Mind the gap: The role of HS2's Eastern Leg in bridging England's east-west divide - September 2020 - HS2 East

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Mind the gap: The role of HS2's Eastern Leg in bridging England's east-west divide - September 2020 - HS2 East
Mind the gap: The role of
HS2’s Eastern Leg in bridging
 England’s east-west divide
          September 2020

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Mind the gap: The role of HS2's Eastern Leg in bridging England's east-west divide - September 2020 - HS2 East
State of play                                                                                                               HS2’s Eastern Leg
    The UK economy has one of the largest levels of                                                                             Set to run from Birmingham’s Curzon Street station to                                 The evidence in this document demonstrates that a
    regional inequality of any advanced nation1. Despite                         In this report, we outline the economic and    the HS2 East Midlands Hub at Toton, to Chesterfield,                                  number of pertinent social and economic challenges
    the Government’s renewed commitment to levelling                             social disparities between communities         Sheffield and Leeds, with the potential to extend to                                  disproportionately affect communities along the
    up, the fact remains that wealth, employment                                 on the Western and Eastern Legs of HS2,        Newcastle and on to Scotland, the Eastern Leg of                                      Eastern Leg of HS2 Phase 2b, both compared to
    opportunities, productivity and social mobility are all                      demonstrating that a pervasive East – West     HS2 Phase 2b will connect communities that are                                        the Western Leg of HS2 Phase 2b, and the UK as
    hugely influenced by regional geography – and the                            divide provides the clinching case for why     home to over 13 million people and six million jobs.                                  a whole. As well as outlining the nature of these
    gap is widening.                                                             the Eastern Leg of HS2 Phase 2b must be                                                                                              inequalities, this report will explain how investment
                                                                                 built in its entirety.                         In February 2020, the Government confirmed that
                                                                                                                                                                                                                      in our new high speed network will catalyse the
    As we look to recover from the economic impacts                                                                             while the development and delivery of Phase One
                                                                                 In a time where we need to work together                                                                                             regeneration, development and social mobility
    of COVID-19, it is vitally important that investments                                                                       (from London to Birmingham) and Phase 2a (from
                                                                                 towards a safe and prosperous future, this                                                                                           needed to address these disparities.
    are made to lift up left-behind communities, and                                                                            Birmingham to Crewe) would continue as planned,
    rebalance the distribution of opportunity UK-wide.                           report does not intend to create divisions     the Government would undertake a review of Phase                                      For the full benefits of our new high speed
    Without targeted action current conditions will serve                        between the great regions of the North         2b of the project, publishing an Integrated Rail Plan                                 network to be realised, it must be built in its
    to exacerbate these inequalities further, condemning                         and the Midlands. We believe that both the     (IRP) to consider how both its Eastern and Western                                    entirety; both the Eastern and Western legs of
    a generation of young people to a life of financial                          Eastern and Western legs must be delivered     legs can be best integrated within the wider transport                                Phase 2b should be delivered as soon as possible.
    hardship, frustration and unreached potential.                               in full.                                       network. We expect this to be published before the
                                                                                                                                end of 2020.
    North – South vs. East – West
    Over successive decades, social, political and                                                                                      Glasgow                        Edinburgh
    economic differences have been measured,                                                                                                                                                                                                                   HS2 Line (Phase One)
    analysed and consistently publicised in the media                                                                                                                                                                                                          HS2 Line (Phase 2a)
    as demonstrating a clear North – South divide.                                                                                                           Carstairs
    Productivity, economic output and government                                                                                                                                                                                                               HS2 Line (Phase 2b - Eastern Leg)
    investment in areas such as transport are significantly                                                                                                                                                                                                    HS2 Line (Phase 2b - Western Leg)

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                                                                                                                                                        ES
    higher in London and the South East than

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                                                                                                                                                                               Lockerbie

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                                                                                                                                                                                                                                                               HS2 Services on existing network

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    communities in the Midlands and the North.

