Delays to the controversial HS2 railway project will not save money, the transport secretary has admitted.
Mark Harper made the comments after the government confirmed last month that sections of HS2 would be delayed to cut costs.
The high-speed railway was initially set to link London and the West Midlands with a further phase extending to cities in the north.
The delay, confirmed last month, will affect the northwest section of HS2, from Birmingham to Crewe, and then from Crewe to Manchester.
The first part was due for extension between 2030 and 2034 to help boost transport in the north of England, but the window has now shifted to 2032 to 2036, while services will not extend to Manchester until the 2040s.
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Following the announcement, Labour said it had obtained leaked documents suggesting the delays would in fact increase the costs of the project.
Giving evidence to the transport select committee on Wednesday, Mr Harper appeared to concede that point, saying: “In itself, delaying delivering something doesn’t save money.
“But of course it does reflect the fact that you have a budget in each year, everybody listening to this has to live within their annual budget, as well as a budget over time.”
On top of the delays to the northern section of the line, there have been question marks over Euston station in central London, which was supposed to link up to Old Oak Common in west London’s suburbs.
On Tuesday HS2 confirmed there had been “impacts” to works on the £1.2bn tunnel to Euston after the government “switched priority” to focus on the section between Birmingham and Old Oak Common.
HS2 said the start date was initially set for 2024 but was now “deferred”.
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Mr Harper today defended the government’s decision to delay works at Euston station – and suggested it may not open until the line to Manchester is operating in the 2040s.
He said it remained the government’s “commitment” to build HS2 between London Euston and Old Oak Common but there had been some “very significant challenges there about the design work that was undertaken”.
“It was significantly ahead of the budget that is available and that’s why I’ve taken the decision to pause construction of that project,” he said.
He added: “The commitment to take HS2 to Euston remains in place and the timing of that will mean that that is delivered when we have the line open to Manchester, and my understanding from having interrogated officials is that’s when the volume of passengers will require the service to go all the way to Euston.
“So that remains the government’s commitment.”
Mr Harper also admitted there would be “some cost involved” in demobilising the work around Euston to vacate the site in a “sensible way for the next couple of years that is sensible for people who live in the area”.
“Then we’re going to go back and look at coming up with a more cost-effective design for Euston,” he said.
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Last month, London Mayor Sadiq Khan criticised the delays at Euston, arguing it was not a “viable option” to have trains terminating at Old Oak Common for a longer period of time.
“Hundreds of millions of pounds have been spent regenerating the Euston area and homes and businesses have been demolished to make way for HS2, causing huge disruption for zero reward,” he said.
“With the effect it has on traffic and other economic and environmental impacts, local residents simply should not have to spend even more years dealing with the knock-on effects of this giant construction site.
“With the serious impact it would have on other parts of our transport network – terminating the HS2 route at Old Oak Common for a longer period of time is not a viable option either.
“The project must go ahead without further delay and Londoners should not spend even longer waiting to reap the benefits.”