Space on trains: the only valid argument for HS2

Economic and jobs benefits will be negligible.

The case for the new high speed rail network - the route of which was announced today - is all becoming a bit muddled. Anticipating a backlash against the project, government spokespeople have been defending it all over the place. The trouble is, there are too many versions of the defence, and most of them just don't hold water.

A Department for Transport spokesman told the Telegraph:

HS2 will bring cities closer together, drive regeneration, tackle overcrowding and stimulate economic growth.

George Osborne said the new line would be:

..not just about cutting journey times – although it does cut in half the journey time from Manchester to London – it’s also about the new stations, the prosperity that’s going to come, the jobs that are going to be created around this infrastructure.

Transport Secretary Patrick McLoughlin said:

It's not just about journey times, it is also about capacity. We are finding the railways are overcrowded. We've seen massive growth in rail passenger numbers, so this is taking HS2 so it serves the north.

The key claims for the line have been that a) joining London to the north and Midlands will help redistribute jobs, that b) the UK is behind the rest of Europe in terms of fast connectivity between cities, that c) the line will generally stimulate economic growth, and that d) rail transport is at capacity and we simply need more lines. Let's just unpack each claim:

a) The new HS2 will redistribute jobs.

The presence of a high speed rail will probably redistribute jobs. But it will most likely redistribute them in the direction of London and the South East. While Birmingham and Manchester (which both have stations on the new line) will also benefit a bit, this will be at the expense of the rest of the region. There won't be many stations, and the small towns which miss out on these will miss out economically too.

b) The UK lacks fast connectivity between cities compared to other places in Europe.

Although European trains are faster (France's TGV services have been reaching 200mph since 1981) - our cities are on average closer together. This means that journey times between major cities are actually faster than our European competitors, according to campaigners.

c) The rail line will stimulate economic growth.

The model from which the government is making these estimates is "exquisitely sensitive to small variations in growth assumptions", according to Dr J Savin, whose extensive financial analysis of the economic benefits of the line can be read here. Making broad claims about the economic advantages, he argues, is therefore distinctly shaky. He also writes that the uneven spread of benefits is not desirable either:

"A project that the entire UK pays for but that benefits two regions disproportionately, one of them being the richest parts of London, is hardly equitable."

d) We need more lines, as rail transport is at capacity.

In the final analysis, the only argument for the new HS2 that actually holds is that the rail services are too crowded. Network Rail told the BBC that the southern section of the West Coast Main Line will be "effectively full" by 2024. We do need more lines - but not for all the reasons the government is putting forward.

HS2 route was announced today. Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

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Will Euroscepticism prove an unbeatable advantage in the Conservative leadership race?

Conservative members who are eager for Brexit are still searching for a heavyweight champion - and they could yet inherit the earth.

Put your money on Liam Fox? The former Defence Secretary has been given a boost by the news that ConservativeHome’s rolling survey of party members preferences for the next Conservative leader. Jeremy Wilson at BusinessInsider and James Millar at the Sunday Post have both tipped Fox for the top job.

Are they right? The expectation among Conservative MPs is that there will be several candidates from the Tory right: Dominic Raab, Priti Patel and potentially Owen Paterson could all be candidates, while Boris Johnson, in the words of one: “rides both horses – is he the candidate of the left, of the right, or both?”

MPs will whittle down the field of candidates to a top two, who will then be voted on by the membership.  (As Graham Brady, chair of the 1922 Committee, notes in his interview with my colleague George Eaton, Conservative MPs could choose to offer a wider field if they so desired, but would be unlikely to surrender more power to party activists.)

The extreme likelihood is that that contest will be between two candidates: George Osborne and not-George Osborne.  “We know that the Chancellor has a bye to the final,” one minister observes, “But once you’re in the final – well, then it’s anyone’s game.”

Could “not-George Osborne” be Liam Fox? Well, the difficulty, as one MP observes, is we don’t really know what the Conservative leadership election is about:

“We don’t even know what the questions are to which the candidates will attempt to present themselves as the answer. Usually, that question would be: who can win us the election? But now that Labour have Corbyn, that question is taken care of.”

So what’s the question that MPs will be asking? We simply don’t know – and it may be that they come to a very different conclusion to their members, just as in 2001, when Ken Clarke won among MPs – before being defeated in a landslide by Conservative activists.

Much depends not only on the outcome of the European referendum, but also on its conduct. If the contest is particularly bruising, it may be that MPs are looking for a candidate who will “heal and settle”, in the words of one. That would disadvantage Fox, who will likely be a combative presence in the European referendum, and could benefit Boris Johnson, who, as one MP put it, “rides both horses” and will be less intimately linked with the referendum and its outcome than Osborne.

But equally, it could be that Euroscepticism proves to be a less powerful card than we currently expect. Ignoring the not inconsiderable organisational hurdles that have to be cleared to beat Theresa May, Boris Johnson, and potentially any or all of the “next generation” of Sajid Javid, Nicky Morgan or Stephen Crabb, we simply don’t know what the reaction of Conservative members to the In-Out referendum will be.

Firstly, there’s a non-trivial possibility that Leave could still win, despite its difficulties at centre-forward. The incentive to “reward” an Outer will be smaller. But if Britain votes to Remain – and if that vote is seen by Conservative members as the result of “dirty tricks” by the Conservative leadership – it could be that many members, far from sticking around for another three to four years to vote in the election, simply decide to leave. The last time that Cameron went against the dearest instincts of many of his party grassroots, the result was victory for the Prime Minister – and an activist base that, as the result of defections to Ukip and cancelled membership fees, is more socially liberal and more sympathetic to Cameron than it was before. Don’t forget that, for all the worry about “entryism” in the Labour leadership, it was “exitism” – of Labour members who supported David Miliband and liked the New Labour years  - that shifted that party towards Jeremy Corbyn.

It could be that if – as Brady predicts in this week’s New Statesman – the final two is an Inner and an Outer, the Eurosceptic candidate finds that the members who might have backed them are simply no longer around.

It comes back to the biggest known unknown in the race to succeed Cameron: Conservative members. For the first time in British political history, a Prime Minister will be chosen, not by MPs with an electoral mandate of their own or by voters at a general election but by an entirelyself-selecting group: party members. And we simply don't know enough about what they feel - yet. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics.