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PRIVACY
Economic Development

Birmingham business leaders blast 'wild guesses' behind claims of HS2 cost

A report by the Institute for Economic Affairs claimed the High Speed Rail route would cost £80bn

The HS2 project has divided opinion across the º£½ÇÊÓÆµ

Half a million people will have their lives ‘blighted’ by the construction of the , an environmental group claimed as a thinktank suggested the final cost of the scheme could top £80 billion.

But Birmingham business leaders reacted angrily to the two reports, and claimed both were based on flawed research.

A study by the Institute for Economic Affairs (IEA) called for the project to be scrapped, saying it “defies economic logic” and .

The report suggested that the Government’s £42.6 billion estimate would spiral because of a variety of factors, including changes to routes and extra tunnelling to placate opposition from campaigners; and new stations and transport infrastructure around the proposed line.

Dr Richard Wellings, the report’s author said: “The evidence is now overwhelming that this will be unbelievably costly to the taxpayer while delivering incredibly poor value for money.

“It’s shameful that, at a time of such financial difficulty for many families, the Government is caving in to lobbying from businesses, local councils and self-interested politicians more concerned with winning votes than governing in the national interest.”

Meanwhile, the Campaign for the Protection of Rural England (CPRE) warned that life in towns and villages up to 25 miles from the rail route will be disrupted by the movement of construction vehicles while the line is being built.

Towns along a 40-mile wide corridor – such as Leamington Spa in Warwickshire, Thame in Oxfordshire, Princes Risborough and Beaconsfield in Buckinghamshire – will be affected by the millions of extra lorry journeys, claims the CPRE.