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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Jeremy Corbyn challenged by Labour MPs to sack Ken Livingstone from defence review

Former mayor of London criticised at PLP meeting over comments on 7 July bombings. 

After Jeremy Corbyn's decision to give Labour MPs a free vote over air strikes in Syria, tonight's Parliamentary Labour Party (PLP) meeting was less fractious than it could have been. But one grandee was still moved to declare that the "ferocity" of the attacks on the leader made it the most "uplifting" he had attended.

Margaret Beckett, the former foreign secretary, told the meeting: "We cannot unite the party if the leader's office is determined to divide us." Several MPs said afterwards that many of those who shared Corbyn's opposition to air strikes believed he had mishandled the process by appealing to MPs over the heads of the shadow cabinet and then to members. David Winnick declared that those who favoured military action faced a "shakedown" and deselection by Momentum activists. "It is completely unacceptable. They are a party within a party," he said of the Corbyn-aligned group. The "huge applause" for Hilary Benn, who favours intervention, far outweighed that for the leader, I'm told. 

There was also loud agreement when Jack Dromey condemned Ken Livingstone for blaming Tony Blair's invasion of Iraq for the 7 July 2005 bombings. Along with Angela Smith MP, Dromey demanded that Livingstone be sacked as the co-chair of Labour's defence review. Significantly, Benn said aftewards that he agreed with every word Dromey had said. Corbyn's office has previously said that it is up to the NEC, not the leader, whether the former London mayor holds the position. In reference to 7 July, an aide repeated Corbyn's statement that he preferred to "remember the brilliant words Ken used after 7/7". 

As on previous occasions, MPs complained that the leader failed to answer the questions that were put to him. A shadow minister told me that he "dodged" one on whether he believed the UK should end air strikes against Isis in Iraq. In reference to Syria, a Corbyn aide said afterwards that "There was significant support for the leader. There was a wide debate, with people speaking on both sides of the arguments." After David Cameron's decision to call a vote on air strikes for Wednesday, leaving only a day for debate, the number of Labour MPs backing intervention is likely to fall. One shadow minister told me that as few as 40-50 may back the government, though most expect the total to be closer to the original figure of 99. 

At the end of another remarkable day in Labour's history, a Corbyn aide concluded: "It was always going to be a bumpy ride when you have a leader who was elected by a large number outside parliament but whose support in the PLP is quite limited. There are a small number who find it hard to come to terms with that result."

George Eaton is political editor of the New Statesman.