Turning the page: HS2 and Labour’s infrastructure plan

As we approach a year since Labour secured a landslide election victory, the time has come for the government to deliver on its central election pledge: restoring faith and investment in national infrastructure projects.

Labour has spent the better part of a year highlighting the failures of the previous Conservative government. But now, with the Spending Review concluded and a 10-Year Infrastructure Plan announced, it sought to draw a line under arguably the most infamous of all legacy projects: HS2.

The high-speed rail line's issues are well-documented, or as Transport Secretary Heidi Alexander rather candidly stated, it is an “appalling mess”. The costs involved, for what will essentially be a rail line that reduces journey times between London and Birmingham by 20 minutes, are unfathomable and have profoundly damaged voters' perceptions of the UK's ability to deliver infrastructure projects. It’s certainly not the “transport revolution” that was promised for the north of England.

And thus unfolded the latest HS2 saga this week, with Alexander’s ministerial statement highlighting the “broken promises” of previous administrations and the spiralling costs, which now stand at £37 billion over budget.

This was the project's first major overhaul since she took over as Transport Secretary, and she has certainly put her personal stamp on it. She has handpicked the new team in charge of HS2; CEO Mark Wild and Chairman Mike Brown worked together at Transport for London and are credited for delivering the Elizabeth Line (Crossrail). Acknowledging this herself in the Commons, she noted that they “were part of the team, with me, that turned Crossrail into the Elizabeth Line – we have done it before, we will do it again”.

In line with broader renationalisation plans, and true to their word, the Government is addressing previous concerns over a lack of ownership and accountability by pledging to provide updates every six months.

Central to this reset is the Stewart Review, which made a total of 89 recommendations around governance and assurance, all of which the government accepted. Alexander emphasised that these recommendations will be incorporated into the infrastructure strategy and that the Cabinet Office is also employing the findings to consider changes across Whitehall.

So, with a line drawn in the sand regarding HS2, the government today published its 10-Year Infrastructure Strategy. The headline announcement was a £9 billion-a-year maintenance fund to address the £49 billion backlog in health, education, and justice buildings and facilities.

Last week, the Spending Review confirmed that the government will spend £39 billion over the next 10 years on building affordable and social housing, and £30 billion to support nuclear power, including £14.2 billion for Sizewell C and £2.5 billion for small modular reactors. Before the Spending Review, there was confirmation of £15 billion for transport projects in England’s city regions, and London’s TfL also got a four-year capital settlement worth £2.2 billion.

However, whilst the uptick in investment is welcome, it was not the biggest takeaway here. Instead, as Chief Secretary to the Treasury, Darren Jones said today, it was about “proving that change is possible”.

The key challenge for the government is now to demonstrate competence in cost control and timescales. Elected on a manifesto that promised a better return on investment, how the projects and investments announced today progress will be a defining feature of whether Labour gets the chance to deliver the “decade of renewal” that it promised to voters.