This report presents analysis by KPMG which asserts that the planned High Speed 2 rail link (HS2) could grow the country’s economy by £15billion per year and that the regions outside London would benefit most from the project. The report, commissioned by HS2 Ltd, the company developing the new high speed link, also provides and analysis of the economic benefits for each HS2 city region (with variations in the impact on particular regions depending on assumptions as to competition business sensitivities) – For example the report estimates that HS2 will give the Birmingham city region economy a yearly boost equivalent to 2.1 – 4.2 per cent of the city region’s Gross Domestic Product. For Manchester city region the figure is 0.8-1.7 per cent, for Leeds city region, 1.6 per cent and for Greater London 0.5 per cent.
Based on analysis of how connectivity influences productivity and competitiveness today, the KPMG report examines the potential benefits of HS2 in a different way to those captured in more traditional appraisals.
A key facts document for the HS2 project can be found here.