Former Chancellor George Osborne has strongly criticised the possibility of scrapping the HS2 high-speed rail extension to Manchester, describing it as a “gross act of vandalism” that would cause “huge economic self-harm.” The fate of the high-speed rail link is under scrutiny, and a decision could be made this week.

In an op-ed for The Times, George Osborne, who played a prominent role in championing the HS2 project during his time as Chancellor, voiced his concerns over the potential cancellation of the rail link’s extension to Manchester. Osborne argued that such a move would not only undermine crucial infrastructure development but also inflict severe economic damage on the region and the country as a whole.

The UK government has refrained from providing a guarantee that the HS2 high-speed rail will continue its expansion from Birmingham to Manchester. This uncertainty has raised significant concerns, especially in the North of England.

Manchester Mayor Andy Burnham has been vocal in expressing his apprehensions about abandoning the HS2 extension, warning that it could exacerbate the existing “north-south chasm” and further perpetuate regional disparities.

The debate over the future of HS2 has intensified in recent days, with current Defence Secretary Grant Shapps, formerly the Transport Secretary, stating that it would be “crazy” not to reassess the project’s plans, given the significant cost escalations it has encountered.

HS2, originally designed to connect London, the Midlands, and the North of England, is currently in the midst of construction for its first phase, linking west London to Birmingham. Nevertheless, the project has been plagued by delays, budget overruns, and adjustments, including reductions to the planned eastern leg extending from Birmingham to Leeds.

The potential cancellation of the extension to Manchester has spurred further debate about the government’s commitment to improving infrastructure in the North, a promise that was instrumental in securing electoral support in recent years.

In a separate development, the boss of Aldi in the UK and Ireland, Giles Hurley, has noted a significant shift in shopping habits driven by the ongoing cost-of-living crisis. Hurley highlighted that consumers are increasingly opting for supermarket own-label products as a means of saving money.

Aldi, which recently surpassed Morrisons to become the UK’s fourth-largest supermarket, has benefited from this trend. Hurley emphasised that these cheaper own-label ranges are experiencing a surge in demand and expressed confidence that this shift in consumer behavior is likely to persist.

According to industry data, own-label products now constitute more than half of all consumer purchases by value, with own-label items experiencing double the growth rate of branded goods. Giles Hurley noted that the vast majority of products offered by Aldi and its rival Lidl fall into the own-label category.

Despite the challenges posed by the cost-of-living crisis, Aldi has reported robust financial results for the year ending December 2022. The supermarket chain’s UK sales increased by nearly £2 billion to reach £15.5 billion, and its operating profit nearly tripled to £178.7 million compared to the previous year.

In another development, new Brexit trade rules pertaining to electric vehicles have raised concerns among European manufacturers. The European Automobile Manufacturers Association (ACEA) has estimated that these rules, which emphasise locally sourced parts for EU-produced electric cars, could cost manufacturers £3.75 billion over the next three years.

The so-called “rules of origin” are set to come into effect in January and would require electric vehicles to use batteries produced either in the UK or the EU to avoid facing 10% tariffs during transport across the Channel. The ACEA warned that these measures could reduce vehicle output from EU factories by 480,000 vehicles and result in increased costs for customers.

Entain, the owner of Ladbrokes, has also issued a warning regarding its online net gaming revenues for the third quarter and the full year. The company cited ongoing industry regulations and slower growth in Australia and Italy as contributing factors. Shares in Entain fell approximately 4% following this announcement. The British government recently proposed stricter regulations to address problem gambling, including new online stake limits and affordability checks on customers. Regulatory challenges and adverse sporting results have impacted Entain’s performance, with the company anticipating a decline in online net gaming revenue for the third quarter and the full year.