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HS2 may cost £10bn more than planned, minister tells MPs | |
(35 minutes later) | |
The proposed budget for the HS2 railway has risen by nearly £10bn to more than £40bn, the transport minister has said. | |
Patrick McLoughlin told the Commons the new projected cost of £42.6bn, up from £33bn, would include a large "contingency" fund. | Patrick McLoughlin told the Commons the new projected cost of £42.6bn, up from £33bn, would include a large "contingency" fund. |
He said the final cost could be lower than the new estimate, but said revising the figure was "right". | He said the final cost could be lower than the new estimate, but said revising the figure was "right". |
Some Conservative MPs are expected to vote against the High Speed Rail (Preparation) Bill later. | Some Conservative MPs are expected to vote against the High Speed Rail (Preparation) Bill later. |
The new high-speed railway line is intended to link London to Birmingham by 2026, with branches to Manchester and Leeds, via Sheffield, planned by 2032. | The new high-speed railway line is intended to link London to Birmingham by 2026, with branches to Manchester and Leeds, via Sheffield, planned by 2032. |
The first phase budget is now £21.4bn, with £21.2bn for phase two. These figures include a contingency fund of £14.4bn across the scheme. | |
Mr McLoughlin said contingency money was built into the London Olympics budget but the cost ended up "below the price that had been set by the government". | Mr McLoughlin said contingency money was built into the London Olympics budget but the cost ended up "below the price that had been set by the government". |
"While I expect the final costs to be lower than those I have just outlined... this is the right way to plan the project," he told MPs. | "While I expect the final costs to be lower than those I have just outlined... this is the right way to plan the project," he told MPs. |
He also said the new budget took account of "design and environmental changes to improve the scheme", including alterations to the route such as a tunnel under the M6 near Birmingham. | |
Mr McLoughlin said scrapping HS2 would be the "easiest thing in the world" for the government, but the long-term cost of that would be "huge". | |
He said building HS2 would "create and support" at least 100,000 jobs and "underpin" a further 400,000. | |
HS2 could add more than £4bn to the economy before opening and would provide "around £50bn worth of economic benefits once it is up and running", he added. | |
Mr McLoughlin said the coalition was considering various compensation schemes for residents affected by the planned rail line, including a possible "property bond". | |
The bill, which would give the transport secretary power to spend money developing the HS2 line, is being debated at its second reading in the House of Commons. | |
A group of mainly Conservatives have tabled a rebel amendment, urging MPs to reject the bill until budgets and the route are determined. | |
The rebellion is being led by former cabinet minister Cheryl Gillan, whose Amersham constituency will be affected by the plans. | The rebellion is being led by former cabinet minister Cheryl Gillan, whose Amersham constituency will be affected by the plans. |
She said the project was "30 years too late" and added: "Technology and the whole of the UK is moving in a different direction." | |
Mrs Gillan's motion has been backed by 27 other Conservative MPs, plus four Labour, one Green, one Plaid Cymru and one independent. | Mrs Gillan's motion has been backed by 27 other Conservative MPs, plus four Labour, one Green, one Plaid Cymru and one independent. |
But Labour backs HS2, meaning the government is expected to easily win the vote. | |
Shadow transport secretary Maria Eagle said HS2 was "essential", but voiced concerns about delays to the project. | |
Robert Oxley from the Taxpayers' Alliance described the project as a "white elephant", which would not deliver the economic benefits ministers claim. |