The argument for the viability of the new proposed HS2 development is rumbling. If it goes ahead, the new high speed rail link will connect London with Birmingham, Leeds and Manchester transporting passengers on a new line in record breaking times.
Today, Transport Secretary Patrick McLoughlin announced that a new report says the HS2 rail project could boost the UK economy by £15bn a year, particularly benefitting the regions outside of London:
The Transport secretary said:
“The case for HS2 is absolutely clear: without it, the key rail routes connecting London, the Midlands and the North will be overwhelmed. The project will free up vital space on our railways for passengers and freight, generate hundreds of thousands of jobs and deliver better connections between our towns and cities.
“This Government is investing record amounts across our transport network – trebling spending on major road schemes and funding the biggest upgrade to our railway in modern times. HS2 is a vital part of our plan to give Britain the transport infrastructure it needs to compete.”
In contrast, earlier this week the Public Accounts Committee said there was no evidence the line would help the growth of regional cities and would instead draw even more business to London.
Phase 1 of the high-speed line would run between
London and Birmingham from 2026 before being
extended to Manchester and Leeds from 2033.
The latest study from KPMG was commissioned by HS2
Ltd, the company responsible for developing and
promoting the project and is forecasting that the North
West regions economy would benefit from growth
between 0.8% and 1.7% – perhaps too wider range to
be taken seriously? The report also stated that
Birmingham’s economy could be boosted between
2.1% and 4.2% a year and Leeds between 0.8% and
1.7%.
MPs representing the Public Accounts Committee
warned that the costs are likely to spiral – from more
than £16bn to £21bn plus for phase one while the
estimated benefits continue to dwindle.
Although the PAC agreed that an investment in the railways would be welcome, they questioned whether given a budget of £50bn to spend on the railways, the HS2 project was the best deployment of funds.
Committee chairwoman Margaret Hodge commented that the money would be better spent easing congestion on existing routes by introducing longer trains and building longer platforms.