5.8 The role of the government in regeneration

What was the initial route planned for HS2?

• Phase 1— a high-speed link between London Euston and Birmingham Curzon Street

• Phase 2— link north-west to Manchester and north-east to Leeds

What are the proposed benefits of HS2?

Improved journey times between major cities, for example the London to Birmingham journey time will be cut from 80 to 49 minutes. An estimated 60,000 construction jobs will be created.

What are the potential costs of HS2?

The planned route will pass right through the Chilterns, which is an area of outstanding natural beauty. There will be no intermediate stations, so communities along the route will not gain from it.

Why is the expense to the government from HS2 viewed more as an investment? What does it have to gain?

• franchising fees from train companies to run services

• an economic multiplier, which should result from the improved transport links generating higher company profits, and also jobs from which the government will receive taxation revenue.

What are the challenges that the government faces when planning for things such as housing in Cornwall?

• Can the loss of greenfield landscapes be balanced against housing needs?

• Should planning restrictions be lifted in Green Belts or Areas of Outstanding Natural Beauty (AONB)?

What is a cost-benefit analysis?

A process by which the financial, social and environmental costs are weighed up against the benefits of a proposal.

What are the reasons more housing is needed in the UK?

• a rapidly rising population, due to immigration and birth rates

• overseas investors buying up space and then leaving it unoccupied

• an increase in the number of households

• the need for more affordable housing

What is fracking?

The process of drilling down into horizontal layers of shale deep underground, and releasing gas from it by injecting fracking fluid and fracturing the shale.

What are the benefits of fracking?

It could add to the UK’s home-produced natural gas supplies and reduce the need for imported gas.

What are the costs of fracking?

It conflicts with landscapes of value, as fracking companies would need to drill underneath these areas.

What changes were involved in deregulation of the financial sector?

• instead of having a monopoly, anybody could trade in shares, which opened up the freedom of individuals to invest

• barriers stopping overseas banks and other financial institutions from setting up offices in London were also removed