Tag: Andrew Stephenson

The statement made by Andrew Stephenson, the Minister of State at the Department for Transport, in the House of Commons on 20 June 2022.

As set out in a written ministerial statement to Parliament on 6 June 2022, the Government are today publishing a supplement to the January 2022 update to the High Speed 2 (HS2) Crewe – Manchester Strategic Outline Business Case (SOBC). This supplement to the SOBC sets out the implications of removing the Golborne Link from the High Speed (Crewe – Manchester) Bill scheme.

The January 2022 update to the SOBC set out the importance of the proposed scheme in linking Manchester to the high-speed network, reducing journey times between the UK’s biggest economic regions—the south-east, midlands, and north-west—and generating much needed passenger and network capacity on the West Coast Mainline (WCML), the UK’s busiest mixed rail use corridor. It also outlined the scheme’s central role in rebalancing the UK economy by providing the platform for economic growth and regeneration in Manchester and the North West, and its importance as the strategic enabler for Northern Powerhouse Rail (NPR) and the wider Integrated Rail Plan for the North and Midlands (IRP).

This scheme also included the Golborne Link, a proposed connection from the HS2 network near Hoo Green to the WCML just south of Wigan, aimed at increasing the number of HS2 services between England and Scotland.

As announced on 6 June 2022, subject to the will of Parliament, the Government no longer intend to seek powers to construct the Golborne Link as part of this Bill. As Sir Peter Hendy’s Union Connectivity Review made clear the Golborne link might not resolve all the rail capacity constraints on the West Coast Mainline between Crewe and Preston. The Government will therefore take time to consider alternatives which deliver similar benefits to Scotland as the Golborne link, so long as these deliver for the taxpayer within the £96 billion envelope allocated for the Integrated Rail Plan, and to understand the deliverability of the alternatives.

HS2 is an essential factor in achieving the transformative impact of the Government’s £96 billion Integrated Rail Plan, connecting our major cities, including connections between the North and Midlands. With other elements of the IRP, it will encourage businesses to invest beyond London while retaining ready access to the capital. It will make it easier for people to find high-wage, high-skilled jobs without having to travel south. This will help drive productivity and growth, benefiting the whole country.

A copy of the supplement to the Strategic Outline Business Case will be placed in the Libraries of both Houses and made publicly accessible online.

The statement made by Andrew Stephenson, the Minister of State at the Department for Transport, in the House of Commons on 6 June 2022.

The “Golborne Link,” part of the HS2 Crewe – Manchester scheme, is a proposed c. 13-mile connection which would branch off the main HS2 line towards Manchester near Knutsford, in Cheshire, to rejoin the West Coast Main Line (WCML) near Golborne, just south of Wigan. Construction was due to start in the early 2030s and it was due to open in the late 2030s or early 2040s as part of the second stage of HS2 services to Scotland.

In October 2020, the Government established the independent Union Connectivity Review, led by the chairman of Network Rail, Sir Peter Hendy, to consider how best to improve transport connectivity between the nations of the UK.

Sir Peter’s final report, in November 2021, set out that the Golborne Link would not resolve all the rail capacity constraints on the WCML between Crewe and Preston. He recommended that the Government should reduce journey times and increase rail capacity between England and Scotland by upgrading the WCML north of Crewe and by doing more work on options for alternative northerly connections between HS2 and the WCML.

Ahead of the Government’s response to the Union Connectivity Review, we can confirm the Government will look again at alternatives which deliver similar benefits to Scotland as the “Golborne Link”, so long as these deliver for the taxpayer within the £96 billion envelope allocated for the integrated rail plan. We will look at the potential for these alternatives to bring benefits to passengers sooner, allowing improved Scotland services from Manchester and Manchester Airport, as well as from Birmingham and London. HS2 trains will continue to serve Wigan and Preston, as well as Lancaster, Cumbria and Scotland.

Government therefore intend to remove the “Golborne Link” from the High-Speed Rail (Crewe – Manchester) Bill after Second Reading. That means that we will no longer be seeking the powers to construct the link as part of this scheme. The Crewe-Manchester HS2 mainline will remain in the Bill as before. Plans for Northern Powerhouse Rail will also be unaffected.

Our plans for the first-stage HS2 services to Scotland in Phases 1 and 2a of the scheme—between London and the West Midlands, and the West Midlands and Crewe—will also be unaffected, with HS2 trains operating from London to Scotland when services begin running, in the late 2020s or early 2030s.

We will publish a supplement to the January 2022 HS2 Crewe – Manchester scheme strategic outline business case, setting out the implications of removing the “Golborne Link”, prior to Second Reading.

I am also publishing revised safeguarding directions for the Crewe – Manchester scheme to reflect the Bill’s limits and protect the land that may be required for the construction and operation of the high-speed railway.

I am maintaining safeguarding along the “Golborne Link” while alternatives are considered. This means we plan to keep existing compensation programmes in place for affected homeowners so that they can still access support as needed. The Government periodically review land requirements needed for the project and updates the extent of safeguarding accordingly.

A copy of the safeguarding directions will be placed in the Libraries of both Houses and made publicly accessible online.

The statement made by Andrew Stephenson, the Minister of State at the Department for Transport, in the House of Commons on 6 June 2022.

