Balls and Cable sound the alarm over HS2. Who will U-turn first?

It is no longer unthinkable that one or both of Labour and the Lib Dems could go into the next election pledging to scrap the project.

High Speed 2 is an increasingly rare example of an issue on which there is a consensus among the three main parties. But Peter Mandelson's recent rejection of the project as an "expensive mistake" and the 25% rise in its estimated cost to £42.6bn (even before a shovel has touched the ground) has created the space for a more nuanced debate about its costs and benefits. 

So it is striking that both Vince Cable and Ed Balls are now making sceptical noises. Cable told Today this morning:

Well, the case for High Speed 2, which is still being made – I mean, the figures, as you know, are being revisited – have to meet a standard of cost/benefit analysis which the Treasury seeks, and which meet the requirements of the Green Book, as it’s called, on public investment.

And Balls told the FT:

We need to keep a close eye on value for money. I am concerned about the rising costs. As a Leeds MP I can see the benefits for the region and the north of England, but it is not a blank cheque...we have to know the benefits justify the expenditure, so therefore value for money continues to be an important test for me.

It would be wrong to assume that Balls is preparing the ground for a Labour U-turn. Ed Miliband remains personally supportive of the project and HS2 evangelist Andrew Adonis, the party's shadow infrastructure minister, who Miliband has just appointed to lead a growth review, is also determined to prevent any backsliding. But it is no longer unthinkable that one or both of Labour and the Lib Dems could go into the next election pledging to scrap the scheme. In these straitened times, £42.6bn is not to be sniffed at. As one Labour MP recently put it to me, "just think how many houses we could build with that". 

A placard placed by the Stop HS2 Campaign sits in a hedegrow near to the planned location of the new high speed rail link in Knutsford. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Inside a shaken city: "I just want to be anywhere that’s not Manchester”

The morning after the bombing of the Manchester Arena has left the city's residents jumpy.

On Tuesday morning, the streets in Manchester city centre were eerily silent.

The commuter hub of Victoria Station - which backs onto the arena - was closed as police combed the area for clues, and despite Mayor Andy Burnham’s line of "business as usual", it looked like people were staying away.

Manchester Arena is the second largest indoor concert venue in Europe. With a capacity crowd of 18,000, on Monday night the venue was packed with young people from around the country - at least 22 of whom will never come home. At around 10.33pm, a suicide bomber detonated his device near the exit. Among the dead was an eight-year-old girl. Many more victims remain in hospital. 

Those Mancunians who were not alerted by the sirens woke to the news of their city's worst terrorist attack. Still, as the day went on, the city’s hubbub soon returned and, by lunchtime, there were shoppers and workers milling around Exchange Square and the town hall.

Tourists snapped images of the Albert Square building in the sunshine, and some even asked police for photographs like any other day.

But throughout the morning there were rumours and speculation about further incidents - the Arndale Centre was closed for a period after 11.40am while swathes of police descended, shutting off the main city centre thoroughfare of Market Street.

Corporation Street - closed off at Exchange Square - was at the centre of the city’s IRA blast. A postbox which survived the 1996 bombing stood in the foreground while officers stood guard, police tape fluttering around cordoned-off spaces.

It’s true that the streets of Manchester have known horror before, but not like this.

I spoke to students Beth and Melissa who were in the bustling centre when they saw people running from two different directions.

They vanished and ducked into River Island, when an alert came over the tannoy, and a staff member herded them through the back door onto the street.

“There were so many police stood outside the Arndale, it was so frightening,” Melissa told me.

“We thought it will be fine, it’ll be safe after last night. There were police everywhere walking in, and we felt like it would be fine.”

Beth said that they had planned a day of shopping, and weren’t put off by the attack.

“We heard about the arena this morning but we decided to come into the city, we were watching it all these morning, but you can’t let this stop you.”

They remembered the 1996 Arndale bombing, but added: “we were too young to really understand”.

And even now they’re older, they still did not really understand what had happened to the city.

“Theres nowhere to go, where’s safe? I just want to go home,” Melissa said. “I just want to be anywhere that’s not Manchester.”

Manchester has seen this sort of thing before - but so long ago that the stunned city dwellers are at a loss. In a city which feels under siege, no one is quite sure how anyone can keep us safe from an unknown threat

“We saw armed police on the streets - there were loads just then," Melissa said. "I trust them to keep us safe.”

But other observers were less comforted by the sign of firearms.

Ben, who I encountered standing outside an office block on Corporation Street watching the police, was not too forthcoming, except to say “They don’t know what they’re looking for, do they?” as I passed.

The spirit of the city is often invoked, and ahead of a vigil tonight in Albert Square, there will be solidarity and strength from the capital of the North.

But the community values which Mancunians hold dear are shaken to the core by what has happened here.

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