Firms fear for future with no HS2 compensation

Businesses along the HS2 route in Warwickshire claim they are being "pushed to the brink" by the construction project.

A petition has been launched on Parliament's website, calling on the government to urgently review compensation schemes for those suffering financially from the work.

Customers are being driven away by road closures, noise and dust, according to some of the businesses the BBC has spoken to.

In May, it was announced that the project would face further delays, with trains not starting to run until at least 2036. The Department of Transport was asked for a response to the petition but declined to comment.

Among those affected by the works is Nailcote Hall Hotel, in Balsall Common, which employs up to 80 staff and is a popular venue for weddings, party nights, golf and visitors to the nearby National Exhibition Centre.

Owners Rick and Sue Cressman said they have lost a third of their wedding business because of the disruption from HS2.

Sue Cressman said customers were discouraged by the diversions which could last up to a month at a time.

"It's very stressful, particularly when you know these people want to come here and if they have a massive diversion, sometimes into Warwickshire, they may think twice," she added.

Rick Cressman sad he had been told businesses could only apply for compensation once the project was completed, which could be as late as 2039 under the current estimated timeframe.

"I'd have to be 89 still working here before I get anything and I've got bills to pay now," he said.

An HS2 spokesperson said they were aware of the Cressman's request for compensation but said Nailcote Hall was not directly affected by HS2.

"The Hall is approximately 900 metres from the line of route and, as no land or property was required to facilitate the railway's construction, this does not qualify for statutory compensation," they added.

The petition was set up by the councillor for the Balsall and Berkswell ward, Heather Delaney, who is also deputy leader of Solihull Borough Council.

She wanted the government to launch a review in order to ensure fair, timely compensation to businesses impacted by construction, including looking at creating a new compensation scheme.

"The costs are now, not when the lines are up and running, it's not fair that they have to wait so long," said Delaney.

For the owners of the Grimscote Manor Hotel, in Coleshill, they claimed their situation was bleak.

Steve Cuddy and Gillian Etherdige, who have run the hotel for 26 years, predict they have two years until they will be forced to close their doors for good.

The hoteliers said they had just got back on their feet after Covid and then HS2 construction began.

Cuddy said being so close to the works had "decimated" their wedding business.

"The last thing you need at a wedding are noise, smells, traffic and uncertainty that you can even get here", he said.

Etheridge said people did not want to be around it: "The dirt is everywhere, we can't open windows and then there's the noise, we can't have weddings outside or in the marquee because of the thump, thump as they're drilling into the ground."

The hotel, which relied on weddings during the summer, had not been turning a profit for several years, they claimed.

"You're working for nothing, all we're doing is hanging on, hoping that as soon as it's finished we'll be able to pick it up," said Etheridge.

The announcement that the project would be delayed hit them hard.

"I think ultimately the government have to come along and have to do something, either compensation or support, to allow us to survive," said Cuddy.

When asked if HS2 was solely to blame for the hotel's struggles, Cuddy responded: "How can you be here 26 years and never have a problem and then the last three years suddenly there's a problem, who are we going to blame?"

The spokesperson for HS2 Ltd said the hotel was also not directly affected by HS2 and the A446, where it is located, had never been closed for works.

"We have always kept the hotel informed of any nearby temporary road closures, and we listened and acted on the owner's concerns by ensuring dedicated signage was installed when overnight works and a one-off, seven-day closure took place nearby," they added.

At Hilltop Farm shop and cafe in Hunningham, near Leamington Spa, the closure of the main road, the Fosse Way, has seen the business losing hundreds of thousands of pounds.

Manager Charlotte Carter said they have been closed due to the HS2 works more than 20 times over the last six years.

"Every time they close the road the business is massively affected due to loss of sales," she said. "We lose passing trade and then our regular customers can't always get to us without a big detour and then they just don't come."

She added that many of the road closures happened during school holidays at key trading periods.

"At Christmas, when it was a key trading weekend for Christmas trees, the road was shut, so we missed out on a lot of trade, and Christmas trees are a massive part of our revenue," Carter said.

She added she found it frustrating that the project's budget continued to see huge increases and yet HS2 refused to compensate small businesses.

"I don't understand how the money can be ploughed into the project, it doesn't seem any care is given to how much money they keep spending but when it comes to looking after small businesses, they're just not interested," she said.

She said they needed compensation now, not in 10 years time, because the farm might not be there in 10 years time.

An HS2 Ltd spokesperson said they listened to the firm's concerns and

"We adjusted the timing of our planned works - to better align to their trading hours – including removing weekend closures," they added.