United Kingdom

Details

  • Industry: Infrastructure, Building and Construction
  • Type: Press release
  • Date: 28/01/2013

HS2 could boost economic output £17bn to £29bn in 2040 

Richard Threlfall, Head of Infrastructure, Building and Construction at KPMG,  comments on the Government’s announcement of the preferred route for phase 2 of HS2.

 

“Today’s announcement is good news for Britain’s transport network and for our economy. 

 

“Our own analysis shows that better business to business connectivity will enhance productivity and employment and thereby would contribute to economic growth. Ultimately HS2 would also generate substantial additional tax revenues to the exchequer.

 

“We predict that a high speed rail network across the UK could boost annual economic output between £17bn and £29bn in 2040.

 

“Additional annual economic impacts on this scale could increase annual tax receipts by between £6bn and £10bn in real terms by 2040.”

 

“Our work suggests high speed rail offers a good return to the Treasury and to the taxpayer and is a cost effective approach to securing future national prosperity.

 

“Today’s announcement is also fantastic news for our northern city regions. It is a bold statement by the Government of its intention to redress the UK’s economic power balance. The last decade has seen a significant shift in the UK’s economic centre of gravity towards London and the South-East. In 1999 31.9% of the country’s economic productivity originated in the South-East, today it is more than 35%. Today’s news could be the first step towards shifting more power towards the Midlands and the North of the country so that the UK as a whole operates as an economic powerhouse.”

 

 

-ends-

 

Media Contact:


Katrin Boettger, Senior PR Manager 

Tel: +44 207 896 4232 / 0782 4475168

Email: katrin.boettger@kpmg.co.uk

 

About KPMG

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.

 


 

 

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