I have been asked by my right hon. Friend, the Secretary of State (Grant Shapps) to make this written ministerial statement. This statement confirms that it has been necessary to extend the deadline for a decision for the A1 in Northumberland – Morpeth to Ellingham Development Consent Order under the Planning Act 2008. The extension is in light of the written statement made by the Secretary of State on 26 May 2022 regarding the Union Connectivity Review, [HCWS62].

The proposed development comprises the widening of approximately 12.8 miles stretch of the A1 between Morpeth to Ellingham with approximately nine miles online widening and approximately 3.8 miles of new offline highway. The Secretary of State received the examining authority’s report on 5 October 2021 and the original deadline for a decision was extended from 5 January 2022 to 5 June 2022 following a written ministerial statement laid on 15 December 2021 to allow for further consideration of environmental matters.

The deadline for a new decision is 5 December 2022.

The decision to set a new deadline is without prejudice to the decision on whether to grant development consent for the above application.

The speech made by Andrew Stephenson, the Minister of State at the Department for Transport, in the House of Commons on 19 May 2022.

I beg to move,

That this House has considered transport.

It gives me great pleasure to open this debate on what the Government are doing to build a world-class transport network. I do not need to remind the House of the vital economic and social role transport plays in our day-to-day lives. The pandemic revealed as much, with rail staff, bus drivers, seafarers and road engineers—to name but a few—continuing to work throughout so that the country could keep moving. It is why this Government have spent billions supporting our transport industry over the past two years, ensuring key workers and essential goods could get to where they needed to be.

While our transport network helped to keep this country going throughout the pandemic, it now, with covid firmly in the rear-view mirror, must help the UK thrive, helping us rise to new challenges such as rebuilding our economy in a way that is fairer and greener, and helping us to level up our cities, towns and villages by giving people the means to get on and improve their lives and livelihoods.

Matt Vickers (Stockton South) (Con)

I am sure my hon. Friend is only too aware of the story of Teesside airport, how it was saved by Ben Houchen and how it has gone from strength to strength. Executives at Heathrow have recently whacked up landing fees by 37%, showing complete disregard for regional connectivity and killing the viability of the Teesside flight. Will he look again at what can be done about that issue?

Andrew Stephenson

I thank my hon. Friend for that question. Of course, I join him in paying tribute to the phenomenal work of Ben Houchen and others in supporting that local airport. I am aware of local concerns on this and I hear what my hon. Friend says. Sadly, as he will know, this is very much a matter for the independent regulator, the Civil Aviation Authority, but I am sure it is something that it will want to take a close look at.

Before I speak to the legislation the Government introduced in last week’s Queen’s Speech, I want to outline just some of the measures that we are already taking to improve transport links across the country. Our levelling-up fund gives local authorities the means to invest in infrastructure that improves the everyday lives of people across the UK, including upgrading local transport. The first round of funding will see 105 projects across the four UK nations benefit from £1.7 billion in funding.

Chi Onwurah (Newcastle upon Tyne Central) (Lab)

Newcastle Tyne bridge is a critical part of our transport infrastructure as well as being an icon of the north-east. It is now peeling and rusting, and my constituents are also facing closures as the council assesses just how much money is needed to repair it. Can the Minister give assurances that all that disruption will not be in vain and that the Government will support the restoration of this icon of our engineering?

Andrew Stephenson

The hon. Lady is a dedicated champion of that bridge, having raised it with me before during Transport oral questions. It is something on which the Government continue to be keen to work with local stakeholders to enable local aspiration to be supported. I know she will continue to champion this at every opportunity, but I am keen to continue to work with her and others on the issue.

Daniel Kawczynski (Shrewsbury and Atcham) (Con)

I am sure my hon. Friend will agree that, as we build transport links, they have to be sustainable and green. I have certainly promised the young electorate in Shrewsbury to campaign to reduce carbon dioxide emissions. We are working very hard to try to secure the electrification of the line between our regional capital of Birmingham and Shrewsbury. Will he please take an interest in the project? It is very important that Shrewsbury is served by trains that are not diesel and that we reduce CO2 emissions.

Andrew Stephenson

My hon. Friend makes a powerful case on behalf of his local rail line. I know that the rail Minister, my hon. Friend the Member for Aldridge-Brownhills (Wendy Morton), is looking at that. Of course, we have a programme to increase the amount of lines that are electrified across the UK. We have a good record on electrification over the past 11 years, but we want to go further and faster as we decarbonise the railways across the UK.

We do not underestimate the scale of the challenge that families currently face as part of the cost of living challenges. That is why we recently launched the Great British rail sale, which saw over 1 million tickets sold and saved the public about £7 million. We are taking action on fares, too. Not only did we delay this year’s fare rise, but we kept it far below the current rate of inflation. We are taking action on rail fares, ensuring a fair deal for taxpayers, and ensuring that we can continue to invest in our railways. It is worth reminding the House that rail fares rose on average faster under the last Labour Government than they have under the Conservatives since 2010.

Similarly, we are improving local bus services, spending £2.5 billion on bus priority lanes and cutting fares across 34 local transport authorities in England. Work has started on transforming rail journeys as part of our record £96 billion integrated rail plan. That will deliver 110 miles of new high-speed line, 180 miles of new electrified lines and increased capacity. It means more passengers across the midlands and the north will benefit from faster trains more quickly, and to more places.

