HS2: Businesses ‘not convinced’ of economic benefits

Some 70% said the scheme would have no impact on the productivity of their business.

Fewer than half (41%) rated HS2 as important to their business – that is down from 54% in a similar survey conducted in August 2011.

“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,” said Mr Walker.

“Overall there appears to be little enthusiasm amongst IoD members, not even in the regions where the benefits are supposed to be strongest.

“We agree with the need for key infrastructure spending, but the business case for HS2 simply is not there… it is time for the government to look at a thousand smaller projects instead of falling for one grand folly.”

He added that the cost-benefit analysis was conducted before laptops and tablet computers became commonplace, and as a result suggested time spent on trains was wasted.

“The fact is more than half our members say they spend all of their time on trains working,” Mr Walker told the BBC’s Today programme. “For many of them it’s as productive as the time they spend in the office.”

HS2 has divided opinion, even among the business community. The British Chambers of Commerce, another business lobby group, said it remained supportive of the project, though a spokesperson told the BBC it was “critical” that costs were kept under control.

The CBI has also voiced lukewarm support. Director general John Cridland said it supported HS2 “in principle” but that “it must be demonstrably clear that the benefits outweigh the costs”.

A DfT spokesman said the HS2 Growth Taskforce would “work with city and business leaders to ensure we are capitalising on every opportunity to help regeneration, job creation, investment opportunities and in building a skilled UK economy”.

Without HS2, he said, “our existing rail network will be full by the mid-2020s at a cost to passengers and businesses up and down country”.