Boris Johnson gives HS2 the green light
The Prime Minister acknowledged that "cost forecasts have exploded'', but claims his Government had the "guts to take the decision".
Boris Johnson has given HS2 the go-ahead, claiming his Government had the "guts to take the decision'' to deliver prosperity across the country.
The Prime Minister acknowledged that "cost forecasts have exploded'' and criticised the company responsible for developing the high-speed railway.
"I cannot say that HS2 Ltd has distinguished itself in the handling of local communities,'' he told the Commons.
But he insisted that "poor management to date has not detracted from the fundamental value of the project''.
He announced that HS2 Ltd can "focus solely'' on building the railway between London and Crewe, while "new delivery arrangements'' will be created by the Government for the Phase 2b stretches from Crewe to Manchester, and Birmingham to Leeds.
Mr Johnson added that the Government will "look at how we can best design and integrate rail investments across the North including Northern Powerhouse Rail between Leeds and Manchester''.
Labour leader Jeremy Corbyn warned that Mr Johnson "promised so much in the general election'' to people in the Midlands and the North, but they will be "sorely disappointed when they see what actually happens''.
The decision has caused splits in the Conservative Party over cost and environmental concerns.
The Prime Minister's announcement follows the completion of a Government-commissioned review by former HS2 Ltd chairman Douglas Oakervee into whether or not the programme should be scrapped.
The Oakervee Review recommended that ministers should proceed with the project, but warned that the final bill could reach £106 billion at 2019 prices, compared with a budget of £62.4 billion.
The Prime Minister told MPs that to avoid "further blowouts'' in HS2's cost or schedule, a series of measures will be taken to "restore discipline''.
This will include appointing a minister whose full-time job will be to oversee the project, and changes to the way HS2 is managed.
Andy Burnham's reaction
Andy Burnham, the Mayor of Greater Manchester, responded to the government's confirmation that the HS2 high-speed rail link will be built.
"What he said, the headline of what he said today, I do warmly welcome.
"However, there was a lot of detail lacking. Detail lacking on Manchester Piccadilly, and the design there, on the timetable for work in the north, we have a timetable for London - Birmingham but not for the northern work, and also on the line of route.
"We still hear the Government prefers an upgrade for Northern Powerhouse rail rather than a new line. We believe this line has got to go from Liverpool through Manchester to Bradford, which would be the new line we need.
"So he was, I'm afraid, unspecific on all of those things. But as I say, as an overall headline, we welcome what he said.''
Decision will 'inject confidence in economy'
The Confederation of British Industry welcomed the decision with chief UK policy director Matthew Fell saying it was "exactly the sort of bold, decisive action required to inject confidence in the economy''.
Manchester Airport were also quick to welcome the plans, saying it will help 'rebalance the economy' by ensuring millions of people can access the North and Midlands.
What is the planned route?
Phase 1 is planned to run between London and Birmingham.
Current designs involve a second Y-shaped phase launching in two stages: Phase 2a from the West Midlands to Crewe followed by phase 2b from Crewe to Manchester, and Birmingham to Leeds.