HS20007

Written evidence submitted by Drummond Street Traders

I represent the association of Drummond Street Traders, a group of small businesses who have been harshly affected by HS2 at Euston.

Drummond Street is known across London and nationally for its curry houses. We have strong connections with the local community, including the local mosque. Many of our businesses are led by and employ members of the local Bengali community.

Some of us have been forced out of business by the loss of custom from the hotels and offices demolished to make way for the HS2 station. That has caused many job losses. All of us have been badly affected by the loss of customer footfall and by the increased pollution, noise and congestion caused by preparatory works for HS2 over many years. We are now told that those works may continue until 2041.

In particular, for years HS2 has caused immense disruption in our area by road works to relocate utilities away from the current station site - often repeatedly digging up the same stretches of road for different types of connection (gas, electricity, telecom). A large and aged water main currently runs down Cardington Street through the proposed station site. HS2 has completed about three quarters of a new replacement water main outside the site, to allow full redevelopment of the site. That replacement is likely to be needed even if the site is just used for offices, not a station. The current main is old and fragile, and at risk of bursting.

HS2 has currently dug up Cobourg Street, at the end of Drummond Street, for part of the replacement water main. This has restricted access for our customers and suppliers, damaged our businesses, and put more people off coming back to Drummond Street.

So far HS2 has spent £1.5 billion at Euston. Any future redevelopment will likely require the main to be moved. The water main is ‘critical path’ for almost any conceivable development on the site, even if no station is built. Such redevelopment will also require a set of works that can only be carried out after the main is moved. There are years of works to be completed after the water main is moved. It makes no sense to delay the water main now.

HS2 has been instructed to stop the ongoing roadworks for the water main for a two year pause. This will involve (a) filling in the roads currently dug up; (b) moving all the hoardings; (c) waiting two years; (d) putting the hoardings back; (e) digging the roads up again; and (f) finding something to do with the £1 million of materials that have already been procured. This is a colossal waste of money, even before assessing the impact of delaying any future development of the site. Needless to say, it will also harm our businesses and community even more.

This decision will result in a substantial delay in any rents that can be received. If Euston is the eventual terminus, it will also delay and reduce fare receipts. Old Oak Common can only

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accommodate some 6 trains per hour, and many prospective customers will simply choose to take the West Coast Main Line if HS2 does not run to Euston.

We understand that it would cost £25 million to finish the new water main. Completing those works now would likely save far more than that by bringing forward future office rents and fares, not to mention avoiding the additional cost of repairing the road and removing all the hoardings only to put them back again. Again, these works are likely to be needed for any plausible development on the site, and must be done early to unlock other preparatory works in any case.

We note that the Chancellor of the Exchequer has said that he could envisage no circumstances in which HS2 would not come to Euston. Any decisions to raise overall costs by stopping ongoing works must be viewed in that light.

We would respectfully request that the Committee ask the Government and HS2 to confirm:

1.  What cost benefit analysis, if any, was done of the decision to cancel currently ongoing works on the water main and other utilities works?

2.  What are the estimated costs of lost fares and office rents from the delay caused by failing to complete the currently ongoing works on the water main, if (a) the station is built or (b) the station is not built?

3.  What are the estimated costs to stand the current works down and then put them back in their current position, including relocation of hoardings and other related costs? What other additional payments will have to be made, including for materials already procured, as compared to simply completing the water main works?

4.  Was an Equalities Impact Assessment of the decision to halt the ongoing works carried out, taking into account the impacts on the local Bengali community?

5.  Was a written ministerial direction given to stop such ongoing works, and if so by whom?

April 2023