Why high-speed rail could become one of Osborne's biggest headaches

The Chancellor faces a local revolt over the new route, which passes through his Tatton constituency.

The "engine for growth" was how George Osborne punningly described the government's high-speed rail plans this morning. Ministers are unveiling details of the second phase of the network, which will extend the already-planned London to Birmingham HS2 line to Manchester and Leeds. The Department for Transport estimates that the 250mph line will almost halve journey times between Birmingham and Manchester to 41 minutes and between London and Manchester to one hour and eight minutes. Once the route is complete in 2032, six years after the first phase, it will take 57 minutes to travel from Birmingham to Leeds, compared with one hour and fifty eight minutes at present, and one hour and twenty two minutes to travel from London, compared with two hours and twelve minutes currently. 

Osborne told BBC Breakfast this morning that HS2 would "change the economic geography of this country" and, naturally, "help Britain win the global race". But the £32.7bn project doesn't come without a political price tag attached, as the Chancellor will be well aware. His Tatton constituency is one of those through which the new route will pass and locals in the area,  which includes ancient parkland and National Trust property, are already warning of "resistance like you've never seen before". Conservative Frank Keegan, a ward councillor for Alderley Edge, told the FT that "It could be an enormous issue for [Mr Osborne], a large part of his support is around this area. I don’t see why you should rip up all this countryside and spend £40bn just to take 20 minutes off a journey." He added: "It will be blighting a lot of houses. There would be almighty resistance to that line, [and] it will be resistance like you’ve never seen before."

George Walton, the Conservative mayor of Cheshire East, has voiced similar concerns over the "absolutely massive project".

"There would be ... public outrage if it went across any of our local countryside, which is rich farming land," he said. "We already have the M6 slicing through the area. The route must be properly considered and put to the public first or it will be very problematic from a public acceptance point of view."

In view of the political damage that the project could inflict on the already-beleaguered Chancellor, councils are on the lookout for any attempt to divert the route away from Osborne's constituency. Martin Tett, the leader of the 51M Alliance of councils opposing the scheme, said: "If it avoids most of it, it is George Osborne who will face accusations of nimbyism and hypocrisy."

In response to such protests, ministers have promised "a generous compensation package" for people living near the line as well as noise and other nuisance mitigation measures such as tunnels. But such concessions aside, the government will cite this as evidence of its willingness to take "tough decisions" for growth. 

The Transport Secretary, Patrick McLoughlin, who will make a statement on the project to Parliament today, has rightly argued that "while doing nothing would be the easy choice it would also be the irresponsible choice." He said: "This is an unparalleled opportunity to secure a step-change in Britain's competitiveness and this government will do everything possible to ensure that the towns and cities in the Midlands and the north get the connections they need and deserve to thrive". 

But as today's Times reports (£), the Tory revolt against the scheme is gathering force. One figure to watch closely will be the former Welsh Secretary, Cheryl Gillan, who has denounced HS2, which goes through her Chesham and Amersham constituency, as a "terrible" idea. After being sacked from the cabinet by a wine-swilling David Cameron, she commented: "That allows me to almost go back to my roots, if you like, and to speak out about something that is affecting my constituents and my constituency, and that is this terrible HS2 project which the prime minister and my cabinet colleagues have known of my complete opposition to for a long time". The Prime Minister may yet come to regret dismissing Gillan, the likely ringleader of the rebellion, so casually. 

Chancellor George Osborne said that high-speed rail would "change the economic geography of this country". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”