Exclusive: Osborne hails high speed rail’s potential to transform North

The Treasury has been seen as a potential obstacle to a move to speed up the delivery of HS2 because any changes are likely to involve spending higher sums earlier in the lifetime of the project.

But speaking to the Yorkshire Post yesterday, the Chancellor made clear his support for HS2 and the boost it could give to the North’s economy.

He said: “(HS2 chairman) Sir David Higgins is looking at the speed of the project and how we go about delivering it to make sure we get value for money for the taxpayer. But we’re also looking at how in Leeds and across the whole of West Yorkshire we are maximising the number of jobs that are going to be created and the number of businesses that are going to be created.

“So we are looking at all of this and I’m really open to all ideas. I’ve been a passionate advocate of High Speed 2 right from the very beginning and I think it will transform the economic geography of our country to the better.”

Earlier this week, Sir David Higgins suggested work could begin on the northern and southern legs of HS2 at the same time.

At the moment the line is due to be built from London to Birmingham first, with a second phase seeing one line continue north to Manchester and a second going north-east calling at stops at Meadowhall and Leeds.

Mr Osborne said the biggest issue facing HS2 was the “lengthy process” of getting planning permision and parliamentary approval for the project and agreeing compensation for those adversely affected.

“We also want to make sure we are maximising the economic benefits,” he said.

• George Osborne interview