Michael Gove hints £100bn budget for HS2 could be slashed to save cash
MICHAEL Gove yesterday hinted HS2 cash could be slashed in a bid to save money.
The newly returned Levelling Up chief revealed ministers are weighing up cash bungs, Universal Credit help or targeted tax cuts.
But he later warned that Chancellor Jeremy Hunt will “have to make decisions which will be painful” in the upcoming budget.
He confirmed that Liz Truss’ costly investment zones were now “under review” - as revealed by The Sun on Sunday last week - over environmental concerns.
Mr Gove then admitted the £100bn budget for the new high speed train line could be on the chopping board as the Treasury eyes huge cuts to balance the books.
He told Times Radio: “When we face the particular economic problems that we have at the moment, I’m sure that some capital spending will be cut.
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“It will not be easy, it will be painful.”
Downing Street played down his comments, suggesting they would be focusing on keeping the HS2 project within its existing budget rather than slashing the cash.
Mr Gove - brought back into his job last week under new PM Rishi Sunak - refused to say whether the Government would uprate benefits in line with soaring inflation as previously promised.
Ex-Chancellor Lord Hammond said he would be “very surprised” if they didn’t - but that “borrowing” the cash to pay for it was no longer on the table after the markets “tantrum”.
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However, he put the nation on notice that if they wanted better public services, they will have to look at tax hikes.
He told the BBC: “The reality of the fiscal challenge we face is that if we want public services not just to be maintained but to be improved… Everybody, including ordinary earners, are going to have to pay more tax.”