HS2 must go ahead say local business leaders as Government prepares to make case for high-speed project

AS the Government prepares to publish its new business case for the HS2 high-speed rail project, business leaders have said ditching the scheme in favour of upgrades to existing trains and routes would be disastrous.

Transport Secretary Patrick McLoughlin will make the case for HS2 today following intense criticism of the £42.6bn project from numerous quarters including the Institute of Directors and former Labour government ministers Alistair Darling and Peter Mandelson.

The Labour opposition has also appeared to go lukewarm on the project despite the fact it was instigated when it was in government. It has said there can be no “blank cheque” for HS2.

In his speech, McLoughlin will accuse Labour of “playing politics with our prosperity” over the project.

A new report highlighting the economic case for HS2 and answering some of the recent criticism will also be released today.

The BBC suggests the new report will try to shift the focus away from an assumption of people not working on trains and towards the benefits of providing extra capacity on the rail network,

HS2 is designed to shorten journey times between London and the Midlands and the North of England. Under existing plans work would proceed in 2016 and London and Birmingham would be linked by 225mph trains by 2016.  Links north to Leeds and Manchester would come on stream six years later.

The Government remains adamant that HS2 will transform the UK’s economy, with the biggest rewards going to the Midlands and the North of England.
A recent report by accountancy firm KPMG suggested HS2 would deliver £15bn worth of benefits a year to the UK economy.