The government’s announcement that the HS2 line will go ahead has brought relief and joy to the Birmingham business scene. Whereas before businesses in Birmingham and the wider West Midlands have had to tell clients they face a tiresome and slow trudge on an outdated line if they want to come to the city from London, now they can say: “I’ll see you in an hour.”
All of this highlights the need for the government to push through widescale infrastructure projects if the economy is to move forward – something professionals in Birmingham are encouraging. Birmingham has always strived to do more, gain further inward investment and continue to grow. If you spoke to business leaders a decade ago about the changes they wanted in Birmingham then top of the tree would be to redevelop New Street station, an airport to compete with Manchester’s that can cope with long-haul flights, a more efficient, extended Metro, and a better rail service to London.
Business leaders believe there will be a £1.5bn increase in economic output because of HS2. Furthermore, 22,000 jobs are predicted to be created locally and average wages are expected to rise. Great news for the West Midlands, then.
In the East Midlands, the news was greeted with cautious optimism. There have been concerns that Nottingham’s line to London might become neglected because of the focus on HS2. But people like George Cowcher, the chief executive of the Derbyshire and Nottinghamshire Chamber of Commerce, are playing the long game, looking at what the news can bring to the East Midlands.
The HS2 line would give the East Midlands a fillip that could deliver economic benefits of £3.8bn, so it seems vital that the government also gave a firm commitment to rolling out the second phase of the scheme, which includes a link from Birmingham to Leeds, travelling through the East Midlands. Linking the major cities in the East Midlands and the north of England to London will bring real benefits, says Cowcher. The ability to recruit easier, move goods and services more efficiently, and access wider business opportunities, to name a few.
The government’s announcement might not drag us out of recession immediately, but it could be the boost the economy needs if we’re not to endure another 12 months of horror stories.
Sam Metcalf, assistant editorAlso in: February 2012
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The hilight zone
It may be two years before enterprise zones get under way but the concept is already attracting serious interest from the global financial community. Several banks (British and overseas) and a consortium have already approached the Greater Birmingham & Solihull local enterprise partnership (LEP) about providing future finance streams.
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Action stations
The image of a finance director (FD) sitting in the corner of the board room, tapping his calculator and explaining why the managing director’s latest initiative may just be a step too far has been consigned to the last century. And it’s a good thing. The last thing you need in this prolonged period of austerity is a finance director with the countenance of Ebenezer Scrooge wielding a cattle prod.