The UK government is facing accusations of misleading the public over the reopening of a rail line funded by the scrapped northern leg of HS2. Chancellor Rishi Sunak’s announcement of a £36 billion investment in projects around the North and Midlands, including the Leamside line in the North East, raised eyebrows after mentions of it were swiftly removed from the government’s website.
Transport minister Richard Holden clarified that the government had only committed to “looking into” the scheme, emphasising the need to work with local partners and consider various uses for the route. The Leamside line, closed in 1964, could potentially be reopened by local leaders using a £1.8 billion fund aimed at bolstering local transport.
The Northern Powerhouse Partnership criticised the government’s Network North plans as a “fairytale,” with CEO Henri Murison questioning the prime minister’s credibility. He expressed concerns about the government misleading the public and pledged to seek clarification urgently.
Northumbria Police and Crime Commissioner Kim McGuiness labeled the original announcement a “scam,” accusing the government of betraying the North of England if it doesn’t honour its commitment. Calls for the reopening of the Leamside Line, potentially extending the Tyne and Wear Metro network to Washington, have been ongoing for years.
The Department for Transport defended the investment, stating that around £1.8 billion is provided to the North East, made possible by redirecting funds from HS2. They emphasised collaboration with Transport North East on the business case for the Leamside line’s reopening.
In a separate development, Citigroup upgraded its recommendation on Japanese stocks to “neutral” due to the country’s resilient economy and earnings. However, British equities were downgraded to “underweight” over concerns about high exposure to oil price fluctuations. Citigroup also cut its rating for the global energy sector to “underweight” based on a bearish outlook on the oil sector. The brokerage maintained a 1% contraction forecast for global earnings growth in 2023 but expects a 9% growth in 2024, highlighting a potentially optimistic outlook.
