A REPORT has said that a domestic High Speed line should be funded by the public purse, and that even a public-private partnership is not suitable. The recommendation comes a few weeks ahead of the publication of the Government's own White Paper, which is expected to set out High Speed plans.

The report has been compiled after research by the firm of PricewaterhouseCoopers which was commissioned by the High Speed rail lobby group Greengauge21. It says that a new line could be built between London and Manchester for £27.5 billion. It also estimates that fare income would be £73 billion between 2022 and 2053.

Unlike some other commentators, PwC is not recommending significant private sector investment in such a project, although it does examine a number of ways of finding the capital needed, including the involvement of a body like Network Rail, which commands extensive borrowing powers. It does say that the private sector could step in, possibly as the operator, once such a line is complete.

Jim Steer of Greengauge21 told The Times: “This report makes sense. The real key to this is that there has to be an organisation that can buy the asset once it is constructed and is receiving regulated revenues.”