PM unveils £36bn Network North to replace second leg of HS2

‌He said the £36 billion would be spent on hundreds of projects in the north and midlands, including new electrified rail lines which would connect northern cities more quickly.

‌“I challenge anyone to tell me with a straight face that all of that is what the north really needs,” he said.

‌The Prime Minister said: “Our plan will drive far more growth and opportunity here in the north than a faster train to London ever would.

‌“And given how far along construction is, we will complete the line from Birmingham to Euston and yes, HS2 trains will still run here to Manchester and journey times will be cut between Manchester, Birmingham, London by 30 minutes.

‌“And I say this to Andy Street, a man I have huge admiration and respect for, I know we have different views on HS2.

‌“But I also know we can work together to ensure a faster, stronger spine, quicker trains and more capacity between Birmingham and Manchester.”

‌The Prime Minister accused HS2 Ltd of mismanagement and said the London terminus would be taken out of the hands of HS2 Ltd and handed to a new Euston Development Zone, which will also see more homes built.

‌“There must be some accountability for the mistakes made and the mismanagement of this project,” he said, adding that the £6.5 billion saved will be spent around the country.

‌But Darren Caplan, chief executive of the Railway Industry Association, said its members would be “disappointed” by the announcement.

“The Government cites cost as its main reason for scrapping Phase 2, yet it should be remembered that this was the Government’s own scheme, built to its own specifications, and that the chopping and changing of the scope and timing of the project – adding considerably cost and delay – was entirely of the Government’s own making. Every time the scheme is rescoped it increases the cost.

‌“Scrapping HS2 Phase 2 is simply unnecessary and squanders the full benefits of Phase 1.

‌“Today’s nuclear option is defeatist and sends a terrible signal to potential overseas investors that the UK simply cannot deliver large national transport infrastructure schemes.”

Sir John Peace, chairman of Midlands Connect, said: “We are disappointed and disheartened by the HS2 announcement.

‌“The Midlands Rail Hub and road programmes including the A5 which have been announced today resonate with us, these are our transformational east-west priorities for the region, which we recommended and have been progressing with Government.”

‌Laurence Turner, head of policy at the GMB union, said: “Rishi Sunak’s decision to inflict the biggest rail cut since the Beeching axe will send a shockwave through the construction industry and railway supply chain, costing hundreds of jobs.

“The UK’s political instability was already holding the economy back – it will now be even harder to fund and deliver the new infrastructure that the country desperately needs.

“We can’t rebalance the economy or fix the railway capacity crisis without HS2. It’s essential that the planned route is now protected so that a future government can reverse this disastrous decision.”