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Sheffield High Speed Rail: Investing in Britain’s Future Response from Sheffield City Council S Contents Header
Contents
Introduction ...... 4 Response to Questions...... 8 References ...... 35 Appendices ...... 38
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Introduction
Sheffield City Council HS2 drive skills development and stimulate innovation and capacity in the UK Position through procurement and the supply chain; Sheffield City Council supports HS2 because we o That the potential negative impacts believe it can help rebalance the UK economy of the route and station are managed and bring much needed regeneration to the in the most effective way by avoiding North. This support is conditional on key industrial land altogether and with Government, HS2 Ltd and local partners being appropriate scheduling, good able to work together to secure the maximum communication and engagement with economic gains from HS2 and not see a wasted local partners and a proactive approach opportunity for our city region. Our support for to assessment and payment of HS2 is conditional on four principles: compensation to affected parties; and o That HS2’s growth potential is o That appropriate local connectivity is maximised through the selection and in place to ensure that the benefits of design of route and station locations, HS2 are fully realised as widely as using an appropriate and up to date possible by business and communities economic appraisal approach that effectively captures the wider economic benefits of transport investment; We do not agree that the existing proposed route satisfies these principles o That HS2’s growth potential is realised by harnessing the project to
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and therefore strongly disagree with the be lowered, as we believe this is technically current proposal. possible, and furthermore how enhanced economic uplift of a city centre, rather than parkway station development might be We believe the decision regarding the final generated and captured to allow the part- station location will make a significant difference funding of additional costs (for example via to the economic impact of HS2 for our city region Special Purpose Vehicles and Tax Increment and is therefore of critical importance. The final Financing) station location must be selected on its ability to deliver the greatest jobs and economic development opportunities for the city region We understand the importance journey time has and the UK. on Government’s business case but believe an 1 additional 3 minute journey time going from Leeds to London is a price worth paying for We believe the current preferred station location the transformative additional economic benefits a chosen by Government is a mistake. All of the city centre route brings and avoiding severely economic evidence demonstrates that a station damaging some of the UK’s most important in the city centre site will deliver far more manufacturing heartlands. benefit to Sheffield City Region (SCR) than an out of town parkway location at Meadowhall. The majority of the local private sector as well as We believe excellent intra-region connectivity many of the Government’s own advisors support from HS2 to all parts of our city region is vital this. We want to work with HS2 Ltd and and we are able to demonstrate how to maximise Government to find a solution that works for the a city centre station’s economic impact and UK and works for Sheffield City Region; the connect people from across the whole city region current proposals do not. Genecon estimate that to new jobs at less cost than the proposed a station at Victoria would deliver 6,400 higher connectivity packages required at Meadowhall. net jobs growth than a station at Meadowhall. This would be worth £6bn to the city region economy, and all districts would benefit from For HS2 to truly be an engine for growth, more residents in employment as a result. connected into the economy of the UK, it is increasingly recognised that local partners such as local authorities will need to bring forward We support and have commissioned technical integrated investment plans to help provide the work to develop a single route that runs additional infrastructure required to support through Sheffield city centre with the station at station development. It is absolutely fundamental Victoria instead of a route via Meadowhall. This that we therefore locate the stations in the route will maximise the positive economic and places that best create the economic value regeneration benefits of locating the station in that can be captured to help fund this vital the city centre, whilst at the same time also infrastructure. Locating a station at a parkway remove the substantial negative impact that location significantly erodes our ability to play a the current proposed route has on key national full part in contributing as the regeneration manufacturing sites, Enterprise Zones and a opportunity and economic uplift will be major planned residential community at Waverley considerably less than in Sheffield city centre. in the Lower Don Valley. We consider this to be Evidence from CBRE estimates that the net the optimal route. uplift in business rates associated with a
We would like to work with HS2 Ltd to explore both how the costs of this through route can 1 Parson Brinckerhoff (2014), HS2 – Sheffield City Centre Route Option Assessment
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station at Victoria could be worth £530 million We strongly believe HS2 must be connected 2 to the sub-regional economy. into the international high speed rail network. HS2 is about city to city connectivity, including
mainland Europe – not just shorter journey times We support the view that work on HS2 should to London. Northern economies should be able be accelerated and started in the North as to access the benefits of direct connections to early in the programme as possible. Not only mainland Europe that London already enjoys. would this bring early economic benefits to This appreciation of the importance of city to city northern area, it would provide certainty to connectivity must be embedded within HS2. investors and send out an important signal to business that Government are supportive of HS2.
2 CBRE (2013), Property and Financing Solutions for HS2 Station.
Page 6 of 41 SECTION 2: RESPONSE TO QUESTIONS Section 2: Section 2 Response to Questions
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Response to Questions i) Do you agree or disagree providing jobs, GVA growth and regeneration opportunities at a city region level. with the Government’s We believe that the benefits of HS2 are just as much about connectivity to other core cities - proposed route between the city centre to city centre - as they are about West Midlands and improved journey times to London. By bringing together large concentrations of population and Manchester? This includes jobs in the Midlands and North this will create a more coherent non-London economic zone, the proposed route alignment, that is vital to providing an alternative centre of the location of tunnels, gravity to an over-heating economy in the south– east. Sheffield is an integral part of ventilation shafts, cuttings, Manchester-Leeds-Sheffield economic triangle that collectively has the same sized economy as viaducts and depots as well London. It is vital for the UK that these Northern as how the high speed line cities are able to punch their weight to drive national growth that is balanced and not over- will connect to the West reliant on London and the South East. City centre to city centre connectivity within this zone Coast Main Line is vital to maximise the integration of the three city region economies, to the benefit of the whole Sheffield City Council regards HS2 as vital to UK economy. unlock growth across city regions. We believe the project is a fundamental part of rebalancing Consequently, Sheffield City Council support the our national economy and encouraging more full development of the ‘Y’ shaped network as sustainable, long-term growth as well as part of comprehensive measures to improve city to city connectivity and address UK rail capacity
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3 challenges. As part of this, we strongly believe economy by 2030. In order for this to happen, HS2 must be connected into the international Core Cities transport systems need a step high speed rail network to also enable city to change in connectivity, and HS2 is crucial to this. city connectivity across mainland Europe. Therefore, we fully support a HS2 station at We do not have detailed, specific comments on Manchester Piccadilly. We believe this location the route alignment or infrastructure associated will maximise the economic benefits of HS2 in with the western leg but it is essential that, as a Manchester due to its city centre location and will minimum, the eastern leg is delivered at the enhance the Manchester-Leeds-Sheffield same time as the western leg so that economic northern economic hub. benefits are maximised and so that Sheffield City It would be inconceivable that Government Region and other city regions served by the would propose a parkway station for eastern leg are not disadvantaged when Manchester simply because it reduced journey compared to regions to the west of the country. times due to the enormous economic impact that We are firmly of the opinion that every effort an HS2 Manchester Piccadilly station will have should be made to build the entire Y network at and the importance of connecting city centres. It the same time rather than in two phases. We is therefore utterly incongruous that the same support the view that work on HS2 should be decision has not been made in Sheffield, one of accelerated and started in the North as early the other UK Core Cities on the HS2 route. in the programme as possible. This will Manchester Airport is the North of England’s accelerate the transformational impact of the global gateway and a key driver of traffic project, reduce blight and limit the impact of between our city regions, due to its runway inflation on programme costs. It will also help to capacity and the volume of destinations it increase certainty amongst investors. provides to northern business customers. The HS2 station will provide an important interchange, improving journey times enhanced by the Northern Hub. ii) Do you agree or disagree Beyond HS2, we have aspirations to enhance with the Government’s connections between our city regions and this is something we are actively pursuing. The proposals for: ‘Northern Hub’ project is vital to providing these links, by reducing rail journey times between the a) A Manchester station at economic drivers in the north, and we look forward to the outcomes of the Trans-Pennine Manchester Piccadilly? Routes Feasibility Study being undertaken by the Government which will be examining b) Manchester station at potential investments to improve trans-Pennine Manchester Airport? activity.
