Following the decision to cancel construction of the HS2 high-speed rail line beyond Birmingham, Cheshire East Council has begun pursuing a compensation and investment package for the region.
Crewe had been set to become a key hub for the rail line, with upgrades to the station planned alongside associated investment in the town, while construction of the route onwards to Manchester was set to create jobs in building the line as well as improving capacity of local services. Local estimates calculated that HS2 was expected to generate around £2 billion extra in the wider Cheshire economy each year.
Despite the region set to be a major beneficiary of the high speed rail line, no projects in Cheshire East were announced as part of the government’s “Network North” infrastructure investment using reallocated funds.
Cllr Sam Corcoran, leader of Cheshire East Council, explained:
“The full consequences facing Crewe and the borough following the decision to scrap Phases 2a and 2b of HS2 are unknown, and they may not be understood for several years, but the economic opportunity cost alone is unprecedented.
“Cheshire East would have been a major beneficiary from HS2. But for Crewe itself – sitting at the centre of the HS2 Phase 2 network – HS2 was the catalyst to reverse its fortunes and deliver on the levelling up agenda and it is arguably the biggest loser from the HS2 cancellation and Network North Plans.
“Without swift agreement on the alternative measures, investment, and targeted support from Government – the opportunities will be lost forever.
“The announcements made on 4 October are greatly impacting on the confidence of investors and developers and will result in the loss of 4,500 new homes and 5,000 new jobs for the town.
“The expected £750m boost HS2 would have had on the local economy will not be realised, and what we will now see because of this decision by Government is in fact levelling down and not levelling up.
“We are therefore extremely let down by Government’s failure to date to acknowledge or engage with us about the devastating impacts this will have on the town, the wider sub-region, and the financial security of the council in the proposed Network North.
“We consider it necessary that Government agrees a Network North deal with Cheshire East to enable the delivery of vital capital projects and regeneration programmes strategically focused on restoring the long-term outcomes for Crewe, Macclesfield and the borough that HS2 would have unlocked, and to ensure that much-needed investment in our local highway, public transport and active travel network can still be made.”
As a result of the cancellation, Cheshire East Council is now asking Westminster to mitigate the impact of the lost investment in the borough, which includes:
- £11.2 million in compensation to the council for direct and abortive costs of cancelling HS2
- Funding to enable investment in Crewe Station
- Up-front and multi-year settlements to support local highway, public transport and active travel improvements across the borough, including funding to deliver Cheshire East’s Bus Service Improvement Plan in full
- Funding to tackle deprivation challenges in Crewe to reduce levelling down because of the HS2 announcement, as well as support for continued regeneration of Crewe town centre to restore lost investor confidence
Cllr Craig Browne, deputy leader of Cheshire East Council and chair of its highways and transport committee, said:
“Crewe would have been the vital regional hub for HS2 services – the gateway to the North and the link between the North and Midlands – and on the back of Government’s HS2 promises, the council invested significant resources and made long-term plans based around 5-7 high-speed trains per hour stopping here.
“Without appropriate compensation and alternative investment to the council, Government’s decision to cancel HS2 Phase 2a and 2b will put the council under even more severe financial pressure and leave our plans and ambitions for the borough severely undermined.
“We are therefore pressing Government for fair and balanced consideration for Crewe and Cheshire East, and that the direct damage, losses and opportunity costs that the cancellation of HS2 has caused is put at the heart of the Network North Plans – just as Crewe sat at the heart of HS2 Phase 2.”