Insider Media Limited

The government's commitment to HS2 is the biggest rail investment programme since Victorian times, transport minister Norman Baker has told Insider.

Speaking after the project was controversially green-lighted by the government, the Liberal Democrat said that high speed rail would "not just be" about improving the station locations.

Baker said: "Investment in the rail network and improving connectivity will benefit businesses generally and that is why, despite the difficult economic circumstances we've inherited, we've ploughed on with the investment.

"Our commitment marks the biggest rail investment programme since Victorian times because that is one way of generating growth and generating jobs. High speed rail will not just be about benefiting the area immediately around stations.

"The construction work will create up to 40,000 jobs during the first phase. But the investment also sends a message to the country at large that we believe in the future. We are investing heavily and I think that will give confidence to the private sector to invest as well."

Transport secretary Justine Greening gave the green light the first phase of the HS2 project on Monday (9 January 2012). It will be a Y-shaped rail network with stations in London, Birmingham, Leeds, Manchester, Sheffield and the East Midlands.

The first phase will involve construction of a new 140 mile line between London and Birmingham by 2026, followed by a second phase building lines from Birmingham to Leeds and Manchester by 2033. The overall scheme will cost £32bn.

Baker also sought to allay fears that the government's investment in HS2 could impact on other transport schemes seeking funding.

"It is very important to stress that this will not take away investment from other projects," he said. "We have the biggest investment programme since Victorian times without HS2 and that is not going to change.

"The recent announcement about the TransPennine electrification, for example, is a major investment programme. The Crossrail investment in London is coming to an end soon and, once that ends, the big costs of HS2 will kick in.

"That means the budget line for Crossrail will become HS2 and ensures that it won't affect the whole swathe of rail and road investments across the country."