90% of UK industry calls for HS2 revival to boost rail freight capacity

Britain’s manufacturing sector has issued a powerful call to revive the shelved eastern leg of High Speed 2 (HS2). It would link Manchester and Leeds, as a strategic measure to free up vital capacity for rail freight. A new report published today, Monday 21 July, by Make UK and Barclays UK Corporate Bank reveals that almost nine in ten companies support the resurrection of the original high-speed route — and they’re equally in favour of better rail links between the North’s major cities.

The report underscores how increased rail investment could unlock both environmental and economic benefits. It advocates for a logistics-driven vision of high-speed rail — one that supports freight growth, boosts connectivity with ports, improves access to labour markets, and forms the backbone of a multimodal freight network stretching from the East of England to the Northern Powerhouse.

Manufacturers back HS2 revival

The survey, carried out among manufacturers by representative organisation Make UK and Barclays UK Corporate Bank, found that 89 per cent of respondents want to see the original HS2 plan reinstated. The same proportion supports investment in fast rail connections between Liverpool, Manchester, Sheffield, Hull and Newcastle.

Freight is playing a big role in delivering HS2 (this is just one of thousands of trains at the Quainton construction railhead). Make UK wants freight to have a future once the line is open. Image: © HS2
Freight is playing a big role in delivering HS2 (this is just one of thousands of trains at the Quainton construction railhead). Make UK wants freight to have a future once the line is open. Image: © HS2

For the industry, the stakes are clear. Without greater passenger capacity on the main lines, there’s simply not enough room for rail freight to grow. That’s a problem for the UK government. Westminster has committed to increasing rail freight volumes by 75 per cent by 2050. At the same time, it’s trying to decarbonise an estimated 12 million road freight journeys a year.

Multi-modal logistics spine proposed

Make UK says the solution lies in a coordinated, spine-based logistics strategy running through the heart of England. A high-speed corridor, enhanced with strategically located freight terminals, could tie together the UK’s largest port and busiest rail freight terminal at Felixstowe, the innovation hub of the Oxford-Cambridge Arc (being connected by East West Rail), and the manufacturing heartlands of Birmingham, Liverpool and Manchester.

Inspiration comes from continental Europe, where France has successfully developed multimodal freight hubs and is investing in wagonload rail freight. Locations like Ely Junction and Trafford Park are singled out as potential logistics linchpins, offering economies of scale, better labour access, and a link between skills and innovation.

East West Rail, between Oxford and Cambridge, is not a high-speed line, but is carrying freight ahead of passenger service introduction. Image: © East West Rail.
East West Rail, between Oxford and Cambridge, is not a high-speed line, but is carrying freight ahead of passenger service introduction. Image: © East West Rail.

Industry voices unite behind freight reform

“It’s clear that the current levels of rail capacity aren’t suitable for the levels of freight traffic the government is predicting in the future,” said Verity Davidge, director of policy at Make UK. “If the industry is to make greater use of rail, we need the extra capacity which a high-speed link for passenger traffic would free up. That, in turn, creates a valuable opportunity to invest in multimodal hubs connecting ports and inland logistics.”

Lee Collinson, head of manufacturing, transport and logistics at Barclays UK Corporate Bank, added: “By addressing key barriers and enhancing rail freight, we can achieve significant environmental benefits, reduce lorry journeys, and improve road safety. Upgrading and integrating our road, rail, and port systems is crucial for boosting productivity and supporting long-term competitiveness.”

Road still dominates, but rail has support

Despite the aspirations, road remains dominant. 89 per cent of companies rely on it as their primary transport mode. Nearly six in ten cite road investment as vital to their just-in-time models, with only 38 per cent seeing current rail infrastructure as a priority.

That could change. A third of companies believe rail should be the number-one transport investment priority. Nearly two-thirds (61 per cent) want government focus to shift towards integrated multi-modal hubs that improve road-rail-port links and support a modern, sustainable freight system.

Cost, access and volume still barriers

However, manufacturers remain wary of practical challenges. The biggest deterrent to greater use of rail is cost — cited by 45 per cent — followed by low volumes and poor access to local terminals. Rail’s competitiveness has eroded, with per-tonne costs rising by ten per cent over the last decade, compared to a three per cent increase for road.

However, Make UK sees a silver lining. Greater rail freight use would help cut emissions and improve companies’ ESG performance. More than six in ten firms say it would also widen their access to labour, while a similar number believe it would encourage more investment in skills and capital.

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