The High Speed Rail Group (HSRG), a coalition of rail industry leaders, has issued a strong warning to the Treasury against making short-term cuts to infrastructure spending, particularly on the HS2 project.
In a statement released today, HSRG argued that extending HS2 to Euston and Crewe would not only enhance connectivity but also generate significant returns for the government through concession revenue. Analysis suggests that the increased concession value could more than offset the additional capital cost, potentially saving the Treasury up to £3.5 billion.
The rail industry has cited the success of HS1’s concession model as a precedent for monetizing HS2. HSRG believes that a similar framework could deliver substantial returns to HM Treasury.
Ahead of the upcoming Autumn Budget, HSRG has outlined four key policy recommendations:
- Engage with the infrastructure investment community to explore funding options.
- Approve the Old Oak Common to Euston section of HS2 and continue tunnelling works.
- Retain current HS2 landholdings between Birmingham and Crewe.
- Develop and stick to a comprehensive long-term strategy for both North-South and East-West travel.
HSRG emphasized the importance of these recommendations for ensuring job creation, skills development, enhanced connectivity, and economic growth across all regions.
Dyan Perry, Chair of HSRG, said: “It is deeply alarming to hear news that Rachel Reeves is contemplating cuts to infrastructure spending. We are aware of the fiscal challenges currently facing the Government, and HSRG appreciates that the forthcoming Budget will involve Treasury Ministers making tough choices.
“However, short-term decisions to cut investment into infrastructure would be deeply damaging to the UK, creating uncertainty and jeopardising investor confidence. Rail investment must be a priority as it achieves far more than simply addressing capacity issues; it drives economic growth, transforming prosperity and productivity across UK regions, creates jobs and upskills workers.
“We strongly urge Treasury officials to carefully consider our recommendations and take action to ensure the UK can fully realise the benefits of a connected rail network. Only by investing in our infrastructure now can we set the UK up for long-term economic success.”
