The UK’s HS2 Project: A Lateral Perspective

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Why Rishi Acted Now on HS2 Project

In decision making, it is “Better three hours too soon than a minute too late.”- William Shakespeare. Similarly, a politician is wise to take pain while in power rather than get whitewashed in general elections and be forgotten. Rishi Sunak’s decision to limit the HS2 project is a decision of the first sort.

At the core of this HS2 saga is our primitive approach towards megaprojects. So primitive that people would prefer to expend considerable national resources on a project (HS2) that may be useless. One may wonder why I argue that HS2 could be useless, so allow me to indulge you in a brief probe.

Will more people work from home or an office in the future? I am sure the answer is from home.

Secondly, what would people prefer between public transport and private cars for leisure and pleasure? The answer is the car; you also own a car and would like to drive it instead of getting onto a train. So, why would you support building up something that may not be useful or your first choice? Politicians would do it for “political limelight”, “votes”, and “it cost them nothing but earn them a name in history”. I, you, and we are not concerned about this, so be rational and oppose it rather than support it.

Truth About HS2 Project

Now the question is why megaprojects such as HS2 are too good to be true. Let’s break down the arguments.

Economics of HS2

Economics of HS2 is not right: Prima facie, a project is not worth pursuing if its starting price was £37.5 bn (2009 prices) and has risen to £78.4 bn (2015 price, review by Allan Cook) and estimated to be £110bn (2019 price, review by Lord Berkeley). These estimates are not adjusted for Inflation; hence, the increment is fully ascribable to cost overruns and inefficiencies. Funnily, HS2 was projected to achieve efficiency gains from 2015 to 2017. Hello forecasters! What would happen now with inflation record high and interest to remain higher for longer?

Politics of HS2

Politics of HS2 is Poor: British politics is caught between green-belt conservatism, projecting a greener outlook, and big spending promises. However, ‘I’m afraid no money is left -Liam Byrne’. At present, this is the ultimate truth of our national exchequer. Deep inside his heart, Kier Starmer is happy that Rishi is doing it instead of him. However, Rishi is doing it because he needs to announce tax cuts before he calls a general election. Either way, it’s poor politics that is devoid of any morality or truth. These Honourable men should tell the public that levelling up is more than wasting money on rail and roads. Levelling up is about bringing people at parity regarding skills, savings, wages, education, and opportunities.

Definition of mega-infrastructure (HS2)

The definition of mega-infrastructure (HS2) is changing: We, the people, have developed a fixation that megaprojects mean mega structures that are physically noticeable. This way of looking at Infrastructure needs to be corrected! Let me give us a pinch of salt here.

What would happen to these trains if we invented flying cars and hydrogen-empowered transport vehicles? Imagine, after the emergence of a super speed network, people would prefer working from home than at the offices, then what happens to trains?

If any of these imaginations come true, the question would be how to dispose of the accumulated land and equipment.

So, we need to rethink our concept of connectivity. I would propose that modern Infrastructure means Corridor projects comprising improved trains, more frequent trains and the development of digital Infrastructure to complement our daily lives that do not require a lot of travel for work.

Believe me, sir! No matter how fast you may make it, “work travel is not very enjoyable-psychologically”.

Conclusion

Lastly, It’s a fact noted by Lord Berkely that people use public transport for regional transport. The cross-country network is already well established (e.g., the train from Manchester to London is approximately 2HRS). Therefore, Rishi is right to cancel the northern leg of HS2; I propose that we also limit the HS2 phase 1. But Rishi needs to be honest and tell the world the real alternative, “the levelling up corridor,” comprising digital Infrastructure, line improvements, newer trains and trains that run on time.

Author

  • Dr Zeeshan Ali Syed

    Dr Zeeshan Syed is a Lecturer in Finance at the University of Salford Business School. He is an experienced finance and technology academic and practitioner. An academic who has led development of new courses, modules and degree programs. He is currently programme leader of MSc Fintech, and he supervises master’s and PhD students in Finance, Fintech and AI. His research areas include understanding the costs of sustainability, its impact on the infusion of technology with finance and finance education. He is also an International Exchange Coordinator (LEAF), to promote exchange programmes and opportunities for students.

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