road travel has recovered to pre-pandemic levels, train journeys are still down by 20 per cent.
This change will transform every region
Every region will have as much or more transport investment as a result of this decision.
More than four million people in cities in the North cannot currently reach their city centre by public transport within half an hour.
This is detrimental to our productivity and economic growth.
Yet the current HS2 project is preventing us from spending on the forms of transport that matter most to people.
By scrapping it, every penny from the Northern leg of HS2 will go to the North and every penny from the Midlands leg to the Midlands.
Rather than just connecting Birmingham and Manchester, we will invest £36 billion in hundreds of projects in towns, cities and rural areas across our whole country, and in roads, rail, and buses – investment on a truly unprecedented scale that will drive economic growth and provide jobs.
£19.8 billion for the North
We will invest £19.8 billion in the North on things like connecting its major cities, a new station in Bradford, a new tram for Leeds, new major roads, reopened train lines and an additional £12 billion for better connectivity between Manchester and Liverpool.
£9.6 billion for the Midlands
There will be a further £9.6 billion for the Midlands, invested in a new Midlands Rail Hub that will connect 50 stations, major road upgrades, and reopened train lines with new stations.
£6.5 billion for the rest of the country
We’ll also invest £6.5 billion across the rest of the country, on schemes like keeping the £2 bus fare until the end of December 2024. Boosting road schemes, upgrading Ely Junction, major rail improvements across the South West and billions to fix potholes in our roads.
Greater connectivity for both Scotland and Wales
Further funding will be made available to improve connectivity between towns and cities across Scotland and Wales, making it easier for people to access the jobs and services they need quickly, via public transport.
Delivering a better future
If we want to change the country – and build a better future for our children – these changes to our transport system are absolutely essential.
For too long we’ve been getting our transport wrong, meaning our great towns, cities and rural areas are not achieving their potential. That has to change.
Our new vision will focus on the forms of transport that matter most to people, drive the best growth and, importantly, that truly levels up our country.”
List of projects
North West
- Improving connectivity in all six Northern city areas: Nearly £4 billion to improve connectivity, which could pay for schemes such as the extension of the Manchester Metrolink to Heywood, Bolton, Wigan and Manchester Airport and bus rapid transit corridors in Manchester.
- New fund to transform rural travel: A brand new £2.5 billion fund to transform local transport for smaller cities, and towns. This new money could pay for new stations, further electrification, bus corridors and new integrated public transport networks.
- Energy Coast Line between Carlisle, Workington and Barrow upgraded: Improving capacity and journey times, enabling trains every 30 minutes between Carlisle, Workington, and Whitehaven
- Contactless & smart ticketing: £100 million will be shared across the North and Midlands to support seamless travel by enabling contactless or smartcard payment.
- Fixing potholes: £3.3 billion long-term road resurfacing fund for North alone will fix potholes causing misery for drivers and more than £500 million in funding will be provided for two major road schemes around Manchester. These include a new link road between the M62 and the M60, Manchester’s ring road and the busiest freight route outside the M25. The scheme will help tackle congestion and reduce delays.
- £300 million for 9 smaller road schemes: Including the A582 South Ribble Distributor, Kendal Northern Access Route, and the Wigan East-West Route.
- £2 bus fare will also be extended: Will run to the end of December 2024 instead of rising to £2.50 as planned. This will mean passengers on a bus journey from Lancaster to Kendal will save £12.50 every time they travel.
- £700 million bus funding package in the North: More buses and more frequent routes, including a new service to Royal Blackburn Hospital, doubling the service between Northwich and Chester and more buses to industrial estates and business parks.
- £1.5bn for Greater Manchester: Comes from the City Regional Sustainable Transport Settlement 2 budget – an unprecedented investment in local transport networks.
- Nearly £1bn for Liverpool City Region: Comes from City Regional Sustainable Transport Settlement (CRSTS) 2 budget, plus a further £600 million on top – funded from HS2. That is more than double their allocation under the last round.
North East
- 75 per cent more funding for improved connectivity: Benefiting millions of people living in the towns and suburbs around Newcastle and Teesside, funding new roads in the Tees Valley.
- Dualling A1: Funding to dual a section of the A1 between Morpeth and Ellingham.
- £460 million for smaller road schemes: Including the Blyth Relief Road.
- Reopening stations: Communities in the North East will be reconnected, including a new station at Ferryhill, Co Durham. The Leamside line, closed in 1964, will also be reopened.
- Funding for contactless and smart ticketing: Supporting seamless travel by enabling contactless or smartcard payment.