Members will soon have the opportunity to scrutinise the first piece of legislation that we intend to deliver—the High Speed Rail (Crewe-Manchester) Bill—which will create the transport spine that will serve towns and cities across the north-west as well as helping trains travel further to Scotland.

John Spellar (Warley) (Lab)

Prior to introducing that Bill, will the Minister assure the House that the Department has examined the change in working patterns with more people working from home, the impact that that has had and is likely to have on demand for inter-city travel, whether that has impacted the core case for High Speed 2 and whether, even with several billion already spent, there is a case for spending another £100 billion in the light of those changes?

Andrew Stephenson

The right hon. Gentleman and I will have to continue to disagree on HS2. I, and people across the House, see it as a long-term investment in the future of our country. Undoubtedly, passenger demand has been impacted by the covid pandemic, but we are confident that it will rebound. Part of the strategic outline business case, which we published when we deposited the Bill in the House, sets out our view that there is still a value-for-money business case behind getting on with investing in HS2, and not just phase 1, which is currently under construction—22,000 people are employed and 340 active construction sites are under way at the moment—but phase 2a to Crewe, taking those trains further and, with the new Bill, from Crewe all the way into Manchester.

John Spellar

I thank the Minister for giving away again. Can I bring him back to the point about whether there has been a long-term sectoral shift in demand for peak hour inter-city travel as a result of working from home and Zoom conferences. Has the Department analysed whether and why it thinks that demand will return to previous levels?

Andrew Stephenson

I thank the right hon. Gentleman for his further point. We have done and continue to do the analysis and look at all the evidence. If we look at parts of the world that have been through pandemics before, we have still seen growth in the cities in those countries. We have still seen a desire for people increasingly to live in cities and to commute between those cities. HS2 is an investment in the long term, bringing the cities of this country closer together and, with phase 1 due to open at the earliest between 2029 to 2033, there is sufficient time for passenger demand to recover.

As a country, we have come very late to high-speed rail. Many other countries around the world—France and Italy in particular, along with Japan—have helped to pioneer high-speed rail services. It is long overdue that a Government in this country get on and invest for the long term. That is why I am proud that HS2 continues to have cross-party support in the House. I appreciate that the right hon. Gentleman and I will continue to disagree, but many other Members do see the benefits of us getting on and investing for the long term.

John Spellar

Will the Minister publish that analysis?

Andrew Stephenson

We published a strategic outline business case updating the business case for HS2 when we deposited the Bill. We will continue to publish further analysis whenever investment decisions are made.

I need to make some progress. While there will be differences of opinions across the House on many issues—hopefully not too much on HS2—I hope that the transport Bill announced in the Queen’s Speech last week will receive broad support. After all, I hope that we can all agree that we want a rail service that delivers day in, day out for passengers: one that provides comfortable, affordable services that run on time. I am sure we all agree that the current model is not working. I therefore hope that hon. Members will support our plans to fundamentally reform the rail sector. We will create a new body, Great British Railways, which will act as a single guiding mind for the entire network, get a grip on spiralling costs, replace franchising with passenger service contracts, improve the passenger experience and simplify the ticketing offer.

The Bill also paves the way for the transport of the future, putting the UK at the forefront of new low-carbon technology. It will help the transition to electric vehicles by installing 300,000 public and private charge points across the country by 2030. It will set new safety standards and assign legal responsibilities to introduce self-driving vehicles on to our roads. That market, which is worth tens of billions of pounds and set to create 38,000 jobs, is a matter of when, not if, and UK consumers need to be reassured that the legal protections are in place. Similarly, rules are needed to improve the safe, legal use of smaller, lighter zero-emission vehicles such as e-scooters, which are only growing in popularity.

I hope that hon. Members will recognise that the Government are finally correcting the historic wrong that has long denied seafarers the same rights and protections as workers on land. That was ruthlessly and shamefully exploited by P&O Ferries earlier this year. My right hon. Friend the Secretary for Transport pledged swift action at the Dispatch Box, and I recall that his plans received support from both sides of the House. The harbours seafarers’ renumeration bill will make it a condition of entry for ferry services to pay the equivalent of the national minimum wage to seafarers while in UK waters. It is not right that workers plying their trade in and out of British ports, carrying passengers or vital freight, are denied the rights that the rest of us enjoy.

Fleur Anderson (Putney) (Lab)

I may be pre-empting the Minister in raising the subject of Hammersmith bridge, which has been closed for three years, but Putney residents will really want to know that urgent action is being taken. Will he give a date by which Hammersmith bridge will be reopened for vehicles, freeing up the roads in Putney from the congestion and pollution that they suffer?

Andrew Stephenson

The Government continue to work on that issue with the local authority. Obviously, we have committed funding towards supporting the repairs of the bridge, and I am pleased that the work is under way. I would suggest that the timescale for those works is a matter for the local authority, and I cannot answer that today, but the Government continue to support swiftly bringing that bridge back into use. We have been critical of some of the delays in getting the work under way, but I am pleased to say that it is now happening.

