Sunak takes a different line north

By Ged Henderson

05 Oct 2023

Hs2

The decision to axe the northern leg of the HS2 high-speed rail project has been widely condemned by business and political leaders in the north of England and nationally.

As had been widely anticipated Prime Minister Rishi Sunak announced the scrapping of the route between Birmingham and Manchester in his keynote speech to his party conference yesterday.

The high-speed rail link between Birmingham and Manchester – seen by many to be crucial to levelling up and a vital part of work to improve connectivity in the north – has been shelved over cost concerns.

The project was originally budgeted at £30bn, but the cost is estimated to have soared higher than £100bn, even after the Leeds leg was scrapped.

The PM said the move would free up £36bn – with every penny to be spent on “hundreds of new transport projects in the north and the midlands and across the country”.

These include a ‘Network North’ project to join up northern cities by rail. Mr Sunak also spoke of upgrading the M6 motorway.

He told the Conservative conference in Manchester: “Our plan will drive far more growth and opportunity here in the north than a faster train to London ever would.”

And he added: “No government has ever developed a more ambitious scheme for northern transport than our new network north. This is the right way to drive growth and spread opportunity across our country, to level up.”

Under the new plan HS2 will switch to using existing West Coast mainline track from Birmingham to Manchester, meaning it will not be high-speed.

The Prime Minister told his audience: “HS2 trains will still run here to Manchester and journey times will be cut between Manchester, Birmingham, London by 30 minutes.”

In Lancashire there has been widespread belief that the HS2 line would have a positive impact on the county’s economic prospects.

The Lancashire Enterprise Partnership (LEP) has previously said productivity gains from the impact of HS2 services to the area could help provide an extra £600m for the county.

And last March a document was published looking to steer development in the area around Preston’s city centre railway station, aiming to capitalise on its transport links by bringing in jobs and investment.

The Preston Station Quarter centres on an area around the railway station as well as the areas around the Fishergate Centre, County Hall and along Corporation Street to the university.

Part of the argument for investment was the station becoming  a main stop for HS2 services in the future.

Andy Burnham, the Labour mayor of Greater Manchester, said there was “frustration and anger” over the decision to scrap the line. He said: “It always seems that people here where I live and where I kind of represent can be treated as second class citizens when it comes to transport.”

Henri Murison, from the Northern Powerhouse Partnership, described the decision as a “national tragedy - economically at least”.

Greater Manchester Chamber of Commerce’s director of policy, Chris Fletcher, said: “We have been promised a lot before and nothing has been done and this latest attempt from government will be treated with cynicism and scepticism by a lot of people.

“HS2 was a major investment opportunity for the UK that would unburden a worn-out network already at over capacity; boost the country’s net zero ambitions and open up labour markets and job opportunities on a scale like never before.

“Plus it was also a cornerstone of Northern Powerhouse Rail. Network North has to deliver all this and more and in a shorter timescale if this government is to have any credibility and successive government’s performance on this over the last decade has not been great.”

Logistics UK’s policy director Kate Jennings expressed the disappointment of the sector group’s members at the news of the cancellation: 

She said: “HS2 was a vital plan to unlock economic growth across the UK – the additional capacity across the rail network which it would have released was critical to expanding rail freight opportunities and enabling a shift from road to rail to cut carbon emissions.


“Putting high speed trains on the existing line between Birmingham and Manchester will make today’s rail freight capacity issues even worse.”

And Robert White, chief executive at law firm Brabners, said: “Much of the north’s future potential – and closing the productivity gap – lies in harnessing its talent and generating inclusive growth through emerging industries.

“This can only happen with a long-term approach that transcends political cycles – including in the national approach to connectivity and infrastructure.

“Our own research highlights an increased appetite among UK and international funds to invest in the north but the uncertainty surrounding long-term decision making at a national level, and in this case the decision to abandon the northern leg of HS2, has the potential to significantly impact that appetite.”

Meanwhile, in a statement the High Speed Rail Group described the announcement as “a devastating blow to our industry and our whole economy.”

It added: “For 15 years we have worked with the government to develop this project - their project - taking it from a concept to construction. Companies have invested in people, skills and equipment on the back of it with some even relocating in anticipation of it being completed.

 

“It is true the costs of the project have risen over those 15 years. In recent years inflation has been rampant in the UK economy and the construction sector has been impacted far more than most. 

