The new HS2 high speed rail link is likely to provide a variety of benefits and opportunities to West Midlands business organisations and residents. It’s anticipated that when the network is fully operational, it will generate around £60bn in user benefits, and over £13bn in economic benefits.
How will HS2 benefit the West Midlands business arena?
Many of these benefits are highly likely to impact West Midlands companies tremendously.
A report issued by KPMG indicates that regions other than London will be the biggest beneficiaries of this economic boost, however the real impact won’t be felt until around the year 2037. The major business beneficiaries will be in the West Midlands and Northern areas.
Some of the benefits that are likely to accrue from HS2 include:
– GVA (gross value added) increases of around £1.5bn minimum for the West Midlands by the year 2026
– approximately 22,000 growth in job opportunities for the West Midlands, which equates to an increase of around 1.5%
The high speed railway line to London is anticipated to provide an additional £600mn GVA impact by 2026 for the Metropolitan Area of the West Midlands alone. Much of this increased GVA will be from enhanced B2B connectivity and businesses in the central Birmingham area. Forward-thinking business organisations in Birmingham and the West Midlands as a whole would be well advised to start planning ahead for enhanced B2B connectivity by sourcing the high tech business solutions that will give them a real competitive edge.
For the UK government, the forecast over a longer term period also looks positive. Over the 60 timeframes from the date HS2 begins operations, its benefits will swell Treasury coffers by around £6.4bn.
And, finally, by the year 2026, it’s anticipated there will be much less congestion on West Midlands roads due to greater rail freight movement. This will also impact on the national infrastructure and the local environment will benefit greatly. In all, the advantages of HS2 will impact in a positive way on West Midlands businesses, communities and local environments.
The HS2 rail link will enhance and boost the West Midlands economy considerably by creating more jobs and allowing far more workers to commute further to newly created or better jobs. The creation of an additional 22,000 jobs throughout the West Midlands is likely to boost local GVA by £1.5bn and will benefit communities and infrastructure considerably, leading to greater wealth within local economies.
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