The future of the high-speed rail line from London to Birmingham has been thrown into doubt after Ed Balls questioned whether it was wise to spend about ￡

 

　　Balls raised questions about the future of HS2 in his main speech to the Labour conference in which he also dismissed recent claims by Osborne – in the face of recent economic growth ?

　　The shadow chancellor said: "On every test they set themselves this prime minister and chancellor have failed. They didn't secure the recovery, they choked it off – as we warned ?

　　Balls told the Labour conference: "On infrastructure, we need more long-term investment – and we will assess the case for capital investment as we prepare our manifesto ?

　　"But under this government the high speed two project has been totally mismanaged and the costs have shot up to ￡50bn. David Cameron and George Osborne have made clear they will go full steam ahead with this project ?

　　"Labour will not take this irresponsible approach. So let me be clear, in tough times – when there is less money around and a big deficit to get down ?

　　"Because the question is not just whether a new high-speed line is a good idea or a bad idea, but whether it is the best way to spend ￡

 

　　The government has recently intensified its campaigning in favour of the project amid fears that ministers were losing the argument after Alistair Darling, chancellor in the last government, withdrew his support. Patrick McLoughlin, the transport secretary, recently dismissed "scare stories" over the budget and insisted it would remain at ￡42.6bn, with a contingency fund of ￡

 

　　The shadow chancellor added: "We will have to govern with less money around. The next Labour government will have to make cuts too. Because while jobs and growth are vital to getting the deficit down – something this government has never understood ?

　　Balls echoed the warnings, though in more moderate language, by Vince Cable that phase two of the government's Help to Buy scheme could stoke a housing bubble. The scheme, due to be introduced in January, will underwrite home purchases worth up to ￡

 

　　The shadow chancellor warned: "Along with voices from the Bank of England and the IMF, we are right to be concerned that the government is boosting housing demand, with a taxpayer mortgage guarantee on houses of up to ￡

 

　　"George, it's basic economics. If you push up housing demand, but don't act to boost housing supply, all that happens is that you push house prices up and up. And the end result is that the very people your policy should be helping – young first-time buyers