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                                                                                                                                                                                    Carlisle                  Newcastle
                                                                                                                                                                                                                                                               Northern Powerhouse Rail

                                                                                                                                                                   MAIN LINE
    However, as the UK regions meet the challenges of
    attracting Government and private investment in the                                                                                                                                                       Durham
                                                                                                                                                                                                                                                               Midlands Engine Rail
    face of unprecedented economic pressures, new
                                                                                                                                                                                    Penrith                   Darlington
    perspectives and analysis is required to demonstrate                                                                                                                                                         EA
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    the need for and value of game-changing projects
    with the potential to catapult communities out of

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                                                                                                                                                                                   Oxenholme

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    recession and truly level up the nation.

                                                                                                                                                                                                                           ST MAINLINE
                                                                                                                                                                                   Lancaster                   York

                                                                                 Cllr Kay Cutts, leader of                                                                                 Bradford     Leeds

                                                                                 Nottinghamshire County                                                        Preston              Manchester
                                                                                                                                                                                     Piccadilly
                                                                                                                                                                                                                                         Hull
                                                                                 Council, said:                                                                  Wigan
                                                                                                                                                           Warrington
                                                                                                                                                                                               Manchester
                                                                                                                                                                                                 Airport

                                                                                                                                                       Liverpool
                                                                                 “Now is the time to build back better                                                                            Sheffield
                                                                                                                                                                 Runcorn
                                                                                 and build back greener, accelerating                                                                             Chesterfield

                                                                                 our economic recovery from COVID-19.                                                          Crewe

                                                                                 The Eastern Leg of HS2 is an essential                                                                                                          Nottingham
                                                                                                                                                                                                   Derby
                                                                                 part of this solution, one that will create                                                                                                      East Midlands Hub
                                                                                                                                                                               Stafford
                                                                                 thousands of high-skilled jobs and spread
                                                                                 the benefits of investment and regeneration                                                                                     EMA
                                                                                 to the local communities that need it most.                                                                                                             Leicester
                                                                                                                                                                                   Birmingham
                                                                                 Government has committed to levelling-up                                                         Curzon Street
                                                                                 the UK economy, it must now deliver on this                                                                  Birmingham
                                                                                                                                                                                               Interchange
                                                                                 promise, starting with the full construction
                                                                                 of the Eastern Leg.”                                                                                                                                                Bedford
        CGI of HS2 East Midlands Hub, the nearby Innovation Campus
        and planned development
                                                                                                                                   Delivery: 2035-2040
                                                                                                                                                                                                                                                     London
                                                                                                                                                                                                      Old Oak Common                                 Euston

    UK2070: Make no little plans; acting at scale for a fairer and stronger future
    1

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Mind the gap: The role of HS2's Eastern Leg in bridging England's east-west divide - September 2020 - HS2 East
The East - West divide
                                                                                                                                  The Eastern Leg of HS2 in numbers
    An analysis of social and economic indicators has
    revealed a stark disparity between the outcomes and
    life chances of communities living along the Eastern
    Leg of HS2 Phase 2b, compared to communities                                                                                                               Productivity
    surrounding the Western Leg of HS2 Phase 2b.
    Compared to communities on the Western Leg of
    HS2, the Eastern Leg of HS2 and its surrounding                                                                                                                                           Productivity in
    communities:
                                                                                                                                                                                           Eastern Leg regions
                                                                                                                                                                                             (East Midlands,
            Have lower productivity rates                                                                                                                                                   Yorkshire and the
            Receive significantly less transport                                                                                                                                               Humber and
                                                                                                                                                                                               North East)
            investment
                                                                                Cllr Judith Blake, leader of
                                                                                                                                    22% less                    11% less
            Are home to more social mobility                                                                                        productive than             productive than           A third below London
            ‘coldspots’                                                         Leeds City Council, said:                             UK average                 Western Leg                 average in 2018
                                                                                “There’s no arguing with the facts – the
    Several other factors suggest a need for transport
                                                                                Eastern Leg of HS2 is home to communities
    investment in the Eastern Leg geography, to
                                                                                that are blighted by low productivity, are less
    stimulate economic opportunity:
                                                                                likely to achieve social mobility and that have
                                                                                suffered from a chronic underinvestment in
            A number of towns and cities along                                  transport. Government must remedy this                           Transport Investment Per Head
            the Eastern Leg are home to a high                                  now, and commit to building the Eastern Leg
            proportion of ‘financially stretched’                               of HS2 in full, as soon as possible, giving
            households                                                          the Midlands and the North the resources
                                                                                needed to spark regeneration, job creation
            Concentration of transport poverty
                                                                                and economic growth.”
            is significantly higher than the UK
            average and correlates strongly with
            areas of social deprivation
                                                                                                                                        33% below                                    21% below
                                                                                                                                           UK average                             Western Leg regions
                                                                                                                                                                            (North West and West Midlands)

