Chancellor refuses to be drawn on the Government's decision on HS2

He told BBC Radio 5 Live: "We're going to have an infrastructure revolution in this country - I've been very clear about that - and whether it is HS2 or something else, we've always got to make sure that costs do not get out of control and those projects are delivered on time.

"That's why we've created that National Infrastructure Commission, it's why we've got the Infrastructure Projects Authority, both independent bodies to oversee this. But whatever happens with HS2, we need to learn the lessons of that."

HS2 critic and Tory MP Michael Fabricant told BBC Radio 4's Today programme: "I think people in years to come will look back on this project and just say they could have done it so much better."

He said the project would destroy 100 ancient woodlands and, between Birmingham and London, "crashes through unspoilt countryside".

"This is costing £106 billion; it could have been done cheaper if we'd used existing transport corridors because it would have been on the surface."

Rail, Maritime and Transport union general secretary Mick Cash said: "This Government has dithered over this decision for far too long, which has meant uncertainty and delays to this vital rail project.

"Now that they are on the point of giving the go-ahead, the Government and HS2 must take steps to ensure that jobs on the project are directly-employed, with union agreements, a safe workplace, and without the scourge of blacklisting.

"While we await the details of the full package it is essential that the Government guarantees that the northern route of HS2 is not downgraded and commit to investing in an affordable, accessible and publicly-owned railway fit for the 21st century."

Connecting Britain, a coalition of business and political leaders in northern England including Andy Burnham and Steve Rotheram - metro mayors of Greater Manchester and the Liverpool City Region respectively - said in a statement: "The North of England needs new rail lines that go north-south and west-east.

"London isn't being forced to choose, it's getting Crossrail and HS2. We shouldn't be forced to either. We need HS2 and Northern Powerhouse Rail delivered in full.

"The Government needs to be clear we will not accept a gold-plated high-speed line between London and Birmingham, then once again the North getting the scraps."

The leader of Birmingham City Council, Ian Ward, said: "I welcome today's news that the Government intends pressing ahead with the London to Birmingham stage of HS2, but it's disappointing that the second stage to link Birmingham with the North faces yet another review."

Hailing HS2 as a once-in-a-generation opportunity to rebalance the UK economy, Mr Ward added: "HS2 will free up capacity on the rest of the rail network, improving connectivity within - and importantly between - our cities. It will also shift more freight onto rail - an important step towards zero carbon emissions.

"We will only truly see the full benefits of HS2 when Birmingham and the Midlands are at the very heart of a national network.

"So, while today's news is welcome, the simple message for the Government now is to Get HS2 Done."

Scott Knowles, chief executive at business group East Midlands Chamber, said: "HS2 will have a transformational effect on the East Midlands and the UK as a whole for generations to come and confirmation that the project will go ahead is welcome news."

Mr Knowles added: "The vast potential of HS2 will only be realised if implemented in its entirety.

"While it is of course essential to keep an eye on costs, failure to deliver the Eastern Leg would undermine the whole project and greatly limit its return on investment; putting businesses here in the region at a distinct disadvantage in the process."

A spokesman for West and North Yorkshire Chamber of Commerce said: “We firmly believe that HS2 is essential to assist the future growth and advancement of the Northern economy.  It will help reduce the disparity between north and south, improve connectivity and enhance rail capacity on the network.  HS2 should be seen as an investment in the country’s future prospects and ambitions.

“We hope that the review into Stage 2 will re-affirm our belief in the scheme.  We acknowledge that there have been difficult decisions to make and that the scheme has attracted its doubters, but we hope that it can now continue to press ahead. 

“Also, it remains important that the North’s other transformational transport project – Northern Powerhouse Rail (sometimes called HS3) – is not compromised as these two schemes together go hand-in-glove towards better connecting our region to the rest of the country.  The Prime Minister and the Government need to deliver on their previous commitments to levelling the playing field of regional economic growth.”