Backing out on plans to build High Speed 2 would cost the UK infrastructure industry almost 27,000 new jobs between now and 2020, latest research has revealed.

A study carried out by Albion Economics and published this week by lobbying group High Speed Rail Industry Leaders (HSRIL) forecasts that by the end of the decade 26,650 people will have worked on the project throughout the supply chain.

This makes the scheme “by far and away the biggest single source of new jobs in the UK infrastructure sector”, according to HSRIL director Henrik Anderberg.

Publication of the research comes following months of criticism that the HS2 project, which some claim is likely to cost well over £50Bn to deliver, offers poor value for money.

Just last week Treasury Select Committee chairman Andrew Tyrie wrote a letter to Transport Secretary Chris Grayling about the economic case for HS2, as well as for airport expansion. “HS2 has the weakest economic case of all the projects within the infrastructure programme, yet it is being pushed through with the most enthusiasm,” he wrote.

He added that the question of whether it is possible to instead improve rail capacity at lower speed and, consequently, at a lower cost has not been comprehensively examined. “The case for providing sufficient detail to enable other ways of improving rail capacity – including at lower speed – to be fully assessed remains very strong,” he said.

However Henrik Anderberg said: “Both HS2 Ltd and the Government are making cracking progress at pushing this project forward.” Under current plans the project could reach Leeds and Manchester by 2033.

The HSRIL study shows that, of the 26,650 jobs to be created by HS2 by 2020, two thirds will be on the construction side with the remaining third made up of design and management roles.

It adds that more than half of these will come from contracts already out to tender. Furthermore a substantial proportion of jobs will also take the form of apprenticeships, of which phase one – from London to Birmingham – is expected to support between 5000 and 9000.

♦ George Osborne is set to chair a new Northern Powerhouse Partnership launched to push forward the former Chancellor’s plans to boost economic growth in the north of England.

The new think tank, which is backed by Government, will comprise senior politicians and business leaders from the region. It is expected to commission research on proposed schemes and lobby for more devolution of powers and investment in infrastructure for the region.

(Photo: HSRIL)