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.

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I believe only Yvette Cooper has the breadth of support to beat Jeremy Corbyn

All the recent polling suggests Andy Burnham is losing more votes than anyone else to Jeremy Corbyn, says Diana Johnson MP.

Tom Blenkinsop MP on the New Statesman website today says he is giving his second preference to Andy Burnham as he thinks that Andy has the best chance of beating Jeremy.

This is on the basis that if Yvette goes out first all her second preferences will swing behind Andy, whereas if Andy goes out first then his second preferences, due to the broad alliance he has created behind his campaign, will all or largely switch to the other male candidate, Jeremy.

Let's take a deep breath and try and think through what will be the effect of preferential voting in the Labour leadership.

First of all, it is very difficult to know how second preferences will switch. From my telephone canvassing there is some rather interesting voting going on, but I don't accept that Tom’s analysis is correct. I have certainly picked up growing support for Yvette in recent weeks.

In fact you can argue the reverse of Tom’s analysis is true – Andy has moved further away from the centre and, as a result, his pitch to those like Tom who are supporting Liz first is now narrower. As a result, Yvette is more likely to pick up those second preferences.

Stats from the Yvette For Labour team show Yvette picking up the majority of second preferences from all candidates – from the Progress wing supporting Liz to the softer left fans of Jeremy – and Andy's supporters too. Their figures show many undecideds opting for Yvette as their first preference, as well as others choosing to switch their first preference to Yvette from one of the other candidates. It's for this reason I still believe only Yvette has the breadth of support to beat Jeremy and then to go on to win in 2020.

It's interesting that Andy has not been willing to make it clear that second preferences should go to Yvette or Liz. Yvette has been very clear that she would encourage second preferences to be for Andy or Liz.

Having watched Andy on Sky's Murnaghan show this morning, he categorically states that Labour will not get beyond first base with the electorate at a general election if we are not economically credible and that fundamentally Jeremy's economic plans do not add up. So, I am unsure why Andy is so unwilling to be clear on second preferences.

All the recent polling suggests Andy is losing more votes than anyone else to Jeremy. He trails fourth in London – where a huge proportion of our electorate is based.

So I would urge Tom to reflect more widely on who is best placed to provide the strongest opposition to the Tories, appeal to the widest group of voters and reach out to the communities we need to win back. I believe that this has to be Yvette.

The Newsnight focus group a few days ago showed that Yvette is best placed to win back those former Labour voters we will need in 2020.

Labour will pay a massive price if we ignore this.

Diana Johnson is the Labour MP for Hull North.