Insider Media Limited

The High Speed 2 rail project will give Birmingham a competitive edge when securing investment and new business. That's according to various business organisations throughout the region in the wake of George Osborne's announcement that it will create 8,000 permanent jobs. The Chancellor, speaking yesterday in Birmingham, also said the £17bn project would create 10,000 jobs during construction.

Speaking to Insider, Jackie Hendley, chair of Birmingham Forward, described the project as a "very important development for the Midlands".

"It will provide essential connectivity enabling us to compete with other cities both in the UK and Europe and will also bring additional jobs to the region. In addition to HS2 the Big City plan and other planned developments will ensure that Birmingham is firmly on the map as a prime location for business and professional services.”

Also speaking in support of the announcement was Neil Rami, chief executive of Marketing Birmingham. Rami said the new line is "essential if we are to continue to attract foreign investment to the city".

He added: "The Chancellor’s confirmation of 8,000 local jobs demonstrates the confidence the government has in the West Midlands’ workforce, specifically within the advanced engineering sector.

"We must now look to further cultivate the city’s skills base in this area and ensure the next generation are equipped to service demand."

Speaking to Insider, a spokesperson for the Birmingham Chamber of Commerce said that although the tender process could result in businesses outside the region winning construction projects, it would "still be work for people here".

However, although the project promises a significant jobs boost, work is not expected to start for at least two years. "I don't know how many jobs this will create immediately," said the chamber spokesman.

"The earliest it's going to start is 2013 with the construction of the maintenance depot at the LDV plant, but that's fairly soon in terms of these projects and there will be a lot of work in the build up to that."

"The whole project spans many years, but nevertheless the fact that it will create 10,000 jobs in construction and 8,000 permanent jobs afterward is excellent news."

"I think the HS2 project is so important to the region in the long-term that any short-term benefits will be gratefully received. It's progress and that's what we want."

In a speech delivered yesterday at the site of the planned new Curzon Street station in Birmingham, Osborne said: "These new jobs would provide work opportunities to thousands of people in Birmingham and the rest of the West Midlands.

"Returning the UK to sustainable economic growth is the government’s overriding priority.

"By working closely with business and investing in infrastructure projects such as High Speed 2 we can provide the certainty and stability that businesses need to grow and invest in the UK."