The UK is suffering from inflation and economic downturn, which not only makes the people complain, but also puts the government in a dilemma. After being dormant in the early days of his administration, the current British Prime Minister Sunak has finally determined to reform in the near future. However, a series of his policies have triggered huge criticism in the UK. After announcing the suspension or postponement of environmental protection plans such as the UK's ban on fuel vehicles, the Sunak government is discussing whether to stop the construction of the UK's Line 2 high-speed railway.

British Defense Secretary Grant Shapps said on Sunday that the government must consider the budget. The UK has been hit not only by the COVID-19 epidemic, but also by the conflict between Russia and Ukraine. Any responsible government must take stock of the situation and assess whether projects still meet the country's spending requirements.

Although Shapps did not make a final conclusion on the future of the High-Speed ​​Rail Line 2 project, his remarks have confirmed outside speculation about the project’s prospects.


Note: The dark blue line is the high-speed rail line from London to Birmingham in the first phase, and the orange line is the high-speed rail branch line to Manchester.

High-speed rail line 2 connects London, Birmingham, Manchester and other major cities in England. At the heart of a strategy to improve community prosperity in the north of England, the project was one of the policies that helped the Conservatives win the UK election. Sunak's desire to press the pause button is undoubtedly plucking the hair off the tiger's head, which has led to opposition from all walks of life.

General election adjustments

Sunak's Conservative Party is lagging behind the opposition Labor Party in opinion polls, which has made Conservatives anxious ahead of next year's general election and greatly promoted Sunak's adjustment of a series of plans.

But Sunak's "pragmatic" approach is actually not liked. Just looking at the cancellation of the Highway 2 project, people in the political, business and even academic circles are expressing dissatisfaction.

Manchester Mayor Andy Burnham pointed out that the north has always been treated like a second-class citizen, and the infrastructure in the region is still left over from the Victorian era. The cancellation of the high-speed rail project will exacerbate the gap between rich and poor in the north and south of the UK.

Jürgen Maier, the former CEO of Siemens UK and now deputy chairman of Northern Power Station, also said that business confidence in companies investing in infrastructure in the UK has "fallen".

Vice-chancellors of ten universities, including Warwick and Coventry, have also come forward to put pressure on Sunak to continue building Highway 2. Former British Prime Minister Boris described Sunak's move as crazy and he should not let the High-Speed ​​Rail Line 2 project fall into pieces.

However, according to the British government's accounts, as of June, the high-speed rail Line 2 project has spent 24.7 billion pounds, and the total budget for the first phase of the project from London to Birmingham is as high as 45 billion pounds.

According to the original plan in the UK, High-speed Rail Line 2 is designed to have a maximum operating speed of 330 kilometers per hour, and the first section from London to Birmingham is expected to be completed in 2029-33.

High-speed rail line 2 needs to go to Manchester, with a total project budget of 71 billion pounds. The British government itself estimates that the entire project may ultimately cost more than 100 billion pounds. At a time when inflation is high, this may undoubtedly turn into a snowball that gets bigger and bigger.

On the other hand, the project involves more than 3,000 British and European engineering companies and will create up to 3,000 jobs. Analysts also said that at a time when the possibility of economic recession is increasing, abandoning the main project of High-speed Rail Line 2 may cause a wider drag on the economy.

Business groups including the British Chambers of Commerce and the CBI have urged the government to stick with the project, saying it would both support jobs and boost productivity.

The Sunak government needs to withstand various pressures to carry out reforms, but the shock caused by recent reform actions has become a disturbing cloud over No. 11 Downing Street.