KPMG has announced it believes HS2 can offer large improvements to the UK's economy.

The firm also criticised the comments by the Institute of Directors (IoD) asking for the project to be scrapped.

Head of infrastructure, building and corporation at KPMG Richard Threlfall said: "I continue to believe that HS2 will have a transformational impact on the UK's economy and its future competitiveness".

Work undertook in 2010 was also referred to, suggesting a high speed rail network could raise annual economic output from £17 billion to £29 billion in 2040. This would recover the anticipated costs of £42.6 billion in a couple of years.

It also states 64 per cent of those surveyed by the Confederation of British Industry and KPMG believe HS2 would result in a positive impact on business.

The IoD announced a lack of faith in the project after a survey showed only 41 per cent of businesses felt the project was important to them - down from 54 per cent two years earlier. It favoured funding smaller improvements over the growing costs of HS2.