A new report published by Public First has determined that international high-speed rail contributes around 2 billion GBP to the UK economy each year and supports approximately 23,000 jobs.
The report, Fast Track to Growth, uses Eurostar as a case study to assess the economic impact of international high-speed rail in the UK. It concludes that the operator’s contribution could increase to 2.8 billion GBP and support around 40,000 jobs annually by 2035.
According to the research, the projected growth is linked in part to Eurostar’s planned 1.7 billion GBP investment in a new fleet of double-decker Celestia trains. The first of the new trains is expected to enter service in 2031 and will support proposed direct services from London to Frankfurt and Geneva.
Public First found that for every direct job at Eurostar, a further 16 jobs are supported across sectors including engineering, manufacturing, hospitality and tourism. The report estimates that the economic activity generated by the operator contributes around 87,500 GBP in gross value added (GVA) per job, approximately 9% above the UK average.
Tim Leunig, Director at Public First, said:We expected to find that Eurostar was good for the UK economy. What surprised us was how much of that value comes through competitiveness – more productive businesses, higher-quality jobs and connectivity that has made King's Cross one of Europe's leading investment destinations. The role of international rail in growing the UK economy is clear.
The research also examined the wider economic effects of international rail services. It estimates that rail connections generate around 500,000 additional tourist visits to the UK each year, contributing approximately 370 million GBP in spending on accommodation, hospitality and visitor attractions.
In addition, the report estimates that around 150,000 additional business travellers arrive in the UK by international rail each year, contributing 115 million GBP to the economy. It also found evidence of passengers choosing rail over air travel on routes including Paris, Brussels and Amsterdam.
Gwendoline Cazenave, Chief Executive of Eurostar, said:For Eurostar, travel is about much more than transport. Throughout history, better connections have created stronger economies, greater innovation and deeper understanding between people. Rail has a unique ability to bring cities closer together while offering a journey that is productive, comfortable and sustainable from city centre to city centre. Connection creates opportunity and growth.
This research shows what Eurostar already delivers – and why international rail is worth investing in for the future. The UK now needs a bold vision to match the private investment on the table – more depot capacity, a bold expansion of St Pancras and a seamless border. Now is the time to act to ensure Britain plays a leading role in Europe’s high-speed rail future.
