HS2: Connecting cities and the UK economy

26 September 2017 Jo ScanlonResearch

A recent study conducted by the DueDil Team has revealed that businesses around stations along the planned High Speed 2 (HS2) railway line have a total turnover of a staggering £1.6 trillion.

Methodology

DueDil has conducted an in-depth analysis into the financial performance of companies situated within a 10-mile radius of each planned HS2 station from Euston up to Lancaster, Leeds and York. In the event of any overlap, the nearest station to the registered trading location was assigned.

The stations analysed included those planned in the first two phases (1, 2a and 2b) of HS2, as well as those of the existing network. In total, 74,484 companies were analysed as part of the project. To ensure the financial data is representative geographically, unconsolidated accounts were used to avoid skews from large group companies with diverse operations.

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Findings

The analysis found that stations outside of London along the route were at the heart of companies with an impressive total turnover of over £227.8 billion.

While there is little surprise that Leeds, Manchester Piccadilly, and Birmingham Curzon Street stations are at the centre of companies with the highest collective turnover outside London; the planned East Midlands Hub near the Toton Field nature reserve is at the heart of companies with total revenues of almost £19 billion.

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At a mammoth £1.2 trillion, London Euston had the highest sum of turnover, followed by the planned Old Oak Common station at £127 billion.

Analysis also revealed that stations along the route and outside of London, are at the centre of companies exporting over £13.2 billion and employers of over 1.4 million people. Top exporters along the route include:

  • Brother International Europe – £697.0m
  • Suncor Energy UK - £460.1m
  • Hologic Hub – £426.4m
  • Kellogg Marketing and Sales Company (UK) - £394.8m
  • Outokumpu Stainless Limited - £311.3m (Sheffield Midland)

Businesses around Lancaster station had the least credit risk, scoring either low or very low (85 percent), followed by York (82 percent). Companies around London Euston had the highest risk with 72 percent with a low or very low credit risk, which is reflective of the high concentration of start-up companies in the capital.

Interestingly, Sheffield Midland and Chesterfield stations (1.5 percent) are at the heart of the highest proportion of companies that are over 100 years old. The Quantum Clothing Group Limited is the oldest outside of London at 152 years old, whilst The Oriental Gas Company Limited and B.L. Holdings Limited are the oldest within the capital, both at 160 years old.

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