Rail lobby calls for private investment to boost infrastructure

The High Speed Rail Group (HSRG) today launched a report outlining how private cash could finance major rail projects. 

The organisation, whose members are building the first phase of HS2, urged the government to weigh up various financial models to facilitate growth and improve national connectivity. 

It called on the government to action three main objectives.  

The first is to develop and maintain a long-term strategy for north-to-south and east-to-west travel, including prioritising the link from Birmingham to the North West and the route across the north of England from Liverpool to Hull. 

Secondly, the group urged engagement with the infrastructure investment community to explore all funding options, rather than the pursuit of an ‘all-or-nothing’ model. 

Finally, it said would like to see the government adopt a ‘whole systems’ approach, looking at planning, funding and delivery from a whole country perspective. 

Dyan Perry, HSRG’s chair, said: “To date, short-term policy changes and inconsistent project implementation have undermined investor confidence, leading to a fragmented infrastructure landscape that is timely and costly.  

“If correctly capitalised upon, rail investment will not only drive growth across local economies, foster skills development, and enhance regional connectivity, it will also ensure the UK delivers on the Chancellor’s ’national mission’ to boost growth.” 

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The initiative comes two weeks before chancellor Rachel Reeves is due to confirm the autumn budget, with speculation that she will grant HS2’s extension from Old Oak Common to Euston.

Last year, Rishi Sunak scrapped the northern leg of the HS2 rail line between Birmingham and Manchester citing rising costs and delays. However, reports this morning suggested that ministers were set to reverse some of the previous governments cuts, meaning the line could run from Euston to Crewe at least.

Industry leaders from major firms including Amey, Centrus, Costain, KPMG, HS1 Ltd, Mott MacDonald and Turley contributed articles to the ‘Driving investment in rail infrastructure’ document. 

The report draws on international and cross industry case studies such as high speed rail delivery in France and the Thames Tunnel to provide successful examples of public-private partnerships and maximising limited public sector funds.