The government risks misleading the public with claims that HS2 will transform the North of England, a study from centre-right think tank the Institute of Economic Affairs (IEA) has found.
The study claims it has found flaws in the government’s favoured justification for a new high-speed rail link connecting London with the North of England.
The report, Failure to Transform: High-speed rail and the regeneration myth, analyses the relationship between high-speed rail and economic performance, using the UK’s only example of high-speed domestic rail service from London to Kent.
The results show that it’s “extremely unlikely” HS2 will “bring about economic transformation in the north”.
Department for Transport has called the IEA report "flawed" and "simply wrong" The report comes as MPs meet to debate the second reading of the High Speed Rail bill in the House of Commons today (April 28).
The report’s author Richard Wellings said instead of building HS2 the government should improve local and regional links in the north of England.
He said a cross-Pennine project linking Sheffield, Leeds and Manchester could bring “clustering or agglomeration benefits” from creating a single labour market.
For longer distance travel, he said the existing West Coast Main Line could be upgraded "at relatively low cost... a fraction of the cost of HS2".
“The failure of High-Speed 1 to achieve its aim of transforming East Kent raises serious questions about the ability of HS2 to rebalance the UK economy,” said Wellings.
“The scale of the challenge is huge compared to a relatively small area in the south east, and many of the northern cities on the route experience more severe social and economic problems.”
The HS2 link between London, the Midlands and the north of England is expected to cost £42.6bn. This includes contingencies, with £7.5bn for trains.
The Department for Transport said the IEA report was "flawed" and "simply wrong to say High Speed 1 hasn't brought significant benefits" to places like Ashford.
The study shows other constraints on the economic impact of HS2 include the negative effects of its tax bill, which it claims is estimated at £80 billion including “off-balance sheet” costs.
It also said the project will only carry around 2 percent of passenger traffic when the full route is completed and should be reconsidered “urgently”.
Project speed-up
The British Chambers of Commerce has today (April 28) urged the government to speed-up the delivery of HS2, warning any delays could damage the UK economy.
BCC executive director of policy Adam Marshall said businesses across the UK have been frustrated for years with the continual “patch-up” of the rail network.
“HS2 must proceed, as it will deliver transformational capacity to Britain's rail networks, not to mention economic benefits including jobs, orders for UK firms, skills investment and regeneration,” said Marshall.
“Parliament must progress the scheme quickly, to ensure the benefits are felt before overcrowding, delays and cancellations become the norm rather than the exception.
“We urge all political parties to put short-term interests to one side and work together with Sir David Higgins and his team to make this key infrastructure project a reality as quickly as possible.”