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HS2 may cost £10bn more than planned, minister tells MPs | HS2 may cost £10bn more than planned, minister tells MPs |
(about 2 hours later) | |
The proposed budget for the HS2 railway has risen by nearly £10bn to more than £40bn, the transport minister has said. | 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, included "contingency" money. | |
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". |
Several MPs criticised the High Speed Rail (Preparation) Bill in a debate earlier, but it passed its second reading vote by 325 to 37. | |
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. | 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. | 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". | 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. | 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. | 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". | 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 would give the transport secretary power to spend money developing the HS2 line. | |
A group of mainly Conservatives tabled a rebel amendment, urging MPs to reject the bill until budgets and the route were determined. | |
The rebellion was 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." | She said the project was "30 years too late" and added: "Technology and the whole of the UK is moving in a different direction." |
But Labour and the Liberal Democrats support HS2, so the vote was overwhelmingly in its favour. | |
Shadow transport secretary Maria Eagle said HS2 was "essential", but voiced concerns about delays to the project. | 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. | Robert Oxley from the Taxpayers' Alliance described the project as a "white elephant", which would not deliver the economic benefits ministers claim. |