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Conservatives’ ideological splits exposed by big spending rail projects

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Boris Johnson has been urged by Conservative MPs representing the ‘red wall’ of former Labour heartland seats not to cut back major rail infrastructure projects as the UK prime minister comes under pressure from chancellor Rishi Sunak to rein in ambitious plans for public spending.

The National Infrastructure Commission, which advises the government, recently said plans to extend the High Speed 2 rail project to Leeds should be scrapped to save £32bn from its expected budget of over £100bn. Earlier this week the FT revealed that costs on HS2 have risen by £1.7bn in the past year — partly because of the pandemic — although this was covered by the project’s contingency budget.

Meanwhile the Treasury has not yet given the sign-off to the Northern Powerhouse rail project, which is supposed to link the north’s big cities from Liverpool, Hull and Newcastle via Manchester, Sheffield and Leeds, and which could cost a further £39bn.

The uncertainty over the multibillion pound transport schemes underline the tensions between Johnson and Sunak in recent weeks over a number of spending projects, with the Treasury eager to dampen Downing Street’s appetite for spending. Number 10 has clashed with other Whitehall ministries over social care reform and a new “royal yacht”.

Johnson is seen by his party as the most pro-spending Conservative leader since Harold Macmillan’s time in Downing Street from 1957 to 1963. Since Margaret Thatcher took over the party in 1975, it has shunned stimulating demand through spending, opting instead for tax cuts.

One senior Treasury insider said that Sunak’s view was “there are choices that have to be made” and it was important to stabilise the public finances as the UK emerged from the worst of the coronavirus pandemic. The chancellor announced two tax changes in his March budget — freezes in the personal income tax threshold and a rise in corporation tax.

“What he did at the Budget was to put us back on to a more stable trajectory, get debt falling and get our public finances on to a stable footing. He made it very clear that the two tax changes are things he wanted to do to achieve that. But he’s not necessarily keen on raising any more taxes on people, particularly personal taxation,” the official said.

HS2 is designed to run from London to Manchester via Birmingham and Crewe. But the “eastern leg of HS2 2b” — extending from the West Midlands to Leeds — has been criticised by many Tory MPs in its traditional southern strongholds, who believe it should be scrapped.

Tories elected for the first time in the 2019 election have privately warned that it would be a mistake to cancel it. “Our first time voters are watching and waiting for the government to prove they’re delivering on the promises we made them in 2019,” one newly elected MP said.

Other Tories insist the Northern Powerhouse Rail, sometimes referred to as HS3, is even more important. “It’s absolutely crucial that ‘Northern Powerhouse Rail’ is built. I wasn’t a big fan of HS2 but this is exactly what we have to build to deliver on the trust that was put on us,” another MP said.

Following a report carried by the Huffington Post on Tuesday that said the Treasury and Downing Street were at odds over when to publish the long-awaited integrated rail plan (IRP), which will set out the details of Britain’s future rail system including the new Leeds-Manchester route, a Downing Street spokesman said the government was “still committed” to the new rail line.

“We are getting on top of our priorities and investing in northern transport,” he said. “The integrated rail plan will set out how major rail projects including HS2 phase 2b and Northern Powerhouse Rail will work together to deliver reliable rail services that passengers deserve.”

One Treasury figure said that Downing Street, the Treasury and the Department for Transport all broadly accepted the need to push ahead with the project — but the details were still up in the air.

“There needs to be a package of investment and needs to be agreement on what that looks like. Work is ongoing,” the person said. “But this is more an issue of bandwidth than any serious differences, it has been a while since the relevant cabinet ministers all met.”

Any disagreements on funding the new railway line are not about scale but are instead likely to be about the timeline and how soon spades can go in the ground. 

Many newly elected Tory MPs favour more spending, to make up for decades of under investment in their areas. One MP representing a northern constituency said that most of the newly elected Tories backed “sensible measures that allow us to deliver on our manifesto commitments”.

“Very few people are going around saying we have to do everything, colleagues know that we need to have clear blue water with Labour. We’re in a dangerous position if it looks like we’re going to outspend them,” they said.

