Predicted benefits from HS2 loweredBack to All Articles
Friday November 01 2013 02:40 PM
Published by transportweb Admin.
The amount of benefit predicted as a result of the new HS2 rail link has been lowered, according to the government's latest business case for the project.
The expected benefit-cost ratio has been revised to £2.30 (from £2.50) for every £1 spent. The majority of this fall is due to the £10billion rise in the project budget - added earlier in 2013.
The report has also revised an earlier assumption that travellers do not get much work done whilst in transit - the new study has cut by one third the value put on saving an hour's worth of time getting between meetings or places of work - reflecting that productive work can be completed whilst travelling. The previous figure was £47.18 an hour that represented time lost to businesses when travelling - this figure has been revised to £31.96.
Shadow Chancellor Ed Balls said it was vital that the costs "stacked up" but Transport Secretary Patrick McLoughlin said the scheme would bring massive benefits to northern England and was great for commuters.