HS2 a grand folly say business chiefs: £50bn rail link will NOT boost productivity 70% of the 1,300 directors asked believe the scheme will have no impact Scheme fails to find support in areas where benefits are strongest Institute of Directors' chief calls for Government to look at 1,000 smaller projects, not one 'grand folly' Business leaders have delivered a body blow to the HS2 rail line by branding it a "grand folly" which should be scrapped. A poll of company directors found 70 per cent believe the 225mph trains between London and Birmingham - and a later extension to Leeds and Manchester - will have no impact on the productivity of their firms. Public backing for the £50billion project has been plummeting in recent weeks amid claims the budget could balloon to £73billion and senior political figures questioning the economic case for it. Body blow: A poll of business leaders found that 70% thought that the proposed HS2 rail line would have no impact on their firm's productivity A key plank of the argument for the north-south high-speed rail link is that it will boost companies" productivity as staff will spend less time travelling, however the latest poll from the Institute of Directors undermines this argument as 94 per cent of its members said they work while on a train. But the most damning conclusions of the survey of more than 1,300 directors was the little enthusiasm shown for HS2 in the regions where the benefits are supposed to be strongest. Just 29 per cent of those in the North West and only 20 per cent in the North East thought the rail link would be good value for money, while 63 per cent thought the budget would be better spent on other rail and road schemes. 'Grand folly': Simon Walker said the Government should focus on 1,000 smaller projects after the Institute of Directors' research found businesses do not see value for money in HS2 Simon Walker, IoD director general, said: "Businesses 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. We agree with the need for key infrastructure spending, but the business case for HS2 simply is not there. The money would be far better spent elsewhere and in a way that will benefit much more of the country. Station upgrades, inter-city improvements, tunnels, electrification and capacity improvements should all be considered alternatives. It is time for the Government to look at a thousand smaller projects instead of falling for one grand folly. The rail line, set to be constructed from 2017, would run from London to Birmingham by 2026 and on to Manchester and Leeds by 2032-3, significantly cutting down current journey times. When given the go-ahead by the Coalition three years ago its budget was £30billion, but it has now been increased to £42.6billion, plus £7.5billion for rolling stock. Despite the insistence from ministers that the line will boost economic growth in northern England, the majority of directors in almost every region felt London would be the major beneficiary from it. Labour Party grandees have broken ranks in recent weeks by saying the money would be better spent on a range of rail upgrades, such as the East Coast mainline and commuter trains in the South West. Shadow Chancellor Ed Balls has made it clear there will be "no blank cheque" for the project, while the party's transport spokesman, Maria Eagle, proposed a cap of £50billion. Attacks: Former Chancellor Alistair Darling, left, has called the proposed HS2 scheme 'foolish', while current Shadow Chancellor Ed Balls has said there will be 'no blank cheque' for the plans Former Chancellor Alistair Darling also attacked HS2 as "foolish," saying investing such a vast sum on one rail line will starve resources from the rest of the network and leave it "falling apart." