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| HS2 'losers' revealed as report shows potential impact | |
| (about 2 hours later) | |
| The potential losses to some regional economies from the HS2 high-speed rail link have been revealed. | |
| HS2 would make more than 50 places across the UK worse off - such as Aberdeen, Bristol and Cardiff - research by KPMG suggested. | HS2 would make more than 50 places across the UK worse off - such as Aberdeen, Bristol and Cardiff - research by KPMG suggested. |
| The government said HS2's £17bn cost is part of a £73bn package of transport improvements in the next parliament. | The government said HS2's £17bn cost is part of a £73bn package of transport improvements in the next parliament. |
| It claimed the measures would benefit areas which HS2 will not serve, long before the high-speed line opens. | It claimed the measures would benefit areas which HS2 will not serve, long before the high-speed line opens. |
| KPMG's findings were only released in a freedom of information request passed to BBC Two's Newsnight programme. | KPMG's findings were only released in a freedom of information request passed to BBC Two's Newsnight programme. |
| HS2 Ltd's chief executive has called them "unsurprising". | HS2 Ltd's chief executive has called them "unsurprising". |
| The KPMG report, which was hailed by the government when it was published in September, said the line could boost the UK economy by £15bn a year. | The KPMG report, which was hailed by the government when it was published in September, said the line could boost the UK economy by £15bn a year. |
| It listed the regions it said would benefit, with Greater London (£2.8bn) and West Midlands (£1.5bn) the biggest winners. | It listed the regions it said would benefit, with Greater London (£2.8bn) and West Midlands (£1.5bn) the biggest winners. |
| But the 92-page document omitted data for those parts of the UK not on the proposed line which stand to be net losers from the project. | But the 92-page document omitted data for those parts of the UK not on the proposed line which stand to be net losers from the project. |
| Economic output would be worst affected, according to the research, in: | Economic output would be worst affected, according to the research, in: |
| James Bream, policy director of Aberdeen's Chamber of Commerce, said it was "really disappointing" that such a huge number was left out of the original report. | James Bream, policy director of Aberdeen's Chamber of Commerce, said it was "really disappointing" that such a huge number was left out of the original report. |
| He added the negative impact for the whole north-east of Scotland could be "significant to say the least." | He added the negative impact for the whole north-east of Scotland could be "significant to say the least." |
| Dundee and Angus could lose as much as 2% of its annual GDP, KPMG found. | Dundee and Angus could lose as much as 2% of its annual GDP, KPMG found. |
| Kettering, Suffolk West and Cambridgeshire East are all listed as zones that could see a 1% drop in GDP. | Kettering, Suffolk West and Cambridgeshire East are all listed as zones that could see a 1% drop in GDP. |
| The accountants used data from HS2 Ltd's assessment of the direct transport impacts of the scheme, which would connect London to Birmingham and to Manchester and Leeds. | The accountants used data from HS2 Ltd's assessment of the direct transport impacts of the scheme, which would connect London to Birmingham and to Manchester and Leeds. |
| The Department for Transport said HS2 was vital to "rebalance the economy". | The Department for Transport said HS2 was vital to "rebalance the economy". |
| A spokesman said: "These figures show it boosts the north overall more than the south. | A spokesman said: "These figures show it boosts the north overall more than the south. |
| "Of course the line does not serve every city and region and these figures reflect that." | "Of course the line does not serve every city and region and these figures reflect that." |
| The DfT say ultimately the line would reduce journey times to Edinburgh and Glasgow by an hour. | The DfT say ultimately the line would reduce journey times to Edinburgh and Glasgow by an hour. |
| KPMG said its report clearly shows the benefits of HS2 for some regions and the negative impacts it might have on others. | KPMG said its report clearly shows the benefits of HS2 for some regions and the negative impacts it might have on others. |
| A spokesman said: "Maps in the report show potential productivity gains would outweigh the potential losses and the benefits to the UK economy would be far greater than the negative impacts. | A spokesman said: "Maps in the report show potential productivity gains would outweigh the potential losses and the benefits to the UK economy would be far greater than the negative impacts. |
| "Newsnight did not contact KPMG prior to its programme. | "Newsnight did not contact KPMG prior to its programme. |
| "If they had, we could have helped them understand how the underlying data is represented in the report we have produced." | "If they had, we could have helped them understand how the underlying data is represented in the report we have produced." |
| Professor Henry Overman from the London School of Economics - formerly an expert adviser to HS2 Ltd - told the BBC it was obvious that, as some cities, towns and regions reap the benefits of being better connected, other places away from the line will pay a price. | Professor Henry Overman from the London School of Economics - formerly an expert adviser to HS2 Ltd - told the BBC it was obvious that, as some cities, towns and regions reap the benefits of being better connected, other places away from the line will pay a price. |
| "When a firm is thinking of where to locate, it thinks about the relative productivity of different places, and the relative wages etc," he said. | "When a firm is thinking of where to locate, it thinks about the relative productivity of different places, and the relative wages etc," he said. |
| "HS2 shifts that around. So if you are on the line that makes you a better place that hasn't had that productivity improvement." | "HS2 shifts that around. So if you are on the line that makes you a better place that hasn't had that productivity improvement." |
| 'Robustness' | 'Robustness' |
| But Newsnight's political correspondent David Grossman said there were "questions about the robustness" of the data. | But Newsnight's political correspondent David Grossman said there were "questions about the robustness" of the data. |
| The chief executive of HS2 Ltd, Alison Munro, said: "What this is showing is that the places that are on the high-speed network... those are the places that will benefit most from high-speed two. | The chief executive of HS2 Ltd, Alison Munro, said: "What this is showing is that the places that are on the high-speed network... those are the places that will benefit most from high-speed two. |
| "But high-speed two isn't the only investment that the government is making. Over the next five years it is planning to spend £73bn on transport infrastructure." | "But high-speed two isn't the only investment that the government is making. Over the next five years it is planning to spend £73bn on transport infrastructure." |
| Richard Houghton, from campaign group HS2 Action Alliance, claimed the whole project is based on "voodoo economics". | Richard Houghton, from campaign group HS2 Action Alliance, claimed the whole project is based on "voodoo economics". |
| He said: "If I was sitting in one of the 50 areas set to lose out to the tune of millions of pounds, I would be asking very clear questions." | He said: "If I was sitting in one of the 50 areas set to lose out to the tune of millions of pounds, I would be asking very clear questions." |
| PDF download HS2 FOI request[97kb] | PDF download HS2 FOI request[97kb] |