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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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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