George Osborne's high speed rail plan between Manchester and Leeds is just the ticket for northern busines

By VICKI OWEN, FINANCIAL MAIL ON SUNDAY

Updated: 08:56 EST, 30 June 2014

Making plans: Business groups have cautiously welcomed George Osborne's proposal for a high speed rail link between Manchester and Leeds

Business groups have cautiously welcomed George Osborne’s proposal for a high speed rail link between Manchester and Leeds to create a ‘Northern global powerhouse’. He said the £7 billion plan could cut travel times from 50 minutes to 30 minutes.

Phil Orford, chief executive of the Forum of Private Business, said: ‘HS3 may only be in the conception stage and some decades away, but the fact that the government is setting out its long-term investment and transport policy is encouraging.

'In particular, it supports a growing ground swell of opinion supporting the idea of a second northern economic powerhouse – a ‘linear city’ stretching from Liverpool to Newcastle.

‘Businesses will also be pleased that it finally recognises east-west links as being just as important as north-south, and should this project move forward it will give many parochial businesses the opportunity to expand growth horizons.’

Commenting on the announcement, Adam Marshall, executive director of policy at the British Chambers of Commerce, said: ‘Businesses have seen many proposals for better links between northern cities over the years. The prospect of a high-speed east-west rail link across the North is a good start if it materialises, but we would like to see more thought given towards connecting all the core cities in the north, not just Manchester and Leeds.

‘While the Chancellor’s ambition for a Northern “HS3” is positive, the government must focus on getting HS2 on the statute books and into construction first, and on vital road and rail improvements throughout the UK. Businesses like this sort of ambitious thinking, but will be far more impressed if the government’s existing list of infrastructure commitments are delivered.’

Katja Hall, Confederation of British Industry deputy director-general, said: ‘To keep the wheels on the recovery turning, we need to maximise growth across the UK. Better east-west links in the north could provide a huge boost to local businesses, and help further balance the UK economy by creating a northern hub.

 

‘However, any proposals need careful planning. The priority must be boosting connections, not speed. We need to see more detail for such a project, which must be good value for money for the taxpayer.’

KPMG partner and UK head of infrastructure Richard Threlfall has compared the proposal to the build of the M25 and Channel Tunnel. He has said: ‘HS3 has the potential to spread our economic wealth across the country and can be compared to bold and visionary schemes such as the M25 and the Channel Tunnel.

'Over the last 10 years, according to ONS data, the North's share of the UK's economic output has fallen by more than five per cent.

‘This trend will continue unless we strive to share our country’s economic success beyond the south east. HS3 recognises the dismal state of links between the UK's Northern cities today. It takes about the same time to reach Liverpool from Leeds as it does to get to London from Leeds, even though it is less than half the distance.’