Government has increasingly recognised the role of the Core Cities and their potential to support sustainable long-term growth. Independent iii) Do you think that there forecasts demonstrate that our core cities have the potential to deliver an additional 1.16 million should be any additional jobs and £222 billion into the national stations on the western leg
3 Core Cities(2013), Competitive Cities, Prosperous People: A Core Cities Prospectus for Growth.
Page 9 of 41 SECTION 2: RESPONSE TO QUESTIONS between the West Midlands change in connectivity for areas that historically have seen underinvestment in and Manchester? their transport infrastructure. Recently released Treasury public spending figures reveal that We have no specific comments for this question. public spending on transport in London is £545 per head compared with £236 per head (2.3 times higher) for the West Midlands and the 4 North of England combined. iv) Do you agree or disagree We believe investment in HS2 will have a considerable positive impact on Sheffield City with the Government’s Region’s economy and connectivity if harnessed proposed route between West correctly. In the recently published KPMG Regional Impacts Study, South Yorkshire was Midlands and Leeds? This shown to be one of the biggest beneficiaries 5 of HS2 – with estimated productivity gains of includes the proposed route between £0.5bn and £0.9bn per year and the alignment, the location of change in labour connectivity and business to business connectivity estimated to be the highest tunnels, ventilation shafts, of the city regions and we know that our potential is even higher if the HS2 station is at Victoria. cuttings, viaducts and depots As such, our support for HS2 is conditional on as well as how the high speed four principles: • That HS2’s growth potential is maximised line will connect to the East through the selection and design of route and Coast Main Line station locations, using an appropriate and up to date economic appraisal approach that We strongly support the inclusion of Sheffield in effectively captures the wider economic the HS2 network because the improved capacity, benefits of transport investment ; connectivity and regeneration opportunities it • That HS2’s growth potential is realised by could bring will help to transform Sheffield City harnessing the project to drive skills Region’s economy by accessing the areas with development and stimulate innovation and the most significant centres of population and capacity in the UK through procurement and employment. the supply chain. The role of the Leader of We strongly agree with the Government that Sheffield City Council on the HS2 Growth HS2 offers a once in a generation opportunity to Task Force has led to us developing transform the way we travel in Britain, and also proposals to help ensure the procurement that it offers a similar opportunity to transform the and skills potential of HS2 is maximised: this economy of Sheffield City Region. However there consultation does not provide an appropriate are serious risks that these opportunities could opportunity to highlight these ideas in the be wasted and that serious negative impacts on main body of the response and therefore important existing businesses could be caused if they can be found in Appendix 1; the route through Sheffield is not in the right • That the potential negative impacts of the place. route and station are managed in the most The links between well planned strategic effective way by avoiding key industrial land transport investment and growth are well proven. The recent KPMG report on the regional benefits of HS2 demonstrates how HS2 is an opportunity 4 PTEG (2013), Funding Gap Report to rebalance the economy by providing a step 5 KPMG (2013), HS2 Regional Economic Impacts
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altogether and with appropriate scheduling, It should be noted that the station location good communication and engagement with decision in Sheffield City Region has significant local partners and a proactive approach to implications for passenger demand to and assessment and payment of compensation to from Leeds on HS2 and consequently on the affected parties; and overall business case for HS2. Forecast • That appropriate local connectivity is in place passenger demand from Sheffield Victoria to to ensure that the benefits of HS2 are fully Leeds is considerably higher compared to realised as widely as possible by business Sheffield Meadowhall. HS2 Ltd’s weekday rail and communities trips forecast from Meadowhall to Leeds was 1,700 passengers. From Victoria to Leeds it is 6 We do not agree that the existing proposed route 3,000. This is partly because the highest levels satisfies these principles and therefore strongly of demand for HS2 travel are in Sheffield city disagree with the proposal. centre and the south west of Sheffield (far closer We believe that the proposed route to the east of to Victoria) but also due to the high level of Sheffield should be replaced by a route that business travel between the two city centres. passes through the city centre with a station at This is proof of the importance of city centre to Victoria. The reasons for this are explained in city centre connectivity and that a parkway detail in section (Vb) below. station in Sheffield will reduce the potential role the Manchester-Leeds-Sheffield economic triangle can play for the UK economy.
Even with excellent connectivity between v) a. Do you agree or disagree Sheffield City Centre (the higher value business centre of the city region economy) and an out of with the Government’s town parkway station at Meadowhall, the proposals for a Leeds station additional journey time of travelling to Leeds via Meadowhall makes HS2’s journey time saving at Leeds New Lane? almost negligible. This demonstrates the demand for city centre to city centre We support Leeds New Lane as the location for connectivity and will represent a significant a station within Leeds City Region as it opportunity lost in terms of North of England enhances Leeds city centre as the economic connectivity and economic growth if the Sheffield heart of Leeds city region and maximises the station is sited out of town. growth potential of HS2 across the whole of the North. This is particularly important in order to maximise agglomeration effects in Business Professional and Financial Services between Sheffield and Leeds. As with Manchester, we believe it would be inconceivable that Government would propose a parkway station for Leeds simply because it reduced journey times due to the enormous economic impact that an HS2 station at New Lane will have and the importance of connecting city centres. It is therefore utterly incongruous that the same decision has not been made in Sheffield, one of the other UK Core Cities on the HS2 route. 6 MVA (July 2013), Options for phase two of the high speed rail network – demand and appraisal report. Page 11 of 41 SECTION 2: RESPONSE TO QUESTIONS v) b. Do you agree or disagree centre regeneration. This is because, as the strategic case for HS2 makes clear, ‘transport is not an end in itself. It is an enabler which can with the Government’s 8 proposals for a South unlock potential and help the economy to grow.’ The strategic case for HS2 sets out the key Yorkshire station to be located objectives for the scheme: ‘The overarching objective is to support a robust, at Sheffield Meadowhall ? balanced economy that delivers growth. To do this, we must provide the capacity to meet rising We strongly disagree. Sheffield City Council demand and improve the connectivity between 9 supports a city centre HS2 station at Victoria our cities.’ rather than a parkway station at Meadowhall.
The fundamental principles of the case for a city centre station are as follows: Evidence strongly supports this link Government makes between infrastructure and growth. In the 1. A city centre HS2 station at Victoria better UK, HS1, Crossrail and the regeneration of Kings delivers Government and HS2’s stated Cross and St Pancras demonstrate the economic objectives; value of investing in improved connections 2. The economic case for a city centre station is between places, as well as the regeneration overwhelming and is supported by opportunities this investment can unlock. international evidence; Furthermore, as previously highlighted, 3. A parkway station will deliver less economic Government has increasingly recognised the role impact and is an opportunity lost; of cities and city regions in the national economy, with the establishment of a Cities Minister, City 4. A city centre station can help enhance the Deals, and Growth Plans. In connecting up eight national business case for HS2. of the ten largest cities in the UK, HS2 sits alongside these policies as a catalyst for generating growth outside of London. 1. A city centre HS2 station at Victoria better delivers Government and HS2’s stated objectives City centres have a fundamental role to play in driving growth and rebalancing the UK economy. ‘HS2 is about far more than just a new railway, it The trend of city centres attracting high provides a once in a generation opportunity to performing sectors is supported by vast amounts drive growth, generate jobs, and secure our of research. In their recent report, ‘Beyond the country’s future prosperity…Building on the High Street; Why our city centres matter’ Centre success of HS1 and its role in the transformation for Cities outlined how in large cities, city of Kings Cross, HS2 will act as catalyst to city centres are playing an ever increasing role in centre regeneration and major development city-wide economic performance and that schemes. HS2 is a huge project and I am many of the highest skilled and best paid determined to get maximum payback from the industries, which have been critical sources of investment.’ jobs growth in recent years, prefer to locate in Secretary of State for Transport, Press Release, city centres. Knowledge intensive business 7 July 2013 services (KIBS) jobs are almost twice as likely to HS2 is more than just a transport scheme; it has be concentrated in the central areas of cities, as the potential to be an engine for growth and private sector employment in general. KIBS jobs help rebalance the UK economy and drive city tend to cluster in city centres because they
8 HS2 Ltd, The strategic case for HS2 7 Department for Transport and High Speed Two Ltd (2013) 9 HS2 Ltd, The strategic case for HS2
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benefit from agglomeration; public transport as well as attracting foreign investment. infrastructure; a concentration of skilled workers; Universities generally locate within or on the access to good quality retail, leisure and cultural fringe of city centres, as is the case in Sheffield, facilities and the vibrancy and sense of place that and are a key element of our economy. Across 10 only exists in city centres. This is well known the whole country the recentralisation of cities is within Government and is evident in policy like driving UK wide economic growth, as is the case City Deals. HS2 must enable and support the globally. The repopulation of city centres in the realisations of our collective ambition for cities to North is also driving a significant amount of the drive economic growth, not work against it. new homes that the country needs in order to relieve the housing crisis. We believe Centre for Cities have written separately to the a real if the station Secretary of State to highlight this point, economic opportunity will be lost in the city region is not located in Sheffield City highlighting that improving the connectivity of our Centre. city centres is an important element of making them better locations to do business. They recommend that the building of any new rail 2. The economic case for a city centre stations to serve a city should ideally be located station is overwhelming and is supported by within, or as close as is practicably possible to, international evidence city centres. A copy of Centre for Cities’ letter can be found in Appendix 8. Cities drive economic growth; a city centre
station will generate more GVA and jobs for Like many Northern cities, Sheffield’s economy the UK currently underperforms relative to the size of the Whilst HS2 has long been presented as city and city region. Our ambition is for Sheffield connecting cities across the country, the to play more of a role in driving UK growth. Its importance of connecting city centres has not potential for growth and the expansion of high been sufficiently recognised in the current plans. performing sectors is significant. If the Independent analysis commissioned by Sheffield Government’s overarching objective of HS2 is to City Council and undertaken by economic ‘support a robust, balanced economy that consultants Genecon demonstrates the delivers growth’ then it is vital that the station is in additional value a city centre station in the most appropriate location to drive and Sheffield has over a parkway station. Net support this growth or this opportunity will not be additional employment projections over 25 years realised. for each location (allowing for displacement and The relocation of activities from London and the multiplier effects) suggest that Victoria could South East to cheaper locations in the north is an generate approximately 9,500 net additional important aspect of the overall objectives of HS2, jobs, whilst Meadowhall is projected to generate the so-called ‘north-shoring’ of businesses. approximately 3,000 jobs as a result of HS2 Sheffield has already seen some relocation of station investment. Overall, this assessment businesses in key service sectors such as legal, indicates a potential to generate between £2 - £5 financial and media services and has the billion net additional economic value over 25 11 potential to attract far more given its highly skilled years if the Victoria station option is selected. workers and lower wage costs, office rents and housing costs compared with other core cities. Separate analysis by leading consultants Volterra has suggested that over a 60 year period, the The importance of universities now goes far additional economic value is between £3.7 billion beyond education provision and are increasingly extending their research and innovation activities
11 Genecon (2012), Maximising the economic impact of Hs2 investment in 10 Centre for Cities (2013), Beyond the High Street: Why our city centres matter Sheffield. Page 13 of 41 SECTION 2: RESPONSE TO QUESTIONS
12 and £6.7 billion. The Genecon analysis can be only location in the city region that has the found in Appendix 2 and the Volterra analysis in potential to play this economic role; by acting as Appendix 3. a catalyst for the development of a new Central Business District, This considerable difference in growth potential a station at Victoria could form a cornerstone of SCR’s ambition to at the two station sites is because Victoria has create 70,000 net additional jobs over the next greater propensity to attract more added ten years. more value economic activity given its greater proximity to other city centre assets important to Using commuting data, Figure A shows that a service sector business location such as station in Victoria will create benefits across the innovation (universities), culture and leisure, high SCR: Barnsley, North East Derbyshire and quality office space and inter-city connectivity. Doncaster all benefit significantly from the 13 Sheffield city centre already has an existing additional job creation. Further additional concentration of service sector businesses with analysis by Volterra can be found in Appendix 4. the potential to grow. Sheffield city centre has 12 times as many service sector employees Figure A: Net additional jobs created by a compared to the 1km zone around Meadowhall. Victoria station by area of residence (Volterra) At the parkway location at Meadowhall, on the other hand, the business sectors most influenced by HSR services have no similar presence or prospect.