Paul Goodman, editor of the ConservativeHome website and a former Tory MP, said the current parliamentary party has a similar tension to the one at the top of government. “Their hearts are with Johnson but their heads are with Sunak,” he said.

“Most Tories are in parliament because they are Conservatives and that’s true of the red wall intake too. They believe in a smaller state and lower taxes. But these beliefs run up against their constituencies demanding more and more spending.”



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'It’s more than sport – every day we are fighting for our rights to be equal’

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French pro basketball player and podcaster Diandra Tchatchouang on her role beyond the court



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Emily Dean on how allyship amplifies the female experience on film

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When I was six years old, I decided to be an artist. When I was 12, I decided to be a filmmaker. And instead of saying no, you can’t do that, or it’s not possible, my mum bought me a video camera.

After several years of working in the industry, I’m working with a female director for the first time. And it’s been such a gratifying experience. Women express leadership in different ways. Maybe you don’t have to be the loudest person in the room. But you can have great ideas.

And the best thing about being mentored by women and being a mentor to women is that make friends with women.

There’s something so powerful the women coming alongside other women, especially in a group setting. Because it means that you can and back each other up. You can support each other’s decisions, and you can amplify each other’s voices.

It’s about seeing yourself in your work. Seeing some part of yourself reflected is really gratifying. It’s also important that we speak up for female characters. I want to see girls and women on screen who have the whole cacophony of experience of what it’s like to be female.

I want to see their flaws. I want to feel their struggles. I want to see their joy. That is so important to making a character feel real. And it took me a little while to settle into myself and realise, if the characters I like to come up with are not your everyday run of the mill characters you see in animation, that’s fine. Because this is who I am.

When you walk into a story room, when you’re working on a film, you have to leave your ego at the door. I think that can be interpreted like keep your ego out of the work. But I’d also say for women who are maybe more shy that leaving your ego at the door means you walk in. And your job is to focus on what’s best for the story and for the film.

The story needs you. The film needs you, and it needs your best ideas. It won’t thrive unless you speak up.



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Crimea ‘water war’ opens new front in Russia-Ukraine conflict

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When a cyclone drenched Crimea in rainfall last month, rivers burst their banks and thousands of people in the Russia-annexed peninsula had to be evacuated from the floods.

The silver lining to the deluge was that the rains also filled Crimea’s depleted reservoirs, temporarily alleviating a crisis brought on by an extended drought and a Ukrainian blockade of the Soviet-built canal that previously provided up to 85 per cent of the peninsula’s water supplies.

Moscow’s struggle to supply Crimea’s 2.4m residents with fresh water has become a flashpoint in an undeclared war, seven years after Russian troops seized Crimea from Ukraine. An even longer conflict between Kyiv and Russian-backed separatists in eastern Ukraine has claimed more than 14,000 lives.

Russia has accused Ukraine of “genocide” over the building of a concrete dam across the North Crimean Canal, in addition to the existing sandbag and earth dam that was built in 2014. Kyiv fears that Moscow is plotting a military incursion to secure water flows from the nearby Dnipro river.

Coupled with surging food prices and international isolation because of western sanctions, the water shortages threaten to undermine President Vladimir Putin’s promise of a better life for Crimeans under Russian rule.

Though state-run pollsters claim Putin remains more popular in Crimea than on average across Russia, the patriotic fervour that sent his approval ratings to record levels after the 2014 annexation has long since subsided.

Map showing Ukraine and the North Crimean Canal, Crimea

“The water reserves and fields have dried up,” said Viktor, 47, a Crimean who regularly travels to Ukraine for work. “Each year it’s getting worse and worse. We didn’t have this problem before annexation,” he said, adding that most Crimeans blamed Ukraine for the crisis.

A $3.7bn bridge across the Kerch Strait linking Crimea with mainland Russia has become a conduit for trucks ferrying water for locals to take away in plastic containers. Popular Black Sea tourist resorts can turn on their taps for just a few hours a day during peak droughts, while the canal has filled with grass and weeds.

Crimea’s agricultural output has fallen owing to a lack of irrigation, making it all but impossible to grow water-intensive crops such as rice.

Construction of the canal began in 1957 after the Soviet Union transferred the arid peninsula to the Ukrainian Soviet Socialist Republic to manage rebuilding after the second world war. The waterway allowed for the cultivation of arable land and helped transform Crimea into a haven for tourists.

