RIA comments on HS2 accounts and spending review announcements

The Railway Industry Association (RIA) has addressed two significant rail-related updates: Chancellor Rachel Reeves’ presentation of a three-year spending review to the UK Parliament and the publication of HS2 Ltd’s annual 2023-24 accounts.

Darren Caplan, Chief Executive of RIA, commented on the HS2 Ltd report, highlighting the financial impact of the previous government’s decision in October 2023 to cancel the Manchester to Birmingham leg of HS2 and alter the plans for the Euston connection. According to Caplan, this decision resulted in the write-off of over £2 billion in rail work, which could have supported thousands of jobs and generated billions in gross value added (GVA), contributing substantial tax revenues to the Treasury.

Darren Caplan added: “The report is a reminder to the new government that these losses can only be recouped if plans to deliver crucial north-south rail capacity in the decade ahead are developed and the specific HS2 connection between Old Oak Common to Euston is confirmed in the coming weeks. Otherwise what should have been a world-class national rail infrastructure asset will simply become a high-quality Acton to Aston line.”

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Regarding Chancellor Reeves’ announcement, RIA expressed concern over the cancellation of the ‘Restoring Your Railways’ programme, with individual projects now under review. Caplan stated that RIA supports a strategic review of transport schemes but urged the government to recognise the importance of rail investment in supporting jobs, local growth, connectivity and decarbonisation across the UK. 

Caplan said: “Elsewhere, the Railway Industry Association and our members will be closely following the announcement by Rachel Reeves of a three year spending review, and news that  the Restoring Your Railways programme is cancelled with individual projects now under review. We support the need for a strategic review of transport schemes, and urge the government to make sure that the spending review takes account of the crucial role rail investment plays in supporting jobs, local growth, connectivity and decarbonisation within and between the UK’s nations and regions. As the National Infrastructure Commission recently noted, a lack of rail capacity is at risk of holding back growth in key cities.“