                                                                                                                                                             Social Mobility

                                                                                                                                     42% of England’s social                      Twice as many
                                                                                                                                                                                      social deprivation
                                                                                                                                       deprivation coldspots,
                                                                                                                                                                                  ‘coldspots’ than Western
                                                                                                                                    despite only having 23% of its
                                                                                                                                                                                        Leg regions
                                                                                                                                             population
     Artist’s impression of the planned regeneration of Leeds’ South Bank, near the city centre

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Mind the gap: The role of HS2's Eastern Leg in bridging England's east-west divide - September 2020 - HS2 East
Western Leg regions = the Western regions of
    the Midlands Engine and Northern Powerhouse,
                                                       Eastern Leg regions = The Eastern regions of
                                                       the Midlands Engine and Northern Powerhouse,
                                                                                                           Transport Investment
    which run along the Western Leg of HS2 Phase 2b,   which run along the Eastern Leg of HS2 Phase 2b,                                                                              Overall transport spend per
    composed of the West Midlands and North West.      comprised of the East Midlands, Yorkshire and the
                                                       Humber and North East.
                                                                                                           The Eastern Leg regions have suffered from a                                  head (2014-20193)
                                                                                                           sustained and chronic underinvestment in capital
                                                                                                           infrastructure that has occurred under successive
        Legend                                                                                             Governments over a period of decades.
                                                                                                           In the five years from 2014-2019, the Eastern Leg                                                                            £2,120
                Western Leg Regions
                                                                                                           regions received a transport spend per head that was
                Eastern Leg Regions                                                                        33% below the UK average, and 21% below that                                                       £1,800
                HS2 Line
                                                                     North East                            received by the Western Leg regions.

                                                                                                                                                                                     £1,418

                                                                                                                                                                                                                Western Leg regions
                                                                                                                                                                                       Eastern Leg regions
                                                                                   Yorkshire and
                                                                                    the Humber
                           North West

                                                                                                                                                                                                                                         UK average
                                                                                     East Midlands

                           West Midlands                                                                                         North East                      £1,602

                                                                                                                                North West                         £1,909
                                                                                                                      Yorkshire and the                          £1,577
                                                                                                                                     Humber
                                                                                                                                                              £1,185
    Productivity                                Productivity (GVA per head) by
                                                                                                                           East Midlands
                                             region compared to the UK average                                                                                    £1,716
                                                                                                                          West Midlands
    As of 2018, the Eastern Leg
                                                                                                                                                                  £1,804
    regions (Yorkshire and the                                                                                                             East
    Humber, the East Midlands,
                                                                                                                                                                                       £4,348
    and the North East) had the                                                                                                       London
    three lowest productivity
    levels of any region in                                                                                                      South East                       £1,706
    England, falling 35%, 33%,
    and 32% below the London                                                                                                    South West                     £1,361
    level in 2018.2
    GVA per head in the Eastern
                                                                                                                                             UK                      £2,120
    Leg regions is 11% below
    that of Western Leg regions,                                                                                                                      £0            £1000           £2000                    £3000                    £4000           £5000
    and 22% below the UK
    average.                                                                                                                                                              Transport Spend per Head (£)
    2
     ONS, 2020, Regional labour
    productivity, including industry by                                                                    p141 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/901406/CCS207_
                                                                                                           3

    region, UK: 2018.                                                                                      CCS0620768248-001_PESA_ARA_Complete_E-Laying__002_.pdf

