Neath to lose out from HS2 High Speed Rail plans

 

Based on report by Peter Chegwyn
Local Campaigns Director for the HS2 Action Alliance.

KPMG Report suggests Swansea's economic output could fall by over £16 million a year

Neath & Port Talbot will also lose over £6 million a year

Chancellor accused of 'putting a gun to the head of the Welsh Government' during today's visit to Tata Steel

 

Swansea could lose over £16 million a year if the Government's HS2 High Speed Rail plans get the go-ahead.

Neath and Port Talbot could lose a further £6 million a year.

 

That's the warning from the HS2 Action Alliance - the anti-HS2 campaign group opposing the Government's HS2 plans.

 

The HS2 Action Alliance says that last week's HS2 re-launch in Manchester offered no benefits to Swansea or South Wales.

The campaign group has also accused Chancellor George Osborne, who is visiting South Wales today, of 'putting a gun to the head of the Welsh Government' by demanding they must contribute to the cost of electrifying the rail line from London to Swansea and the Valley Lines.

"It is a disgrace for the Chancellor to expect the Welsh people to pay twice over for rail improvements", said Peter Chegwyn, Local Campaigns Director for the HS2 Action Alliance today.

"The Chancellor expects the Welsh Government to help meet the cost of rail improvements in South Wales but he also expects Welsh taxpayers to help meet the cost of the planned HS2 rail line from London to Birmingham.

"The HS2 line will have no benefit to South Wales at all.  It will suck money out of the Welsh economy", said Mr. Chegwyn this afternoon.

Economic output in Swansea, Neath and Port Talbot could suffer as businesses choose to invest nearer the new HS2 High Speed Rail line between London, Birmingham and Crewe.

An official report by KPMG management consultants on the Economic Impact of HS2 shows that Swansea will be one of 50 areas of the UK to lose out if the High Speed Rail line is built.

According to the KPMG research, Swansea would see its economic output fall by £16.43 million a year.

Neath and Port Talbot would see their economic output fall by £6.15 million a year.

The 92-page KPMG Report has been hailed by the Government who claimed that it said the HS2 line could boost the UK economy by £15 billion a year.

But the extent to which regions not on the proposed line would be affected has only now been revealed following a Freedom of Information request from anti-HS2 campaigners.

This showed the potential losses to some regional economies from the HS2 High Speed rail line between London, Birmingham and Crewe.

 

According to the KPMG research HS2 would make more than 50 places across the UK worse off, including Aberdeen, Dundee, Norfolk and Cardiff.

 

Economic output would be worst affected, according to the KPMG research, in:

• Aberdeenshire, Aberdeen City and Moray (-£220m)
• Norfolk East (-£164m)
• Dundee and Angus (-£96m)
• Cardiff (-£68m)
• Norfolk West (-£56m)

"The KPMG Report shows that Britain will have a two-tier economy if HS2 is built with areas close to the line gaining and many other areas losing out", said Peter Chegwyn, Local Campaigns Director for the HS2 Action Alliance, today.

 

"KPMG admitted its report clearly shows the benefits of HS2 for some regions and the negative impacts it might have on others.

 

"HS2 is very bad news for the city of Swansea and for South Wales as a whole.  

Another official Government report has already shown that Swansea may lose some of its direct train services to London to help save £8.3 billion towards the £50 billion cost of the HS2 project.  

Now the KPMG research shows Swansea's economy will also suffer if HS2 is built.

"Swansea has nothing to gain from HS2 but everything to lose including local jobs and economic output", said Mr. Chegwyn.

Concern about the effect of HS2 on cities like Swansea has also been voiced by Professor Henry Overman from the London School of Economics - formerly an expert adviser to HS2 Ltd.

Professor Overman 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.

 

"HS2 shifts that around. So if you are on the line that makes you a better place than somewhere that hasn't had that productivity improvement."

 

The Chief Executive of HS2 Limited, Alison Munro, has also admitted that areas away from the HS2 line will lose out economically.

 

Ms. Munro told the BBC that the KPMG Report, "shows that the places that are on the high-speed network... those are the places that will benefit most from high-speed two."

 

The HS2 Action Alliance has accused Ms. Munro of "letting the cat out of the bag" by admitting that London and Birmingham would benefit from HS2 at the expense of many other areas of Britain including Swansea, Cardiff and South Wales.

The campaign group is writing to MPs and Council Leaders across South Wales urging them to oppose HS2 on the grounds that it will harm the local economy and put at risk local jobs and business investment.

The HS2 Action Alliance believes MPs and civic leaders should support moves to spend some of the £50 billion that HS2 will cost on other projects that benefit South Wales more.

Mr. Chegwyn said, "There are so many better ways to spend £50 billion and so many alternatives that would benefit the Swansea area far more than HS2 ever will.

"The Government's own figures show that HS2 will benefit London and Birmingham but not cities like Swansea that will lose out with poorer train services and a loss of jobs, business investment and economic output.  

"Why should Swansea and South Wales lose out to pay for a £50 billion scheme that has no benefit to the area at all?

 

"In the space of a few weeks we've now seen two key reports by the Government and KPMG that have shown Swansea will lose out from a loss of economic output plus cuts to existing rail services to help pay for HS2.

"It's an HS2 'double whammy' with Swansea and South Wales the losers", said Mr. Chegwyn.

"The HS2 Action Alliance calls on local MPs and civic leaders to stand-up for their communities and oppose the £50 billion HS2 project which is of no benefit at all to Swansea, Neath, Port Talbot or South Wales in general.

 

In the most recent national YouGov Poll, well over 50 per cent of the UK public were opposed to HS2.