Chancellor George Osborne has strongly defended the HS2 rail project and claimed it will “change the economic geography” of the UK.
Osborne said he was “passionate” about the project which has been heavily criticised over recent weeks with the Insitute of Directors predicting that it could cost up to £80 billion.
But Osborne, speaking on the Andrew Marr Show on BBC1 yesterday (September 1), said that the current budget of £42.6 billion contained a contingency fund of £14 billion.
“As we demonstrated with the Olympic Games we can deliver these big projects – sometimes under budget – that’s why we have that contingency,” said Osborne.
“I’m passionate about this project. Time and again we have this debate in this country about how we are going to bring the gap between the north and south together and make sure that growth is not based on the City of London.
“HS2 is about changing the economic geography of this country – making sure the north and the Midlands benefits from this recovery as well.”
Osborne said HS2 had an “excellent team” in place led by Lord Deighton, who was formerly boss of the London Olympics’ organiser LOCOG.
The high-speed rail line will initially link London and Birmingham from 2026 followed by two spurs to Manchester and Leeds which are scheduled to open in 2032.