HS2: Euston Station regeneration can add £41bn to the national economy – report
The regeneration of Euston Station can contribute £41bn to the UK economy by 2053, create 34,000 new jobs, and provide the opportunity to build 2,500 new homes, a new report has found.
A locally led regeneration that delivers new commercial space for London’s Knowledge Quarter, new homes, and thousands of new jobs can meet the government’s objectives for Euston and generate the private and public investment needed to kickstart construction again, while providing a huge boost to the UK economy, according to new research out today (5 March).
The report found that the regeneration of Euston Station can also supercharge the growth of the life sciences and tech businesses based in and around Euston in London’s Knowledge Quarter – an economic hub that is now contributing more to the UK economy than Canary Wharf (£35bn vs £26bn).
Furthermore, a locally led regeneration will ensure benefits are delivered to the communities close to Euston that face many more years of disruption because of HS2’s construction. This includes access to up 1,200 much-needed affordable homes, job opportunities, and new public spaces and community assets – including meanwhile uses on the construction site, new parks, and new walking and cycling routes that reconnect communities to the east, west, north, and south of Euston.
Report: ‘Euston at the Heart of Britain’s New Economy’
The full report is available to read here.
The research has been conducted by independent economic experts at Metro Dynamics and commissioned by Camden Council, the London Borough in which Euston is situated, in response to the Government’s decision to pause construction at Euston in March 2023 and to redesign a less expensive station.
Its findings are modelled on a development scenario that has been developed with Lendlease, as the Master Development Partner, and other partners including Camden Council, which would see development adjacent to a reduced HS2 station, above and around the Network Rail Station and tracks, and at local development opportunities identified by Camden Council in its Euston Area Plan.
In response to the Report’s finding, the Leader of Camden Council, Cllr Georgia Gould, said that if the Government requires a Development Corporation to deliver Euston, then it should be locally led and that “Camden stands ready to deliver for our community and the country.”
The report’s findings show that a locally led Development Corporation at Euston will:
- Generate £4.2bn of private and public investment, including at least £2.7bn of foreign direct investment.
- Add £540m to the UK economy by 2030, rising to £2.5bn each year and a total of £41bn by 2053.
- Create 34,000 new jobs by 2053, including 3,400 jobs on the regeneration site and 2,200 jobs in the wider economy by 2030. By 2053, 21,000 jobs on the site – including 1,300 construction apprenticeships – and 13,000 in the wider economy will have been created.
- Provide dedicated commercial space and generate 2,300 news jobs in the rapidly growing life sciences and tech businesses based in London’s Knowledge Quarter, which is contributing more to the UK economy than Canary Wharf (£35bn vs £26bn) and growing faster than the City of London (70% vs 49%, 2011-19).
- Increase the land value by £1.4bn and raise money for the public purse through £800m in business rates and £45m in council tax receipts by 2053.
- Transform 5 hectares of land blighted by persistent construction delays with high quality and affordable homes, new community services, and well-designed public spaces.
Euston is at a critical juncture. After years of delay and indecision, much of Euston remains a building site. Homes have been ripped down, businesses lost, and open spaces destroyed. Our communities living next to and around the station continue to face disruption and uncertainty.
However, we are determined to see promises to these residents kept and we are setting out an ambitious and viable new direction that is possible for Euston. Our vision is for a regeneration of the station and surrounding area that creates thousands of new jobs, builds much-needed affordable housing, and generates the private investment that is now needed to get HS2 back on track to Euston.
The regeneration of Euston can also be a catalyst for the rapid expansion of London’s Knowledge Quarter into a tech and science powerhouse that generates investment and opportunity for the entire country. Not only is Euston essential to the success of HS2, but it is a once in a generation opportunity to put innovation firmly at the forefront of Britain’s new economy, with better connected tech and science hubs in London, Birmingham and beyond delivering new growth and jobs across the country.
If the Government decides a Development Corporation is needed for Euston, then Camden stands ready to lead a regeneration that delivers for our community and the country. This means the council leading alongside our key partners in London and our local community in Euston, having not just seats at the table but the power to lead and make our vision for Euston - and the life-changing far-reaching opportunities that it will provide - a reality.
Peter, Lord Hendy of Richmond Hill, Chair of the Euston Partnership said: “This report highlights a once-in-a-generation transformational opportunity in Euston, of huge significance to both the local and national economy. All partners involved in Euston are working hard together to realise this brilliant opportunity, and I am confident we can deliver for Camden, for the railway and its passengers, for London and for the UK.”
