THE transport secretary has welcomed the Higgins report into HS2.

Patrick McLoughlin said the estimates of the cost of Phase 1 had been subjected to a 'robust and rigorous review' and that HS2 chairman David Higgins had 'confirmed they are right'.

The transport secretary also agreed that the priority must be to realise benefits for the Midlands and North as soon as possible by accelerating construction as far as Crewe. He is also supporting plans for a more ambitious development at London Euston, which he would like see include the restoration of the former Doric arch at the station entrance. This 22-metre high structure was demolished in late 1961 after more than 120 years, in spite of protests from architects and others.

However, he agrees that the present proposals for a link with HS1 are not good enough, and that a rethink is needed.

Mr McLoughlin said: "The report sets out a clear proposal to accelerate construction so that the Crewe section of Phase Two would be completed by 2027, not 2033, and to build a new integrated hub station at Crewe. Therefore, I am commissioning HS2 Ltd and Network Rail to undertake work to allow both these proposals to be considered in detail as part of my consideration of the public consultation responses to Phase Two.

"Our proposals must stand the test of time and we must put our money where it will do the most good. Sir David is clear that he does not think the existing proposals for the HS2-HS1 link meet those tests. His report concludes that the link proposed in the High Speed Rail (London - West Midlands) Bill has not secured a consensus. The link requires too many compromises in terms of impacts on freight, passengers and the community in Camden. I, therefore, intend to take the necessary steps to remove the link from the Bill and withdraw the safeguarding of this section of the route as soon as possible. I will also commission a study into ways to improve connections to the continent that could be implemented once the initial stages of HS2 are complete.

"I also agree with the report that more can be made of Euston station. It is a significant opportunity to maximise the economic potential of the line and regenerate a site that has been neglected. It is also a significant opportunity to generate private sector investment that can reduce the overall burden on the taxpayer. I will, therefore, ask HS2 Ltd and Network Rail to develop more comprehensive proposals for the redevelopment of Euston, working with the rail industry and the local community. This work should include proposals for the Euston arch which should never have been knocked down and which I would like to see rebuilt.

"HS2 is a project that will be built over many parliaments and will serve people for many generations. We must design it carefully and build it correctly. The government is keen to rise to the challenge and we hope that hon members on all sides of the House will do the same."

There has been widespread reaction to the report from other quarters.

The director general of the Rail Delivery Group Michael Roberts said: "HS2 must become the backbone of a growing railway so that Britain can meet the challenge of booming demand for extra passenger and freight services that it faces now and in the future. It’s time to move on from talking about if the new line should be built to planning how services will be run, drawing on the expertise of an industry responsible for the safest and fastest growing major railway in Europe.”

Freight operators have also welcomed the conclusions in the report. Maggie Simpson, executive director of the Rail Freight Group, said: “Efficiently delivering goods to and from the major conurbations is economically vital. HS2, if fully integrated with the existing network, will deliver significant benefits through a greater use of rail freight. We are pleased that David Higgins has listened to the concerns of the freight sector and is proposing changes to the project that address some of our key concerns,” while GB Railfreight managing director John Smith said: “The recommendation that phase 1 for HS2 now extends to a new hub at Crewe has the potential to open up routes for freight trains on the existing network.

"This extension avoids some of the bottlenecks that could have occurred on the classic network as a result of the original phase 1 proposals. This is good news for the rail freight industry and good news for the UK economy."

Stephen Joseph, the chief executive of the Campaign for Better Transport, said the road ahead was not yet completely clear, but today's report had improved the outlook: "There is no doubt David Higgins' proposals would improve HS2 and Government must act on his conclusions," he said. "We need HS2 to be properly integrated with road and rail, including existing stations. HS2 must also go hand in hand with a major upgrade of rail in the midlands and the north to help rebalance the economy away from London. Overall, questions and doubts still remain about the project including its cost and environmental impacts, but Sir David has started to make sense of it."

Plans for the Camden area of north London had caused one focus of opposition to the original project. Simon Pitkeathley of Camden Town Unlimited, a business-sponsored pressure group, said: “Sir David is right to say that the current HS1-HS2 link is sub-optimal and needs to be reconsidered.

“The link as it stands tears through the heart of Camden Town, potentially destroying our world-famous markets and causing over a decade of disruption to the area. Tunnelling the link instead of ripping through Camden Town above ground will mean that HS2 passengers get a better service, and Londoners don’t lose one of the most vibrant and creative areas of our city.

“We need urgent clarification from HS2 Ltd on the plans for the Link so that Camden Town is not left with years of blight due to uncertainty.”

However, other opponents are not reassured. Richard Houghton of HS2 Action Alliance said: "HS2 Ltd continues to misrepresent the costs, omitting some and underestimating others.  We're glad that they are dropping the pretence that HS2 connects the Midlands and North to Europe, but it would be even better if they were honest about the real costs and the lack of benefits.

"HS2 has left out some big costs: firstly, money isn’t free. Financing a £50 billion debt will cost at least £2 billion a year in interest payments, a sum that could be used to pay for a £1,000 increase in everyone’s  personal tax threshold or help introduce a 10 per cent tax rate. The current HS2 budget makes no allowance for the cost of capital whatsoever.  It’s an astonishing omission, and shows the British people the true extent of this Grand Canyon-like black hole they are being asked to fund.”

But Paul Plummer, Network Rail group strategy director, said: “HS2 will sit at the heart of Britain’s transport network, allowing us to reshape the railway in a way that incremental improvements simply cannot. That’s why we welcome the report’s recommendations and its call for an integrated approach to planning and operating the railway.

“We can deliver the biggest benefit for passengers, communities and freight if we plan for the high speed and existing lines to operate seamlessly together. This will also ensure we build upon investments we are making today, such as the Northern Hub, to improve connectivity between major towns and cities.

“The step-change in capacity that HS2 enables across the network as a whole will transform the service on existing lines, creating the space we need to meet growing demand and deliver new and better connections."