Britain makes drastic cuts to giant HS2 rail project. Business warns of blow to credibility

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UK Prime Minister Rishi Sunak has taken the axe to Britain’s biggest current infrastructure project, despite warnings from business leaders that the U-turn will damage investor confidence in the country.

Sunak announced plans Wednesday to curtail High Speed Rail 2, known as HS2, the government’s flagship transport project intended to boost railway capacity and cut journey times between London, Birmingham and Manchester — England’s three largest cities. The government will now cancel the remainder of the project, scrapping the Birmingham-to-Manchester high-speed line and dashing hopes that it would deliver badly needed investment to less affluent parts of the United Kingdom.

Andy Street, the Conservative mayor of Birmingham, said the about-face “damages” Britain’s international reputation and that as a “serious G7 country” the UK had to be able to deliver on “difficult” infrastructure projects. Investors had already committed “hundreds of millions, if not billions, of pounds” on the “promise” of HS2, he said in an interview with radio station LBC this week. “You cannot then turn around to those investors and say, ‘We’ve changed our mind.

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