An Alternative to HS2
Article 1: A Vision for the Future of UK Transport
Anthony Royd begins this series on modern travel with a critical examination of HS2 and its shortcomings. By exploring alternative transport technologies, he presents an ambitious vision for a future-proof, efficient, and high-speed transport network that better serves the UK.
The Chagos Factor
Trump’s Trade War and Britain’s Global Standing
Published 21st March 2025
I apologise to my regular readers for my recent absence. The unprecedented actions of Donald Trump on trade and global conflicts rendered my prepared material outdated. However, recent developments demand attention—not only in the escalating trade war but also in Britain’s geopolitical position.
I am encouraged by the legal challenges Sir Keir Starmer now faces in the High Court over his surrender of the Chagos Islands to Mauritius — a nation closely aligned with China. This is a cause I have long campaigned against, and Starmer must be held accountable—especially given that the former Mauritian Prime Minister, Pravind Jugnauth, who negotiated the deal, has now been arrested as part of a money-laundering investigation.
Moreover, it has come to light that the ICJ’s ruling on the Chagos Islands was influenced by its vice-president, Xue Hanqin—an ex-Chinese official—who pushed for a rapid transfer of the territory to Mauritius. This overtly political decision should not be treated as binding. Mauritius’s claim is fundamentally flawed, as it rests on the mistaken notion that administration equates to ownership.
In reality, administrators act in the interests of the sovereign power—in this case, Britain—making Mauritius’s argument a formal fallacy.
Given that Sir Keir Starmer is a distinguished lawyer, one would expect him to recognise this principle. However, when considering Starmer’s well-documented fondness for gifts, serious questions arise, or Is It Me!
While I remain deeply invested in Britain retaining the Chagos Islands, particularly as they host the largest US military base and a key space operations hub, the immediate focus must shift to Trump’s escalating trade war. With that, let’s examine the unfolding tariff battle and its implications.
Anthony Royd
Trump’s Tariff War
The Need for a Reciprocal Tax Agreement
Understanding Trump’s Tariff War
Donald Trump’s imposition of high tariffs on imported goods from countries that charge VAT on US exports is rooted in concerns over trade imbalances. The fundamental issue is that VAT-based economies, such as the UK, create an uneven playing field for American exporters, making it more expensive for US businesses to sell goods internationally.
Adverse Effects on Trade with the US
One of the key concerns surrounding VAT and international trade is its impact on market competition.
Competitive Advantage in Domestic Markets
For UK traders selling domestically, VAT provides a built-in advantage. Imported goods from the US are subject to VAT upon arrival, increasing their price and making local alternatives more attractive to consumers. Since UK businesses can reclaim VAT on their input costs, they do not bear the same burden as foreign exporters. This puts US businesses at a competitive disadvantage, as they must factor in VAT without the ability to reclaim it.
Additionally, the UK’s 20% VAT significantly affects price competitiveness. When American exporters sell goods to the UK, their products become more expensive compared to domestic UK businesses, discouraging trade.
Understanding VAT and Sales Tax in International Trade
To grasp the implications of a Reciprocal Tax Agreement, it is important to understand how VAT and Sales Tax differ between the UK and the US.
VAT in the UK
VAT is a consumption tax applied to most goods and services at each stage of production and distribution. Businesses pay VAT on their inputs but can reclaim it when they sell their products. The final burden falls on consumers, as VAT is charged at the point of sale.
When UK businesses export goods, these sales are usually zero-rated, meaning they do not charge VAT on exports, but can still reclaim the VAT paid on production costs. However, when US goods enter the UK market, they are taxed, creating a trade imbalance.
Sales Tax in the USA
In contrast, the US sales tax system operates at the state and local levels. Sales tax is only imposed at the point of sale to the final consumer and does not involve reclaiming taxes paid on inputs. The rate varies by state, ranging from 0% to over 13%, adding complexity for businesses selling across state lines.
International Trade
Selling Goods from the UK to the USA
UK exports to the US are generally zero-rated for VAT, making them more price-competitive upon arrival in the US.
Once in the US, these goods may be subject to sales tax depending on the state where they are sold.
However, sales tax is typically lower than the UK’s 20% VAT, meaning UK businesses often face fewer tax barriers when exporting to the US than US businesses face when exporting to the UK.
Impact of the UK’s 20% VAT on Trade with the US
Competitive Disadvantage for US Businesses — American companies face increased costs when selling into VAT-based markets, while UK businesses can sell into the US with fewer tax-related price increases.
Revenue Generation for the UK — VAT provides a major source of government income, supporting public services and infrastructure.
Encouragement of Local Consumption — The VAT system incentivises UK consumers to buy locally rather than from foreign sellers whose products are taxed upon import.
Administrative Burden — The complexity of VAT regulations makes it harder for smaller US businesses to trade with the UK, discouraging international commerce.
The Need for a Reciprocal Sales Tax Agreement
A Reciprocal Sales Tax Agreement between the UK and the US would aim to address these disparities by standardising tax treatment and ensuring fairer trade practices. By creating a system where businesses can reclaim sales taxes or VAT-like charges in each jurisdiction, both countries can reduce trade friction and encourage balanced economic exchange.
