An influential business group has added its voice to the growing criticism of the HS2 high speed rail project. The Institute of Directors (IoD) has described the proposal as a ‘grand folly’ that will have no impact on the productivity of UK businesses.
The criticism follows a survey of its members which shows that only 27 per cent of directors believe that HS2 represents good value for money. As a result the IoD claims that it would be better to scrap the controversial project and invest the money elsewhere in the transport network.
The IoD’s director general, Simon Walker, believes the government’s cost benefit analysis is flawed and that there is little enthusiasm for HS2 even in the regions where supporters of the scheme expect investment and commercial development to follow in the wake of construction.
“Businesses up and down the country know value for money when they see it, and our research shows that they don’t see it in the government’s case for HS2.
“We agree with the need for key infrastructure spending, but the business case for HS2 simply is not there.
“The money would be far better spent elsewhere and in a way that will benefit much more of the country.
“Investment in the West and East Coast main lines combined with a variety of other infrastructure projects would be a far more sensible option,” Mr Walker said.
HS2 chief executive Alison Munro says she respects the right of the IoD to state its case but she believes that the high speed link will bring about a “transformational change” to the economy, creating thousands of jobs and opportunities for development.
The first stage of HS2 will link London and Birmingham and is due to be completed in 2026. According to a recent report from the Institute of Economic Affairs (IEA), the overall cost of the project could rise to as high as £80 billion.
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