Are SMEs on track to benefit from HS2?

Canals

I’m an unconditional supporter of HS2 (High Speed 2). It’s been labelled a ‘Game Changer.’ The term underestimates the impact HS2 will have, not only here in Greater Birmingham but across the UK. HS2 doesn’t just change the game, it brings a whole new game to the table. 

HS2 offers a vision for rebalancing an economy irresponsibly skewed towards the South East. High Speed train links between Birmingham, Manchester, Leeds and London may not balance our economy, but it does promise an era of regeneration.  It will attract further investment to regions outside of Greater London.

Greater Birmingham Chambers of Commerce organised a breakfast event this morning with HS2’s Programme Director Mike Lyons. Mr Lyons spoke about a number of developments but I’ll be focusing on what HS2 means to SMEs (Small and Medium sized Enterprises), namely the business backbone of the UK. 

HS2…the largest ever procurement for civil infrastructure in the UK.

At the end of February 2016, HS2 will release a formal invitation to tender for £7 Billion of civil engineering works. This is the largest ever procurement for civil infrastructure in the UK in its history. 3 Billion of the 7 Billion will be for this region from Leamington Spa in the South, through Birmingham and up to Lichfield. This will be a huge milestone for the project. There is also a £300 Million Enabling Works Contractor tender. This money is allocated for work in the region to alter highways, creating fences, taking key bits of land, movement of utilities, creating storage compounds and logistics, all to make sure the land is ready for the beginning of HS2 construction in 2017.

HS2 envisage there will be over 700 businesses engaged as part of their supply chain. HS2 is about how those Billion pound Tier 1 Contractors engage with Tier 2, Tier 3 and SMEs to make that supply chain coherent in delivering this project. Mike Lyons explaining to a Chamber audience made up of many SMEs “I would encourage you to talk to those Tier 1 contractors and engage with them in a way you may not have done before. HS2 will be looking very hard at those Tier 1 contractors on how they engage with SMEs in a positive way making sure they develop those businesses as well as themselves.”

Royal Ascent for HS2 is expected at the end of 2016 laying the path for construction to begin next year. 100,000 jobs will be created or safeguarded. The HS2 College will create over 2000 apprentices. Over 2 million people in this region will be able to connect via public transport to the high speed network within 30 minutes.

HS2 will be operational between Birmingham Curzon Street and London Euston in 2026. For the Midlands Engine, the landscape and economic prospects will never be the same.

Jas Sansi is a freelance photographer based in Greater Birmingham

@jassansi 07930 837 505 sansi1@btinternet.com

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