Member Article

Business group say HS2 is Government's "grand folly"

The Institute of Directors has called for the Government to abandon plans for HS2, following doubts raised by former Chancellor, Alistair Darling.

The business organisation has branded the scheme a “grand folly” and a survey of members showed 70% thought it would have no impact on their business.

Last week Mr Darling raised concerns that spending on HS2 would leave little money for necessary maintenance and upgrades to the existing rail network.

Part of the Government’s economic case for HS2 maintains that time spent on the train is unproductive, however this is an assertion refuted by the IoD.

When asked, 48 per cent of IoD members said they spend at least half of their journey working.

Simon Walker said: “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.

“Some of the specific claims that the Government has used to support its economic case for the project have been challenged by our members, who by and large do not feel that their business will benefit.

“We recognise that some of our members are in favour of this project, and there is a plurality of opinion amongst the businesses community. But overall there appears to be little enthusiasm amongst IoD members, not even in the regions where the benefits are supposed to be strongest. Indeed, our research shows that almost every region expects London to benefit the most.

“The IoD cannot support the Government’s current economic case for HS2 when so many of our members are doubtful of the benefits.

“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.

“Our members support increased investment in other aspects of our road and rail network, citing this as more important than investment in HS2. 80 per cent feel that investment in existing intercity rail services should be a priority, with just 41 per cent saying the same for investment in HS2. 63 per cent believe the money should be spent on other transport projects.

“Station upgrades, inter-city improvements, tunnels, electrification and capacity improvements should all be considered alternatives.

“It is time for the Government to look at a thousand smaller projects instead of falling for one grand folly.”

This was posted in Bdaily's Members' News section by Tom Keighley .