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HS2 bill could reach £200bn, claims MEP Mike Nattrass

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The HS2 project could end up costing £200 billion – four times the estimated budget – an MEP has claimed today.

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Mike Nattrass, who sits on the EU transport committee, says a series of extra costs have not been taken into account.

He says a new power station could have to be built to help power the line, while other outlays such as flood risk assessments, maintenance and blight on nearby houses will see the budget rocket. And Mr Nattrass, who represents the West Midlands at Brussels, claims the £50bn was calculated at 2011 prices and will have risen since.

It comes after HS2's new boss Sir David Higgins said work should be brought forward to cut costs, sparking anger from campaigners who said he was trying to 'bulldoze' the project through. Mr Nattrass said: "The fact is that the £50bn is at 2011 prices, thus whenever it is built it will cost more than £50bn because of inflation alone.

Mike Nattrass

"He is, we are reminded, the man that brought the Olympics in 'under budget' – but only after the 'budget' was revised upwards by a factor of four or five times.

"Are we about to see a repeat performance with HS2?"

Mr Nattrass says HS2 will require electricity to power it, and a new power station, or stations, will cost £1bn per 100MW.

He claims some experts believe a new power station the size of Hinckley Point will be required, costing £16bn.

There are also 'myriad minor construction and ongoing maintenance costs not included', he claims, such as security, maintenance and mitigating landscaping, tree planting and conservation.

He added: "There are the inevitable cost overruns that always accompany projects of this nature. Recent research shows that 11 of the very biggest infrastructure projects in the UK in the past 15 years, have – on average – gone 158 per cent over the original budget. There is no reason to believe HS2 would be any different . . . In short, the taxpayer would be on the hook for decades, without limit as to cost.

"But it looks like we are looking at £200bn for starters but let us say £100bn to make it sound plausible."

However, HS2 Ltd has insisted that the £50bn budget is a realistic estimate.

Spokesman Richard Pain said: "Having undertaken an exhaustive review of the costs outlined for the first phase of the project, HS2 Ltd Chairman Sir David Higgins has confirmed in his report, HS2 Plus, that the budget is realistic. Through the 2012 Olympic Games and the last two major rail schemes – HS1 and Crossrail – we have a proven record as a country of delivering major projects on budget and on time."