The Institute of Directors (IoD) is calling on the government to scrap HS2 following a survey.

Out of 1,323 members, 70 per cent feel the scheme will have no impact upon their business.

Only 41 per cent rate the high-speed rail project as important to their business. A similar survey conducted in August 2011 gave this figure as 54 per cent, indicating a drop of 13 percentage points in two years. Work on HS2 does not start until 2017 and the first stages will not be operational until 2026.

Director general of the IoD Simon Walker said: "Businesses up and down the country know value for money when they see it, and our research shows that they don't see it in the government's case for HS2."

In response to the findings, Mr Walker suggests the government should abandon the project in favour of smaller improvements.

IoD also argues that time spent on trains is not unproductive, thus reducing the need for faster commute times.

A similar argument was made recently by Alistair Darling, the former transport secretary whom originally passed the HS2.