As row over country鈥檚 biggest infrastructure project escalates, Daniel Gayne reports on a downbeat mood in Manchester

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Source: Conservative Party

Anyone hoping for clarity from the chancellor鈥檚 conference speech was disappointed

Will he? Won鈥檛 he? Has he? Hasn鈥檛 he?

The construction industry and the nation at large have been waiting to know the prime minister鈥檚 decision on whether or not HS2 will be cut to a shuttle service between Acton and Aston.

And for a brief moment on Monday afternoon it seemed they had their answer when ITV鈥檚 Robert Peston reported that Rishi Sunak had made up his mind to cut the Manchester link and redistribute the money to other rail schemes in the north of England.

But before the dust had a chance to be kicked up (let alone settle) a Number 10 spokesperson corrected these reports, insisting that no such decision had been made.

All this controversy comes as the party congregates for its annual conference, which this year takes place in the comically inappropriate location of a converted railway station in Manchester. The party鈥檚 most senior leaders seemed desperate to avoid the issue, leaving it to their subordinates to field awkward questions at various fringe events.

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Source: Conservative Party

Mark Harper avoided much talk of HS2, instead focusing on the government鈥檚 pro-motorist agenda

Neither chancellor Jeremy Hunt nor transport secretary Mark Harper mentioned the nation鈥檚 largest infrastructure project a single time in their conference speeches and the latter swerved questions about its future during a sit down interview with rail industry leaders. When this reporter tried to ask Harper a question on the scheme after that fringe event, the minister simply walked on by.

Elsewhere in the conference, Harper鈥檚 subordinate responsible for HS2, Huw Merriman, endured an awkward panel session with Henri Murison, chief of the Northern Powerhouse Partnership (NPP). The infuriated Murison accused the government of dishonesty in its briefing about plans to redistribute any cut to HS2 to other schemes in the north.

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Murison said: 鈥淲hy on earth would the government not be more honest about the fact that if you cut HS2 between Birmingham and Manchester, you鈥檇 have to put 拢15bn back in the NPR budget to avoid cancelling NPR as well?

鈥淚 think what I鈥檇 ask from the minister is a bit of honesty. When he talks about the priorities of HS2, does that mean that NPR will be lost as well?鈥

Merriman said that the problem with HS2 - that it had gone over budget and over time - was 鈥渨ell documented鈥.

鈥淏ut we are delivering HS2 right now. I know people talk about spades in the ground 鈥 there are tunnel-boring machines in the ground,鈥 he said. 鈥淏ut it is a project that has been beset with difficulties. If all of the budget goes on increased costs for HS2, then it gets lost for other parts [of the country].鈥

Andy Burnham rails against mooted cuts at industry reception

On the 23rd floor of SimpsonHaugh鈥檚 Beetham Tower, leaders of industry and politics surveyed the Manchester cityscape and ground their teeth over rumoured cuts to HS2.

Andy Burnham made an unadvertised appearance at 鈥楾he Rail Reception鈥 in the Hilton Hotel, hosted by the High Speed Rail Group, Railway Association and Rail Partners.

The mayor of Greater Manchester joked that the organisers had probably not anticipated the topic being of such interest when they arranged the event, before launching into a speech where he insisted that, in the decision over the future of HS2, 鈥渙ur reputation is at stake as a country鈥.

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Source: Daniel Gayne

Andy Burnham speaking at the rail reception in Beetham Tower

Burnham said he would be 鈥渙pen鈥 to a conversation about a re-phasing of rail priorities, with east-west links in the north brought forward, 鈥渁s long as you protect the line to Birmingham and as long as you keep that land assembly that is already in place there so that the line could be completed in future鈥.

He said that the government was at risk of 鈥渃onfirming something to people in the North of England that they have long suspected鈥, that they are 鈥渟econd class citizens鈥 when it came to transport. 鈥淚n London, no one was asked to choose between whether they could have the Elizabeth line or whether they could have HS2,鈥 he added.

Following Burnham鈥檚 speech, former transport secretary Lord Patrick McLoughlin said he agreed with the mayor, saying decisions on infrastructure investment should 鈥渘ot be made in isolation鈥 without consulting elected mayors. He also suggested that those pushing for cuts today on the back of rising costs were in fact seeing the results of their own earlier demands for the scheme.

