HS2 could boost West Midlands economy by £10bn - report

HS2 will "benefitting local people, businesses and the economy"

The HS2 railway linking London to Birmingham could boost the West Midlands economy by £10bn during the next 10 years, according to research.

More than 40,000 new homes could be built and 31,000 jobs created, the report by consultancy Arcadis said.

The study found that since 2017, the region had attracted the most inward investment outside London and the South East.

There was also a knock-on effect on other building projects, Arcadis said.

It reported areas close to three HS2 hubs had seen planning applications rise by two-thirds. They include places within a 1.5-mile (2.4km) radius of Curzon Street station in Birmingham, along with Interchange station in Solihull, and the Washwood Heath Depot.

The findings in the document - commissioned by HS2 Ltd - follow a fresh wave of controversy surrounding the high-speed network.

While work to link London to Birmingham is under way, causing alarm to some critics by cutting through a swathe of English countryside, the government announced at the end of last year the northern leg of the project had been abandoned amid funding pressures.

Some Midlands people living along the earmarked route north of Birmingham - among them those who had been subject to compulsory purchase plans - said the change had left them in limbo.

Overspend

Following the report's findings, HS2's executive chair Sir Jon Thompson said the railway would spread "prosperity and opportunity to the communities it touches for generations to come".

Mr Thompson, who has led the project since September 2023, had warned last month that the London to Birmingham stretch could end up costing more than £65bn in current prices.

He said there were many reasons for the overspend, including a rise in material costs and original budgets being too low.

Phase One of HS2 is due to open between 2029 and 2033, with services initially running to and from Old Oak Common in west London.

The report stated: "While there are undoubtedly other factors at play in the emergence of new schemes, including the uplift created by the West Midlands hosting the 2022 Commonwealth Games and the support provided by Birmingham's city centre Enterprise Zone, it is vital that we gather evidence that definitively outlines the scale of influence HS2 is having on the West Midlands' economic renaissance."

It added "this report gives definitive proof that investor appetite, regeneration activity and investment close to HS2's regional assets has surged".

West Midlands mayor, Andy Street, said: "Whether it's urban regeneration, improved local transport connections, increased housing provision and of course new jobs, HS2 is benefitting local people, businesses and our wider economy."