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HS2 could deliver up to £2 billion annually to Yorkshire’s economy, says KPMG

The recently widely-derided HS2 project is on track to boost Yorkshire’s economy by some £2 billion a year, according to KPMG

In an analysis of a report commissioned by HS2 Ltd, which is developing the new high speed link, the professional services titan predicts yearly productivity gains of £1 billion for South Yorkshire (specifically Barnsley, Doncaster, Rotherham and Sheffield) and between £0.5 – £0.9 billion in West Yorkshire (Bradford, Calderdale, Kirklees, Leeds and Wakefield). The Leeds city region alone is set to enjoy economic growth of 1.6% of its GDP

KPMG also forecasts improved business connectivity of 22.5% and 19.7% for South and West Yorkshire respectively when the line comes on stream and that the Yorkshire region as a whole will experience an improved competitive position relative to Greater London and the rest of Great Britain.

Richard Threlfall, KPMG’s UK head for infrastructure, building and construction works out of the company’s Leeds office. He said: “There have been repeated calls for a business case for the HS2 scheme focused on jobs, productivity and growth. KPMG’s analysis forms a key part of that business case, setting out its economic impact.”

He claims that the firm has shown beyond reasonable doubt that HS2 will bring net benefits of many times the scheme’s cost and that its analysis also proves that the project will significantly help counter the corrosive effects of a traditional economic divide, where regions in the south traditionally fare best.

Nevertheless, the HS2 scheme faces stiff opposition along its proposed route, not least in Yorkshire where homeowners in many communities fear that their properties will lose value dramatically with knock-on damage to local economies.

Meanwhile, the leaders of the region’s two biggest councils have said that the economic case has not been proved. Peter Box of Wakefield Metropolitan Council and David Green of Bradford Metropolitan Council have complained publicly that the investment could be far more usefully deployed on local transport improvements; will only benefit already locally strong economies; and could even serve to suck talent and investment from Yorkshire to London.

This was posted in Bdaily's Members' News section by David Gatehouse .