The cost of the HS2 rail project could reach at least £80 billion, almost double the current estimate, a report has found.
The study by the Institute for Economic Affairs (IEA) called for the project to be scrapped, saying it “defies economic logic”.
In the report, to be published tomorrow, the IEA says the cost of the scheme has been vastly underestimated, and argues that the £80 billion price tag could deliver £320 billion of value if spent on road and other rail and transport projects.
Campaigners are also warn that more than half a million people across Middle England will have their lives affected by the project’s construction.
The line is set to cut through swathes of countryside in South Northamptonshire.
HS2 has been launched to provide a 250mph rail link between London and Birmingham from 2026, with two further lines to Leeds and Manchester by 2032.
But the IEA suggested that ministers were pushing the scheme through to “buy votes” in northern areas, the Sunday Telegraph claimed today.
The report suggested that the government’s £42.6 billion estimate would spiral because of a variety of factors, including changes to routes and extra tunnelling to placate opposition from campaigners; new stations and transport infrastructure around the proposed line; grants for regeneration to provide shops and amenities around the route; and compensation for towns and cities bypassed by the new line.
Dr Richard Wellings, the report’s author, said it was “time the Government abandoned its plans to proceed with HS2”, the Telegraph reported.
He said: “The evidence is now overwhelming that this will be unbelievably costly to the taxpayer while delivering incredibly poor value for money.
“It’s shameful that, at a time of such financial difficulty for many families, the Government is caving in to lobbying from businesses, local councils and self-interested politicians more concerned with winning votes than governing in the national interest.”
A spokesman for the Department for Transport said: “HS2 is absolutely vital for this country, providing a huge economic boost which will generate a return on investment that will continue paying back for generations to come.
“Without it the key rail routes connecting London, the Midlands and the North will be overwhelmed. HS2 will provide the capacity needed in a way that will generate hundreds of thousands of jobs and billions of pounds worth of economic benefits.
“The Government is committed to managing the cost within the budget we have set for the project and to securing maximum value for money for the taxpayer, while also ensuring that preparations are properly made for the most significant infrastructure investment the UK has seen in modern times.”