This approach would mitigate the effects of VAT on American exports while ensuring tax fairness, ultimately addressing concerns about trade imbalances raised by Donald Trump, or Is It Me!
The details of the proposed Reciprocal Sales Tax Agreement and Addressing Trade Fairness, will be published in part 2 next week
An Alternative to HS2
A Vision for the Future of UK Transport
by Anthony Royd
Published 7th February 2025
In my commentary on the Heathrow extension, I criticised HS2 planners for failing to connect the UK’s major airport. In this first article in the series on travel, I will expose the incredible lack of foresight in the HS2 project and propose an alternative that is fit for the future.
The Promise of Maglev Technology
China’s magnetic levitation (maglev) trains represent some of the most advanced rail technologies available today. By eliminating friction between the train and the track, maglev technology enables incredibly high speeds, energy efficiency, and smooth travel. Unlike HS2, which relies on conventional high-speed rail, maglev offers a genuinely futuristic solution.
How Maglev Works
Maglev technology is based on electromagnetic propulsion, where trains levitate above the track, eliminating physical contact and thus reducing friction and wear. This system is composed of three primary components:
Power Source – A large electrical supply generates the necessary magnetic fields.
Guideway – Metal coils embedded in the track create magnetic fields when electrified.
Train Design – The train is equipped with powerful magnets on its underside.
When alternating currents energise the guideway’s coils, they generate fluctuating magnetic fields that interact with the train’s magnets, causing levitation and forward propulsion. This allows for seamless acceleration and deceleration without mechanical contact
A Global Perspective on Maglev
China has been at the forefront of maglev development, with its Shanghai Maglev Train reaching speeds of up to 373 mph (600 km/h) and completing a 19-mile journey in just 7-8 minutes. Similarly, Japan is developing the SCMaglev system for the Chuo Shinkansen line, designed to connect Tokyo and Nagoya at speeds of 374 mph (603 km/h).
Despite its potential, the UK’s HS2 project remains rooted in outdated rail technology. While designed to reach speeds of 250 mph (402 km/h), it does not incorporate maglev’s frictionless advantages. Critics argue that HS2’s financial burden, environmental concerns, and uncertain passenger demand further diminish its viability.
HS2: A Costly and Outdated Project
The HS2 project aims to connect London with major cities in the Midlands and Northern England, but its benefits are under scrutiny:
Cost vs. Benefit – The financial investment may not justify the anticipated increases in capacity and journey-time reductions.
Environmental Impact – The construction of new rail lines raises ecological concerns, including £100 million allocated for protecting just 300 bats with a half-mile concrete cover.
Uncertain Demand – Post-pandemic travel behaviour shifts cast doubt on projected passenger numbers.
A 2024 report from the House of Commons Public Accounts Committee deemed the revised HS2 Phase 2 plan to have “very poor value for money,” highlighting significant concerns about its long-term benefits.
The Royd High-Speed Initiative
A Revolutionary Approach
Rather than investing in conventional high-speed rail, the UK should embrace cutting-edge technology. The Royd High-Speed (RHS) initiative proposes a radical integration of maglev technology with autonomous vehicles (AVs), creating a fully automated, nationwide transport system.
The Role of Autonomous Vehicles
Autonomous vehicles leverage sensors, AI, and machine learning to navigate without human intervention, enhancing safety and reducing congestion. The Royd HS initiative envisions AVs seamlessly integrating with high-speed maglev transport, revolutionising mobility.
The People Pod Concept
At the heart of the Royd HS system is the People Pod (PP), a revolutionary new transport module:
People Pods (PPs) – Resembling compact, engine-less vehicles, PPs attach to Self-Propelled Bogies (SPBs) for local travel and transition onto HSBs for high-speed journeys.
High-Speed Bogies (HSBs) – Utilise maglev technology for high-speed intercity travel, replacing traditional train axles with powerful electromagnets.
Self-Propelled Bogies (SPBs) – Equipped with engines or motors, road wheels, and movable axles, SPBs can transport PPs independently using AVs technology.
The High Speed People Pod
350 miles per hr
A Fully Integrated System
The Royd HS concept envisions a seamless door-to-door travel experience:
A People Pod picks up passengers at home using a Self-Propelled Bogie.
The SPB transports the PP to the nearest high-speed station.
The PP is automatically transferred onto a High-Speed Bogie for intercity travel.
Upon arrival, the PP is placed on another SPB for the final leg of the journey.
This modular approach eliminates the need for extensive rail construction while requiring considerably less space than the traditional trains envisaged for HS2, providing a fully flexible transport system.
Conclusion
HS2 is an expensive and outdated project that fails to embrace the full potential of modern technology.
The Royd High-Speed initiative proposes a transformative alternative—an integrated transport system combining maglev technology with autonomous vehicles.
This vision prioritises speed, efficiency, and sustainability, setting the foundation for a future-proof national infrastructure, or Is It Me!
In the next article, Anthony Royd will explore additional features of the People Pod and the broader design of this high-speed transport system.
The UK has an opportunity to lead the way in 21st-century mobility—let’s not waste it on outdated solutions.