Furthermore, the influence over the type, scale and quality of business investment would be greater at Victoria given the more extensive range of development sites meaning that Victoria has the potential to attract inward investment from outside the City Region whereas Meadowhall is a lower value office location with a higher propensity to displace existing economic activity from elsewhere in the City Region.
A city centre station delivers greater economic impact for Sheffield City Region. A station at Victoria would fully align with Figure B illustrates the additional jobs created SCR’s growth ambitions articulated in the City for residents in each region by a station at Region’s Strategic Economic Plan. Recent Meadowhall. The lower number of additional analysis on behalf of SCR Local Enterprise jobs in each region reflects the total number of Partnership by Oxford Economics identified the jobs created by a station at Meadowhall. The lack of a quality central business district as a additional jobs created by a station at barrier to developing its Business Professional Meadowhall will be less beneficial for the SCR as and Financial Services (BPFS) and Creative and a whole: there will be less than 400 additional Digital Industries (CDI) sectors which are both jobs in the SCR excluding Sheffield, Rotherham forecast to deliver high levels of employment and Barnsley. growth in the region. Sheffield City Centre is the
12 Volterra (2013), An assessment of the case for a city centre high speed rail station in the Sheffield City Region. 13 Volterra (2014), High Speed 2 – station location analysis: Technical Note. Page 14 of 41 SECTION 2: RESPONSE TO QUESTIONS
Figure B: Net additional jobs created by a success in attracting high level service sector Meadowhall station by area of residence businesses and has ambitious plans for its future, (Volterra) we need to acknowledge that the city centre currently underperforms compared to other core city centres and Sheffield City Region risks being put at a permanent disadvantage if the core city at is heart is unable to compete with other cities able to offer both city centre assets and high speed rail connectivity.
International evidence underlines the importance of city centre locations International research specific to the impact of High Speed Rail illustrates the propensity for high level service sector jobs to be attracted to areas around HSR stations because of the connectivity they bring, but crucially, the evidence reasserts that this is more likely to happen in city centres because of the full range of assets required to attract and grow business 15 activity for the high level service sector. In order for the SCR economy to transform, In Spain, Zaragoza (which lies in the middle of rather than just grow, there needs to be a step the Madrid-Barcelona HSR route) saw a change in skills levels, with an ambition that significant transformation in its economic 30,000 of the 70,000 additional jobs are in highly fortunes. The city’s cost competitiveness skilled occupations. Taking into account encouraged business services occupiers and Victoria’s ability to attract high level sector investment in high-quality meeting space in the businesses, data from the 2011 census shows vicinity of the station made it a centre for that the people who would be employed at business meetings. There was also a boost to Victoria would have a higher level of education urban tourism. Also in Spain, Cordoba (which than those employed at Meadowhall, or indeed in lies in the route between Madrid-Seville and Sheffield, Rotherham or the SCR. 32% of the Madrid-Malaga) saw urban regeneration around workday population of Victoria have a the HSR station, which was built in the city qualification level of four or higher, compared to centre. This started first with residential 17% in Meadowhall, 25% in Sheffield, 18% in developments but hospitality and office Rotherham and 21% in the SCR. The higher developments started to develop afterwards. qualification levels in Victoria fits with there being a higher concentration of office based activities In France, the development of Lille’s HSR with significant potential for agglomeration station, linked directly by EuraLille to the classic impacts, and supports SCR’s aspirations for rail Station, transformed the city’s economic boosting skills and productivity in the fortunes. EuraLille emerged to become the third 14 region. biggest business centre in France over the last decade. The French national state owned train
company, SNCF, originally proposed that Lille’s Whilst Sheffield city centre, as the economic station would be on the outskirts of the city but engine of Sheffield City Region, has had
15 Greengauge 21 (2006), High Speed Trains and the Development and 14 Volterra (2014), High Speed 2 – station location analysis: Technical Note. Regeneration of Cities Page 15 of 41 SECTION 2: RESPONSE TO QUESTIONS
Lille authorities lobbied against this and identified Vickermann (2007) cites the example of the costs suitable alternative land 500m metres away from associated with tunnelling required to provide a the old Lille station. This new urban district of high speed service into Antwerp being viewed as around 70 hectares now boasts commercial offset by the benefits that this would generate. offices, residential apartments, hotels and a The decision was made to place the route 16 shopping mall. through the main railway station of Antwerp, involving a very expensive tunnelling operation, On the other hand, there is also strong evidence but ensuring that rail penetrated the heart of the from other countries that ‘interchange’ stations, city. such as the one proposed at Meadowhall, are unlikely to lead to significant economic The key point here is that there is a significant activities and in many cases virtually none. opportunity for the Sheffield City Region to boost Examples include some of the interchange its economy through the position of its main stations along France’s high speed rail network, urban centre as an intermediate city in the HS2 such as Valence, Avignon and Aux de Provence. route. The types of economic activity that benefit most After all, it shares some of the competitive from the improved linkages offered by HSR are characteristics that are associated with some of concentrated in city centres. It is therefore the successful intermediate cities in other thought that the greatest economic benefits come countries (namely highly skilled workers and from serving them directly, with centrally located comparatively lower wage costs.) However, if stations. Greengauge 21 stated that: “The Sheffield City Region offers a parkway station, overwhelming weight of both theory and while neighbouring city regions can offer high experience points to the need for HSR stations to speed connectivity in a city centre location, this be located in city centre locations to generate the opportunity will be lost. connectivity into regional economies that is the necessary starting point for regional economic 17 The St Pancras of the North: on a par with, if benefit.” not greater, than the most regeneration- The examples of underperforming stations are friendly of other HS2 stations often those located outside urban areas (lacking The economic potential of the Victoria site is not an efficient multimodal supply and a dynamic just down to its city centre location. It fully aligns economic area surrounding the station). In with the Council’s ambitions outlined in its City Montchanin, the High Speed Train (‘HST’) link Centre Masterplan and long term regeneration attracted only four firms, creating only 150 new strategies. Its positioning in the city centre, the jobs. As Albalate and Bel (2010) stated: ‘It is amount of developable land around it and the perhaps worth pointing out that only those cities high levels of Council land ownership in the area with a significant weight of services in their potentially makes it one of the most exciting economic structure appear to benefit from HSTs. development prospects on the HS2 line. We In other words agricultural and industrial activities 18 see Victoria as having the potential to be the are indifferent to HST stops.’ ‘St Pancras of the North’ and a destination in its Indeed, the benefits of locating stations in city own right, building on the superb Victorian centres were seen by some to outweigh the railway architecture including the existing listed additional cost associated with providing the Victoria Station Hotel. The station has huge service in these locations. For instance, potential for retail, leisure and service opportunities within the impressive arches and 16 Greengauge 21 (2006), High Speed Trains and the Development and adjoining canal side. This offers considerable Regeneration of Cities scope to partially fund the construction and long 17 Cited in Volterra (2013), An assessment of the case for a city centre high term maintenance of the station itself. speed rail station in the Sheffield City Region. 18 Cited in Volterra (2013), An assessment of the case for a city centre high speed rail station in the Sheffield City Region.
