CPA slams HS2 delay
10 March 2023
Following the government’s announcement that the Birmingham to Crewe leg of high speed railway HS2 will be delayed by two years to cut costs, Chris Cassley, Policy Manager with the CPA (Construction Plant-hire Association), said: “It’s disappointing and frustrating that, just weeks after the Chancellor reassured the construction industry that there would be no delay, the government has announced the construction of sections of HS2 will be delayed to save money.
“This undermines confidence in the wider project itself, and at a time when we need construction as a long-term driver of sustainable growth, raises questions towards the government’s commitment to future infrastructure projects.”
Announcing the delay yesterday, Transport Secretary Mark Harper blamed “headwinds from inflation, triggered by the impact of Putin’s illegal war in Ukraine, as well as supply chain disruption as the global economy recovers from the effects of Covid-19.”
He added: “The government is committed to delivering HS2 Phase 2a between Birmingham and Crewe. We have seen significant inflationary pressure and increased project costs, and so we will re-phase construction by two years, with an aim to deliver high-speed services to Crewe and the North West as soon as possible after accounting for the delay in construction.”
Last month, CPA urged the Treasury to work with the hire industry to address concerns and challenges it faces, ahead of the Spring Budget anouncement due next week.
The association has asked the Treasury to consider five key areas including the introduction of a similar scheme to the Super Deduction Allowance (SDA), due to expire at the end of March, but making plant hirers eligible, and a rebate for HVO fuel in the construction industry.
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