A local authority in the north of England is seeking compensation from the government for its decision undo the northern leg of HS2.
Cheshire East Council wrote to Rail Minister Huw Merriman and Communities Secretary Michael Gove to seek compensation totaling £11.2 million, to cover a sum invested by the council in delivering the mega project
He also called for a series of transport improvements for Crewe and nearby areas, after the railway station, which was to be a hub for the high-speed line, was left out of the recent North network document setting out where HS2 funds would be redistributed.
Leader of Cheshire East Council, Sam Corcoran, said: “Cheshire East would have been a huge beneficiary of HS2. But for Crewe, sitting at the heart of the HS2 phase 2 network, HS2 was the catalyst to reverse the its fortunes and deliver on the leveling agenda, and may be the biggest loser from the plans to cancel HS2 and Network North.
He said Prime Minister Rishi Sunak’s October 4 announcement was already affecting developer confidence in the area, adding that 4,500 new homes and 5,000 new jobs would be lost.
“The expected £750m boost that HS2 would have had on the local economy will not be realized, and what we will see now because of this decision by [the] In fact, the government is leveling off and not leveling up,” he said.
Corcoran added: “We consider it necessary [the] The Government agrees a Network North deal with Cheshire East to enable the delivery of vital capital projects and regeneration programs strategically focused on restoring the long-term outcomes for Crewe, Macclesfield and the borough that HS2 would have unlocked and to ensure that the much needed investment. on our local road, public transport and active travel network are still available.”
Cheshire East Council has been run since 2019 by a coalition of Labor and independent members.
As well as the £11.2m compensation, it is calling for funding to upgrade Crewe station, money for the East Middlewich bypass and A500 dual carriageway schemes and to improve services of local buses.
He also wants cash for a support scheme to tackle deprivation in Crewe and for further regeneration of the town.
A financial forecast, published separately by the council this week, shows it faces an £18.7m budget shortfall for the 2023/24 financial year. He said he would soon have to make “difficult decisions” about council services to balance the books.
The Department of Transport has been contacted for comment.