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By acting as a centrepiece of a wider this part of the city centre and help to unlock the development plan across the Riverside Business latent economic potential in Sheffield city District it will reposition the profile and image of centre.
Figure C: View of Victoria from Heart of City (Sheffield City Council)
Key points relating to the regeneration opportunities around Victoria include: • The CBRE analysis suggests there is a net • The availability of sites, density of benefit of over £530 million in business development and hence density of economic rates uplift at Victoria compared to activity is at far in excess of what is available Meadowhall, thereby enhancing the site’s at Meadowhall. CBRE estimate that ability to contribute towards related commercial floorspace of approximately infrastructure currently not budgeted by HS2 560,000 sq metres could be developed Ltd. around Victoria as compared with 164,000sq • Sheffield City Council owns a significant metres around Meadowhall, i.e. over three amount of property in the immediate vicinity times the quantum. The Executive Summary of Victoria which provides opportunities to of the CBRE report can be found in Appendix assemble sites and drive development at an 5. early stage. This also gives scope for special • Its greater potential for housing – HS2 purpose vehicles to be established with the estimated 250-300 housing units will be potential to generate finance to assist in supported at Meadowhall compared to 900 reducing the costs of building the route 19 for Victoria. We believe that both of these through the city centre estimates are incorrect with a lower capacity These opportunities are outlined in more detail in at Meadowhall and at least 1,500 around the Sheffield Victoria Station Development Victoria Prospectus in Appendix 6.
19 HS2 Ltd (2012), Options for phase 2 of the high speed rail network Page 17 of 41 SECTION 2: RESPONSE TO QUESTIONS
Figure D: View of Victoria Station towards Heart of the City (Sheffield City Council)
These opportunities have been reaffirmed by a Development review (separate from the report on the Victoria site by London and development Review that LCR is undertaking for Continental Railways. London & Continental HS2 in relation to the Meadowhall location) to Railways (LCR) is a wholly owned subsidiary of consider the development and regeneration the Department for Transport and was potential that could be unlocked or stimulated as responsible for the successful delivery of High a result of siting an HS2 station at Sheffield Speed 1 on time and on budget. The LCR team Victoria. LCR has not reviewed the overall case was also involved as commercial client for the for and against an HS2 station at Victoria, as HS1 stations and promoted synergies and opposed to Meadowhall, and any relative opportunities between the stations and cost/benefit analysis of the two locations has not surrounding development sites. been the subject of this review. The full LCR SCC has requested LCR to carry out a report can be found in Appendix 7.
Key findings from LCR include the following:-
“The Victoria location offers major opportunities for urban regeneration (on a par with, if not greater, than the most regeneration-friendly of other HS2 stations)’
Given:
a) the central urban location of Sheffield Victoria,
b) the availability of derelict/under-utilised land,
c) the underlying strong economic drivers and associated recent regeneration successes in the city, and
d) the potential to build upon the successes of Sheffield City Council and previous regeneration bodies, Sheffield Victoria would be likely to represent one of the higher priority locations for any activity by a HS2 Regeneration body.” LCR (2014), HS2 Phase 2 Stations: LCR Development Reviews – Sheffield Victoria Station
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If HS2 is to be about economic growth, as Meadowhall. An objective of HS2 is to better Government has said, then it is clear that the connect the northern cities, and it is clear that a Sheffield City Region station must be at Victoria, station at Victoria would better deliver against not Meadowhall. this objective than a station at Meadowhall, which would lead to significantly lower intercity demand. A more detailed review of the passenger demand Excellent City Region Connectivity figures from Sheffield to London shows that The economic benefits of HS2 are not simply to whilst similar levels of demand would transfer be gained from faster journey times to and from onto HS2 from existing Sheffield or Doncaster London - the importance of faster inter-city services, the main difference between the 3,700 connectivity between Sheffield, Leeds and and 4,700 passengers travelling from Sheffield to Birmingham cannot be underestimated along London is due to ‘new’ generated passenger the Eastern leg cannot be underestimated. demand, which would be around three times This is not only important to the economy but higher from Victoria than Meadowhall – this also in terms of passenger numbers and ticket can be thought of as an indication of the relative sales to support the HS2 business plan. new activity that each station might support, and HS2’s own passenger demand forecasts, is consistent with the job creation estimates by outlined in Figure E, indicate that passenger Genecon. Further analysis of passenger demand to cities other than London would be numbers can be found in the Technical Note by 44%-217% higher with a Victoria station than Volterra in Appendix 4.
20 Figure E: 2043 Passenger weekday trips forecast for each station location (MVA) Destination Passengers from Meadowhall Passengers from Victoria
London 3,700 4,700
East Midlands 300 700
Birmingham 900 1,300
Leeds 1,700 3,000
North East 600 1,900
20 MVA (July 2013), Options for phase two of the high speed rail network – demand and appraisal report. Page 19 of 41 SECTION 2: RESPONSE TO QUESTIONS
It has already been well evidenced that the The concentration of demand in Sheffield City business sectors most likely to be influenced by Region in relation to the parkway station affects the introduction of HS2 will be the higher value not only passenger numbers but also journey service sector activities, which already have a time savings on HS2: accessing a city centre higher concentration in Sheffield city centre in station from the city centre or south west of the comparison to Meadowhall. Equally, mapping of city is significantly faster than accessing the projected HS2 patronage by HS2 Ltd clearly parkway proposal. A city centre station demonstrates that the greatest concentration of maximises user convenience and thus propensity users will come from the areas to the South West for use, which again has implications for the of the Sheffield District, closer to Victoria, as national HS2 business case. demonstrated in Figure F. 21 Figure F: South Yorkshire Demand for Long Distance Travel (HS2 Ltd)
21 HS2 Ltd (2012), Options for phase 2 of the high speed rail network, p.225. Page 20 of 41 SECTION 2: RESPONSE TO QUESTIONS
SCC believes that the HS2 station is an engine incorporated within the Victoria Station itself for growth for the entire Sheffield City Region. (Figure G at A) to allow a seamless transfer of Connectivity studies to date appear to have passengers on to the existing classic rail service. concentrated solely on connectivity to parts of This will provide comparable connectivity to the South Yorkshire, however when a full city region existing rail network as the parkway proposal. analysis is carried out it reveals that other parts Any train operating issues with this additional of the city region are better served by a city Midland Mainline stop (Figure G at B) can be centre station, and those areas have a greater resolved through a variety of scheduling patterns. propensity to use HS2. This is a critical flaw in Not all services would need to stop at both the HS2’s logic to date. new station and Sheffield Midland station. We have developed feasible and practical The city centre station in addition has the options to link Victoria that have significant potential to connect, via the existing rail line, to advantages over the parkway option, in terms of the major Sheffield City Region regeneration connectivity to the existing rail network, to the sites within the Upper Don Valley and major development sites within the City Region Stocksbridge. and, we believe, come at a lower cost. The second part of our proposal is to provide SCC believes that the HS2 station is an engine additional platforms and stop on the Sheffield - for growth for the entire Sheffield City Region; Worksop line, again incorporated within the connectivity studies to date have concentrated Victoria High Speed Rail development (Figure G solely on connectivity to parts of South Yorkshire. at C). This also offers a major advantage over When a full city region analysis is carried out it the parkway station, because there would be reveals that other parts of the city region are direct connections to the hugely significant better served by a city centre station, and those regeneration areas of the Advanced areas have a greater propensity to use HS2. Manufacturing Park and Waverley. Moreover, we This is a critical flaw in HS2’s logic to date and would be able to provide an important connection further evidence that by working together through between HS2, Sheffield City Centre, and the a genuine consultation process, we can achieve wider Sheffield City Region on the Worksop to a better all-round outcome. Lincoln Line. We have developed feasible and practical The third part of our proposal has national connectivity packages to link Victoria to the rest significance. Because of the closeness of Victoria of the city region that have significant advantages Station to Sheffield City Centre we are over the parkway option, in terms of connectivity investigating Victoria as the terminus station for to the existing rail network, to the other urban the Lincoln-Worksop-Sheffield line. This would centres and major development sites within the have an immediate impact to reduce the number City Region and, we believe, can come at a lower of trains using the ‘bottleneck’ approach to cost whilst at the same time creating far greater Sheffield Midland Station. Network Rail have value that can be captured and reinvested via identified this precise stretch as a "red stress TIF (or similar) mechanisms. The first part of our level" - one of the highest capacity restraints proposal is to construct a new platform and stop anywhere on the existing national rail network. on the Midland Mainline. This is illustrated in All these connections are illustrated on Figure G. Figure G at B, and importantly would be
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Figure G: Position of Victoria station and links to the classic line and the Supertram network