Rachael Maskell (York Central) (Lab/Co-op)

York’s rail supercluster is taking rail into the future. I would like to know whether the transport Bill will see investment in research and development to ensure that we can really build on the success of what has been created in York and go further, faster.

Andrew Stephenson

I am pleased to say that it will. We are keen to support innovation in our railways across the UK—not just in York I should say, before I get criticised. We have great clusters of small and medium-sized enterprises working in the rail sector to drive forward innovation. I thank the hon. Lady for not making a pitch for York to be the headquarters of GBR; I thought that her question was inevitably going there. I am sure that will follow later in the debate.

I want to leave plenty of time for the debate, so I will close by urging hon. Members to recognise that, far from holding back, the Government are fully backing our transport industry to help us build back better, decarbonise our economy, level up this country and give everyone, wherever they live, the tools to realise their talent.

Jim Shannon (Strangford) (DUP)

On air connectivity, yesterday at a Hospitality Ulster event it became very clear that there is a problem with connectivity between Belfast City Airport and Heathrow, not because the flights are not there but because the staffing is not there. It is trying to recruit, but is unable to do so. Will the Minister have discussions with Heathrow on solving that problem, and therefore increasing and improving air connectivity?

Andrew Stephenson

I thank the hon. Gentleman for his question. That issue is close to my heart, as someone who frequently flies to Northern Ireland and passes through City airport. Reducing delays at all airports across the UK is something that the aviation Minister, the Under-Secretary of State for Transport, my hon. Friend the Member for Witney (Robert Courts), is working on. I will ensure that the hon. Gentleman’s remarks are brought to his attention and we will see what more we can do to ensure that passengers are not unduly inconvenienced when passing through that airport.

We are getting on with investing more money in our railway infrastructure than any Government have invested since they were built and that is why we are making funds available to local decision makers to restore railway lines, introduce cycle lanes and fix potholes. It is why we are carrying out reforms to make our trains and buses deliver consistent value for passengers. And it is why, from self-driving vehicles to micro-mobility to zero-emissions aviation and shipping, we are laying the groundwork and preparing today for the jobs and travel habits of tomorrow.

The statement made by Andrew Stephenson, the Minister of State at the Department of Transport, in the House of Commons on 16 March 2022.

Review of High Speed Two (HS2) including programme update, local community impact and engagement, environment, benefits, and programme governance.

Overview

This is my fourth update to Parliament on High Speed Two (HS2). I can confirm that the project remains within budget and on schedule in delivering Phase One (London-West Midlands) and phase 2a (West Midlands-Crewe), we have hit major construction milestones, made substantial progress on key procurements, and made significant progress to take HS2 further North. Work is also already underway to implement the proposals set out in the Government’s Integrated Rail Plan (IRP) for the North and Midlands, for example with the recent introduction of a Bill into Parliament to build HS2 between Crewe and Manchester.

Key achievements in this reporting period—September 2021 to January 2022 are:

HS2 is now supporting over 22,000 jobs.

Introduction of a Bill into Parliament to secure the powers to construct and maintain HS2 between Crewe and Manchester. This will increase capacity, bolster connectivity, and reduce travel times from the North West to London and Birmingham and will be critical to generating transformational economic change in the North West.

The Government have published their Integrated Rail Plan (IRP) for the North and Midlands.

Award of the £2 billion contract—under budget—for the delivery and maintenance of HS2 trains for Phases One and 2a. The state-of-the-art train fleet, capable of speeds of up to 225 miles per hour, will be designed and built by a Hitachi/Alstom Joint Venture based in the North East and Midlands.

Launch of the first Tunnel Boring Machine (TBM) in the Midlands, the third on the programme. The two other TBMs in the Chilterns are making good progress and have now driven a combined distance of approximately 3.5 miles.

Public commitment to power HS2 trains with zero carbon energy from day one—supporting the goal of making HS2 net zero from 2035—and publication of HS2 Ltd’s Environmental Sustainability Progress Report in January 2022.

The five years of compulsory purchase powers on Phase One provided by the Phase One Act ended on 23 February 2022 with all planned notices served by the deadline set by Parliament.

Release of the Invitation to Tender for the Phase 2a Design and Delivery Partner (DDP). The DDP will act as a strategic partner for HS2 Ltd to drive efficient design and construction in extending the railway to Crewe.

A decision has been taken to support greater integration between the HS2 and Network Rail stations at Euston. This has potential to deliver construction efficiencies, along with significant passenger and place-making benefits at Euston and the surrounding area.

I am delighted to confirm that we are expanding Sir Jon Thompson’s role, an existing non-executive director on the HS2 Ltd Board, to become Deputy Chair. Sir Jon will chair meetings of the Board until a permanent Chair is in post.

This report primarily uses data provided by HS2 Ltd to the HS2 Ministerial Task Force for Phases One and 2a and covers the period between September 2021 and January 2022 inclusive. Unless stated, all figures are presented in 2019 prices.

Programme update

Schedule

On Phase One (London to West Midlands), the forecast for initial services from Old Oak Common to Birmingham remains within the Delivery into Service (DiS) range of 2029 to 2033. The revised schedule agreed last year has held to date with local delays being largely mitigated.

