Who foots the £44bn bill for the high speed rail link?

Birmingham’s employers and council tax-payers face massive bills after the Government revealed they will have to help pay for the £44 billion high speed rail line.

And the Government warned that a planned new railway station near Birmingham Airport will not be built unless the airport helps pay for it.

Despite launching the formal consultation for controversial plans for a 225mph rail service to Birmingham, ministers are still unable to reveal how much money will come from the Treasury and how much will come from local residents and firms.

The consultation document reveals “businesses close to high speed rail stations and local authorities” will be told to contribute towards the cost of the service, which will run from London to Birmingham and eventually to Leeds and Manchester.

Ministers have still not decided how much money local councils and businesses will be asked for.

The funding plans were revealed as Transport Secretary Philip Hammond launched the official consultation, called High Speed Rail: Investing in Britain’s Future, in Birmingham.

A new high speed line, providing up to 14 trains an hour, would create up to 40,000 jobs and help regenerate Britain’s inner cites, the consultation document stated.

It also warned that those who stand to gain the most from high speed rail lines would be expected to contribute towards the cost of building it.

The consultation document said: “Significant numbers of individuals and organisations would stand to benefit from the construction of new high speed rail lines. This could include airport operators, businesses close to high speed rail stations and local authorities.

“The Government expects that such parties would therefore make a contribution to the cost of those links.”

While the report does not specify which local authorities will be asked for money, Birmingham is the obvious candidate.

The consultation document repeatedly states that Birmingham will be one of the biggest winners from high speed rail, with more than 8,000 jobs created in the city.

It also warns that the planned Birmingham Interchange station by the airport, close to Junction 6 of the M42, will only go ahead with the support of a third party.

The consultation said: “The Government’s view is that this station has the potential to bring significant benefits, particularly at the regional level, not least for example in improving Birmingham Airport’s accessibility from London and the cities of the North.

“Consequently, provision for a station has been made in the proposed network subject to the identification of an appropriate funding package, including third party contributions.”

Asked how much West Midlands councils and businesses would be expected to pay, a Department for Transport spokesman said no decisions had been made.

The department highlighted a paragraph in the consultation which reads simply: “At this early stage in the process, it is not appropriate to specify precise funding arrangements.”

Cash from local councils and businesses would be in addition to the Treasury’s contribution to the scheme, which also ultimately comes from taxpayers across the country.

A Birmingham City Council spokesman said the authority was aware it would be asked to contribute, but added: “There is a lot of debate to be had before that happens.”

The Department for Transport estimates the total cost of building and operating the high speed rail line, including running trains to Leeds and Manchester as well as Birmingham, at £44.3 billion over 60 years.

This includes £32 billion to construct the network and £5.3 billion for other capital costs including buying trains.

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