Yesterday the government published its plans for the second phase of HS2, with routes for 211 miles of rail line from Birmingham to Leeds and Manchester.
The first phase, 140-miles of track between Birmingham and London, is on course to start construction in four years and open to passengers in 13 years.
Richard Threlfall, head of infrastructure, building and construction at KPMG, described HS2 as ‘good news for the economy’.
While opponents to the scheme question whether the nation can afford to spend £33bn on the project, Mr Threlfall said that HS2 would be an economic boost, not a burden.
“Our own analysis shows that better business-to-business connectivity will enhance productivity and employment and thereby would contribute to economic growth. Ultimately HS2 would also generate substantial additional tax revenues to the exchequer,” he said.
“We predict that a high speed rail network across the UK could boost annual economic output between £17bn and £29bn in 2040.
“Additional annual economic impacts on this scale could increase annual tax receipts by between £6bn and £10bn in real terms by 2040.
“Our work suggests high speed rail offers a good return to the Treasury and to the taxpayer and is a cost effective approach to securing future national prosperity.”
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