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Mind the gap: The role of HS2's Eastern Leg in bridging England's east-west divide - September 2020 - HS2 East
Social Mobility                                                                                                        Social Mobility Coldspots in           Transport Poverty
                                                                                                                           Eastern vs Western Regions
    Households along the Eastern Leg of HS2 are
                                                                                                                           40                                     A household is considered to experience transport                     factor to economic growth. These were; public

                                                                             No. of LA districts identified as coldspots
    much more likely to experience poor social mobility;                                                                                                          poverty where a lack of convenient, affordable                        transport access, private transport access and labour
    calculated using a variety of measures including                                                                                                              transport access limits economic prosperity and                       market outcomes5.
    the quality of schools/educational institutions
                                                                                                                           35                                     quality of life. It may be that poorer public transport
                                                                                                                                                                                                                                        It is clear that transport poverty is prevalent along
    disadvantaged children attend, the grades they receive                                                                                                        access hinders access to job opportunities or that
    and the salaried jobs they eventually secure4.
                                                                                                                           30                                     struggling households are socially isolated or cut off
                                                                                                                                                                                                                                        the whole length of the Eastern Leg, and is largely
                                                                                                                                                                                                                                        restricted to urban areas close to the HS2-served
                                                                                                                                                                  from amenities by the high cost of owning a car.
    Communities surrounding the Eastern Leg are home to                                                                    25                                                                                                           stations shown below.
    a high concentration of ‘social deprivation coldspots’;                                                                                                       Our analysis of transport poverty examined three
    where local authorities were within the lowest                                                                         20       38                            main indicators, which when combined are a limiting
    performing 20 per cent nationwide. Despite only
    housing 23% of England’s population, communities                                                                       15
    surrounding the Eastern Leg were home to 42% of                                                                                                               Eastern Leg Transport Poverty
    England’s social mobility coldspots.                                                                                   10
    Social mobility along the Eastern Leg is 12% below                                                                                                    16
    UK average, while a prevalent East West divide is                                                                      5                                                                                                                  Newcastle

    clearly demonstrated below:                                                                                                                                                                                                               Durham
                                                                                                                           0
                                                                                                                                                                                                                                               Darlington
                                                                                                                                  East               West
                               % of England’s social deprivation coldspots by region
                                                                                                                                                                                                                                                       York

                                                                    North West (6%)                                                                                        Area of Transport                                                   Leeds
                                                                                                                                South East (8%)                                Poverty
                                            North East (5%)
                                                                                                                                       South West (8%)                                                                                          Sheffield
                                                                                                                                                                                                                                                 Chesterfield

               Yorkshire and the Humber (11%)
                                                                                                                                                                                                                                                    East Midlands Hub

                                                                                                                                            West Midlands (18%)
                                                                                                                                                                                                                                          Birmingham Curzon Street

                           East of England (18%)

                                                                                                                                    East Midlands (26%)
                                                                                                                                                                  The link between transport poverty and social
                                                                                                                                                                  deprivation is undeniable. You will see on the next
                                                                                                                                                                  page that areas of transport poverty and social
                                                                                                                                                                  deprivation hotspots are very highly correlated.
    Eastern Leg Regions                                                                                                         Western Leg Regions               Providing communities with better access to
                                                                                                                                                                  convenient transport is essential if we’re to
    42%             of England’s social
                    mobility coldspots
                                                                                                                                24%       of England’s social
                                                                                                                                          mobility coldspots
                                                                                                                                                                  achieve better outcomes and empower left behind
                                                                                                                                                                  communities to benefit from better job opportunities
                                                                                                                                                                  and greater financial security.
    23%             of England’s population                                                                                     23%       of England’s
                                                                                                                                          population

                                                                                                                                                                  HS2 East: Volterra, The case for an integrated new railway network serving the Eastern Leg (2020)
                                                                                                                                                                  5
    4
        Social Mobility and Child Poverty Commission; The Social Mobility Index (2016)

