Written evidence from The Campaign for
High Speed Rail (HSR 187)
The Campaign for High Speed Rail fully welcomes the
Government's plans for a high-speed rail network to be extended
across Britain and supports the proposals put forth in the Government's
consultation that was published on 28 February 2011.
The below statement is in response to the Transport
Select Committee's call for evidence into the Government's consultation
on HS2. We have chosen to focus on the economic benefits that
high-speed rail will bring to the Midlands, North and Scotland
as the members of our Campaign find this to be the most compelling
reason for supporting the Government's plans for a high-speed
rail network.
1. INTRODUCTION
1.1. The Campaign for High Speed Rail is a campaign,
independent from the Government and HS2 Ltd, representing employers
from across the country who believe Britain needs a modern, high
speed rail network to meet the challenges of the 21st Century.
We are supported by hundreds of business people from up and down
the country, with the vast majority of supporters coming from
the Midlands and the North.
1.2 Our Director, Professor David Begg, has been
advocating for high-speed rail for many years. He is also the
Chief Executive of Transport Times and the Director of Portobello
Partnership. He sits on the boards of numerous transport-related
projects and companies including FirstGroup and BAA, as well as
the Greater Manchester Transport Executive and the Business Infrastructure
Commission. He was formerly the Chairman of the Commission for
Integrated Transport and sat on the board of the Northern Way
Transport Compact. He is also a Visiting Professor in Sustainable
Transport at Plymouth University, and has an international reputation
as a commentator on transport issues.
2. MAIN ARGUMENTS
FOR HSR
2.1 The members of our campaign support high-speed
rail for many reasons, but the main reasons can be boiled down
to (1) Building the economy; (2) Bringing Britain closer together;
(3) Investing in the Midlands, the North and Scotland and (4)
Meeting the demand for more trains.
2.2 Building the economy. I will elaborate in
Section 4 on the economic benefits that HSR will bring, in particular
to the Midlands and the North. Transformational changes to connectivity
in the Midlands, North and Scotland will help to facilitate growth
in employment, allow for existing businesses to reach new markets
and stay competitive in an increasingly competitive marketplace,
and allow people more time to do their business.
2.3 Bringing Britain closer together. Of our
direct peers, Britain is the only country without a high-speed
rail network. Employers now to look further afield for talent,
and employees look across a more diverse geographic area for employment
opportunities, it is only natural to build a high-speed rail network
that supports our modern economic needs. Connectivity is key for
business and Britain must stay competitive.
2.4 Investing in the Midlands, the North and
Scotland. For too long our country's infrastructure planning has
been short-sighted. The majority of money spent on transport infrastructure
is spent in the South of England—Cross Rail and HS1 for
example—the Midlands and North have similar infrastructure
needs to the South and deserve a chance.
2.5 Meeting the demand for more trains. Demand
for rail travel is not predicted to decrease and is forecast to
continue to grow. The East Coast Main Line and West Coast Main
Line are both already nearing capacity and will reach capacity
in the coming years, so the Government will need to do something
to increase our future capacity needs. Upgrading existing lines
will be expensive and disruptive, without providing the economic
and agglomeration benefits that come with high-speed rail. This
is supported by the Government's consultation which states: "A
new conventional rail line would cost 90% of HS2 but deliver 33%
fewer benefits. Upgrading existing infrastructure would deliver
less than 25% of the benefits of HS2."[274]
Additionally, high-speed rail will then release capacity on existing
networks, allowing for more frequent and more efficient commuter
services, such as Coventry to London. The obvious choice for our
capacity needs is to build a high-speed network.
3. ECONOMIC RE
-BALANCING AND
EQUITY
3.1 According to government statistics, on a
per capita basis, Gross Value Added in the North is just 80% of
the South. GDP per person is one third higher in the South than
the North. Productivity in Yorkshire and the Humber is the second
lowest in England and declining. Unemployment in the North is
nearly 2.5% higher compared to the South East. We need an infrastructure
system that will give the North a change for economic regeneration.[275]
3.2 There have been several independent reports
that have begun to quantify the economic benefits that HSR could
bring to the Midlands and the North, helping to re-balance the
country's current south eastern centric economy.
3.3 Accountants KPMG have quantified wider economic
benefits from high-speed rail for the North of England alone at
£12 billion[276]
while economic partnership group, The Northern Way, valued the
impact at £6 billion.[277]
3.4 The Northern Way report also indicates that,
with the full Y network proposed by the Government, the North
sets to benefits the most. To quote: "The Northern Way has
identified that a north-south high speed rail network serving
both sides of the Pennines has the potential to generate agglomeration
benefits through linking the northern city region economies. In
analysis pre-dating the Government's identification of the Y-shaped
network as its preferred way forward and for a more extensive
network, these agglomeration impacts are valued at £13 billion
PV33, (using the Department for Transport's current methodology).
Of this £13 billion, £5 billion is in the
North of England. Proportionally, the North's economy receives
a greater uplift than that in London and the South East."[278]
3.5 In that same Northern Way report, "Transforming
Our Economy and Connectivity: High Speed Rail for the North",
published in March of this year, the Northern Way also predicts
that the £44 billion will be a multiple based on the
success of HS1—they estimate that the GVA benefits could
be up to three times the size of the welfare benefits assessed
in a conventional cost-benefit appraisal.
3.6 A report by Greengauge and KPMG, found that
areas of greater connectivity have higher wage levels and found
strong links between employment density and rail connectivity.
That same report suggests that areas like the North East could
see more than a doubling in the rate of employment growth.[279]
3.7 Evidence from accountants, economists and
transport consultants suggests that high-speed rail could have
a dramatic effect on the economies of the Midlands and the North.
For Britain to remain competitive in the world economy, a large
portion of the workforce and population cannot continue to be
ignored.
4. HOW DOES
HSR FIT WITH
THE GOVERNMENT'S
TRANSPORT POLICY
OBJECTIVES
4.1 To reiterate, for too long our country's
transport planning has been short-sighted and short-term. HS2
offers the chance for forward thinking and much needed long-term
planning.
4.2 HS2 also helps to achieve the Government's
goal of promoting more sustainable travel. High-speed rail is
one of the most carbon-effective methods of mass transit. HS2
has the potential to reduce the number of internal flights, reducing
aviation carbon emissions.
4.3 HS2 will link up to existing transport—airports,
HS1, commuter lines, etc, bringing existing networks closer together
and helping to create a unified, national transport system.
4.4 The links to airport and HS1 are critical
for British business and tourism—high-speed rail will allow
for better access to European and other foreign markets, in addition
to sending a signal that Britain is open for business.
5. CONCLUSION
5.1. On behalf of all members of the Campaign
for High Speed Rail, I hope the Select Committee strongly considers
what high-speed rail will do for our entire country. Everyone
is set to benefit from greater connectivity. This is a project
of national significance and a once in a generation opportunity
that must be seized.
June 2011
274 Page 43 of Economic Case for HS2, DfT, February
2011. Back
275
Source: Table 1, Public Sector Employment and Expenditure by
Region, House of Common Library, July 2010; Source: Calculations
based on-Office for National Statistics, Regional Labour Market
Statistics February 2011, (Table S1). Back
276
KPMG report. Back
277
The Northern Way Transforming Our Economy and Our Connectivity:
High Speed Rail for the North, March 2011, page 30. Back
278
The Northern Way Transforming Our Economy and Our Connectivity:
High Speed Rail for the North, March 2011, page 29. Back
279
Greengauge and KPMG, High Speed Rail in Britain: Consequences
for employment and economic growth, Feb 2010, page 25. Back
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