Business promotes £10bn benefit of high-speed rail

A report published today by the Business Infrastructure Commission (BIC) urges the Government to prioritise investment in infrastructure because of the long-term economic benefits.

And the man who chaired the commission said going ahead with the proposed £32bn high-speed rail network which will cut journey times from Leeds to London to 80 minutes is vital – especially after Northern firms have been starved of investment in vital infrastructure in recent decades.

Professor David Begg, chairman of the Commission and director of the Campaign for High Speed Rail said: “History tells us that all too often the national interest has been put on hold as a concession to local opposition.

“If high-speed rail is given the go-ahead this will signify that at long last we are putting the national interest over local interest, investment is prioritised over consumption and there is a long-term strategy to cope with spiralling demand for our rail system.”

Today’s report comes weeks after 90 of the region’s business and political leaders signed a letter to the Yorkshire Post urging the Government not to be deterred from the project by vocal opposition in the Chilterns, where campaigners object to the route cutting through the countryside.

The Department for Transport calculates the network could bring benefits worth £44bn to the economy – with the Tories claiming that equates to £2,600 for every working family in Yorkshire.

The report comes as Transport Secretary Philip Hammond visits Birmingham today, the destination for the first phase of the network. He has become a key champion for the project, and has urged supporters of the scheme in the North to become more vocal in order to challenge the opponents.

Mr Hammond said: “We must invest in Yorkshire’s future. High speed rail offers us a once-in-a-generation opportunity to transform the way we travel in the 21st century and would help us build a modern economy fit for the future.

“High Speed Rail will benefit every family in Yorkshire, by cutting journey times, boosting local growth and creating jobs.”

Michael Oglesby, executive chairman of the Bruntwood Group of companies with locations throughout the North, said: “It is essential for our infrastructure that high-speed rail be built as quickly as possible.

“ Cities in the North are desperate for it to reach their area because they know that high-speed rail will have a major impact on helping to break down regional divides and bringing our country closer together.”

Today’s report urges the Government to focus on five pieces of infrastructure.

They include a detailed long-term infrastructure strategy, procurement reform and improvements to the planning system for major projects.

The BIC said these had to go hand-in-hand with attracting private finance, and ensuring the UK had the right skills to deliver national and regional infrastructure projects.

Institution of Civil Engineers director general Tom Foulkes said: “The need to think strategically and secure targeted investment in our infrastructure networks is becoming ever more pressing.

“The Government must now focus on attracting inward investment and translating its plans into actions that pave the way for infrastructure to become the economic driver it promises.”

A Treasury spokesman said: “It is vital that the UK has reliable infrastructure to grow and that is why the Government is publishing the UK’s long-term forward view of projects and programmes in autumn 2011, as part of the national infrastructure plan 2011.”