“The canal symbolises the stupidity of the Kremlin in occupying Crimea. They didn’t weigh the consequences at a moment of electoral euphoria that was fed by their own propaganda,” said Oleksiy Reznikov, Ukraine’s deputy prime minister in charge of reintegration policies for the occupied territories.

“Why didn’t you think about water?” he asked.

The North Crimean Canal is seen with a low level of water
The severely depleted North Crimean Canal previously provided up to 85% of the peninsula’s water supplies © Pierre Crom/Getty

Workers collect potatoes on the North Crimean Canal
Workers collect potatoes on the North Crimean Canal. Ukraine blocked the irrigation channel after Russia’s 2014 annexation of Crimea © Pierre Crom/Getty

Russia, while pressing Ukraine to reopen the waterway, has launched a Rbs50bn ($680m) programme to bolster Crimea’s supplies, repairing crumbling infrastructure, drilling wells, adding storage and desalination capacity.

Russian prosecutors last week filed a lawsuit in the European Court of Human Rights accusing Ukraine of “flagrant violations” over the issue. Crimea’s governor plans to file a separate complaint demanding up to Rbs1.5tn in compensation.

“Kyiv has essentially used Crimea’s infrastructure dependence on Ukraine, which came about in the Soviet era, as a weapon of mass destruction against all Crimeans. The water blockade is an act of state terrorism and ecocide, but the international community is failing to notice the Kyiv regime’s crimes,” Sergei Aksyonov, the peninsula’s governor, said in written comments to the Financial Times.

Reznikov said Russia, as the occupation force, was responsible under the Geneva Conventions for securing water and other basic needs for local the population. Ukraine has filed its own multi-billion-dollar claims against Russia, citing losses caused by what it describes as an illegal land grab.

With tensions rising, Russia deployed tens of thousands of troops and advanced weapons to Crimea this spring, as well as to the border of the two breakaway eastern regions where Moscow-backed separatists have battled government troops into an eighth year.

Col Kyrylo Budanov, chief of Ukraine’s army intelligence unit, said Russia was looking to seize the canal as well as adjacent territory to connect Crimea with the breakaway regions. Russian troops could advance on Nova Kakhovka, the Dnipro river town where the canal begins.

Some Crimean Tatars, an indigenous ethnic group whose members largely opposed Russia’s annexation, have set up a makeshift camp near the dams to make sure the water flow does not resume.

A Crimean Tatar activist on the North Crimean Canal
A Crimean Tatar activist enters his base on the North Crimean Canal. Tatars have set up camp to make sure the water flow does not resume © Pierre Crom/Getty

A Ukraine military vehicle drives past a Soviet monument marking the entrance to Brylivka
A Ukraine military vehicle drives past a Soviet monument marking the entrance to Brylivka, a village on the North Crimean Canal © Pierre Crom/Getty

“It will be a full-scale war,” said a 55-year-old activist who gave his name as Alibaba. He said he and his fellow activists were willing to take up arms to defend the blockaded canal. “There will be nowhere to hide in these fields. Let them try,” he added.

At the Kalanchak border crossing near the new dam, Russian and Ukrainian troops have dug trench positions a few hundred meters apart.

Tensions have also flared in the Black Sea, not just with Ukraine but also with western navies. Russia fired warning shots in the path of a British destroyer sailing through contested waters off Crimea last month. Sevastopol, Crimea’s largest city, is home to Russia’s Black Sea fleet.

Moscow has insisted it would not go to war over Crimea’s water supplies, even as it conceded that Ukraine was unlikely to restore them. “All these hysterical statements from Ukrainian politicians are completely baseless — they’re just stupid, aggressive propaganda aimed at inciting hatred between the Russian and Ukrainian people. There won’t be any ‘water war’,” Crimea governor Aksyonov said.

Reznikov, the Ukrainian minister, said Kyiv was ready to provide Crimea with humanitarian assistance, including drinking water, which it already does for the separatist-run eastern territories, but no request had been made.

“For Russia to admit they’re weak is very difficult . . . it would amount to an admission that they made the wrong decision,” he said.



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