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HS2 report sets out prospect of northern construction boom

21 Mar 14 The construction opportunities of the proposed £50bn high speed rail network extend far beyond the rail tracks to the wholesale regeneration of England’s northern cities, a government-backed report today suggests.

The government’s HS2 Growth Taskforce has called for local authorities to work together to create growth in cities along the route of the proposed high speed rail network. And it suggests a government minister should be specially assigned to overseeing these local and regional growth plans.

The taskforce, which includes, Laing O’Rourke owner Ray O’Rourke as well as local council leaders and other vested interests, is chaired by Lord Deighton, commercial secretary to the Treasury.

The taskforce’s report, called HS2: get ready, recommends steps needed to maximise the economic benefits of the £50bn scheme. Its publication comes in the same week as HS2 chairman Sir David Higgins’ own report on out how HS2 might be built sooner.

The Growth Taskforce calls for action now to simplify and join up funding to deliver construction fast around HS2 stations sites. By accelerating regeneration and development of brownfield land on the route, big benefits will be seen in just a few years, the report suggests. It also calls for city regions to work together to integrate local transport networks.

The taskforce’s recommendations include:

  • new local bodies to create tailored growth plans for cities along the HS2 route
  • local leaders and business use HS2 to boost their city regions by creating new transport links and promoting urban regeneration schemes
  • work to begin now to ensure young people understand and capitalise on the career opportunities HS2 will open up
  • help given to British firms to bid for HS2 contracts
  • ensuring HS2 contracts lead to local job creation, skills development and apprenticeships.

Lord Deighton, who was previously chief executive of London 2012, responsible for building infrastructure for the Olympic Games, said: “Like the Olympics, HS2 has the potential to be a great British success story, bringing jobs and growth to the whole country. Our report sets out the common sense steps that we need to take now to achieve this.”

Manchester City Council CEO Sir Howard Bernstein said: “HS2 is not just a railway. It is the opportunity to re-balance Britain and kick-start regeneration in my city and others across the Midlands and the north of England. It is imperative that we work together to do all we possibly can to get the country ready.”

The report also recommends that stations are designed to accommodate potential expansion, an idea particularly welcomed by the Institution of Civil Engineers.

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The Confederation of British Industry (CBI) also put its weight behind the report. Director for business environment Nicola Walker said: “HS2 offers an opportunity to regenerate local economies, provide jobs and boost growth across communities in the UK.  Government, local authorities and businesses must work together to ensure the potential of this project is realised.

“Lord Deighton’s taskforce rightly challenges local areas to get their HS2 growth strategies in place. It is essential these plans complement and enhance other local initiatives, such as the Local Enterprise Partnerships’ Strategic Economic Plans and Local Authorities’ development plans.

“A highly skilled workforce will be critical to delivering HS2 and we welcome the taskforce’s call to put in place measures to make this a priority.”

Jeremy Blackburn, head of policy at the Royal Institution of Chartered Surveyors, said: “The report is exactly what RICS has been calling for. It accurately explains the economic growth benefits of HS2, which go beyond the arguments around transport capacity, emissions reduction and shorter journeys.

“More than any other project, HS2 has the potential to redress the imbalance between North and South that has characterised the UK economy for decades. Its size and scope are visionary. And that’s why we have to get it right. High speed rail should be used to support economic growth by linking major economic centres, driving office, commercial and industrial property based growth in Northern and Midland cities. Without high-speed connections international, and indeed domestic, companies simply won’t look north of London, making HS2 vital to increased investment in the regions and improving regional competitiveness.

“It’s very symbolic that the budget was bookended by both the Higgins report on managing costs and delivery, and the Deighton report on using HS2 to drive economic growth. It’s good to see this sustained political support and explanation.”

The membership of the HS2 Growth Taskforce is:

  • Lord Deighton (Chair), Commercial Secretary to the Treasury
  • Sir Howard Bernstein, CEO Manchester City Council (deputy)
  • Sir Albert Bore, Leader Birmingham City Council
  • Sir John Rose, Deputy Chairman Rothschild Group
  • Frances O’Grady, General Secretary of TUC
  • Neale Coleman, Mayor of London’s Adviser on Olympic Legacy
  • Prof Tony Venables, Oxford University
  • Alison Nimmo, CEO Crown Estate
  • Pete Waterman, Cheshire and Warrington LEP
  • Cllr Julie Dore, Leader Sheffield City Council
  • Cllr Matthew Colledge, Leader of Trafford Council
  • Lorraine Baldry, Chair of London and Continental Railways
  • Ray O’Rourke, Chairman Laing O’Rourke
  • Steven Norris, businessman and former Transport Minister
  • Roger Marsh, Chair of the Leeds City Region LEP

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