Jules Pipe CBE, the Deputy Mayor of London for Planning, Regeneration and Skills, said: “Euston is one of London’s most important gateways, bringing tens of millions of people into the capital each year and connecting to key cities and destinations across the country.
“But as this new report shows, the regeneration of Euston station also has an important role to play in London’s future economic success by creating 34,000 new jobs, boosting the growth of life sciences and tech, supporting the delivery of 2,500 much-needed new homes and crucially adding £41bn to the UK economy by 2053.
“It’s imperative that the Government backs this vision for the future of Euston by providing the funding required to deliver the HS2 link to Euston station which is essential to our mission to build a better, more prosperous London for all.”
Andrea Ruckstuhl, CEO Europe at Lendlease, said: “At Euston there is the potential to create one of the leading global centres for innovation, life sciences and technology. We’ll see the creation of new jobs in the innovation sector and the delivery of vital new homes. As master development partner we’re looking to drive the project forwards at speed and attract the investment that will mean work can begin and we unlock this once in a generation opportunity for local communities, London and the UK.”
Jodie Eastwood, CEO of London’s Knowledge Quarter, said: "The regeneration of Euston presents a key growth opportunity for the Knowledge Quarter. Nowhere else do you have so many research institutes, universities and cultural institutes co-located so densely. A locally led regeneration of Euston is the right approach to link world-renowned institutions and the potential for growth, with local communities. This inclusive approach is at the heart of the Knowledge Quarter's mission."
Further information
Euston Station: one of central London’s last major regeneration projects
Camden’s vision for Euston is a mixed-use regeneration scheme that delivers:
- New HS2 and national rail terminals.
- Up to 2,500 new homes, including 1,200 affordable homes.
- Approximately 470,000 square meters of new high quality commercial space
- New public spaces including parks and walking and cycling routes.
Euston’s strategic location, large developable area and transport links make this HS2 site one of the UK’s biggest development opportunities.
A regenerated Euston Station will be a new anchor for London’s Knowledge Quarter, the area within one mile of King’s Cross containing one of the densest concentrations of life science and technology-based organisations anywhere in the world.
Within a few hundred yards of Euston Station are the Francis Crick Institute, Google, UCL, Astra Zeneca, Meta and 2,000 other high growth companies employing 60,000 people.
London’s Knowledge Quarter: a £35bn economy
London’s Knowledge Quarter is quickly becoming more important to the UK economy than anywhere else. It contributed £35.2bn to the UK economy in 2019 - a larger contribution than many cities, including Cambridge and Oxford.
Economic output in the Knowledge Quarter is growing faster than the City of London or Canary Wharf. The Knowledge Quarter’s economy grew by 70% between 2011 and 2019 compared to 49% in the City of London and 47% in Canary Wharf. At £35bn, the Knowledge Quarter is a larger economy than Canary Wharf (£26bn).
Organisations in the Knowledge Quarter are world leaders in scientific discovery and commercial innovation - from life-saving cures for diseases like haemophilia to new frontiers in technology, particularly in AI - and they will be at the forefront of the UK’s economy in the years ahead.
Benefits for Euston’s communities and business, during construction and beyond
London’s Knowledge Quarter is unique in the way that it has grown out of neighbourhoods that thousands of people live in around Euston, such as Somers Town and St Pancras. But many residents have not benefitted from its success. These neighbourhoods are some of London’s most deprived, with higher rates of child poverty, lower wages, and high housing costs.
Camden Council is committed to ensuring Euston’s regeneration is inclusive and that the communities in and around Euston benefit from development after enduring years of disruption.
Euston’s Regeneration will bring new job opportunities to the area, including thousands of work placements and apprenticeships during construction – an example of this can be seen already at the Euston Skills Centre, recently opened by the Council.
There are also significant opportunities for meanwhile uses during construction such as new green spaces, immersive art installations and cheap, flexible start-up space for businesses. Meanwhile uses are especially important given the lengthy duration of construction.
Similarly, good quality affordable housing is another priority for residents and businesses in Euston. The delivery of up to 2,500 homes, including up to 1,200 new affordable homes, around the Euston site is one of many ways the station regeneration can provide meaningful benefits to the local community.
As is a redesigned Euston Station that reconnects the communities and businesses based to the east and the west, instead of the station acting as barrier. New walking and cycling routes, and better connectivity in and around the station, can provide benefits to residents, Euston station users, and the wider Knowledge Quarter.