New Study Casts Doubt on Benefits of HS2

 An independent research project conducted by Imperial College London London to Birmingham railway may create just over half of the total economic gains predicted by the Government.

A new mathematical model suggests that major rail infrastructure projects, such as High Speed 2 (HS2) and London Crossrail, will cause some businesses and homeowners to lose out financially, when other destinations become better connected. HS2 has been estimated by a KPMG report, commissioned by the Department for Transport in 2013, to create £15 billion annually in increased economic output, with phase one estimated to deliver 40 per cent of this benefit (£6 billion per annum). However, the new study predicted that phase one would create only £3.6 billion annually in increased economic output; less than one per cent of current output of both cities. The scientists calculated overall, long-term benefits by taking into consideration not just the positive but also the negative impact on businesses in London and Birmingham.

Imperial College’s summary of the findings can be found by clicking here and the full report can be read by clicking here.

Comments are closed.