Report: Economic value of HS2 rail line to UK economy has lowered

A report suggests that the proposed £50bn HS2 high-speed rail line’s benefits will not be as great as previously thought due to increased cost.

15:12 30 October 2013

In August 2012, the economic value of HS2 rail line to the UK was said to be worth £2.50 for every £1 spent. However, due to increased costs, this has now been revised to £2.30.

The figures are based on a recalculation of the number of business people using the line and the amount of work they complete while they are travelling.

Shadow transport secretary Mary Creagh did not seem too happy about the increased cost:

She said: "Labour has always supported HS2 because we must address the capacity problems that mean thousands of commuters face cramped, miserable journeys into cities like Birmingham, Manchester, Leeds and London.

"However, we cannot give a government that is mismanaging this, or any project, a blank cheque."

Meanwhile, Joe Rukin, from Stop HS2, said that the government pulled some random figures to con the public.

"As if by magic, they expect us to believe that, after three years, the economic case for HS2 has risen like a phoenix from the flames. They surely must realise that everyone is going to see through this cynical attempt at spin."

The first phase of HS2 will run a line from London to Birmingham in 2026. The second phase sees a north-east and north-west Y-shaped route to be completed six or seven years later.

The estimated cost of the project £42.6bn, with an additional £7.5bn spent on the trains.