The Reader: A critical week begins for the HS2 project

HS2 was never a good use of taxpayers’ money compared to alternative transport schemes, but the latest budget increases are disastrous for its economic case. When the wider losses from the tax bill are included, the costs are now likely to exceed the benefits.

High-speed rail is the wrong solution to boosting the North’s economy. It benefits relatively few people in the big cities rather than the wider population in struggling satellite towns. Smaller-scale schemes, spread across the region and focused as much on roads as rail, would deliver far greater gains. HS2 should be cancelled and the money spent on these better-value projects.
Dr Richard Wellings​, Head of transport, Institute of Economic Affairs

Editor's reply

Dear Richard

Everyone is for new infrastructure in theory, and then in practice people queue up to oppose the specific schemes. That’s the story of the M25, the Channel Tunnel and Crossrail. Speculating that Britain won’t need railways in a couple of decades’ time is fanciful. The East and West Coast main lines, already crowded, will be jammed by then if we don’t build additional capacity.

I’m all for extra projects, such as Northern Powerhouse Rail, local road enhancements and commuter lines to link towns with cities. But they’re in addition to, not a substitute for, new North-South links, as businesses, mayors and most MPs in the North and Midlands have all warned. HS2 has been more than 10 years in development and is under construction. Cancel it and we won’t see another big transport project get the go-ahead for a generation.

This administration’s talk about levelling up the North, and its enthusiasm for infrastructure, are great. But it won’t be taken seriously if it scraps the biggest Northern infrastructure project of all. Which is why I suspect this week’s so-called “crunch meeting” is nothing of the sort: the new Government will press ahead with HS2, just like the last three did. Great governments aren’t made by cancelling things.
George Osborne, Editor of the Evening Standard

There’s local hope for the high street​

For decades, the high street has been changing, with retail units “sold off” to those willing to pay the highest rent. In many instances these decisions were taken in boardrooms miles away from the affected communities.

This approach led to identikit high streets stuffed with multinational retail outlets — a bland and boring experience. The poor December ONS retail figures are evidence that consumers’ expectations are not being met.

Our first venue, Catford Mews, has seen a former Poundland transformed into a cinema, bar/cafe, and food hall. At Really Local Group, we take a fresh approach by consulting the community throughout development to understand its needs and aspirations. We look forward to continuing this approach across London and the UK.

Business rates and online platforms alone are not the death knell of the high street. It is possible to succeed with a customised, curated and complementary selection of entertainment, food and retail.
Preston Benson, Founder, Really Local Group

If the shoe fits...​

Ayesha Hazarika (Comment, Jan 22) doesn’t know what to do with cloth bags. I use them as shoe bags. Ideal for travelling.
Christine Moulie

London needs a stamp duty swap​

Your leader “Housing market revival is great news for London” [Jan 20] stated that increased activity in the house-buying market is “a trend that we hope continues”.

Elsewhere in the paper, it was also reported that the average house price in London is more than £600,000. This means there is no stamp duty relief for first-time buyers purchasing an average price home in the city (stamp duty relief is capped at £500,000).

This is yet another reason why the Government should seriously consider switching stamp duty liability from the buyer to the seller. This would mean every first-time buyer in London would be exempt from stamp duty, irrespective of the price of the property. It would also save the taxpayer more than £700 million a year in funding the current bureaucratic and costly first-time buyers’ stamp duty relief.

The move would stimulate the buying and selling activity that most want to see.
Phil Hall, Head of public affairs & public policy, Association of Accounting Technicians