Mark Odell, Transport Correspondent of the Financial Times, reports that the case for building a £32.7bn high-speed rail line linking London to Birmingham was undermined on Wednesday after the government admitted an error had inflated its economic case.

This news has received little coverage.

Though Justine Greening, the transport secretary, told MPs when she approved the project that HS2 was “good value for money”, government has now acknowledged that a ‘modelling error’ has been made. This means that the benefit-cost ratio for the first 140 miles of the route will only be £1.20 for every £1 invested.

HS2 is therefore verging on the poor value-for-money category as defined by the government.

Advertisements