IoD members question need for HS2
THE Institute of Directors has questioned the need for the HS2 high speed rail link between London and the regions.
In a new survey of more than 1,200 IoD members, a significant number said they believed the proposed new line represented poor value for money.
The multi-billion pound scheme will initially link the capital and Birmingham and then in a second phase connect Manchester, Liverpool, Preston and Cumbria.
Just 23% said HS2 would improve their productivity, while 38% think the public spending required to build HS2 represents poor value for money. However 30% of those questioned believe the scheme represents good value.
The survey, which asked UK directors for their priorities for new investment as well as their views on the current state of Britain’s transport infrastructure, also reveals that business leaders think that improvements to existing roads are more important than new roads.
Simon Walker, IoD director general, said: “Good transport infrastructure is crucial to IoD members up and down the country. Businesses are not happy with the current state of the UK’s infrastructure, but our survey of IoD members shows that directors want to see improvements to existing roads and rail services above all.
“In straightened times, choices will have to be made between some improvements to existing rail lines and a new high speed line, and we want to see the Government take the business view seriously.”
He added: “IoD members are enthusiastic about airport capacity expansion, but the planning system has held back development. We need to see bold and financially sound decisions made about upgrading our congested networks.”
The key findings of the survey show:
• 86% of members think investment in congested urban roads is important to their business, while 83% think improvements to existing motorways are important. By comparison, 49% think new motorways, and 37% new local roads, are important.
• 79% think investment in improving existing intercity services is important to their business, compared with 54% who think high speed rail investment is important.
• 38% think the public spending required to build HS2 would represent poor value for money, compared with 30% who think it would represent good value.
• 48% believe increases in airport capacity outside London and the South East would have a positive impact on the productivity of their business; 40% think the same for increased airport capacity in London and the South East, and just 23% agree that a new high speed rail line between Birmingham and London would improve their productivity.
• IoD members are not happy with the current state of the UK’s transport infrastructure. 82% think that UK roads are too congested, while 61% believe intercity rail fares are poor value for money.
• 76% think the planning system has had a negative impact on the speed and ease of completing infrastructure projects over the past decade.