Victoria Station will also be connected to the and link Victoria to the existing Midland Station extensive Supertram network, which was already (see Figure H). included within HS2 Ltd’s draft plans for the Therefore, Victoria has major advantages over a station. We believe there are a number of parkway station at Meadowhall. It: alternative options for this connection which we • provides the same, and additional would like to explore further, including: connectivity to the existing rail network. • HS2 Ltd’s own suggested plans for a tram • provides additional direct access to major link from Sheffield Midland to Victoria across SCR development and regeneration sites Park Square (Figure G at E) outlined in the • ‘Options for phase 2 of the high speed rail provides a solution to a national rail network network’ paper capacity problem. • A tram extension that connects Sheffield Victoria to the existing Castle Square Supertram stop, providing a quick connection to the wider network (Figure G at F). • Utilise the existing tram stop at Hyde Park and provide strong new pedestrian links to integrate it into the wider station masterplan (Figure G at D) All three options would provide essential connections to the extensive Supertram network
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Figure H: Proposed Connectivity from Victoria Station
Evidence demonstrates that this will be at a lower Connectivity improvements at the Victoria site cost than the parkway station location for the would also not involve the same level of following reasons: disruption compared to the parkway station at • In recognising the economic importance of Meadowhall, particularly in relation to Junction 34 Sheffield city centre, HS2 Ltd themselves of the M1.On a practical level, preparatory work and South Yorkshire Integrated Transport on the new platforms within the Victoria Station Authority’s parkway connectivity proposals could be undertaken as part of the Midland highlight the necessity for an express Mainline electrification programme in order to service between Meadowhall and the city minimise future disruption. centre this would not be required if the Work on behalf of SYPTE has indicated that station was in the city centre itself. comprehensive connectivity for Meadowhall • To address the issue of connecting key would have significant costs of up to £1.5 billion passenger markets in the south west to which is currently outside the envelope of HS2 Meadowhall, a tram extension is also and local funds. SCC’s ongoing technical work included in the parkway connectivity demonstrates that connectivity at Victoria can be package. This would not be required for a achieved at a fraction of the cost and critically its city centre station. funding could be assisted by the greater
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economic uplift it generates, which CBRE station site. Figure I was generated by analysis estimates could be up to £530 million in consultants working to the South Yorkshire business rates uplift compared to Meadowhall. Passenger Transport Executive. It clearly We would welcome the opportunity to work with demonstrates a lack of available sites, Government and HS2 Ltd to develop these constraints of existing infrastructure, and the proposals further. nature of the environment, which will not attract high value service sector investment. By simply
comparing Figure I with the city centre images in 3. A parkway station will deliver less Figures C and D, the difference in terms of the economic impact and is an opportunity lost regeneration potential of each site is clear to see, and powerfully highlights the contradiction Constraints around the proposed parkway station between the proposals for a parkway station at at Meadowhall limits the opportunities for Meadowhall and the stated objectives of the development around the proposed parkway Secretary of State and HS2 strategic case. Figure I: Proposed alternative HS2 station alignment at Meadowhall (ARUP: SYPTE Meadowhall Connectivity Package)
In earlier Government documents reference was The area surrounding the proposed station is made to the ‘considerable scope for regeneration very constrained by existing major infrastructure and new development on and around the such as the M1 motorway viaduct, Sheffield’s 22 Meadowhall site.’ We believe Government has main sewage works and a new biomass power overestimated the potential for development station. The ground conditions in the area in the area. present engineering risks which can affect the complexity and capital costs of infrastructure development the size and scale of HS2 and 22 DfT (January 2013), High Speed Rail: Investing in Britain’s Future – Phase although HS2 is unlikely to be directly affected by Two: The route to Leeds, Manchester and beyond.
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the threat of flooding, the transport that offer and a planning application for an IKEA access to the station site facilities and any superstore is currently being assessed. associated development in the surrounding area The area already suffers considerable traffic will be at flood risk. congestion issues with associated problems of In addition to these physical constraints the air quality and pollution. This was evidenced by scope for development is limited by the existing the recent Highways Agency proposal to set up a well established regional shopping centre at 60mph speed limit between junction 28 and Meadowhall. Further significant retail junction 35a to try and address pollution issues in development has planning permission and is the area. about to commence near to the shopping centre 23 Figure J: Meadowhall wider development site areas
Key 1 – Embankment – not suitable for development 2 – Existing Blackburn Meadows water treatment works – not available for development 3 – Site of current development of Eon biomass power station – not available for development 4 – Site of Blackburn Valley Nature Reserve – retained and protected as green space 5 – Former Templeborough Steelworks - available for development with outline Masterplan in place. Partially impacted upon by proposals for new link road (Halfpenny Link) 6 – Meadowhall Overspill Car Park – under British Land ownership and forms part of the wider Meadowhall Masterplan 7 – Meadowhall Coach Park – under British Land ownership and forms part of the wider Meadowhall Masterplan 8 – Meadowhall Interchange (Bus Station) – Under British Land ownership and leased to SYPTE to operate 9 – Meadowhall Park and Ride site – Land owned by Network Rail and leased to SYPTE 10 – Meadowhall Rail Station – Land owned by Network Rail and operated by Northern and SYPTE
23 WSP (2013), The Economic Case for High Speed 2: Leeds and Sheffield City Regions
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Figure J from the WSP Technical, report on the investors will consider these sites whilst ever the economic case for HS2 at Leeds and Sheffield HS2 route is proposed to run through them. City Regions (June 2013) commissioned by As well as the Enterprise Zone sites, the area SYPTE and Metro shows the limits of available near the proposed route and station has also development opportunities in the vicinity of the been identified for future growth for the Advanced proposed station. Manufacturing Park (AMP). Recent discussions This is not to say that the area around with the University have focused on how, from a Meadowhall is not economically valuable, as the planning authority perspective, we can area is a fundamental part of the Sheffield and accommodate and nurture the expansion of the Sheffield City Region economy and an important AMP. Future growth of this development is likely retail and leisure employment hub and in close to run along the M1 corridor between junctions proximity to GVA driving advanced 33 and 34 in an arc-like procession of suitable manufacturing businesses. However, these are sites utilising the area’s industrial heritage. The not the sectors where proximity to High Speed impact of the proposed HS2 route on these plans Rail is proven to have a catalytic effect. is illustrated in Figure K and Figure L and is further evidence of the detrimental impact the The Lower Don Valley is the industrial heartland station and route could have on high value of Sheffield City Region where large scale manufacturing in the area. advanced manufacturing businesses are taking an ever more important role in driving both the The route also has a direct impact on a number local and national economy through exports, of very significant existing manufacturing and expertise and productivity. Such businesses service businesses. The uncertainty over make an important contribution to the delivery of the whole HS2 project is already Government’s stated aims to rebalance the effecting investment decisions and in the long economy both structurally and geographically. term, if appropriate compensation and relocation costs are not provided this could have These businesses will not particularly make use considerable implications for the Sheffield City of high speed rail and in fact the Government’s Region economy. proposals for the HS2 route are, if anything, currently causing severe dis-benefits. A report The financial costs of compensation and commissioned by Sheffield City Region stated relocation would be very high due to the scale that the impact of the route past Meadowhall on and specialist nature of the businesses and we major development sites was unlikely to be believe that the full extent of those costs have not mitigated by the proximity to a high speed rail been properly assessed or incorporated into the 24 station at Meadowhall. current appraisal of the proposed route. Furthermore, the proposed route dissects a Several large sites in the area are within the SCR major regeneration site at Waverley New Enterprise Zone with enhanced capital Community. This site is forms an important part allowances designation. The proposed HS2 route of the housing pipeline of Sheffield City Region impacts on 3 of these sites in Sheffield and whilst with planning permission for approximately 4,000 Government has provided some flexibility in new homes of which 250 have already been built. terms of allowing additional sites within the city The HS2 line could remove 1,000 of these region to be allocated as alternative EZ sites that homes. does not remove the potential blight from these particular sites and it is extremely unlikely that
24 Fore (2013) Sheffield City Region: High Speed Rail Station Options Summary Assessment Matrix
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Figure K: Advanced Manufacturing Park North without HS2
Figure L: Advanced Manufacturing Park North with HS2
