High-speed rail link 'could bring 50,000 new jobs'

The research claims high-speed rail (HSR) would enhance economic performance and boost Britain's annual economic output by between 17bn and 29bn by 2040.

The report, commissioned by HSR lobby group Greengauge 21, found the additional economic impact could increase annual tax receipts by between 6bn and 10bn by 2040.

The findings are another boost for the Yorkshire Post's Fast Track to Yorkshire Campaign, which is calling for a direct HSR service from the region to London.

Business leaders welcomed the study and called on political parties to form a binding agreement to build a national network.

Nick Pontone, director of policy at Yorkshire and Humber Chambers of Commerce, said: "This report adds further momentum to the already strong business case for high speed rail for Yorkshire.

"It is vital the political parties support the key recommendation that only a proper high speed rail network, not just a single line would generate the maximum economic benefits.

"The cost is high but it is affordable over 30 years and would create more jobs, investment and tax revenues from Yorkshire firms."

A report on HSR by Government company High Speed 2 (HS2) is being considered by ministers, with Transport Secretary Lord Adonis expected to outline their position in a White Paper next month.

Plans for a political consensus were, however, thrown into turmoil last week when the Tories appeared to pull back from their commitment to the first stage of the scheme from London to Birmingham that would cut through Conservative heartlands in Buckinghamshire and fiercely contested swing seats in the West Midlands.

The party declined an offer to look at the HS2 report which revealed for the first time which constituencies would be affected on the route, prompting accusations they were "playing politics" by distancing themselves from a policy that could upset voters.

But Shadow Transport Secretary Theresa Villiers hit back and said they simply did not want to take Labour's route on trust and would wait for the scheme to go to public consultation before viewing it.

Gary Williamson, chief executive at Leeds, York and North Yorkshire Chamber of Commerce said: "The next step now is to move away from simply talking about high speed rail, to a cross party commitment to ensure that this project is connected to our region to enhance long term economic prosperity, and encouraging future investment.

"However, high speed rail should not be delivered at the expense of other infrastructure investments and the Chamber is working with the political parties to ensure there is continued investment in strategic transport links to improve connectivity in the short term including East Coast Main Line enhancements, electrification, Trans-Pennine connections, and principal highway links."

The report, prepared by management consultancy company KPMG, said a comprehensive national network of high-speed services could provide a major change in business-to-business connectivity and effectively link the major cities, creating a single national market for the service sector and knowledge-based businesses.

The greater economic impacts would be in the North, with the largest gains in Yorkshire, Scotland, North East and North West, and the east and west Midlands.

Greengauge 21 director Jim Steer said: "Our new analysis demonstrates that in the long term the Treasury will be winners too, through substantial additional tax revenues."

Ms Villiers said: "This report is a welcome confirmation of the massive economic boost HSR can bring to Britain.

"But if we are going to harness the full potential of HSR, it must be a north-south line, which is why Conservatives have made a commitment to build a line connecting Leeds, Manchester, Birmingham and London."

KEY FINDINGS FROM REPORT

n HSR services to Sheffield and Leeds would boost business connectivity and concentrate activity in these places, attracting up to 50,000 jobs to the region.

n It could increase annual GVA (a measure of national economic output) in 2040 by between 17bn and 29bn.

n Additional economic impacts on this scale could increase tax receipts by up to 10bn a year.

n The HSR network could directly contribute between 25,000 and 42,000 additional jobs in Britain.

n The report found HSR could have a substantial impact on closing the north-south divide by spreading prosperity, with the biggest employment gains in the North.