High-speed rail will 'boost economy'

These are claims in a new study by Greengauge 21, a not-for-profit organisation that aims to research and develop the concept of an HSR network and promote its implementation.

The study, entitled ’High-Speed Rail in Britain: Consequences for Employment and Economic Growth’, was undertaken by management consultant KPMG.

Lewis Atter, a KPMG partner, said: ‘Evidence on the importance of rail to the economy and thus exchequer revenues is scarce. Our work for Greengauge is an attempt to put that right.

‘Using evidence on how rail connectivity and economic performance are linked today, we have asked what HSR could do in the future. This is a new way of thinking about the economic returns to transport investment, focused on its impact on the supply side of the economy.

‘The questions it poses about the long-term returns to different kinds of investment will become increasingly important as the country faces up to the decisions necessary to reduce the deficit while also promoting longer-term growth,’ he added.