Axing HS2’s eastern leg will lead to supply chain job cuts

Almost half of HS2’s existing supply chain have said that they will downsize staffing numbers if the eastern leg of HS2 Phase 2b to Leeds is cancelled.

In total 46.3% of SMEs working on the rail project said job losses would be inevitable, in response to a joint survey carried out by the High Speed Rail Group (HSRG) and Railway Industry Association (RIA) created.

Fears that the eastern leg of HS2 – from the West Midlands to Leeds – could be axed were first raised in October when the government launched its consultation on design changes to the western leg of the route.

In November, the Department for Transport (DfT) confirmed that Phase 2b would be split into multiple bills to be passed in Parliament, while three options in the National Infrastructure Commission's Rail Needs Assessment – published in December – suggested scaling back the eastern leg.

This assessment will inform the Integrated Rail Plan, which is due to be published in the coming weeks having been delayed due to pre-election purdah rules.

The survey also revealed that 63% of rail SMEs had increased turnover since HS2 construction began, with 61.5% taking on more staff and 38.5% hiring more apprentices since main construction started last year.

More than 80% of those surveyed said cancelling the eastern leg would have a negative impact on revenue, with 67% of SMEs surveyed eyeing up contracts on the Leeds leg of HS2.

HSRG director Susan Ryall said: “This industry survey shows how vital the whole of HS2 is to small and medium sized businesses - including the Eastern Leg. SMEs are the lifeblood of our industry, and they are sounding the alarm on what curtailing the project means for them.

“With 80% of SMEs expecting revenue to fall and half likely to lay off staff, the Government needs to seriously consider the full consequences for businesses and workers of cutting HS2.”

RIA chief executive Darren Caplan added: “HS2 is essential to UK businesses of all sizes right across the country, supporting jobs, investment and economic growth at a pivotal time for the economy.

“Delivering the full route, including the Eastern Leg, will be vital. As the results of this survey shows, any reduction to the full HS2 scheme would deliver a blow not just to future connectivity, but also to the many small and medium sized businesses that are working to support the UK, as the Government seeks to ‘build back better’ post-Coronavirus.”

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