Exclusive: Adonis warns that "incompetent" coalition must control costs if HS2 is to survive

The architect of High Speed 2 and the head of Labour's growth review says that Ed Balls's threat to withdraw support for the project has "raised the bar".

After Ed Balls threatened to withdraw Labour's support for High Speed 2 and suggested that the £42.6bn allocated to the project could potentially be better spent elsewhere, I spoke to Andrew Adonis, the former transport secretary and the architect of HS2, at a New Statesman fringe event last night to get his response.

In his first reported comments since Balls's speech, Adonis, who is the head of Labour's growth review and shadow infrastructure minister, told me that the shadow chancellor had "raised the bar" for the project and that the "incompetent" coalition needed to demonstrate that it could "keep costs under control" if HS2 was to survive. He criticised the government's failure to pass legislation more quickly and to manage the programme effectively: "all they've done since coming to office is add £10bn to it".

Adonis, who warned in a recent New Statesman piece that it would be an "act of national self-mutilation" to cancel HS2, told me: "the current contingency fund of £14bn is too large and the cost needs to come down when the bill has its second reading in February/March." He added: "it's no surprise opinion is turning against it if people fear it will end up costing £100bn."

In his speech, Balls said: "the question is – not just whether a new high-speed line is a good idea or a bad idea, but whether it is the best way to spend £50bn for the future of our country. In tough times it's even more important that all our policies and commitments are properly costed and funded."

Adonis warned in his piece that the urgent need to increase rail capacity (the West Coast Main Line will be full by 2024) meant there was "no free lunch - or pot of gold which can be diverted to other projects in anything but the very short-term, with more costly consequences thereafter". But at a fringe meeting last night, Balls openly speculated on whether the HS2 money would be better spent on "building new homes or new schools or new hospitals".

With Miliband due to pledge in his speech today to build a million new homes over the course of the next parliament, it's unsurprising that Ballls is attracted by the option of scrapping HS2. It would allow Labour to raise billions for other projects while remaining within George Osborne's fiscal envelope. For Balls, understandably wary of making the case for borrowing to invest, that is political gold.

Labour peer and former transport secretary Andrew Adonis, who first announced plans for High Speed Two in 2010. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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Stella Creasy targeted for deselection

Organisers on the left believe the Walthamstow MP is the ideal target for political, personal and geographical reasons.

Stella Creasy, the high-profile MP for Walthamstow and defeated deputy Labour leadership candidate, is the first serious target of an attempt to deselect a sitting Labour MP, the New Statesman has learnt.

Creasy, who is on the right of the party, is believed to be particularly vulnerable to an attempt to replace her with an MP closer to the Labour party’s left. Her constituency, and the surrounding borough of Waltham Forest, as well as the neighbouring borough of Leyton and Wanstead, has a large number both of new members, inspired either to join or return to Labour by Jeremy Corbyn, plus a strong existing network of leftwing groupings and minor parties.

An anti-bombing demonstration outside of Creasy’s constituency offices in Walthamstow – the MP is one of around 80 members of Parliament who have yet to decide how to vote on today’s motion on airstrikes in Syria – is the latest in a series of clashes between supporters of Creasy and a series of organized leftwing campaigns.

Allies of Creasy were perturbed when Momentum, the grassroots body that represents the continuation of Corbyn’s leadership campaign, held a rally in her constituency the night of the Autumn Statement, without inviting the MP. They point out that Momentum is supposedly an outward-facing campaign supporting Jeremy Corbyn and the Labour party towards the 2020 general election and the forthcoming local and European elections. Labour holds 27 out of 27 council seats in Creasy’s constituency, while Creasy herself has a majority of 23,195 votes.

“If you look at the seat, there is nothing to win here,” said one Labour member, who believes that Momentum and other groups are planning to depose Creasy. Momentum has denied any plot to remove Creasy as the MP.

However, Creasy has come under pressure from within her local party in recent weeks over the coming vote on bombing Syria. Asim Mahmood, a Labour councilor in Creasy’s constituency, has called for any MP who votes for bombing to face a trigger ballot and reselection. Creasy hit back at Mahmood on Facebook, saying that while she remained uncertain of how to vote: “the one thing I will not do is be bullied by a sitting Walthamstow Labour councilor with the threat of deselection if I don’t do what he wants”.

Local members believe that Mahmood may be acting as the stalking horse for his sister, the current mayor of Waltham Forest, Saima Mahmud, who may be a candidate in the event of a trigger ballot against Creasy. Another possible candidate in a selection battle is Steven Saxby, a local vicar. Unite, the recognized trade union of the Anglican Communion, is a power player in internal Labour politics.

Although Creasy has kept her own counsel about the direction of the party under Corbyn, she is believed to be more vulnerable to deselection than some of the leader’s vocal critics, as her personal style has led to her being isolated in her constituency party. Creasy is believed to be no longer on speaking terms with Chris Robbins, the leader of the council, also from the right of the party.

Others fear that the moves are an attempt by Creasy’s local opponents to prepare the ground for a challenge to Creasy should the seat be redrawn following boundary changes. The mood in the local party is increasingly febrile.  The chair of the parliamentary Labour party, John Cryer, whose Leyton and Wanstead seat is next to Creasy’s constituency, is said to fear that a fundraiser featuring the shadow foreign secretary, Hilary Benn, will take an acrimonious turn. Cryer was one of just four shadow cabinet ministers to speak against airstrikes in Syria.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.