Chancellor says he is 鈥減assionate鈥� about 拢43bn project
Chancellor George Osborne has defended the government鈥檚 continued support for HS2 amid increasing pressure to drop the project.
Osborne told the yesterday that he was 鈥減assionate鈥� about the scheme and that it had 鈥渁 good budget, which has got a very big contingency in it鈥�.
The construction budget for the scheme was increased in June to 拢43bn from 拢33bn.
Osborne said: 鈥淎s we demonstrated with the Olympic Games, we can deliver these big projects actually sometimes under budget.鈥�
鈥淚鈥檓 passionate about this project because time and again, we have this debate in our country about how we鈥檙e going to bring the gap between north and south together, about how we鈥檙e going to make sure that our growth is not just based on the City of London.
His comments come just days after Camden council called for an urgent review of the scheme after it published research, which found the budget for compensating residents in the borough for the disruption was too small.
The research by consultants Lambert Smith Hampton, Regeneris and Pell Frischmann found the cost of compensating just Camden residents could reach 拢1.03bn, while the compensation budget for the entire scheme is 拢1.07bn.
Sarah Hayward, leader of Camden council, said: 鈥淐racks in the case for HS2 are widening and deepening all the time.鈥�
She said the council鈥檚 study 鈥渟ubstantiated鈥� people鈥檚 doubts and 鈥渦nderlines the threat this railway poses to our community鈥�.
Hayward added: 鈥淐ost confusion equals chaos for Camden and HS2 Ltd needs to rethink its plans, fast.鈥�
Criticism of the scheme has been mounting in recent months with both Lord Mandelson and former chancellor Alistair Darling, both cabinet members when the scheme was first approved, speaking out against the plans after the cost was revised upwards.
Last week, the Institute of Directors has also called for the government to scrap the shceme and called it a 鈥済rand folly鈥�.
Plus, a study by the Institute of Economic Affairs published earlier this month claimed knock-on costs from the scheme could push the total price to 拢80bn.
No comments yet