Arup-led consortium sets out proposal for a HS2 phase 2 alternative

A private sector consortium commissioned by the mayors of Greater Manchester and the West Midlands has set out a plan for new rail links to replace the cancelled second leg of HS2.

The consortium has proposed the construction of a new 80km rail line, which it calls the Midlands-Northwest Rail Link.

It concluded that the private sector must play a new role in financing the scheme and urged the government to include the scheme in the forthcoming budget so that a feasibility study can begin.

According to the report, the model for the line has been created with a number of principles in mind, including stronger incentives and more appropriate overrun risk for contractors involved in the scheme.

Andy Burham, mayor of Greater Manchester, said doing nothing was “not an option” given the pressures on the West Coast Main Line.

“But there is good news for the government. The report concludes that we do not have to revive HS2 to unlock those benefits,” he said.

“There is a viable option to build a new rail line between Lichfield and High Legh, connecting HS2 to Northern Powerhouse Rail, with almost all of the benefits of HS2 delivered quickly and crucially at a significantly lower cost.”

The consortium was chaired by industry expert Sir David Higgins, led by Arup, and supported by a private sector including Arcadis, Addleshaw Goddard, EY, Dragados, Mace and Skanska.

It was first brought together last year around the Conservative Party conference, as the then-mayor of West Midlands Andy Street and Burnham attempted unsuccessfully to persuade the then-prime minister to consider alternatives to abandoning the northern section of HS2.

Higgins said the consortium “don’t pretend that solving the rail challenges between these two places will be easy” but said they had “conclusively shown that a new line can be built cheaper and faster”.

“Taking the time now to get these strategic decisions right would come at minimal cost but potentially enormous long-term benefit to the nation,” he said.

“Our future connectivity – and by extension, the economic and social health of our society for generations to come – depends on us making the right choices today.”

According to the group’s analysis, new rail links could boost growth in the region by adding up to £70bn to the region’s economies, a “growth bonus” which it claims could yield up to £24bn in revenue annually for the Treasury.

The report calls for the new Labour government to establish a steering committee, composed of central government, combined authorities and the private sector, to bring forward a feasibility study and technical analysis.

It said the government could “help the private sector advance technical and commercial solutions” by maintaining ownership of the current landholdings on the former Phase 2A route from Handsacre to Crewe and reinstituting safeguarding for the land not-yet-acquired.