Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Ryanair hands O’Leary six-year extension

      Michael OLeary speaking at a Ryanair press conference, dressed in a suit, discussing the airlines latest business updates

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      F*** f*** f***: Tennis star Moutet fined £4k per F-bomb for Queen’s Club outburst on BBC

      News article image with diverse professionals in a corporate meeting discussing business strategy and innovation trends.

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Fogo de Chao nominated for Best Casual Dining Toast award

      Fogo de Chão restaurant exterior with vibrant signage and bustling entrance at popular city location

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Thursday 23 April 2020 6:40 pm

Has the black swan left us with white elephants?

By: Paul Blanchard

Add as a preferred source on Google
Less than a third of people who take the train to work think it is good value
Less than a third of people who take the train to work think it is good value

The coronavirus crept up on us, in some ways. It began with a single illness in China in mid-November 2019, a 55-year-old in Hubei province, some records suggest, and it wasn’t until January this year that it became clear that there was an epidemic of this new respiratory disease in the city of Wuhan. In March, the World Health Organisation declared there was a pandemic of coronavirus, and, since, then, nothing has been the same.

That our world has been transformed is beyond dispute. “Self-isolation”, “lockdown”, “social distancing”—these are the linguistics of the new reality. I’ve been at home in the countryside for five weeks now, my bi-monthly trips across the Atlantic almost like a folk myth, the usual round of meetings and breakfasts and lunches unthinkable now. I was already well used to conference calls, but they’ve become an absolute staple of existence, and I’m ruing the fact that I wasn’t a shareholder in Zoom or Skype or Epic Games, who own the creators of the Houseparty app.

This is how we work now, and it’s been entertaining to watch public figures develop ever-more polished and professional-looking settings for their remote interviews, with carefully ordered bookshelves and mobile devices adjusted to the perfect height and angle. Even Parliament is in on the act now, with the House of Commons operating partly over Zoom (the Lords are on Microsoft Teams and thus far have not opened their new procedures to the public), and, while some people hate the distance and delay which it imposes, I have to confess that I’ve rather come to like it.

My eye was caught last week by a letter to a local newspaper, which found its way into the limelight of Twitter. Short and to the point, it posed a simple question: with the NHS under pressure as never before, and working patterns changing perhaps for ever, why are we still pushing ahead with a plan which will see us spend £100 billion on HS2?

The arguments behind HS2 are straightforward: construction of this new high-speed network dramatically cut the journey times from London to the North of England, and make a huge addition to the capacity too. A spokesman for the project noted that it would carry more people per hour than two motorways.

That’s fine. There are a dozen minor arguments you can make—Manchester and Leeds hardly mark the northernmost point of our United Kingdom; £100 billion is a lot of money and represents a budget that seems dangerously expansionist; the timeframe for the project keeps extending, with a current end date of 2035; the creation of this new infratsructure network is devastating for the areas through which it is to run. But these are second-order questions, fundamentally, because none of them challenges the central assumption, which is that we need HS2 at all.

I’m not one of these doom-mongers who opposes and grand public works project and foresees expensive catastrophe round every corner. Sometimes you need to spend big to achieve great things, and you certainly can look at the Channel Tunnel for evidence of that. Yes, it ended up costing around £16 billion in today’s money, but there’s no doubt that it has revolutionised our concept of travel to the Continent. It would be an eccentric decision now to fly from the South of England to Paris or Brussels: probably more expensive, probably less convenient, possibly no quicker and certainly more environmentally damaging than letting the train take the strain.

I do, though, think that HS2 needs a serious rethink, if it’s not to look like the UK fighting the last war. Patterns and methods of work were already changing before coronavirus. Shortening train journeys was posited on the notion that time spent on a train was ‘dead’ time: unproductive and out of contact. That’s simply not true now. WiFi is a given (though of varying reliability), and business people can be in constant contact with their clients, customers and colleagues as they travel between one city and another. You might be out of the office, but you’re never really away from your desk.

Much more significantly, though, the very notion of an office, and of face-to-face meetings, is being challenged by force majeure. Told that we can’t connect physically with people to do business, we’ve discovered that, in fact, we don’t need to. When the crisis ends, and it will, only a fool would expect things to go back to the way they were. The whole construct around which we’ve built our working lives has changed, and some of that is for good.

Which brings us back to the £100 billion. As a yardstick, that’s not far off the NHS’s annual budget. Of course, the Government’s selling it as an investment in our future, building infrastructure so that we’re competitive, but, really, is that true? The more I think about it, the more I think it’s an investment in a way of work that just doesn’t exist any more. The beat of the black swan’s wings has created a huge white elephant.

Read more

The Rest is Investing: Gary Lineker-backed Goalhanger launches venture capital arm

Gary Lineker co-owns Goalhanger

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • CityAM Content

Trending Articles

  • As it happened: Stocks sink after Fed and Bank of England opt for hawkish hold; Oil price tumbles

  • More Big Four blues as Deloitte plans to slash UK audit roles

  • FTSE 100 Live: Pound dips and stocks slip as Andy Burnham victory triggers political uncertainty

  • Baillie Gifford in line for Anthropic windfall just months after £3.6bn SpaceX bonanza

  • City investors raise alarm on Burnham’s Chancellor pick

More from CityAM

  • The Rest is Investing: Gary Lineker-backed Goalhanger launches venture capital arm

    Investing
    Gary Lineker co-owns Goalhanger
  • Burberry delays climate pledge by a decade to 2050

    Retail
    Burberry fashion show runway featuring models in luxury attire showcasing the latest collection in an elegant setting
  • Bank of England’s Bailey defends bond sale programme

    Economics
    Governor Andrew Bailey has launched a defence of the Federal Reserve's independence.
  • It’s time to scrap the Equality Act

    Opinion
    LONDON, ENGLAND - JANUARY 19: A statue of the Scales of Justice stands above the Old Bailey on January 19, 2021 in London, England. Criminal watchdogs representing England and Wales have expressed concern over the backlog of cases, caused by the Coronavirus pandemic. Figures have revealed that the backlog of unheard cases in the crown courts has reached 54,000. (Photo by Dan Kitwood/Getty Images)
  • Gilt rout sparks calls for Bank of England to slow ‘unusual’ bond sale programme

    Economics
    The Bank of England is expected to go ahead with an interest rate cut despite high inflation.
  • The Turnover: CityAM’s sport business newsletter

    Sport Business
    For a long time the sports desk at CityAM has been longing to read a sport business newsletter. So we created The Turnover.
  • In pictures: The CityAM Awards 2026

    Business
    CityAM Awards ceremony with attendees networking in a formal setting, capturing an atmosphere of business excellence and ...
  • Raise your glasses to City Beerfest in Square Mile’s Yard of ale

    Partner
    City Beerfest attendees enjoying a sunny day in London with iconic skyline views, organized by Canada Corporation.

CityAM Canada — business, markets and opinion for Canadian readers.

Sections

  • Business
  • Markets
  • Tech
  • AI
  • Economics
  • Opinion
  • Cities

Company

  • About
  • Contact

Legal

  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 CityAM Canada. All rights reserved.
Terms · Privacy · Cookies