Budget reaction: uncertainty for HS2 and NPR causes “untold damage” as wait for integrated rail plan continues

The much anticipated Integrated Rail Plan (IRP) has been delayed again, having long been reserved for publication with today’s budget.

While pledging £ 46bn in railway modernization during his budget speech, Chancellor Rishi Sunak confirmed that the IRP would be released “soon”, with some media reporting that it had been postponed until mid-November. It is now almost a year late, its publication being initially scheduled “early 2021”.

The budget itself makes no mention of Northern Powerhouse Rail and only briefly commits to funding High Speed ​​2 as part of a £ 35bn investment in the country’s railways.

Responding to the Chancellor’s statement, ICE Policy Director Chris Richards said: “The Integrated Rail Plan (IRP) is now almost a year behind schedule. This uncertainty has caused untold damage to communities living along the eastern part of HS2, which means that we still lack plans to provide the connectivity promised by the government between towns and regions in the north of England. ”

While the budget did not clarify the future of major rail projects such as HS2 and Northern Powerhouse Rail, it does contain details of a £ 1.7billion leveling fund to support the completion of more than 100 projects across the country; a commitment of £ 500 million for the Restoration of your railways program; and more details on a £ 5.7bn funding pledge for ‘London-style transport infrastructure’ in the regions.

Richards added: “The increase in regional funding for the city is good to see, but to make a real difference it needs to be supported rather than one-time funding, as recommended by the National Infrastructure Commission. And we know there will be a delay in designing how to make this improvement work for the public as cities wait for the IRP outcome. “

The content of the integrated rail plan will determine how large projects such as HS2, Northern Powerhouse Rail, East West Rail and Midlands Engine will be implemented.

Earlier reports suggested that the eastern section of HS2 to Leeds would be significantly reduced, while calls to a direct station in Manchester would also be refused.

There are also fears that the Northern Powerhouse Rail’s route may be shortened as well, with companies like WSP, Mott MacDonald and Arup championing all the benefits of full line delivery over the past fifteen weeks.

Marie-Claude Hemming, director of external affairs for the Association of Civil Engineering Contractors (CECA), agreed that “the industry will welcome today’s budget and expenditure review as an indication that the UK government is supporting our sector to “upgrade” the economy and generate strong economic growth ”. However, she urged the government “that any delay in the IRP [be a] be short ”.

“ECSC members need more details of the government’s plans for the rail sector, to enable them to plan accordingly, to ensure the right skills are in place and to deliver the world-class infrastructure. that businesses and communities rely on in all parts of the UK. »Hem added.

Kevin Bell, transport partner of Womble Bond Dickinson, went further and suggested that the lack of an integrated rail plan threatens to undermine the government’s upgrade program describing the uncertainty surrounding HS2 and Northern Powerhouse Rail as “The elephant in the room”.

He added: “The real upgrade (whatever that means to any of us) cannot be achieved without these two projects being delivered in their entirety?” The continued delays in the release of the integrated rail plan and the fact that the Chancellor did not quash all persistent rumors that the eastern part of the HS2 would be downsized and downgraded to the shipping box only adds to the growing uncertainty surrounding these projects. “

Meanwhile, Railway Industry Association (RIA) chief executive Darren Caplan described the budget as a “missed opportunity to unleash the potential of the railways to help the country build back better.”

“There was no indication in the statement whether long-term daily funding for the rail network will be maintained at least at current levels in the years to come. We still don’t know what’s in the Integrated Rail Plan for the Midlands and North, we still have uncertainties on major projects, such as HS2 Eastern Leg, Northern Powerhouse Rail and Midlands Rail Hub, and we are still awaiting an update. day of the Rail Network Enhancements Pipeline, now more than two years since it was last published, ”he added.

Pinsent Masons infrastructure partner Jon Hart added: “The major rail projects that form the backbone of the government’s upgrade program, including HS2, Northern Powerhouse Rail and East West Rail, are at risk of being significantly delayed, over budget or even significantly reduced. as evidenced by rumors about the removal of the eastern part of HS2 Phase 2.

“The cost of steel is now 75% higher than 12 months ago and with Network Rail purchasing 97% of the steel produced by British Steel, these transport projects which were designed to bridge the gap on regional disparities across the UK are going to become increasingly difficult.

“If the government seriously wants to progress in its move upmarket and rebuild better ambitions, it will have to remain lucid on the cost-benefit analyzes of these projects and favor its” Project Speed ​​”initiative intended to shorten the time required for that these major rail upgrades be approved and approved.

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