Plans for HS2, a high speed rail line, could be scrapped as Chief Secretary to the Treasury Liz Truss confirms government will take a serious look 'for the first time'.
The Treasury is set to look closely at whether the proposed rail network, which would have a huge impact on Nottinghamshire, could be delivered within its £56 billion budget.
Once the Treasury reports its findings, it will then be left to the winner of the Conservative leadership contest to make a decision on the scheme after they become Prime Minister.
Ms Truss, the most senior Treasury minister after the Chancellor, made the comments as she gave evidence to the House of Lords Economic Affairs Committee, BirminghamLive reports.
She also made it clear that the new Prime Minister could take a different approach.
Prime Minister Theresa May and Transport Secretary Christopher Grayling have both said they are committed to completing the entire HS2 network, which would run between London, Birmingham, Leeds and Manchester.
The current plans would also involve passenger trains travelling between Kirby-in-Ashfield, Toton, Ilkeston and Nottingham.
Ms Truss said HS2 was included in a “zero-based capital review”, which was examining major infrastructure projects in advance of the Government’s spending review, which is due later this year.
Ms Truss told the Lords Committee that the next Prime Minister would decide whether to go ahead with planned infrastructure projects, including HS2.
“Clearly the decisions to be made on these projects will be for the next Prime Minister, and I see my role as Chief Secretary for the Treasury as making sure we have the maximum amount of information prior to these decisions being made later this year.”
She added: “One of the things we will be looking at for the first time in this zero-based capital review is the deliverability of projects ... is it really the case that this project can be delivered for the budget envelope that the Treasury has set out, in this case £56bn for HS2, and can it be delivered in the timescale?”
Ms Truss said that officials would deliver a judgment later this year about how much HS2 will cost to build.
“At the moment I have an open mind because we are still looking at what are the economics of those different projects and also what are the likely costs of those projects.
“The Treasury set an envelope for HS2 in 2015.
“I’m expecting to receive revised information about the costings later on this summer, prior to the Spending Review.”
Asked by Committee chair Lord Forsyth if this meant the Government could choose to prioritise other rail projects instead of HS2, she said: “It does. And it also means that we could decide to prioritise other infrastructure projects.”
For example, high-speed internet services might offer better value for money, she said.
A spokesman for HS2 Ltd said: "HS2 will connect eight of 10 of the biggest cities in the country from Scotland to the South East, join up nearly half of the UK population, and deliver £92 billion of benefits to the UK economy.
"The new railway will take intercity trains off the existing lines, create more space for extra commuter trains and take lorries off the road as freight moves to rail, reducing congestion for drivers on our motorways. There are benefits from HS2 for every traveller.
“HS2 is real and happening. We currently have over 250 work locations on the Phase One route, supporting 9,000 jobs and opportunities for 2,000 businesses.
"HS2 will be reviewed, in the same way as all projects and programmes across Government, in the forthcoming Spending Review, announced in the Chancellor’s Spring Statement shortly after the committee session concluded.”