“But the principal cause of any real term cost increases lies in the chopping and changing of the project’s scope, with today’s news being the fourth major change by government in just three years.

“As any project manager will tell you, the cheapest way to deliver is against a fixed scope without constant changes. This is the biggest and most damaging U-turn in the history of UK infrastructure.

“What we have now is a plan for a railway that will not deliver the transformational benefits the north of England needs. Indeed, the solution proposed by the Prime Minister is a recipe for disaster. 

“Merging HS2 trains onto existing lines at Birmingham will create a huge bottleneck, akin to the M40 merging onto an A-road and then a country lane - rather than the M6. Rail connectivity to the north will be worse than it is today.”

In his speech Rishi Sunak also proposed a new Advanced British Standard for education in England, which will bring together A-Levels and T-Levels

They will be all for all students in England, and will typically include five subjects. All students will sit it and they will all study some form of English and maths to 18.

Enjoyed this? Read more from Ged Henderson

Latest news

1

Chamber chief to step down Miranda Barker

Chamber chief to step down

23 Jun 2026

2

Loom Loft makes Growth 100 list Loom Loft team

Loom Loft makes Growth 100 list

23 Jun 2026

3

Green light for Longton homes scheme Story Homes plans

Green light for Longton homes scheme

23 Jun 2026

4

£23m housing scheme to open this summer St Martins Court Lancaster

£23m housing scheme to open this summer

22 Jun 2026

5

Digital future for Preston's iconic phone boxes The phone boxes

Digital future for Preston's iconic phone boxes

22 Jun 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV129 July/August Magazine Networking Event
Nov/Dec Networking Event
Networking
16 Jul 2026

LBV129 July/August Magazine Networking Event

Brysdales, Britannia Buildings Drumhead Road, Chorley, PR6 7BX

16:00 - 18:00

LBV130 September/October Magazine Networking Event
Jan/Feb Networking Event - Entrance
Networking
17 Sep 2026

LBV130 September/October Magazine Networking Event

The Beehive Blackburn, Shadsworth Business Park, BB1 2Q

08:30 - 10:30

LBV131 November/December Magazine Networking Event
Jan/ Feb Networking Event - Talking
Networking
19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Preston Freelancer Meet-Up: June
June Freelancer Square.png.png
LBV Hub Networking
24 Jun 2026

Preston Freelancer Meet-Up: June

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 12:00

How to manage grievances…with confidence
Logo.jpg.jpg
LBV Hub Seminars
24 Jun 2026

How to manage grievances…with confidence

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

Cyber Crime Awareness Event
Logo.jpg.jpg
LBV Hub Seminars
24 Jun 2026

Cyber Crime Awareness Event

Morecambe Golf Club, Morecambe, LA4 6AJ

13:00 - 16:00

How can smarter employee benefits reduce costs and improve staff retention?
Screenshot 2026-05-20 100211.png.png
LBV Hub Roundtables
25 Jun 2026

How can smarter employee benefits reduce costs and improve staff retention?

Forbes Solicitors , Preston, PR5 6AW

08:30 - 10:00

NO Rackets Required - The Ultimate Padel Party
Crowdfunder.png.png
LBV Hub Social
26 Jun 2026

NO Rackets Required - The Ultimate Padel Party

Pendle Padel Club, Nelson, BB9 5SR

16:00 - 00:00

Chamber Breakfast Networking - July
LBV Hub Networking
02 Jul 2026

Chamber Breakfast Networking - July

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

How hackers target SMEs - and how to protect your business
Lancashire_gamesdesign_Feb26-2120.jpg.jpg
LBV Hub Seminars
02 Jul 2026

How hackers target SMEs - and how to protect your business

Engineering Innovation Centre, Preston, PR1 2XS

09:30 - 11:30

The AI Lab: Marketing Multiplier
Event post 03.07.png.png
LBV Hub Seminars
03 Jul 2026

The AI Lab: Marketing Multiplier

Door4, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:30

Clubhouse Business Network sponsored by Orca Finance - July 2026
padel-networkpng.png.png
LBV Hub Networking
09 Jul 2026 - 09 Jul 2026

Clubhouse Business Network sponsored by Orca Finance - July 2026

Clubhouse, Blackburn, BB1 3NT

14:00 - 16:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin