State of the Region: Jury’s out on HS2

OPINION remains divided on the £50bn High Speed 2 project, TheBusinessDesk.com’s State of the Region survey suggests.

In marked contrast to businesses in the West Midlands – where more than 60% of respondents to our survey rated the investment in a new high-speed rail infrastructure as “essential to the future of the region’s prospects”,  the North West approval was a more cautious 42%.

Nearly 30% believe it will be a white elephant, while a quarter of respondents said they were simply not sure of the benefits of the ambitious project. Just 6% thought HS2 would have a detrimental impact.

Positivity across the Pennines was weaker still, where just 30% of Yorkshire readers taking the survey believe it is essential, while 43% see it as a white elephant.

Reflecting opponents’ concerns over both cost and timescale, new HS2 chairman Sir David Higgins, said this week he would be looking into the possibility of delivering the high-speed rail project more cheaply.

He also said he wants HS2 to be build more quickly than scheduled so that economic benefits will be felt as soon as possible.

The current estimate of the cost of the project – which will link Birmingham and London via 225mph trains from 2026 and add links to Leeds and Manchester six years later – is £50bn including rolling stock.

Andrew Davies, partner in the projects team at DLA Piper, sponsor of the State of the Region survey said: “There are still some mixed reactions when it comes to the HS2 debate across the North West. Some believe the plans could suck jobs and wealth from the region, with views that the project costs should be better invested into different transport programmes which would benefit the region more immediately, whereas others believe HS2 could help to uplift the business economy.

“Whether the plans go ahead or not, there is significant support from businesses for infrastructure investment generally, especially in high-speed rail and air links, ultimately enhancing links between the UK and overseas markets, enabling potential customers and clients to be more easily reached.”