Cameron warns Labour: if you oppose HS2, we'll cancel it

After renewed speculation that Labour will come out against the project, the PM warns that it "can't go ahead without all-party support".

The report in today's Sun that Ed Balls has been given the final say over whether Labour supports High Speed 2 has prompted further speculation that the party is preparing to come out against the project. It was Balls who moved to Labour to a more sceptical position when he said in his conference speech that it needed to consider whether it was "the best way to spend £50 billion for the future of our country".

Interviewed today on 5 Live, he warned: 

If the case is clear, the benefits are strong, it’s the best way to spend the money and the costs are under control, at that point I would be happy to say we’ll support it. But what I am not going to do is say we support it when the costs are rising, the benefits are unclear and the government are acting like cheerleaders rather than proper stewards of public money. That is not a road I am going to go down.

For the shadow chancellor, the attraction of a U-turn on HS2 is that would allow Labour to outspend the Tories in politically vital areas ("building new homes or new schools or new hospitals") while also remaining within George Osborne's fiscal envelope. 

But now, in a dramatic attempt to call Labour's bluff, David Cameron has warned that the project "can't go ahead without all-party support". At a press conference in Brussels he said:

It [HS2] does have all-party support. We supported it in opposition when Labour were in Government; Labour support it today, as I understand it, now we are in government; the Liberal Democrat party support it as well.

And that is all to the good because these multi-year, multi-parliament infrastructure projects, they can’t go ahead without all-party support – you won’t get the investment, you can’t have the consistency.

In other words, if the opposition comes out against HS2, the government will cancel it and pin the blame on Labour (on the basis that a 20-year project can't be sustained without bipartisan support). This would also allow the Tories and the Lib Dems to suggest their own uses for the £50bn budget, reducing the political advantage to Labour. But if Balls and Miliband believe that they would spend the money more wisely than the Tories, Cameron's intervention may not be enough to save HS2. 

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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Cabinet audit: what does the appointment of Andrea Leadsom as Environment Secretary mean for policy?

The political and policy-based implications of the new Secretary of State for Environment, Food and Rural Affairs.

A little over a week into Andrea Leadsom’s new role as Secretary of State for Environment, Food and Rural Affairs (Defra), and senior industry figures are already questioning her credentials. A growing list of campaigners have called for her resignation, and even the Cabinet Office implied that her department's responsibilities will be downgraded.

So far, so bad.

The appointment would appear to be something of a consolation prize, coming just days after Leadsom pulled out of the Conservative leadership race and allowed Theresa May to enter No 10 unopposed.

Yet while Leadsom may have been able to twist the truth on her CV in the City, no amount of tampering will improve the agriculture-related side to her record: one barely exists. In fact, recent statements made on the subject have only added to her reputation for vacuous opinion: “It would make so much more sense if those with the big fields do the sheep, and those with the hill farms do the butterflies,” she told an audience assembled for a referendum debate. No matter the livelihoods of thousands of the UK’s hilltop sheep farmers, then? No need for butterflies outside of national parks?

Normally such a lack of experience is unsurprising. The department has gained a reputation as something of a ministerial backwater; a useful place to send problematic colleagues for some sobering time-out.

But these are not normal times.

As Brexit negotiations unfold, Defra will be central to establishing new, domestic policies for UK food and farming; sectors worth around £108bn to the economy and responsible for employing one in eight of the population.

In this context, Leadsom’s appointment seems, at best, a misguided attempt to make the architects of Brexit either live up to their promises or be seen to fail in the attempt.

At worst, May might actually think she is a good fit for the job. Leadsom’s one, water-tight credential – her commitment to opposing restraints on industry – certainly has its upsides for a Prime Minister in need of an alternative to the EU’s Common Agricultural Policy (CAP); a policy responsible for around 40 per cent the entire EU budget.

Why not leave such a daunting task in the hands of someone with an instinct for “abolishing” subsidies  thus freeing up money to spend elsewhere?

As with most things to do with the EU, CAP has some major cons and some equally compelling pros. Take the fact that 80 per cent of CAP aid is paid out to the richest 25 per cent of farmers (most of whom are either landed gentry or vast, industrialised, mega-farmers). But then offset this against the provision of vital lifelines for some of the UK’s most conscientious, local and insecure of food producers.

The NFU told the New Statesman that there are many issues in need of urgent attention; from an improved Basic Payment Scheme, to guarantees for agri-environment funding, and a commitment to the 25-year TB eradication strategy. But that they also hope, above all, “that Mrs Leadsom will champion British food and farming. Our industry has a great story to tell”.

The construction of a new domestic agricultural policy is a once-in-a-generation opportunity for Britain to truly decide where its priorities for food and environment lie, as well as to which kind of farmers (as well as which countries) it wants to delegate their delivery.

In the context of so much uncertainty and such great opportunity, Leadsom has a tough job ahead of her. And no amount of “speaking as a mother” will change that.

India Bourke is the New Statesman's editorial assistant.