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Mind the gap: The role of HS2's Eastern Leg in bridging England's east-west divide - September 2020 - HS2 East
Leeds City Region                                                         Derby, Leicester and Nottingham Primary Urban Areas
     Transport Poverty                     Socio-Economic Deprivation          Transport Poverty                                                   Socio-Economic Deprivation

               Area of Transport Poverty          Top 20% Most Deprived Area                  Area of Transport Poverty                                     Top 20% Most Deprived Area

     Sheffield City Region
     Transport Poverty                     Socio-Economic Deprivation

                                                                                CGI of planned development close to Chesterfield railway station
           Area of Transport Poverty            Top 20% Most Deprived Area
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Mind the gap: The role of HS2's Eastern Leg in bridging England's east-west divide - September 2020 - HS2 East
Financially stretched households                                                            Why do we need HS2?
     One of six socio-economic categories used to                                                The Eastern Leg of HS2 will catalyse the                 page). This level of transformation has not been seen
     segment the UK population, financially-stretched                                            regeneration, job creation and economic                  for a generation, and will see thousands of new homes
     households make up 23% of the nation’s residents                                            growth needed to lift up communities                     built, new leisure destinations opened and a host of
     and are typically comprised of those living in low-                                         surrounding our new high speed railway line.             holistic placemaking in inner city areas.
     value mortgaged or owned accommodation or those
                                                                                                 It will do this by:                                      Reducing transport poverty -> HS2 will be the
     renting social housing, mostly semi-detached or
                                                                                                                                                          backbone of our public transport network for the
     terraced properties.                                                                        Raising productivity -> Our new high speed railway
                                                                                                                                                          next century, and will vastly improve access to public
                                                                                                 will transform connectivity between the UK’s major
     Financially-stretched households are:                                                                                                                transport for communities along its route. It is the
                                                                                                 cities and produce huge journey time benefits. Less
                                                                                                                                                          basis of complementary regional transport initiatives
     • more likely to rely on low-skilled employment                                             time spent travelling and increased ease of access
                                                                                                                                                          Northern Powerhouse Rail and Midlands Engine
                                                                                                 to new domestic markets will increase productive
     • less likely to have higher-level qualifications                                                                                                   Rail that both utilise HS2 infrastructure, connect
                                                                                                 output and reduce the disruption caused by
     • less likely to have savings and more likely to                                                                                                    communities to the high speed line and use the
                                                                                                 cancellations and delays.
        struggle with debt                                                                                                                                capacity HS2 frees up on the existing network to run
                                                                                                 Encouraging social mobility -> Not only will HS2’s       additional local and intercity services. This will raise
     • home to a higher than average proportion of                                              construction see the creation of thousands of            productivity, encourage social mobility and reduce
        benefit claimants                                                                        apprenticeships, it will also prompt the creation of     transport poverty.
     Analysis of this data shows that a number of                                                over 150,000 new jobs along the Eastern Leg, many
                                                                                                                                                          Reducing emissions -> HS2 will create space on the
     towns and cities along the Eastern Leg have an                                              of which will be highly-skilled. The ease of access to
                                                                                                                                                          conventional network for over 2 million lorries’ worth
     above average proportion of financially-stretched                                           these opportunities, along with the regeneration of
                                                                                                                                                          of goods to be moved from Britain’s roads onto its
     households, including Leicester, Nottingham,                                                deprived inner city areas will expose young people to
                                                                                                                                                          railways each year. A move that will reduce carbon
     Ashfield, Mansfield, Bolsover, Chesterfield, Sheffield                                      a host of new possibilities.
                                                                                                                                                          emissions by 76%.
     and Rotherham.                                                                              Catalysing regeneration -> The arrival of HS2 is
                                                                                                                                                          It will eradicate the need for domestic air travel,
                                                                                                 prompting widespread regeneration around the
                                                                                                                                                          providing a carbon-neutral alternative to the hundreds
                                                                                                 planned new station in the East Midlands, as well
                                                                                                                                                          of polluting flights that run between England and
                                                                                                 in Chesterfield, Sheffield, Leeds and York (see next
                                                                                                                                                          Scotland each week.
      Legend
             HS2 Stations
             HS2 Eastern Leg
                                                               Wakefield - Index Score = 137
             HS2 Phases 1 and 2a
      Financially Stretched Index Score                        Barnsley - Index Score = 160