Over the reporting period, good progress has been made on closing out the majority of enabling works, with the remaining work due to be completed by early next year. Good progress has also been made on tunnelling activities. Additionally, HS2 Ltd has advanced its earthworks. Maintaining construction progress depends on the detailed design and consents needed to support a further very significant increase in civil works on earthworks and structures in 2022.

The main areas of schedule focus remain in the southern section of the line-of-route and tunnels leading into Old Oak Common Station from outer London, which form the critical path for initial services. Any delays in these sectors could delay the whole project. Other key watch areas include Bromford Tunnel, Birmingham Curzon Street Station and the route into Birmingham where the urban environment generates significant logistical challenges.

Phase 2a remains on track to be delivered between 2030 and 2034. Land possessions have commenced and enabling works started in early 2022.

As confirmed in the update on the Phase 2b Western Leg (Crewe to Manchester) Strategic Outline Business Case (SOBC) in January 2022, the Department has set a schedule range of 2035 to 2041 for the opening of the Phase 2b Western Leg.

Affordability

HS2 remains within budget. The overall budget for Phase One remains £44.6 billion. This is composed of the target cost of £40.3 billion and additional Government-retained contingency of £4.3 billion. The target cost includes contingency delegated to HS2 Ltd of £5.6 billion for managing risk and uncertainties.

To date, out of the Phase One target cost of £40.3 billion, £14.9 billion has been spent, with an additional £0.8 billion for land and property provisions. £12.7 billion has been contracted and has not been spent, with the remaining amount not yet under contract.

HS2 Ltd has drawn £1.3 billion of its £5.6 billion delegated contingency, meaning £4.3 billion remains. Contingency drawn to date reflects an increase of £0.5 billion since my last update—from £0.8 billion to £1.3 billion.

HS2 Ltd’s is reporting £1.7 billion of potential future cost pressures that are currently presenting across the programme. This reflects an increase in potential further cost pressures of £0.4 billion since my last update—from £1.3 billion to £1.7 billion.

Since my last report, the aggregate increase in actual and potential additional costs is therefore £0.9 billion—£0.5 billion from increase in contingency drawdown plus £0.4 billion from potential further cost pressures. While these pressures are manageable within the target cost given the remaining contingency, I am nonetheless concerned at the rate of their increase. I expect HS2 Ltd to maintain its focus on delivery to the target cost.

Should these or other cost pressures materialise, HS2 Ltd will continue to draw from the contingency it holds, of which £4.3 billion remains—as outlined above. Out of the £1.7 billion of net potential pressures currently being reported by HS2 Ltd in its January 2022 data, over and above the contingency drawn down so far, the key pressures are:

An estimate of £0.8 billion—increase of £0.2 billion from my last update—for potential additional main works civils costs stemming from additional design costs and slower than expected progress in some areas.

A pressure of £0.4 billion on the cost estimate for the HS2 Euston station. The move to a smaller, less complex 10-platform single-stage delivery strategy at Euston, as confirmed in my previous report, is now the basis for ongoing design work and other activities. The Department anticipates that this will assist in addressing the cost pressure at Euston, as the updated station design is developed over the coming months. This work will also consider and address the appropriate level of contingency that should be held to managing risks that are likely to arise during the construction of an asset of this complexity. The Department will provide further updates as this work progresses over the course of the next 18 months.

A pressure of £0.2 billion against HS2 Ltd’s budget for changes to Network Rail infrastructure at Euston and Old Oak Common that are required to facilitate the new HS2 stations.

There is a further £0.3 billion of net cost pressures presenting on other parts of the programme. This is the aggregate total of smaller potential cost pressures.

Over £0.8 billion in savings and efficiencies from across the programme—increase of £0.5 billion from my last update—have been identified against HS2 Ltd’s budget, principally from awarding the rolling stock contract under budget, contracting a common supplier for lifts and escalators, and savings in the acquisition of land and property. These have partly offset gross cost pressures. HS2 Ltd continues to focus on realising further efficiencies and opportunities to reduce the costs of Phase One.

On covid-19 costs, HS2 Ltd’s assessment of the likely financial impact of the pandemic on delivering Phase One remains estimated within the range of £0.4 billion to £0.7 billion. Formal claims will be subject to Government scrutiny and will require formal approval from Her Majesty’s Treasury before funds from Government-retained contingency can be allocated.

For Phase 2a, the overall cost range is £5.2 billion to £7.2 billion. We intend to set a target cost alongside publication of the full business case next year

As confirmed in the update on the Phase 2b (Crewe to Manchester) SOBC, the estimated cost range for the Crewe-Manchester scheme is £15 billion to £22 billion. It is project delivery best practice to set a range and to narrow this down over time.

Lastly, the Department and HS2 Ltd are currently working to assess and mitigate the impact of global inflationary pressure on materials and labour supply on the programme where short term increases are being seen. This is likely caused in part by the recovery of global construction demand following the covid-19 pandemic.

Delivery

On Phase One, delivery continues to build momentum at 340 sites. Tunnel drives are underway at two sites. In the Chilterns, Tunnel Boring Machines (TBMs) ‘Florence’ and ‘Cecilia’ have been making good progress and have currently tunnelled a combined distance of approximately 3.5 miles. In December 2021, we saw the launch of ‘Dorothy’—the first TBM in the Midlands—which will preserve the Long Itchington Wood in Warwickshire. The tunnelling team will operate the machine for around five months as it excavates the first bore of the one-mile tunnel. This will be the first HS2 tunnel to be completed on the project, with the machine set to break through its first bore at the south portal later this spring when it will return to the start to begin the second parallel tunnel.