- Fixing potholes: Funding to combat potholes causing misery for drivers in the region.
- £2 bus fare extended: More buses to industrial estates and business parks.
- £1.8 bn for the North East from the City Regional Sustainable Transport Settlement 2 and HS2 funding.
- £1 bn for Tees Valley.
Yorkshire & Humber
- £2.5 billion West Yorkshire mass-transit system: Better connections to Bradford and Wakefield. Leeds will no longer be the biggest European city without a mass-transit system, with up to seven lines potentially created as part of a transformed network, eventually linking Leeds to Bradford, Halifax, Huddersfield, and Wakefield.
- Hull brought into Northern Powerhouse Rail network: Reducing journey time to Leeds from 58 minutes to just 48. The number of trains between Hull and Sheffield. Journeys from Hull to Manchester will drop from 107 to 84 minutes, enabling two fast trains to Leeds.
- Sheffield-Leeds line electrified and upgraded: Giving passengers a choice of three to four fast trains an hour with journey times cut from 40 to 30 minutes. A new mainline station for Rotherham will also be added to the route, boosting capacity by 300 per cent.
- Hope Valley Line between Manchester and Sheffield electrified and upgraded: Cutting journey times from 51 to 42 minutes, and increasing the number of fast trains on the route from two to three per hour, doubling capacity.
- Reopening train lines: Communities will be reconnected, including through the restoration of the Don Valley Line between Stocksbridge and Sheffield Victoria, and new stations at Haxby Station, near York, Waverley, near Rotherham, and the Don Valley Line from Sheffield to Stocksbridge.
- Contactless and smart ticketing: £100 million will be shared across the North and Midlands to support the development and roll-out of London-style contactless and smart ticketing.
- Nearly £4 billion to better connect all six Northern city areas: This could pay for schemes such as bus rapid transit corridors in Bradford and Leeds.
- £2.5 billion fund to transform local transport in 14 rural counties: This new money could finance projects like more electric buses in Harrogate and better bus-rail interchange in Scarborough.
- £460 million for smaller road schemes across the North: Like the Shipley Eastern Bypass, near Bradford, while a £1 billion roads package in the North could fund schemes like the A1-A19 Hickleton Bypass in Doncaster, easing pressure on traffic.
- £3.3 billion long-term road resurfacing fund for North alone will combat the potholes causing misery for drivers.
- £2 bus fare extended until the end of December 2024: More buses and more frequent routes, with more buses to industrial estates and business parks.
- £1.4 bn for South Yorkshire from savings from HS2 and the City Regional Sustainable Settlement.
- £1.3 bn for West Yorkshire. This includes a £500m downpayment for the West Yorkshire Mass Transit.
West Midlands
- Reopening closed Beeching lines: including the Stoke to Leek line and the Oswestry to Gobowen line, with a new stop at Park Hall. A new station will be built at Meir, Stoke-on-Trent, on the existing Crewe to Derby line,
- Contactless and smart ticketing: £100 million will be shared across the North to support seamless travel by enabling contactless or smartcard payment.
- £2.2 billion fund to transform local transport: Rural counties such as Shropshire, smaller cities like Leicester and towns such as Evesham will receive funding which could pay for smaller, more demand-driven buses in rural areas as well as funding the refurbishment of Kidsgrove and Longport stations, near Stoke-on-Trent.
- £250 million for smaller road schemes: Including the Shrewsbury North Western Relief Road and the A4123 Birchley Island, near Oldbury. A Midlands Road Fund worth nearly £650 million will be launched for new roads.
- £230 million for more bus services: Increased frequency of bus services in the Midlands, which could be spent on new bus stops around Telford and park and ride upgrades elsewhere in Shropshire and new bus lanes in Herefordshire.
- £2.2 billion for the Midlands to combat potholes: Fixing roads causing misery for drivers.
- £2 bus fare extended: Until the end of December 2024 instead of rising to £2.50 as planned.
- £1 billion more for local transport funding in West Midlands: This includes £100 million to deal with ongoing metro and Arden Cross cost pressures, £250 million to accelerate local transport projects over the next five years.
East Midlands
- Increased rail capacity: The number of trains between Leicester and Birmingham will be doubled from two to four per hour.
- £1.5 billion for East Midlands City Region Mayor: Transforming transport for 2.2 million people living in Derbyshire and Nottinghamshire. This is an average of almost £1000 for everyone in the two counties. The new Combined Authority could use the funding to extend the Nottingham Tram system to serve Gedling and Clifton South and connect Derby to East Midlands Parkway with a Bus Rapid Transit System.
