The Business Working Group, led by Dr John Savin MBA, has prepared a thorough analysis of the HS2 Ltd business plan. This has been delivered to the Prime Minister, the Chancellor of the Exchequer, the Secretary of State for Transport and other senior ministers.
Our report is highly critical of the economic case set out by HS2 Ltd on behalf of the Government, which suggested that the high-speed rail project would generate at least £2 for every pound of Government money spent on it. We have shown that the business case is based on flawed or erroneous projections, and has
- underestimated construction and renewal costs
- substantially over-estimated passenger demand for the service
- used contradictory air travel predictions and
- ignored the immense environmental damage that the new line would cause.
Dr. John Savin MBA, who leads Wendover HS2 Business Group and authored the report, said: “The business case for HS2 is based on multiplying an unknown by an uncertainty for 75 years. The Government says the London-Birmingham section will cost £17 billion, but the real cost could be as high as £34 billion. Needless to say, we will be continuing to publicise the real costs of this white elephant and to expose the Government’s claims that the line will bring economic prosperity to the north as nothing more than wishful thinking.”
Letter to Philip Hammond of 22 Sept 2010, with press release
Full financial analysis of the HS2 Business Case: ‘Multiplying an unknown by an uncertainty for 75 years’ (PDF, 999KB)
John Savin gave a presentation about HS2 at the Stop HS2 Convention on 19 Feb 2011. You can view his presentation, Hammond’s Financial Adventures in HS2-land, here.
For further information, please contact Dr. John Savin on 07774 831 967, or see the Wendover HS2 Business Site, at www.wendover-hs2.org.uk
