CPA Bulletin

14 CPA Bulletin > November 2023 www.cpa.uk.net This had followed weeks of speculation and non-denials from ministers and officials within the government. Ultimately, the bigger surprise would have been if the Prime Minister had said nothing and let the debate run and run. The bigger question is not why the story was allowed to build up over the course of a month, or indeed, whether politically, making the announcement in a former railway station in the city it was meant to be connecting, made much sense. The question on the lips of most construction executives was - ‘what next?’ The Prime Minister provided an answer of sorts, when he outlined plans for Network North, a series of plans to connect different northern cities, with a variety of different transport infrastructure plans and initiatives, including tram and rail links, and main trunk road upgrades. In addition, the Prime Minister’s speech, also contained plans for other transport upgrades around the rest of the country as well, with the south east and south west also included in the reallocation of funds destined for phase two of HS2. But questions remain towards whether this work will become a reality in the coming decades. Several projects contained within the Network North scheme had already been announced, with some aspect of the plan a feature of previous government promises. It was not lost on politicians in the North, that the cancellation of HS2 could well undermine the wider levelling up agenda, a core manifesto commitment of the current government. It was not the best of starts when the map on the front of the plan that accompanied the Prime Minister’s speech, moved Manchester further north, by approximately 30 miles. While some might consider this a radical plan, this unfortunate oversight is one that the construction industry hopes, is not repeated when it comes to the practical aspect of actually making Network North a reality. If the Prime Minister’s announcement really is to see spades on the ground and these transport schemes built, then government and construction needs to come together and learn from why half of HS2 has been cancelled, and what can be done differently in the future. This learning process is critical if the UK is to deliver large infrastructure projects, on time, on schedule, and to budget. It is well documented that the costs for HS2 rose, partly due to inflation and wider economic instability. While inflation is starting to come under control (although not as quickly as the government might wish), the economy remains a concern, with the expected boost in the post pandemic period, not fully materialising. This is mirrored in a recent survey of CPA members, looking at their investment intentions in new construction equipment. The survey, conducted across September, found: Currently, just under 54% of survey respondents were not planning on making any significant investment in new plant equipment over the course of the next 12-18 months. These companies cited the following factors as reasons for not investing: • 34% saw lack of investment incentives from government as an issue. • The uncertain wider economic environment was a key factor for 89% of respondents. • 60.5% were concerned by the high levels of interest rates. POLICY: 1 POLICY After HS2 - What Next? It was ultimately, the worst kept secret of the recent Conservative Party Conference when the Prime Minister Rishi Sunak, confirmed that phase two of the HS2 project, the all-important Birmingham to Manchester section, was to be cancelled.