             40-60                                            Doncaster - Index Score = 138
             60-80                                            Rotherham - Index Score = 138
             80-100
             100-120                                           Sheffield - Index Score = 126

             120-140                                          Chesterfield - Index Score = 131
             140-160
                                                               Bolsover - Index Score = 176
             160-180
                                                               Mansfield - Index Score = 122

                                                               Ashfield - Index Score = 143
                                                                                                         +150,000                           Regeneration                             Boosting
                                                                                                             new jobs                        of inner city areas                      productivity
                                                              Nottingham - Index Score = 142

                                                               Leicester - Index Score = 146

                                                                                                       Better local                          Space for more                   Carbon-neutral
                                                                                                         transport links                        rail freight                               travel

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Mind the gap: The role of HS2's Eastern Leg in bridging England's east-west divide - September 2020 - HS2 East
Leeds                                                                       Full of Eastern promise
                           +40,000 jobs
                                                                                                          Given the evidence outlined in this document,                           Our asks of Government:
                      +8,000 new homes
                                                                      York                                alongside the mounting economic impacts of                              The Eastern Leg of HS2 must be built in
               +£54bn to the local economy by                                                             COVID-19, it is essential that Government gives                         its entirety; alongside and within a similar
                            2050                                   +7,000 jobs                            businesses and investors along the Eastern Leg of                       timescale as the Western Leg.
                                                                   +£1.6bn GVA                            HS2 the certainty they need to rebuild and flourish.
                Supporting the development of                                                                                                                                     De-scoping, descaling or delaying the Eastern Leg
                                                                                                          Investment in these communities will have huge
               Leeds’ South Bank, set to double                                                                                                                                   would have dire economic consequences, and
                                                                                                          benefits for UK PLC; the geography is home to major
              the size of the city centre, creating                                                                                                                               disproportionately penalise the communities that
                                                                                                          international gateways, world-leading industries
               new leisure facilities, housing and                                                        such as advanced manufacturing, life sciences,
                                                                                                                                                                                  need its benefits most; communities that have
                          office space                                                                                                                                            suffered from decades of underinvestment.
                                                                                                          agritech and green energy production. Harnessing
                                                                                       Tees Valley
                                                                                                          the potential of its people, workers and businesses                     Delivery must be completed as soon as
                                                                                  +16,000 jobs over the   will boost economic output, lift productivity and                       possible
                                                                                      next decade         create opportunity for a generation of highly-skilled,
                                                                                                                                                                                  It is essential that the Phase 2b Hybrid bill
                                                                                                          prosperous households.
                                                                                                                                                                                  is drafted as soon as possible following the
                                                                                                          Our message to policymakers is simple; we need the                      publication of the Integrated Rail Plan at the end
                                                                                                          Eastern Leg of HS2 – back it, built it, benefit from it.                of this year – programme delivery must not slip.

             Sheffield
            +12,000 jobs
         +1220 new homes                                                   The East Midlands

           + £970m GVA                                                        +74,000 jobs

      HS2 will generate swathes                                            +£4bn GVA per year
        of development around                                        The HS2 East Midlands Hub at
       Sheffield Midland station                                      Toton will be home to a state-
     including over 180,000sqm                Chesterfield            of-the-art innovation campus,
      of commercial space, new                +10,000 jobs            bringing together established
     homes, leisure destinations                                    businesses and start-ups to create
            and retail units.               +4740 new homes             10,000 highly-skilled jobs.
                                          +£270m GVA per year         ‘Access to Toton’ transport plan
                                          New HS2 maintenance           will link over 20 cities, towns
                                             depot at Staveley        and villages to the HS2 station,
                                           creating hundreds of     improving local transport networks
                                                                                                            Artist’s impression of new mixed-use development next to Sheffield Midland station
                                            highly-skilled jobs.      across rail, road, bus and tram.

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Mind the gap: The role of HS2's Eastern Leg in bridging England's east-west divide - September 2020 - HS2 East
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