At Old Oak Common Station, significant progress has been made in constructing the 750,000 metres-cubed box structure that will facilitate the six subterranean high-speed line platforms, as well as the works required to facilitate the start of tunnel boring to Euston in the east and Northolt in the west. Work is underway with the Old Oak Common and Park Royal Development Corporation, the London Mayor and the Department for Levelling Up, Homes and Communities to bring forward proposals for the regeneration of the area around the station.

In the West Midlands, stage one of the two-stage design and build contract for Birmingham Curzon Street Station will conclude shortly subject to agreement of an affordable target price. A solution for co-construction of the West Midlands Metro tram extension while delivering the station has been agreed with Transport for the West Midlands so that benefits of both projects can be brought to Birmingham as soon as practicable.

In September 2021, HS2 Ltd launched the process to appoint a design and build contractor to complete Interchange Station in Solihull. Contract award remains on schedule for summer 2022. Central and local government are also working with the private sector to bring forward proposals to release land for development. This would enable approximately 350 acres of land to support the Arden Cross Masterplan, creating a space for innovation, business, learning and living, providing up to 27,000 new jobs and 3,000 new homes and is backed by conditional Government funding of £50 million.

A decision has been taken to proceed with greater integration between the HS2 and Network Rail stations at Euston. The Department and Network Rail are developing the business case for the redevelopment of the Network Rail station concourse at Euston in parallel with the HS2 build, which will support greater integration between the HS2 and Network Rail stations. HS2 Ltd and Network Rail, with support from The Euston Partnership, are working together to develop a cost effective design that provides integration between the HS2 station and the redevelopment of the Network Rail station and delivers value for money for the taxpayer. This integrated approach has potential to deliver construction efficiencies, along with significant passenger and place-making benefits at Euston.

I am delighted to confirm that we reached a major milestone on the procurement of HS2 trains. In December, an Alstom/Hitachi Joint Venture was awarded the £2 billion HS2 rolling stock contract for Phases One and 2a and is expected to support around 2,500 jobs across the UK. This contract includes the design and build of 54 new high-speed trains and an initial 12-year maintenance period. The trains will be manufactured in Newton Aycliffe, Derby and Crewe and then maintained at the new depot in Washwood Heath, Birmingham. The second-placed bidder, Siemens, continues to challenge the procurement decision legally but has not sought to impede the award and delivery of the rolling stock contract.

HS2 Ltd continues tendering for Phase One and 2a rail systems packages—including track, catenary, mechanical and electrical fitout, power, control and communications. Over the coming months, HS2 Ltd will request bidders to submit their final price and I anticipate that we will begin awarding these packages in early 2023. In the next six months, HS2 Ltd will further develop their approach to integration of these rail systems packages. This will include testing operational processes and systems, development of its leadership capability and standing up of interim governance arrangements.

On Phase 2a (West Midlands to Crewe), HS2 Ltd has invited tenders for a Design and Delivery Partner (DDP) in January 2022. Additionally, the start of procurement for the Main Works Civils Framework is expected to commence later this year which will provide the construction capacity to be managed by the DDP. Early environmental works and early civils works have also begun.

Integrated Rail Plan for the North and Midlands

The Government have published their Integrated Rail Plan (IRP) for the North and Midlands. It sets a £96 billion strategy of rail construction and upgrades for the North and Midlands to be delivered over the next 30 years. Work is also already underway to implement the proposals set out in the IRP.

For example, £249 million was invested to further electrify the Midland Main Line between Kettering and Market Harborough with work started at Christmas 2021. The HS2 Phase 2b Crewe-Manchester scheme sits at the core of the IRP, bringing high-speed rail to Manchester and providing vital infrastructure necessary to deliver the Northern Powerhouse Rail (NPR) scheme. On 24 January 2022, the Government introduced the High Speed Rail (Crewe – Manchester) Bill to secure the powers to construct and maintain the HS2 Phase 2b Western Leg. Once approved, the railway will be critical to generating transformational economic change in the North West of England. Once the Crewe to Manchester section of HS2 opens, the railway will reduce travel times from 2 hours 5 minutes to around 1 hour 10 minutes from London to Manchester. The introduction of the Bill into Parliament was accompanied by an environmental statement and an update on the 2017 SOBC.

The IRP also confirmed the Government’s intention to take forward HS2 East, a new highspeed line between West Midlands and East Midlands Parkway, enabling HS2 to serve Nottingham and Derby city centres. In conjunction with plans for the electrification of the Midland Main Line, this will also allow HS2 trains to continue direct to Chesterfield and Sheffield. Following a pause to design work on the HS2 Eastern Leg as a result of the Oakervee Review, the Department and HS2 Ltd are considering how best to take forward this new West to East Midlands high-speed line working closely with Network Rail. The IRP provides £100 million to look at the most effective way to run HS2 trains to Leeds, including understanding the most optimal solution for Leeds station capacity and starting work on the new West Yorkshire mass transit system.

