Sunak’s private funding plan for HS2-Euston is at risk of failure, chief adviser warns

HS2 will not reach central London unless the government raises the billions of pounds needed to build a tunnel linking the troubled rail link to Euston, the government’s infrastructure chief has said.

Richie Sunak has insisted HS2 will run from Euston station in central London since he canceled a section of the Birmingham-Manchester high-speed line last month due to rising prices.

The Prime Minister said the link would continue from HS2’s current terminus at Old Oak station in north-west London to Euston station, funded by private developers who would profitably transfer the estimated £6.5 billion cost of the final leg of the route to Euston -Exchange. will donate funds to develop valuable land around London Central Station.

But Sir John Armitt, chairman of the National Infrastructure Commission, which advises the government on major construction projects, says developers will not fund a tunnel linking Euston to Old Oak Common. “They will have to dig another 7.2 kilometers of tunnels and the private sector is not paying for them,” he told the Financial Times.

“Ultimately, the government must be willing to fund civil engineering for the final kilometers of the project,” he said.

He said if HS2 fails to reach Euston, plans at Old Oak Common would have to change and pressure would be put on the Elizabeth Tube line, which HS2 passengers would have to switch to to eventually reach central London.

“HS2 ultimately needs to be extended to Euston to ensure the scheme is attractive to passengers and does not put a major strain on the Elizabeth line,” he said.

Sir John’s skepticism about the private sector’s likelihood of completing the Central project calls into question the Department for Transport’s faith in reaching an agreement with the private sector.

Rail Minister Hugh Merriman told MPs: “We will scrap the Euston project and take a new approach to developing the Euston area, creating a station that works, is affordable and can be opened and running trains as quickly as possible.”

“We will not provide design features that we do not need, but will instead create a six-platform station that can accommodate the trains we will run into Birmingham and beyond and that will best contribute to the restoration of the local environment ” , we will attract private financing and unlock greater land development opportunities offered by the new station, while radically reducing taxpayer costs.”

“In Euston we will be one of the HS2 Ltd companies. engage a separate development company to manage the implementation of this project. We will also learn from success stories such as Battersea Power Station and Nine Elms, which have attracted £9 billion of private sector investment and thousands of homes.”

Ministers have warned that rail services may not reach central London until 2040.

Transport Secretary Mark Harper told members of Parliament’s transport committee he was confident HS2 would head into the center of the capital rather than stopping at Old Oak Common station. He said there had already been “significant interest” from the private sector in transforming the Euston area, but admitted ministers would have to take another look if private developers did not step up.

Mr Harper said the government had secured £9 billion in private funding as it extended the Northern Line tube service by a further three kilometers to Nine Elms and Battersea Power Station in south-west London in 2021. “This is a good indicator of what is possible [at Euston],” He said.

Sir John Armitt questioned the Foreign Secretary’s optimism, noting that much of the private investment in Battersea had been “into property investment rather than the new Northern Line”.

Sadiq Khan, the mayor of London, has also expressed doubts about the likelihood of private funding for a rail link to Euston. He said private lenders were “shocked” by the government’s decisions on HS2. “Metaphorically, uncertainty keeps them in their hands. “The idea of ​​the private sector pouring billions into a project without knowing what’s around the corner and what other twist might come is unrealistic,” he said.

Mr Khan said there was “not a cat in hell” and private investment covered the estimated £6.5bn cost of the project, including the tunnel needed to link Euston to Old Oak Common, which is now considered “temporary”. terminus as well as a pedestrian link from Euston to Euston Square and wider improvements to local amenities.

A Department for Transport spokesman said: “As always, the route will end in Euston. The new plan for Euston represents a world-class regeneration opportunity that will provide better value for money for taxpayers. Our approach has recently been successfully implemented, including the renewal of Battersea and King’s Cross power stations, and there is already significant private sector interest in investment.”

The government appointed Lord Hendy of Richmond Hill to head the Euston Partnership, responsible for developing the station and surrounding area. He said this was a real opportunity to transform the Euston region. “I am confident that the partners will work with the government to put in place the financial and other mechanisms to make this work.”