Concerns that the High Speed 2 rail project may not represent value for money have been voiced by spending watchdog the National Audit Office. It says that the Department for Transport’s objectives lack clarity and that a strategic case for the network needs to be better developed.

Head of the National Audit Office Amyas Morse said there is “limited evidence” of the forecast passenger demand for the railway and to what extent existing lines will suffer capacity shortages. “It is also unclear how High Speed 2 will transform regional economies by delivering jobs and growth,” he added.

The National Audit Office went on to say that the Department for Transport’s appraisals for the scheme place a high emphasis on reducing journey times. But the relationship between these savings and the strategic reasons for doing the project is, it says, not clear. Research should be carried out, it adds, into how business travellers use their time on trains. The NAO also suggests that there is a £3.3Bn funding gap which Government has yet to decide how to fill.

Labour’s Shadow Transport Secretary Maria Eagle said: “The discovery of a £3.3Bn black hole in the Government’s plans for funding the project needs urgently to be addressed by Ministers. Taxpayers will not forgive a repeat of the rail franchising fiasco.”

Transport Secretary Patrick McLoughlin said: “The case for HS2 is clear. Without it the key rail routes connecting London, the Midlands and the North will be overwhelmed. HS2 will provide the capacity needed in a way that will generate hundreds of thousands of jobs and billions of pounds worth of economic benefits.”

CIHT responded to the NAO’s report by asking its members in a survey if they believe there are clear economic benefits for delivering HS2. It also asks members if they believe CIHT should maintain its view that HS2 should be developed.

(Photo: HS2)

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