Shadow chancellor Ed Balls said the party could delay HS2 going any further than Birmingham in favour of a new East-West line . Labour has been accused of delivering a 'slap in the face to the north ' after suggesting it could abandon a new high speed rail line to Manchester and Leeds . Shadow chancellor Ed Balls said the party could delay HS2 going any further than Birmingham in favour of a new East-West line . David Cameron said Labour was 'letting down people in vital regions of our country ' . But Mr Balls said prioritising the second phase of HS2 – which would connect Birmingham to Manchester and Leeds – made 'no business or economic sense at all ' . Mr Balls said : 'Getting on and doing east-west now is the priority . ' Labour had previously backed HS2 , which could cost more than £50 billion , even though Mr Balls was known to have doubts about it . Mr Balls was speaking after a cross-party House of Lords inquiry warned that the Government had failed to 'make a convincing case ' for the high speed rail line and concluded that improving east-west rail links might do more good for the economy . Labour will press ahead with plans to build a new line between London and Birmingham , with work due to begin in 2017 . But it will reconsider the second phase of the project , which extends the line from Birmingham to Leeds and Manchester and was due to begin construction in the mid 2020s . Instead , Mr Balls said Labour would bring bring forward plans similar to the so-called HS3 , a proposed new line linking the North East and North West . He said : ' I will want to be discussing how we can improve east-west links with David Higgins from day one and I think that is something we get on with quickly while we ask big questions about the second phase of HS2 . ' He added : 'The idea that we wait to do east-west until after we have done the second phase of north-south is topsy turvy . It has no economic or business logic at all . ' Labour had previously backed HS2 , which could cost more than £50 billion , connecting London to Manchester and Leeds via Birmingham . Chancellor George Osborne also supports HS3 but construction is unlikely to begin until after HS2 is completed in 2033 . Mr Balls said : ' I do n't understand this proposal for HS3 . Why would you decide to spend 20 years improving north-south links before , finally , in the third phase , coming to east-west ? ' I think George Osborne has got this wrong . 'And our view is that it should n't be HS3 - it should be done before the second phase of HS2 . ' I think getting on and doing east-west now is the priority . ' The Shadow Chancellor said services would connect the north east and north west , but also suggested a line could also link Birmingham and Nottingham . 'There is actually a big economic need to link east-west , and I 'm thinking about Nottingham , Birmingham , Newcastle as being part of that east-west network as well . 'The idea that improving links between Birmingham , Nottingham , Leeds and Newcastle , that that should wait until after we have done HS2 , I do n't think makes sense . ' David Cameron , at a production line for London taxis in Coventry , said Labour was 'letting down people in vital regions of our country ' Responding to Mr Balls 's comment , the Prime Minister said : 'The economic argument is very simple which is we need another railway line between London and Birmingham and up to the North of the country . 'So do you build an old-fashioned Victorian line or do you build a high speed line , and our decision was to go with the modern technology and build a high speed line . 'And I would say to anyone who says there is n't a case for HS2 , try getting on the train from Birmingham to London or London to Birmingham and see how many people are standing , see how much extra capacity we need . So the case is very strong and has been proven over and over again . 'But the very worrying news today is that Labour are calling into question the links between Birmingham and Manchester and Birmingham and Leeds , and this would be an immense slap in the face from Labour to the West Midlands , the East Midlands and the North of the country and I can not believe they are contemplating letting down British people in vital regions of our country in this way . '
The PM said labour is ' letting down people in vital regions of the country ' Ed Balls said extending labour past parliament made ' no economic progress ' Shadow councillors said they should look at a new rail / West line first .