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them HS2 infrastructure is considered ‘unfit for The Sheffield City Region LEP draft Growth Plan 25 strategy aims to grow the Business Professional purpose’. This includes improving connectivity and Financial Services sector (BPFS) and to Sheffield city centre. Overall, comprehensive Creative and Digital Industries (CDI) sectors that connectivity for Meadowhall would have are vital to creating new private sector jobs and significant costs of up to £1.5 billion which is increasing GVA in the City Region currently outside the envelope of HS2 and local funds. As has already been demonstrated and supported by international evidence, businesses The area still requires significant connectivity in these sectors will be positively impacted by improvements, including addressing capacity HS2 but are also very specific in respect of their issues on the M1 junctions, and HS2 Ltd’s locational needs. They tend to gravitate into provision of a 1350 space car park as part of clusters, generally in city centres due to station plans indicates they see the station agglomeration benefits and the facilities and generating significant additional traffic environment that can be only found in city movements. Detailed traffic modelling of the centres rather than out of town business parks. impact the parkway station will have on congestion has not yet been undertaken. We The area around Meadowhall currently has few believe there is a risk that a station could be such businesses and the lack of available sites unworkable without extensive and substantial and the quality of the immediate environment improvements to the highways network with means that there is little scope to attract them, implications for the overall HS2 budget. even with a HS2 station. Evidence demonstrates that the connectivity This is not just a massive opportunity lost but package at Victoria will be at a lower cost also presents a serious risk that new businesses compared to the parkway station location will locate, or existing ones move outside SCR to because the key passenger markets for HS2 are cities that do have a city centre HS2 station and already well connected to the city centre. The place SCR at a permanent disadvantage. impact of connectivity work on the Meadowhall It has already been demonstrated, using HS2 area, particularly Junction 34 of the M1, would Ltd’s own forecasts, that the concentration of also make the parkway connectivity package HS2 passenger demand is based in Sheffield city more expensive. centre and the south west of Sheffield district. A Investment in connectivity around a station is to station at Meadowhall is not conveniently be expected; in fact it creates wider benefits for located for these markets, creating a the City Region. However, a parkway station at disincentive to travel that is reflected in the lower Meadowhall is unlikely to become a passenger forecast figures for the parkway destination in its own right due to the limited station. This not only impacts on the national development potential around the area, and the business case for HS2 but also creates additional surrounding environment. This in turn means that costs, as investment is required to improve the area is unlikely to generate significant uplift connectivity between the station and these that could otherwise be used to invest in wider markets. connectivity. Meadowhall’s apparent superior connectivity was cited as a reason behind Government’s decision to locate a station there as opposed to Sheffield city centre. However, the parkway connectivity package proposed by SYPTE is evidence that Meadowhall is not panacea in terms of connectivity: essential prerequisites for connectivity have been identified and without 25 South Yorkshire Integrated Transport Executive (2014) High Speed Rail: Investing in Britain’s Future – Consultation Response Page 28 of 41 SECTION 2: RESPONSE TO QUESTIONS
available to us from HS2. For the purposes of 4. A city centre station can help enhance assessing the case for a Victoria station and the the national business case for HS2 associated economic benefits, advice from leading consultants Volterra was that the Victoria
Loop is comparable with a Victoria Through aside A Victoria Through Route: Maximising the from journey time savings which would need to benefits and minimising the negative impacts be considered in more detail. In order to be an engine for growth, our approach HS2’s own analysis of the costs and benefits of a is to maximise the economic benefits and Victoria Loop suggests that the BCR of a Victoria reduce the negative impact. We therefore Loop, option when compared to a Meadowhall support a single route that runs through Sheffield Through route is 0.64. Firstly, the impact of this city centre with the station at Victoria instead of a on the national BCR would be negligible. The route via Meadowhall. national BCR would only change by 0.03. Our proposal is for an HS2 station at Victoria, for HS2’s own sensitivities suggest that the national both stopping and through traffic, with no line business case could range from a BCR of 1.25 to through Meadowhall. We believe there is 3.25. In this context of uncertainty, the Victoria potential for a through route to have considerably Loop altering the BCR by 0.03 is clearly very less impact on the Waverley development site small, and in our opinion this is far outweighed compared to the current proposed route. We by the potential to capture the increased recognise that this will have an impact on the economic benefits that we believe a Victoria journey times pf passengers travelling from station would generate. Leeds to London. Work with our consultants We believe HS2’s estimate of a BCR of 0.64 for Parsons Brinckerhoff has confirmed that this the Victoria Loop could be underestimated for additional journey time is under 3 minutes. This several reasons. journey time needs to be viewed in the context of city to city connectivity and regeneration: an The benefits could be higher for two reasons. HS2 route that runs from Leeds through Sheffield Work by Parsons Brinkerhoff suggests that the city centre will still provide transformational time penalty to ongoing passengers could benefits but also provide the significant have been overstated thus reducing the economic benefits of a city centre location. We disbenefits that they would experience, and wider believe this position is supported by many of the economic impacts are currently excluded which other local authorities on the HS2 route. Volterra estimate could add £150m-£300m to the benefits. HS2 have told us that a single route that runs through Sheffield city centre with the station at The costs could also have been overstated, due Victoria instead of a route via Meadowhall will to the cost of connecting either station to the cost an additional £900m-£ 1bn over the wider city region (as previously discussed), and preferred route. We would like to work with the potential for the city to part-fund either HS2 Ltd to explore both how it can be connectivity measures or a station through lowered as we believe this is technically possible uplifts in business rates. A high level and furthermore how enhanced uplift might be assessment suggests that these factors could generated and captured to allow part-funding impact significantly upon the BCR (ranging from additional costs (for example via SPVs and TIF). 1.5-5.0). We would welcome the opportunity to work with HS2 Ltd to test whether a Victoria station can in fact deliver a better business case Impact on the Benefit Cost Ratio (BCR) than a Meadowhall one. Analysis of HS2’s figures can only be done in the Within HS2 Ltd’ s existing appraisal framework context of the Victoria Loop option in comparison and using a series of illustrative assumptions to the Meadowhall Through, as this is all that is relating to time penalties, additional Wider
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Economic Impacts (WEIs), connectivity costs and The Jubilee Line failed its BCR assessment at funding towards station costs, the BCR of the the time but with strong political support has Victoria option could rise to 2.65. Further gone on to become an essential part of London’s details of this can be found in Volterra’s technical competitiveness; Crossrail has taken 20 years note in Appendix 4. The calculations are based but is now becoming a reality because people on a series of high level illustrative assumptions understood it was quite simply the right thing to because we are not able to undertake the do. We have seen constant evolution of transport detailed assessments required. However these appraisals over time and we believe the next illustrative calculations demonstrate that only a advance will be to truly understand the role of few relatively uncertain factors have to change by wider economic benefits and how transport relatively feasible amounts for the BCR to be in decisions can help stimulate additional economic line with the national one. growth. We are confident that when an economic As well as showing that Victoria does not view is taken, the merits of Victoria become undermine the benefit cost ratio for HS2, these overwhelmingly clear. We urge the Government calculations also demonstrate the limitations of to review its preferred station location in Sheffield the current approach to transport appraisals City Region and make the decision based upon when assessing the full business case for a the economic evidence. We would welcome the project the size and scale of HS2. The current opportunity to work with the Department for appraisal methods assume that the levels of Transport and HS2 Ltd to further understand any economic activity across the UK are fixed and the of the issues we have raised in this response. only impact transport can have is in increasing HS2 is a once in a lifetime opportunity but with productivity, along with a marginal movement in one chance to get it right. where activity occurs. In reality transport can have transformational impacts in attracting more activity to places than would otherwise be the case. This is completely missed by existing v) Do you agree or disagree appraisal methods. In the example of HS1 it was estimated that if only 5% of the regeneration with the Government’s around stations was actually ‘new’ activity to the UK, then this would be worth £10bn in benefits, proposals for an East which would have fundamentally changed the Midlands station at Toton? BCR. We believe, supported by the job creation estimates, that the potential scope for these We have already demonstrated the more limited sorts of transformational impacts would be economic potential parkway stations and that the significantly higher with a Victoria station real economic value of HS2 comes from than one at Meadowhall. If these impacts were connecting up city centres rather than faster captured in alternative appraisal methods for journey times. We have demonstrated that this HS2 then we believe this would further support can be achieved in Sheffield, however, we do not the case for the station to be located at know whether there is such a viable alternative in Victoria rather than Meadowhall. the East Midlands. Furthermore, our case for a rethink on the Sheffield HS2 station is supported by a wide variety of local and national stakeholders, including Core Cities Leaders, urban policy Vi) Do you think that there think tanks and academics, the two Sheffield universities and local businesses leaders. should be any additional Letters of support can be seen in Appendix 8. stations on the eastern leg
Page 30 of 41 SECTION 2: RESPONSE TO QUESTIONS between the West Midlands considered. Firstly, HS2 Ltd needs to take account of the low value of some residential and Leeds? properties in the Sheffield area. The compensation scheme for HS2 reflects the un- In terms of the number and location of stations, blighted market value of the properties, but the current ‘Y’ network proposals are supported, where the value is exceptionally low, the with the exception of the South Yorkshire station provision of this value may be insufficient to allow that we believe should be located in Sheffield city the residents to move into a comparable property centre. elsewhere. Furthermore, some of the residents privately rent their house and whilst the compensation package will recompense the