The people who say the cost has gone up were the people who demanding tunnels in various areas 鈥 well tunnels do come out a bit more expensive than laying it over open ground

Lord Patrick McLoughlin, former transport secretary

鈥淪ometimes big projects do go over budget,鈥 he said. 鈥淲e should be talking about that and we should be questioning why it has gone so much over budget. Some of the answer is changes that have been made to it 鈥 asking for more. The people who say the cost has gone up were the people who demanding tunnels in various areas 鈥 well tunnels do come out a bit more expensive than laying it over open ground.鈥

Rail industry leaders in attendance seemed baffled at the recent move towards cutting the scheme and echoed Burnham鈥檚 complaints at the lack of consultation. One linked the decision to the government鈥檚 reversal of net zero policy, speculating that it was part of a 鈥渃ore voter鈥 strategy ahead of the next election.

Another 鈥 a veteran business development director of a firm involved in a HS2 station scheme 鈥 noted wearily that 鈥減olitician fall in and out of love with rail,鈥 hinting that we may simply be at the nadir of another political cycle. All hoped, along with the mayor, that the land assembly between Birmingham and Manchester would, at the very least, be protected.

鈥淚t鈥檚 not about delivery of railways, it is about whether investment in the UK is secure,鈥 said one attendee, representing an international engineering consultant, who said he was aware of real estate investors that were already pulling out of deals in Manchester on the back of the rumoured cuts.

He was not convinced by claims that the money could be reinvested in other northern rail upgrades, explaining that the necessary legislative powers had not been put in place.

Addressing the potential to re-start the scheme in the future, he added: 鈥淚t might be that they cancel it, get kicked out of office and Labour want to start it up again. Good ****ing luck with that, the supply chain is gone鈥.

The NPP later issued a statement from Murison describing it as 鈥渕adness to leave what what meant to be the UK鈥檚 flagship infrastructure project like this鈥.

鈥淯nless we can protect the Hybrid Bill, which is currently going through Parliament and which authorises the tunnel between Manchester and Manchester Airport, this means the end for Northern Powerhouse Rail and levelling up as a whole is finished,鈥 he said, urging the prime minister to reconsider.

Michael Gove was one of the few frontbenchers willing to offer anything on the scheme. Speaking at a packed Centre for Policy Studies fringe event on Sunday, he suggested east-west links could be prioritised. 鈥淓veryone wants to know what鈥檚 going to happen with HS2 [鈥 the prime minister and the rest of us will say more in due course,鈥 he said.

鈥淓veryone will try to tease out of us more than that, but we in this conference will be clear that every transport project has to be scrutinised for value for money. My pushback but qualification is 鈥 if you鈥檙e thinking about transport overall, not only north to south, but also east to west, and also critically our transport links within the city regions.鈥

Speaking to 黑洞社区 after a fringe event, construction minister Nusrat Ghani refrained from taking a strong line in favour of delivering the scheme in full, but gave a strong hint as to her personal view on the matter. 鈥淚 had HS2 in my brief and I am a Brummie so you should know where I stand on it,鈥 she said.

West Midlands mayor Andy Street also commented on the issue at an Onward fringe event, saying: 鈥淚f you tell the international investment community you are going to do something, you bloody well better stick to your word鈥.

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Source: Conservative Party

Construction minister Nusrat Ghani visiting the Old Oak Common site, which could become HS2鈥檚 London terminus

Harper, it seemed, was keen to talk about anything but rail. In their conference speeches on Monday morning, both he and energy secretary Claire Coutinho took Sunak鈥檚 new pro-motorist stance and ran with it. Rather than talking about infrastructure, Harper used his speech to threaten to block councils from using DVLA data to fine drivers as part of a broader attempt to fight so-called 15-minute cities.

Meanwhile, Coutinho walked a careful line, avoiding a total abandonment of the net zero cause. She said it was 鈥渘ot the climate deniers who threaten net zero鈥, but Keir Starmer鈥檚 Labour Party, who she accused of making the policy a 鈥渞eligion鈥.

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鈥淚f we are to succeed, net zero can鈥檛 be something that鈥檚 done to people by a privileged elite,鈥 she said, explaining the decision not to compel households to change their gas boilers. 鈥淥ur carbon emissions will continue to fall, but people will be able to make the transition when the price is right for them,鈥 she said.

It remains to be seen whether Sunak鈥檚 four-wheeled culture war will be a hit with voters, but his willingness to junk long-term strategies on net zero and infrastructure investment has provoked anger and despair among many of the conference attendees from the built environment sector.