- Reopening Beeching Line stations: Including the Ivanhoe Line between Leicester and Burton, connecting 250,000 people across South Derbyshire and North West Leicestershire, with new stations en route.
- Funding for the Barrow Hill Line: Between Chesterfield and Sheffield Victoria, with a new station at Staveley in Derbyshire.
- Contactless and smart ticketing: £100 million will be shared across the North and Midlands to support contactless or smartcard payment.
- Fixing two major pinch points on the A5: Funding a stretch of road between Hinckley and Tamworth, linking the M1 and M6, that serves more than one million people. Funding will also be provided for improvements to the A50/500 corridor between Stoke and Derby, cutting congestion for the 90,000 drivers who use the road each day and ensuring smoother journeys for drivers and freight around Rolls Royce, Toyota, Magna Park, and other major local employers.
- Midlands Road Fund worth nearly £650 million: Launched for new roads.
- £2.2 billion fund to transform local transport: Available in every part of the Midlands outside the mayoral combined authority areas and the new East Midlands combined authority – rural counties such as Shropshire, smaller cities like Leicester and towns such as Evesham.
- £250m will fully fund ten smaller road schemes in the Midlands: Including the A509 Isham Bypass, near Kettering, and the A43 between Northampton and Kettering.
- £2.2 billion for potholes: Funding for the Midlands to combat the potholes causing misery for drivers.
- £230 million for more bus services: Increasing frequency throughout the Midlands and the popular £2 bus fare will also be extended until the end of December 2024 instead of rising to £2.50 as planned.
- The East Midlands will get a brand new the City Regional Sustainable Transport settlement of over £1.5 billion as it embarks its new status as a Combined Authority next year.
East Anglia
- Ely Junction to be transformed: providing an extra six freight trains per day with access to the Port of Felixstowe, removing thousands of HGVs from East Anglia’s roads.
- Remodelling of the Ely North and Haughley Junctions.
- Doubling train passenger services: on the Ely to King’s Lynn and Ipswich to Peterborough routes.
- £610 million to fund road schemes: ensuring the delivery of 39 road schemes across East Anglia, including the A10 between Ely and Cambridge.
- Access to a £2.8 billion roads resurfacing fund: combatting potholes.
- £2 bus fare extended: until the end of December 2024 instead of rising to £2.50 as planned.
South East
- Funding to ensure the delivery of road schemes: This includes the A2 at Brenley Corner, a notorious bottleneck on the corridor to Dover.
- £290 million to deliver 14 road schemes: Roads across the South East set to be revitalised, among them the A259 between Bognor Regis and Littlehampton.
- Access to £2.8 billion to combat potholes: Fixing potholes causing misery for drivers in the South East, South West and East of England
- £1 billion fund will be launched for new road schemes
- £2 bus fare extended: Until the end of December 2024 instead of rising to £2.50 as planned.
South West
- Funding for vital Exeter to Plymouth rail line: making it more resilient in the face of extreme weather.
- Opening more railway lines: between Cullompton and Wellington.
- A new station built at Tavistock: connecting it with Plymouth. Plus, five miles of track will be reinstated.
- £100 million in funding for a Mass Transit system: to revolutionise travel in and around Bristol.
- £140 million in funding to ensure the delivery of 12 road schemes: among them the A38 in North Somerset.
- A further £1 billion fund for new road schemes: around the South West, South East and East of England.
- Access to £2.8 billion roads resurfacing fund to combat the potholes.
- £2 bus fare extended: Until the end of December 2024 instead of rising to £2.50 as planned.
- £0.8bn from the City Regional Sustainable Transport Settlement 2 budget and savings from HS2.
Wales
- £1 billion to improve transport connectivity in Wales: North Wales to benefit from a £1 billion investment to electrify the North Wales Main Line, bringing parts of the region within an hour of Manchester and strengthening connections across the Union.
- Faster journey times, increased capacity, and more frequent, reliable services: Network North will build better connectivity across the North and Midlands.
Scotland
- Reducing congestion for the communities of Ashington, Felton, Alnwick, and Amble: by delivering the long-awaited upgrade to A1 coastal route between Newcastle, Berwick-upon-Tweed, and Edinburgh.
- Faster journey times, increased capacity, and more frequent, reliable services: Network North will build better connectivity across the North and Midlands.
- Pinch points on the A75 solved: providing better links between the Cairnryan ferry terminals serving Northern Ireland and southwest Scotland.
- Further investment in the M6 and Cumbria, and the A77 towards Glasgow.
You can read the industry reaction to the news here.
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