Cambridge International as and a level Economics Ebook

140
Cambridge International A Level Economics

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A cost to the government is the loss of indirect taxes that 
would have been paid by users who would otherwise 
have travelled by road. These taxes include fuel tax and 
excise duties on petrol and diesel fuel.
■
 
An attempt has been made to quantify the wider economic 
benefits that might accrue once the two stretches of line 
are open. Apart from the many forecasting problems this 
involves, it is relevant to note that Phase 2 to Leeds and 
to Manchester should generate a substantial boost to the 
regional economies in the north of England.
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The capital costs and annual operating costs are normal 
items in any cost–benefit appraisal.
BCR Components
Phase 1 (£billion)
Full Network (£billion)
1
Transport user benefits Business
£16.9
£40.5
Other
£7.7
£19.3
2
Other quantifiable benefits
£0.4
£0.8
3
Loss to Government of indirect taxes
−
£1.2
−
£2.9
4
Net transport benefits 
=
1 
+
2 
+
3
£23.8
£57.7
5
Wider economic impacts, WEI’s
£4.3
£13.3
6
Net benefits including WEI’s 
=
4 
+
5
£28.1
£71.0
7
Capital costs
£21.8
£40.5
8
Operating costs
£8.2
£22.1
9
Total costs 
=
7 
+
8
£29.9
£62.6
10
Revenues (from users of HS2)
£13.2
£31.1
11
Net costs to Government 
=
9 
−
10
£16.7
£31.5
12
BCR without WEIs 
=