HS2: going all the way
Thanks to Donald Trump, infrastructure fervour is sweeping the US – but what of Britain? The Government seems just as keen to jump on the bandwagon, said Gwyn Topham in The Guardian. Having given the go-ahead for a major expansion at Heathrow, ministers are “pressing ahead” with “the second-phase route” of HS2, which will extend the £55bn highspeed rail scheme to the North of England in a “broad Y-shaped route to Leeds and Manchester”. Transport Secretary Chris Grayling said he “felt desperately sorry” for residents affected, but argued the project would be “a game changer” for the nation once completed in 2033, and would almost double the number of commuter and intercity trains per hour to the northern bases.
Business groups broadly welcomed the decision as a boost for local economies and investment. There had been fears that Theresa May’s administration would scale back the scheme, dealing a blow to the vision of a “Northern Powerhouse”. It’s certainly a tonic for the three construction consortiums which have been awarded a £900m contract for enabling works on the first phase, said Jamie Nimmo in the London Evening Standard. Costain, Skanska, Morgan Sindall, J. Murphy and Laing O’rourke are among the big names that will benefit. Tough luck for rivals Kier and Carillion, which “failed to win any of the contracts, despite bidding for all three together”. How will it all be financed, asked the Financial Times. Despite resistance from some civil servants, the Treasury is reportedly drawing up proposals “to raise billions of pounds” through “new infrastructure bonds” – even though they would have to pay a higher coupon than ordinary government bonds (gilts). A plan could be announced in next week’s Autumn Statement.