HS3 could ‘rebalance UK economy’

SENIOR business figures across the region have welcomed proposals for a high speed rail line between Manchester and Leeds and say the scheme has the potential to spread the North’s economic wealth across the country.

Yesterday, Chancellor George Osborne said the east-west link, HS3, should be considered as part of a review into the second phase of the £50bn HS2 high-speed rail project.

Leeds-based Richard Threlfall, partner and UK head of infrastructure, building and construction at KPMG, has welcomed the scheme and compares it to the build of the M25 and the Channel Tunnel.

He said: “HS3 has the potential to spread our economic wealth across the country and can be compared to bold and visionary schemes such as the M25 and the Channel Tunnel. Today’s announcement recognises that a massive intervention by Government is needed to reverse the drain of the UK’s economy from the North to the South.

“Over the last 10 years, according to ONS data, the North’s share of the UK’s economic output has fallen by more than five per cent. This trend will continue unless we strive to share our country’s economic success beyond the South East. HS3 recognises the dismal state of links between the UK’s Northern cities today. It takes about the same time to reach Liverpool from Leeds as it does to get to London from Leeds, even though it is less than half the distance.”

Threlfall said that for too long invested billions of pounds more has been invested in the South than the North, throwing money at our strongest region and abandoning our weakest.

“The UK currently invests as much in infrastructure in London in two days as it invests in Manchester in a year. HS3 should finally turn the tide and help the North regain its historic prominence in the UK economy,” he says.

“HS3 is the missing link to create a true high speed rail network in the UK. It should run between our major port cities of Liverpool and Hull, and connect up Manchester, Bradford, Leeds and York, then up to Newcastle, Edinburgh and Glasgow.

“The distance between Manchester and Leeds is no longer than the Central Line in London – there is no reason why our northern cities should not operate as one economic powerhouse provided they are properly connected up.”

Meanwhile Jeremy Blackburn, RICS head of policy, said that better connecting northern cities, industries, airports and ports will help unleash economic potential.

“We strongly welcome the Chancellor’s comments on the power and potential of our northern cities, it is recognition of what they can do to contribute not only to the economic recovery, but as the basis of a competitive nation on the world stage.

“RICS has long emphasised the concept of locational investment and prioritising regional infrastructure that creates better connectivity for people and goods, particularly rail. This announcement sows the seeds for the focus on regional infrastructure pipelines and delivery mechanisms in the next Parliament.”

Katja Hall, CBI deputy director-general, said: “To keep the wheels on the recovery turning, we need to maximise growth across the UK. Better east-west links in the north could provide a huge boost to local businesses, and help further balance the UK economy by creating a northern hub.

“However, any proposals need careful planning. The priority must be boosting connections, not speed. We need to see more detail for such a project, which must be good value for money for the taxpayer.”

Ward Hadaway managing partner Jamie Martin said the proposals were good news for the region but that more areas of the North need to be included.

“I have long believed that better, faster transport links between the key cities of the North can unlock the region’s huge growth potential so any move towards this from the government is very welcome indeed.

“It is absolutely essential that Leeds and Manchester are linked by high speed rail, but that needs to go further.

“The North comprises a significant number of great cities – not least that of Newcastle where Ward Hadaway has its foundations and headquarters – and we need to make sure that all of those cities are linked up so they can do business with each other.

“The Chancellor must not forget the North East in his plans, nor Humberside or Merseyside. A high speed, regular train service linking the North East with the North West through Yorkshire would have a genuine transformational effect on the whole of the North and would greatly accelerate the growth of our economy, not just in the North but across the UK.”

West Yorkshire Combined Authority transport committee chairman, Coun James Lewis, said: “Being better connected would enable our region and the north as a whole to deliver even greater benefits to the UK economy and I hope any plans formulated for a high-speed link will show how key centres right across the trans-Pennine corridor and not just the major cities will benefit.

“We have long been calling for improvements to east-west routes across North and I am pleased that the electrification of the Trans-Pennine route is now in the pipeline. However in starting to talk about HS3, we must not lose sight of other important ambitions such as the electrification of the Caldervale Line and other improvements that would provide centres like Bradford, Halifax and Wakefield with much improved connections to Leeds, Manchester and beyond.”