COUNCILLORS have been assured the business model for Crewe's HS2 Hub is still valid despite pandemic pressures.

A report to Cheshire East Council's environment and regeneration overview and scrutiny committee this week stated the development of the hub was not "viable" in its current plan.

The economic impacts of Covid-19 and uncertainties about the future commercial development market have thrown into question whether the model based around generating future business rate revenue will work.

The scheme requires "significant upfront borrowing" by the council and therefore it would need to service the debt out of existing budgets until business rate revenues were sufficient to cover the costs.

Instead, the construction could be phased, although HS2 infrastructure is on track to be delivered by 2025 in Crewe.

Frank Jordan, Cheshire East Council Executive Director - Place, reassured the committee that HS2 was progressing but the council needed "positive feedback" from the government to support its business-rate retention model.

He said: "HS2 is still very much going ahead. For 2a (phase) up to Crewe there has been approval to progress and to place orders.

"We are also commencing consultation on some detail, particularly Crewe North junction so that gives an indication of the level of political commitment on a national level.

"There's chicken and egg here; we're putting forward a proposition to government that it can get a much better station which supports significant growth to the UK and to the sub-region and borough.

"We won't be committing the council to putting in significant investment into supporting the station if we don't get positive feedback based around the business-rate retention model.

"We've put forward a very credible proposition to government and if we aren't able to get a positive response then we will adjust the scheme. Once we've got the clarity we'll understand the scope of the project and the level of capital and risk we should take if the government can't support us."

At the meeting Cllr Mike Hunter raised concerns the Crewe Hub needed further support from within the county.

"We started off by saying how important Crewe is nationally and that is all well and good. HS2 will be like our Manchester Airport, locally," said the Middlewich councillor.

"The most important connectivity will come from the local areas. Everything that comes from outside is cream on the cake. We have to get people into Crewe who used to come in, but now scoot to Stoke-on-Trent and other areas.

"I know that the council is taking a chance with the pandemic but let's be straight about this. If we do not get in the position that we need to be in, when the pandemic is over it is a lose-lose, not a win."

Meanwhile, Cheshire East Council's constitution committee has recommended Schedule 17 arrangements for HS2 are reviewed fortnightly so the borough remains as a qualifying authority.

Should it lose this status, applications would be referred to the Secretary of State to take all decisions on Schedule 17 applications, which lay out how HS2 Ltd can construct infrastructure.