How Labour now plans to claim victory on HS2

Rather than risking the blame for killing the project, Labour has decided to take the credit for saving it by forcing the government to reduce costs.

Update: The plot thickens. A Labour spokesman tells me that the Guardian's story is "nonsense", adding "there is no change in position. We support HS2. We will examine the costs and benefits and will not give a blank cheque." 

It looks like David Cameron's dramatic threat to cancel HS2 if Labour comes out against the project has had its intended effect. After months of uncertainty following Ed Balls's suggestion that the programme's £42.6bn budget could be better spent elsewhere, today's Guardian reports that the party will support the new line if incoming chairman Sir David Higgins is given "a free hand" to reduce costs. Andrew Adonis, the original architect of HS2, who wrote in a recent piece for the NS that cancelling it would be an "act of national self-mutilation" has been drafted in to advise Miliband on Labour's strategy. Confronted by warnings from northern MPs and council leaders not to play "political games" with a multi-decade national project, the party has stepped back from the brink.

When I spoke Adonis last month, he told me that the current contingency fund of £14.4bn was "too large" and that the cost "needed to come down" when the HS2 bill had its second reading next spring. Labour's focus will now be on challenging the government to do just, positioning itself to claim victory if and when it does. By taking aim at the spiralling cost of HS2 ("all they've done since coming to office is add £10bn to it," Adonis complained to me), the party is seeking to demonstrate its commitment to fiscal responsibility and to dispel the belief that it believes the answer to every problem lies in spending more.

By reaffirming its support for the project in principle, Labour appears to have abandoned the position expressed by Balls at last month's party conference, when he openly speculated whether the HS2 money would be better spent on would be "building new homes or new schools or new hospitals". Earlier this month, the new shadow transport Mary Creagh echoed the shadow chancellor's words when she warned "we need to ensure it is the best way to spend £50 billion for the future of our country."

But in her response to yesterday's updated cost-benefit analysis of the project, Creagh was notably less ambiguous, stating that "Labour has always supported HS2 [emphasis mine] because we must address the capacity problems that mean thousands of commuters face cramped, miserable journeys into cities like Birmingham, Manchester, Leeds and London. However, we cannot give a Government that is mismanaging this, or any project, a blank cheque. Our message to David Cameron is clear. Get a grip on this project, get control of the budget and get it back on track." 

Rather than risking the blame for killing the project, Labour appears to have decided to take the credit for saving it.

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.

Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.