Local community impact and engagement

As HS2 Minister, I expect affected communities to be at the heart of our plans for this project. I am therefore pleased that HS2 Ltd’s refreshed community engagement strategy—‘Respecting People, Respecting Places’—has this vision at its core and sets out HS2 Ltd’s renewed commitments to the communities impacted by the programme.

One of the ways that the HS2 project counterbalances some of its negative impacts on places is through the Community and Environment Fund and the Business and Local Economy Fund. These funds have now supported 192 projects through £11.1 million of grant funding along the line-of-route and play a crucial role in ensuring a positive legacy for communities most affected by construction.

HS2 Ltd has also recently launched several initiatives to continue actively engaging communities affected by HS2. For example, ‘In your area’ is an interactive map which informs people of HS2 works in their area. Furthermore, independent construction inspectors continue to support the assurance of the delivery of works. Where problems do arise, the Construction Commissioner provides a means of escalation and independent consideration. I am pleased to report that the existing Construction Commissioner, Sir Mark Worthington OBE, has been reappointed for a further three years. Additionally, I am currently recruiting a replacement for the outgoing Residents’ Commissioner, Deborah Fazan.

Targeted protester activity continues to have some impact on Phase One delivery. However, following successful removal of the unlawful protester site at Small Dean near Wendover in October and November 2021, protest impact on Phase One has now been reduced significantly. HS2 Ltd estimates that ongoing protester activity, including the removal of encampments and protest-related delays to the programme, has cost just under £12 2 million, an increase of £42 million since my last report. HS2 Ltd continues to work with its supply chain, local police forces and wider Government to minimise the impact of unlawful protester activity.

Land and Property

I am pleased to announce that the five years of compulsory purchase powers on Phase One provided by the Phase One Act ended on 23 February 2022 with the serving of all planned notices by the deadline set by Parliament. While work to complete the land acquisition and, crucially, settle compensation for affected property owners will continue, this is an important milestone for the programme.

Significant progress has also been made to implement the proposals set out in my 2020 Land and Property Review: three-quarters of the proposals have now been implemented. The response to our recent public Land and Property consultation was also published in February 2022.

Environment

In January, HS2 Ltd published its ‘Environmental Sustainability Vision’ which reaffirmed its commitment to provide low carbon rail travel for a cleaner, greener future.

I was delighted to confirm, as part of that Vision, that HS2 trains will use zero carbon energy from day one of operation. This will support HS2 Ltd target to achieve net zero in construction and operation from 2035. The commitment is a key part of the new HS2 ‘Net Zero Carbon Plan’ which sets out a suite of ambitious new targets to reduce the carbon footprint of the programme.

The Vision confirmed that HS2 Ltd will seek to deliver a 10% net gain in biodiversity for replaceable habitats on the Phase 2b Crewe-Manchester scheme. I also intend to explore going beyond the existing no-net-loss of biodiversity target for Phase One and Phase 2a, to secure biodiversity gains where this is cost-effective and possible within existing funding limits.

Lastly, HS2 Ltd published its first ‘Environmental Sustainability Progress Report’ in January. This provides a clear and up-to-date account of HS2’s environmental impacts and the progress being made to mitigate any adverse effects.

Benefits

I am delighted to announce that HS2 is supporting over 22,000 jobs and to date over 2,400 UK-registered companies have delivered work on HS2. To date, there have been 1,674 jobs starts by people who were previously workless. The programme will create 2,000 apprenticeships, with 825 having been started since 2017.

In November 2021, HS2 Ltd construction partner Balfour Beatty VINCI opened a new ‘Skills Academy’ in the West Midlands in partnership with South and City College of Birmingham.

As stated in the Government’s ‘Levelling Up White Paper’, this year, the Government will publish a HS2 Local Growth Action Plan, setting out how it will work with places hosting Phase One and 2a stations to realise their local growth ambitions. The new railway will stimulate growth around HS2 stations and further afield, helping to level up the economies of the Midlands and North.

Promoting active travel along the HS2 route and at stations is also a key priority for me. To ensure that opportunities for lasting legacy improvements are realised, I have asked HS2 Ltd to explore the potential for the re-purposing of temporary construction routes, into new vehicle-free connections between rural communities that could connect other emerging local authority cycle proposals to provide a wider active travel network along the spine of HS2. This will not only benefit the environment, but also improve the health and wellbeing of residents and commuters. In addition, I have asked HS2 Ltd to upgrade active travel provisions at 12 locations across Phase One.

Programme Governance

An updated HS2 Ltd framework document and HS2 development agreement will be concluded shortly to continue effective governance between the Department and HS2 Ltd. Furthermore, we have relaunched the search for a new Chair with updated role criteria to appeal to a wider set of candidates. In parallel, we are expanding Sir Jon Thompson’s role, an existing non-executive director on the HS2 Ltd Board, to become Deputy Chair. Sir Jon will chair meetings of the Board until a permanent Chair is in post.

Lastly, as committed to in my previous update, all recommendations from the Public Accounts Committee (PAC) report of 22 September 2021 have now been implemented.

Forward Look

On Phase One, over the next six months we will continue the ramp-up of construction work, launch the fourth TBM on the programme to start excavation of the London tunnels, and we will see HS2 Ltd award a contract for the construction of interchange station.

