A 'FREE MARKET' think tank has published a new condemnation of the plans to build a High Speed line between London, Birmingham and the north of England. The Institute of Economic Affairs dubs the HS2 scheme a 'vanity project', and claims that it is 'economically flawed'.
Dr Richard Wellings is one of the report's authors and deputy editorial director at the IEA. He said: “High Speed 2 is another political vanity project – like Concorde and the Millennium Dome – being ploughed ahead with with complete disregard for properly thought-through commercial prospects or the mounting opposition to it.
“Its environmental credentials are questionable, its projected passenger figures suspect, and its proposed regenerative effects highly dubious.
“Proceeding with HS2 plans is a recipe for disaster and, as always, it will be the forever-embattled British taxpayer who will end up footing the bill for this latest white elephant.”
The report says that: 'Claims that HS2 will bridge the north-south divide and bring regeneration should be treated with scepticism, as the evidence is largely speculative. Alleged benefits must be set against the wider economic losses from the additional taxation required.'
It is critical of the effect on Euston, saying that: 'HS2 is likely to create demand for additional high-cost, taxpayer-funded transport capacity. Terminating the line at Euston may require a new Underground line or Crossrail 2 link to cope with extra passenger numbers.'
The report's authors are also concerned that the effect on the existing rail network has not been properly calculated, saying that: 'The effect of competition from other rail lines has been ignored when projecting future HS2 ticket prices and passenger numbers. Lower prices would make the project even less viable.'
The IEA has existed since 1955, and has just published a separate analysis calling for additional public spending reductions of £215 billion, which would 'allow large tax cuts'.