The West Midlands economy will grow by up to 拢3.1 billion because of the planned , a new study will claim today.
It comes as Transport Secretary Patrick McLoughlin launches a campaign to win support for the planned North-South line with a warning that existing rail networks are running out of capacity.
A paper by KPMG will stress that HS2 will benefit the entire country, including towns and cities which do not have dedicated high speed stations.
The study concludes that businesses will benefit thanks to faster long-distance journey times which will allow them to trade with firms further away and attract staff more easily, as well as through improved local rail services which will become possible on the West Coast Main Line.
And the West Midlands economy will grow by between 拢1.5 billion and 拢3.1 billion as a result.
But Mr McLoughlin warned that the West Coast Main Line - which is used for long distance services, local services and freight - would be unable to cope if a new line wasn鈥檛 created.
He will say: 鈥淪peed is not the main reason for building the new railway.
鈥淭he main reason we need HS2 is as a heart bypass for the clogged arteries of our transport system
鈥淚t will lift the long-distance burden from our overcrowded main lines so they can concentrate on what they are best at.
鈥淢ore local trains. More freight trains. More services for towns and cities up and down Britain.
鈥淏ecause the point about High Speed Two is that you won鈥檛 have to travel on it to gain from the better transport system and economic growth it will support.鈥
And he will hit out at claims that the rail project鈥檚 budget is out of control.
鈥淭he budget for HS2 is 拢42.6 billion. Not 拢70 billion. Not 拢80 billion. Not the scare stories from opponents.
鈥溌42.6 billion for the full network to Leeds and Manchester with links onto the East and West Coast mainlines beyond to serve Scotland, Newcastle and the north-west.鈥
He will add: 鈥淭he head of Network Rail said in July he expects the final cost of construction to be significantly less than 拢42.6 billion.鈥
It follows the publication of a damning report this week by House of Commons Public Accounts Committee said the Government鈥檚 case for the massive project was based on 鈥渇ragile numbers, out-of-date data and assumptions which do not reflect real life鈥 with no evidence that it would aid regional economies rather than sucking even more activity into London.
The British Chambers of Commerce wrote to David Cameron urging him to press ahead with the line.
And Maria Eagle MP, Labour鈥檚 Shadow Transport Secretary, said: 鈥淏ritish businesses are right to back the building of a new north-south rail to deliver the major increase in capacity needed on Britain鈥檚 rail network in the years to come.鈥