On Phase 2a, focus will be on progressing environmental and enabling work, early land acquisitions plus the procurement for the DDP and progressing the procurement for the main works civils framework.

On Phase 2b, following the introduction of the High Speed Rail (Crewe – Manchester) Bill into Parliament, the Environmental Statement Consultation is now underway, which will close on 31 March 2022. The priority for HS2 East is to develop the next stage of design work for the West to East Midlands high-speed line.

I will continue to engage closely with Parliament and will provide my next update in autumn 2022.

The statement made by Andrew Stephenson, the Minister of State at the Department of Transport, in the House of Commons on 24 January 2022.

Today the Government will introduce the High Speed Rail (Crewe – Manchester) Bill—a key part of building back better after the covid-19 pandemic. Alongside the High Speed Rail (Crewe – Manchester) Bill and accompanying Environmental statement, the Government are also publishing:

the Government’s response to the second Design Refinement Consultation; and an update on the Strategic Outline Business Case.

The Integrated Rail Plan for the North and Midlands (IRP) set out the Government’s commitment to invest in rail infrastructure across the North and Midlands. Delivering the Western Leg of HS2 is a vital part of this commitment. This includes plans for the Crewe Hub and Crewe Northern Connection, allowing HS2 trains to call at Crewe and Manchester and enhancing connectivity to north-west England, Wales, and Scotland.

This next stage of HS2 from Crewe to Manchester will increase passenger capacity, improve connectivity, and reduce journey times. It is integral to delivering on the Government’s commitment to level-up the country. HS2 will join up the North, Midlands, and London by effectively halving the journey times between the centres of the UK’s three largest cities. The scheme will contribute towards sustainable growth in towns, cities, and regions across the country, spreading prosperity and opportunity more widely. It will act as a catalyst for job creation, the development of new homes and ultimately, the regeneration of major cities and towns along the HS2 route.

HS2 will help provide a cleaner and greener form of transport, offering significantly lower carbon emissions per passenger kilometre than long distance car journeys or domestic air travel. HS2 has the potential to deliver world-class low-carbon transport to bring our biggest cities closer together, spread opportunity and support the UK’s transition to a ‘net zero’ economy.

The Bill includes the powers necessary to construct and operate the HS2 route between Crewe and Manchester. It is accompanied by an Environmental statement which describes the railway, alternatives considered, the environmental effects that are likely to arise from its construction and operation, and the measures proposed to avoid or reduce the negative effects. It has been informed by the consultation on the working draft Environmental statement held in autumn 2018 as well as through engagement with stakeholders. An equalities impact assessment is also being published.

The Government’s response to the Western Leg Design Refinement Consultation is an important part of introducing this Bill. The October 2020 consultation set out four technical refinements to the Western Leg of Phase 2b: a new Crewe Northern Connection to support the vision for a Crewe Hub; changes to the rolling stock depot at Crewe; expansions to both Manchester Piccadilly and Manchester Airport High Speed stations; and a new train depot at Annandale in Dumfries and Galloway. Having considered the feedback from all the respondents, the Government have decided to confirm these four changes.

The update on the Strategic Outline Business Case (SOBC) sets out the clear, strategic case for the HS2 Crewe-Manchester scheme, together with up-to-date cost range for the programme of between £15 billion and £22 billion—2019 prices. This SOBC contains the first cost estimate that has been produced specifically for the scheme between Crewe and Manchester. As the project progresses in design maturity, the cost estimate will be further refined and will inform the full business case, which will be presented to Parliament in due course.

Copies of the Government’s response to the second Design Refinement Consultation will be placed in the Libraries of both Houses and are also publicly accessible online through the www.gov.uk website.

The statement made by Andrew Stephenson, the Minister of State at the Department for Transport, in the House of Commons on 15 December 2021.

I have been asked by my right hon. Friend, the Secretary of State for Transport (Grant Shapps) to make this written ministerial statement. This statement confirms that it has been necessary to extend the deadlines for decisions on the following two applications made under the Planning Act as indicated below to allow for further consideration of environmental matters:

M25 Junction 28 Improvement project: for the proposed development by National Highways which would authorise the creation of a new two-lane loop road with hard shoulder, for traffic travelling from the M25 northbound carriageway onto the A12 eastbound carriageway towards Essex. The Secretary of State received the Examining Authority’s report on 16 September 2021 and the current deadline for a decision was 16 December 2021. The deadline is now extended to 16 May 2021.

A1 Northumberland – Morpeth to Ellingham Improvements: the proposed development comprises the widening of approximately 20.6km stretch of the A1 between Morpeth to Ellingham with approximately 14.5km online widening and approximately 6.1km new offline highway. The Secretary of State received the Examining Authority’s report on 5 October 2021 and the current deadline for a decision was 5 January 2022. The deadline is now extended to 5 June 2022.

Under section 107(1) of the Planning Act 2008, the Secretary of State must make his decision within three months of receipt of the Examining Authority’s report unless exercising the power under section 107(3) to extend the deadline and make a statement to the House of Parliament announcing the new deadline.

The Department will also endeavour to issue decisions ahead of the deadlines above wherever possible.

The decision to set new deadlines is without prejudice to the decisions on whether to give development consent for the above applications.