Sir Keir Starmer’s choice of a leading advocate of HS2 as rail minister has stoked industry hopes that scrapped parts of the project may be revived.
While the primary task facing Lord Hendy, whose appointment was announced on Monday, will be to oversee Labour’s renationalisation of train operators, he’s also likely to prove a strong advocate for expanding the network.
Lord Hendy, who previously worked closely with Boris Johnson and sat as a crossbench peer, last year criticised Rishi Sunak’s decision to halt HS2 at Birmingham, choosing to speak out despite his position as chairman of the state-owned track operator Network Rail.
His appointment as rail minister may represent the best chance of saving elements of the scheme, including a link from the Midlands to Crewe that would allow full formations of HS2 trains to travel at top speed through to Manchester, leading figures in the sector said.
Henri Murison, chief executive at the Northern Powerhouse Partnership, said that Lord Hendy, who sits on his company’s board, will be able to set out the economic case for completing more of the original HS2 network to colleagues rather than having to draw on expertise from elsewhere.
He said: “Rishi Sunak committed to running HS2 trains into Manchester when he scrapped phase two of HS2. But that can’t happen without building more of the line. Peter Hendy will be able to explain why that is the case, and the costs and benefits of putting this right.”
Mr Sunak withdrew backing for phase two of HS2 after costs for the first phase alone surged to more than £50bn. Mr Murison said that the railway industry isn’t asking for more cash and that the extension of the high-speed line further north could be privately funded.
He said that, having led Network Rail, Lord Hendy is also well placed to oversee the creation of Great British Railways, which will take over train operators as existing contracts expire and merge them with the track firm.
Lord Hendy’s other main challenge will be to simplify the railway’s ticketing system, something he did in London while serving as transport commissioner under mayors Ken Livingstone and later Johnson.
Richard Bowker, the former chairman of the Strategic Rail Authority and ex-CEO of National Express and Virgin Trains, said London Hendy is regarded as one of the most knowledgeable and able people in the railway sector.
He said: “People right across the industry are going to be delighted by this appointment, and having someone in government who truly understands how the railway works.”
The appointment of Lord Hendy extends Sir Keir’s policy of recruiting specialists to ministerial roles in a so-called government of all the talents.
While known for his railway expertise, Lord Hendy began his career managing bus networks as a graduate trainee with London Transport, and is known for owning two Routemaster doubledeckers which he regularly drives.
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