house owner, there is no provision to support or vii) Please let us know your help people find alternative, affordable rental accommodation. Therefore, affected residents comments on the Appraisal of as well as their landlords should be communicated with at every stage of the Sustainability (as reported in process. the Sustainability Statement) Further work is necessary to address these issues and ensure that the support made of the Government’s proposed available goes beyond the pure value of the Phase Two route, including property and ensure that where people have to relocate, there is sufficient support to ensure they the alternatives to the are able to move to an equivalent property. HS2 Ltd must also be mindful of the requirements of proposed route as described some communities in the area who may require in Chapter 9. additional support in terms of communication and cultural needs. As previously outlined, we believe the route and Access to residential properties both pedestrian station currently being proposed for Sheffield and highway, adjacent to the construction site of undermines the aspiration for HS2 to be a HS2, will also need to be maintained to minimise genuine engine for growth. We want to work with disruption and dwelling do not feel isolated from HS2 Ltd on a full appraisal of sustainability on their surrounding communities. our preferred route through Sheffield city centre For those dwellings that are not entitled to which would generate significantly more growth, compensation but within the noise affected area jobs and regeneration opportunities. along the corridor of the route, there still needs to However, there are some general principles be consideration of ways of mitigating the impact which would apply to either route in terms of once the line is in operation through the use of managing the negative impacts of the route and noise barriers and visual screening to integrate station: HS2 into the natural environment. These impacts need to be fully assessed and appraised as part of Hs2 Ltd’s Environmental Impact Communities Assessment Steps must be taken to keep disruption The Council has already facilitated HS2 Ltd associated with HS2 to a minimum for those engagement with communities affected by the communities affected by the route, both during route and will continue to do so, as well as advise construction and operation. HS2 of our local knowledge of the community In the case of those whose homes have to be including profiles and engagement best practice. demolished, a number of issues need to be
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Community assets because of the need to reconstruct facilities and HS2 Ltd must be mindful of the impact the route provide interim alternative transport services. can have on community resources, whether that Although HS2 is unlikely to be directly affected by is green space, footpaths, community buildings the threat of flooding the transport facilities that and leisure facilities. It is essential that HS2 offer access to the station site will be at flood carry out all practicable efforts to provide risk. It will therefore be important to mitigate this alternative arrangements to replace the facilities, problem when designing the access transport to an equivalent standard. arrangements, as well as ensuring that any construction work does not create flooding issues The construction of HS2 may provide strategic elsewhere. opportunities to enhance key green infrastructure and pedestrian and cycle route. These opportunities should be explored as part of any Traffic route proposals and we would be ready to Currently, the strategic network around the engage with discussions on this. Meadowhall station site is not only congested, it is at capacity at peak periods. Sensitive landscapes Whilst the economic regeneration impacts at the The full impact HS2 can have on sensitive parkway station will not be anywhere near the landscapes such as ancient woodland, flood same scale as a city centre station, we would plains, former mine workings and heritage sites anticipate some additional growth from the needs to be considered by HS2 Ltd, and parkway station development. These impacts, alternative options should be reviewed to mitigate on top of additional traffic generated directly by the impact. the station means the area would see an increase in traffic movements which will require There must be no worsening of visual intrusion new road construction and potentially a new on sensitive sites, and wherever possible the junction onto the motorway to resolve. These are opportunity should be taken to make the clearly very expensive works which will require landscaping and mitigation of the new works funding in advance of HS2 being opened. make up for the previous damage. There is currently a planning application for IKEA Whilst HS2 publications suggest HS2 Ltd are to be built in the area. This application is still aware of these issues, it is important that Hs2 under consideration and it is too early to say if it identify any risks associated with these sites as will be approved but if it is approved, successful these could cause a delay during the major highway improvements will be required to construction phase as well as lead to problems the network remodelling both junction 34 south elsewhere. and north and the local highway network In addition to these general principles, there are adjacent to the station. If IKEA is approved it will three areas of concern regarding the current have the impact of stopping all future proposed route that we would like to highlight: development in the Lower Don Valley until such time these improvements take place. Flood Risk We are aware that HS2 Ltd will undertake detailed transport/traffic modelling of the road The preferred parkway station location is located network around the proposed HS2 station at on a flood plain. The station will be constructed Meadowhall and the M1 Junction 34 (north and on viaduct therefore decreasing the chances of south) to test the impact of the necessary the rail infrastructure being flooded. In 2007 rearrangements of links and junctions. We are Meadowhall Interchange had to close for a disappointed that this modelling did not taken number of days due to extensive flooding, when place ahead of this consultation, considering the the river Don broke through its flood defences. issues the area already faces with congestion on This had a major impact on the local economy
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both the M1 and local highways. We believe economically important service for Sheffield City there is a risk that a station could be unworkable Region in terms of both inter and intra City without extensive and substantial improvements Region connectivity, linking Sheffield to to the highways network with implications for the Chesterfield, Derby, Nottingham and Leicester, overall HS2 budget. We will be accepting the amongst other destinations. In a recent study, invite that HS2 Ltd has already offered to the Network Rail suggested that the Midland local highway authorities and SYPTE to be Mainline service could justify the maintenance of involved in the discussion on and development of similar levels of activity post HS2 compared to the modelling and suggested proposals. the present because of continued demand and we ask Government to consider this finding as 26 part of its released capacity planning. Air Quality We understand that South Yorkshire Integrated The entire urban area of Sheffield is covered by Transport Authority has covered the wider an Air Quality Management Area (AQMA) opportunities associated with released capacity designation. A particular focus of the AQMA is to in its submission. tackle air quality in the vicinity of the M1 Motorway at Tinsley. Additional congestion associated with the forecast increase in traffic due to rail trips and associated development would have an adverse effect on air quality in the ix) Please let us know your area. In 2013 this part of the motorway was already exceeding the safe emission levels set comments on the introduction by the EU. With increased traffic levels we would of other utilities along the expect the length of the daily period when standards are exceeded to gradually increase. If proposed Phase Two line of the station does result in increased traffic on this part of the network we would expect that funds route? will be made available for mitigation works in this We have no specific comments for this question area to decease the impact of this problem. however we would want to work with you on all aspects of the impact of an alternative route through the city centre. viii) Please let us know your comments on how the capacity that would be freed up on the existing rail network by the introduction of the proposed Phase Two route could be used?
The additional capacity that will be created by HS2 is one of the most significant benefits of HS2. However, we believe that any plans for freed up capacity should not include a significant 26 Network Rail (2013, Better Connections: Options for the Integration of High downgrading of the Midland Mainline. This is an Speed 2
Page 33 of 41 SECTION 2: RESPONSE TO QUESTIONS Section 3: Section 3 References
Page 34 of 41 SECTION 3: REFERENCES
Sheffield City Council has worked constructively with HS2 Ltd and their advisors throughout 2013/14 and many of the documents generated have already been shared. Any new information referenced in this response are detailed below and included as appendices. The only exception is Parsons Brinckerhoff (2014), HS2 – Sheffield City Centre Route Option Assessment due to elements of a confidential nature.
References
• CBRE (2013), Property and Financing Solutions for HS2 Station. Executive Summary attached in Appendix 5.
• Core Cities (2013), Competitive Cities, Prosperous People: A Core Cities Prospectus for Growth
• DfT (January 2013), High Speed Rail: Investing in Britain’s Future – Phase Two: The route to Leeds, Manchester and beyond
• Department for Transport and High Speed Two Ltd (2013) ‘Growth boost for HS2 as taskforce membership confirmed’ [Press Release]. Accessed from https://www.gov.uk/government/news/growth-boost-for-hs2-as-taskforce-membership-confirmed
• Fore (2013) Sheffield City Region: High Speed Rail Station Options Summary Assessment Matrix
• Genecon (2012), Maximising the economic impact of HS2 investment in Sheffield. Attached in Appendix 2.
• Greengauge 21 (2006), High Speed Trains and the Development and Regeneration of Cities
• HS2 Ltd (2012), Options for phase 2 of the high speed rail network
• LCR (2014), HS2 Phase 2 Stations: LCR Development Reviews – Sheffield Victoria Station. Attached in Appendix 7.
• MVA (July 2013), Options for phase two of the high speed rail network – demand and appraisal report
• Network Rail (2013, Better Connections: Options for the Integration of High Speed 2
• Parsons Brinckerhoff (2014), HS2 – Sheffield City Centre Route Option Assessment
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• PTEG (2013), Funding Gap Report
• South Yorkshire Integrated Transport Executive (2014) High Speed Rail: Investing in Britain’s Future – Consultation Response
• Volterra (2013), An assessment of the case for a city centre high speed rail station in the Sheffield
City Region. Attached in Appendix 3
• Volterra (2014), High Speed 2 – station location analysis: Technical Note. Attached in Appendix 4.
• WSP (2013), The Economic Case for High Speed 2: Leeds and Sheffield City Regions
Page 36 of 41 SECTION 4: APPENDICES Section 4: Section 4 Appendices
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Appendices Appendix 1 – Maximising Authorities should, at the very least, co-produce local training provision with BIS and SFA and HS2’S Growth Porential could hold the associated training funds and seek to broker, on the part of businesses, the Realising HS2’s Growth Potential best possible training solutions. Whilst infrastructure investment often brings with We believe that in preparing the business sector it growth opportunities for UK supply chains and and workforce for the HS2 opportunity, we should skills development, the size and scale of HS2 learn from successful models of training presents an unique opportunity in the same delivery for the specific needs of an industrial league as the Olympics or civil nuclear industry in sector. For example some of the most successful terms of its huge potential for job creation, skills of DWP’s Sector Based Academies to date have enhancement and engineering expertise, for been in construction, including those developed business large and small. Driven by university in support of the London Olympics, and we are and major industry collaboration, HS2 would act already working up a similar approach with as a catalyst for export-led growth. Construction Industry Training Board in SCR that Skills will be led by Sheffield City Council. The UK already has a shortage of rail engineers We believe Sheffield City Region is the ideal and HS2 presents an opportunity to inspire a location for the recently announced ‘HS2 College’ new generation of UK engineers with high level allowing people across the country to access skills, enthused by a project of HS2’s scale, that training opportunities in the transport construction can then benefit our wider engineering and industry as part of a network of expertise across manufacturing sectors and support export the UK. growth. HS2 can both upskill and create a new Sheffield City Region is in a strong position to pipeline of skilled workers to deliver the scheme make the most of this opportunity with its central location on the HS2 network and its unique over the course of its construction and beyond, assets and heritage: sharing the legacy of HS2 throughout the UK • sectors. In order to maximise the wider Sheffield already has the Made in Sheffield economic and social benefits of HS2, what is Curriculum which links the local engineering needed is an approach that recognises the sector into school curriculum and the recently unique opportunity that is HS2, on a similar opened University Technical College magnitude to the London Olympics, including • Sheffield has the highest number of young clarity of objectives, benefits and outcomes, people in apprenticeships out of all the Core better, evidence-based planning and focused Cities. leadership. However, the change goes further • In five years’ time, the University of Sheffield than this: what is required is a fundamental will be the biggest engineering school in the change in the interaction between training country and by 2014 Sheffield City Region that shifts the power providers and employers will be home to the most advanced factory in to purchase training into the hands of the latter. the world This is what we are tackling through the Sheffield • City Region City Deal, with a new model for Sheffield City Region businesses are already employer-led apprenticeships and adult upskilling supplying Crossrail contracts for the SCR. The Skills Made Easy model As a city region with a clear focus on designs-in a local market dynamic into the local manufacturing, there is a strong rationale for skills system enabling employers to direct SCR establishing a centre of excellence for the provision to meet their business needs. In provision of the skills needed by HS2. We are support of HS2, the local LEPs or Combined keen to work with Government and industry to
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build on this success and deliver a world class programme delivered nationally by Sheffield City HS2 Skills Academy. Region’s NAMRC (Nuclear Advanced In short we have well developed means of Manufacturing Research Centre) demonstrates preparing young people and adults for work in how through research, development and target sectors and we know how to build effective intensive support to UK businesses, the domestic pathways to employment. Moreover, we don’t industrial base has the capacity to deliver do this alone but do it through coordinating a significant parts of the HS2 infrastructure but also broad provider network of support and training develop transferable expertise to enhance their organisations. We can scale up this approach in business potential. The NAMRC has already response to opportunities presented through HS2 established a comprehensive supply chain for the and look forward to a close working relationship civil nuclear industry, supporting manufacturing with Government as part of this, utilising local businesses across the UK to upskill and enhance knowledge and connections to ensure skills their quality and capacity for the major growth supply and demand is managed effectively. opportunity nuclear energy represents. With funding from RGF, ‘Fit for Nuclear’ aligns UK Procurement companies to be ready to address future supply Sheffield and the UK as a whole have the chance chain requirements by: of harnessing the economic potential of HS2 through research, development and skilling up the labour force in preparation – but this relies on 1. Identifying potential companies that Government doing what they can to make sure could supply the nuclear market that the jobs, growth engineering innovation that 2. Supporting companies to close capability directly comes from HS2 is, to the greatest gaps degree, located in the UK. 3. Matching company capabilities to client We do not advocate protectionism and we are needs aware of EU procurement laws but UK industry must realise the once in a lifetime opportunity HS2 represents. Below are some thoughts on This model was highlighted in SCR’s City Deal as how this could be achieved. part our proposal to develop a national centre for procurement based around SCR’s Advanced ‘Fit for HS2’ Manufacturing and Nuclear Research Centres. There is the potential to embed innovation into This concept could similarly be applied to the HS2’s procurement processes rather than technological requirements of HS2. replicating other countries’ approaches. By We envisage a virtual ‘Fit for HS2’’ model linking UK businesses into these processes where universities or sector-based centres of early, not only will jobs be created in local excellence could engage and support businesses economies, but demand-led innovation will across the country to develop a ‘sourcing stimulate a repositioning of industry in the UK roadmap’ for current and prospective sourcing and an economic legacy for the long-term. For patterns in the UK manufacturing industry. This this to happen procurement processes need to would help our understanding of potential be aligned with skills provision: one cannot work capacity in the UK supply chain and the steps without the other. required to address any capacity shortages and Reclaiming the maximum UK economic benefit ensure UK industry is ready for HS2 capacity. As from HS2 investment will require creating a new well as driving innovation, this would have a manufacturing supply chain based largely in knock on effect on skills capacity, thus creating the UK. In Sheffield, we have a world leading wider capability in the UK and driving exports. example of how ‘smart procurement’ can support For this model to work effectively, it needs to be domestic businesses to ready their capacity for a established as soon as possible because of the major opportunity like HS2. The ‘Fit for Nuclear’ time it takes to engage with businesses, upskill
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existing staff and buy new equipment. HS2 must • Access to finance for businesses –This provide clarity, in advance, of the materials, has three elements where Government could techniques and services that will be help: procured, and the standards and terms that o Business access to finance – an RGF suppliers must deliver to – ensuring that the SME dedicated to HS2 supply chain base can ready itself to take advantage of HS2 development would be a worthy opportunities. investment in terms of building capacity Engaging with SMEs within businesses even if not all Underpinning this model, there are a number of businesses get HS2 contracts. other key elements that must be considered if o Research funding - for example from local supply chains and SMEs are able to access TSB to facilitate the expansion of HS2 contracts: innovation in High Speed Rail or a UK • The design of HS2 procurement model of HSR. This would put us processes – ensuring they do not preclude ahead of the field and future proof the SME base in local areas. This means investment for HS3 and beyond. considering procurement strategies such as; o Incentivisation –are there opportunities breaking contracts into smaller deliverable for tax incentives for businesses projects, encouraging subcontracting and accessing HS2 related development; consortia to enable SMEs to work together funding incentives for UK universities / and instating contract obligations with major centres of excellence to engage local suppliers to use local companies and SMEs SME supply chains? in their subcontracting arrangements. HS2 The benefits of this approach will not only deliver Ltd could also ensure that quicker, simplified for local economies but improve competition, and less costly processes are in place for efficiency and help to remove supply bottlenecks smaller procurements below EU thresholds. – providing agile supply chains that reduce the Details like ensuring acceptable cash flow risk of supply chain failure. terms are passed through major contracts into the supply chain are important to ensure better engagement from local SMEs. • Assurance and confidence through Appendix 2 - Genecon (2012), communication in local areas – Government needs to provide assurance that Maximising the economic HS2 is going ahead and there needs to be a clear plan which demonstrates how SMEs impact of HS2 investment in can get themselves in a position to be part of HS2. Good examples (which we use in Sheffield Sheffield) include, online procurement hubs - See separate attachment to give suppliers one place to go to find out
about tender opportunities, clear contacts and information and ‘Meet the Buyer’ events. Working with business networks, like the Chamber of Commerce to disseminate information and to provide bidder briefings and even training for Governmental procurement processes, are all effective ways to improve the number of SMEs and local firms accessing HS2 contract opportunities.
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Appendix 3 - Volterra (2013), Appendix 6 – Sheffield City An assessment of the case for Council (2014) Sheffield a city centre high speed rail Victoria Station Development station in the Sheffield City Prospectus
Region. See separate attachment
See separate attachment
Appendix 7- LCR (2014), HS2 Appendix 4 - Volterra (2014), Phase 2 Stations: LCR High Speed 2 – station Development Reviews – location analysis: Technical Sheffield Victoria Station.
Note See separate attachment
See separate attachment
Appendix 8 – Letters of Appendix 5 - CBRE (2013), support
Property and Financing See separate attachment Solutions for HS2 Station: Executive Summary
See separate attachment
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