The HS2 rail link could boost the economy of Greater London by 0.5 per cent, freshbusinessthinking.com reports.
A new study, undertaken by KPMG and commissioned by HS2 Ltd, found that Greater London could see its already buoyant GDP increase by 0.5 per cent simply because of the HS2 link.
Overall, Britain as a whole could see financial gains of around £15 billion every year once the link has been completed. If accurate, this would mean that the link had more than paid for itself within two years of opening. Furthermore, this statistic was said to be based on much more qualitative data than prior estimates as it considers both GDP increases and tax paid in to the Exchequer.
Put another way, this £15 million economic boost would be the equivalent of creating an entirely new economy of the same size as Oxfordshire or Cambridgeshire. Much of this growth, it has been claimed, could be attributed to business passengers travelling more regularly to meeting venues around London and the regions as travel times plummet.
“There have been repeated calls for a business case for the HS2 scheme focused on jobs, productivity and growth,” KPMG’s head of infrastructure, building and construction, Richard Threlfall told theconstructionindex.co.uk.
“KPMG’s analysis forms a key part of that business case, setting out the economic impact across the country of the HS2 scheme. It shows beyond reasonable doubt that HS2 brings net benefits to the country of many times the scheme’s cost.”