‘Prioritise HS3’ says top economist
A TOP economist has added his voice to calls for the next government to prioritise the East-West high-speed rail investment over the HS2 scheme.
Russia-born, London-based Anatole Kaletsy, said the so-called HS3 link between Liverpool and Hull – which could cut journey times from Manchester to Leeds to just 35 minutes- should be should be delivered before HS2.
Shadow Chancellor Ed Balls said recently he favours this approach amid concerns over the cost of HS2.
Speaking at an event hosted by property firm Colliers International, Kaletsky claimed if a government was serious about building a Northern Powerhouse then it should build HS3, linking Liverpool, Manchester and Leeds as a priority.
He said improved connectivity would stimulate “the cross-flow of business activity” throughout the North.
Significantly too, he said the answer to airport capacity constraints in the South East, is not to build new runways there, but to empower regions. He argued that it would be in a government’s best interest to turn regional ‘powerhouses’ into self-sufficient economies, which is why it’s counterproductive to build a larger runway capacity in London instead of creating an international hub in Manchester.
Kaletsky, whose economic consultancy has offices in Hong Kong and Beijing, believes international investors especially from Asia are seeking commercial property assets in ‘secondary’ locations.
Mark Charlton, Colliers’ head of research and forecasting, agreed: “Much of the new Asian capital targeting commercial real estate in the UK has focused on London and prime trophy assets, whereas Chinese investment has shown a more flexible approach, targeting residential development, infrastructure and some regional markets, for example Beijing Construction Engineering Group’s (BCEG) investment of £800m into Manchester Airport.”
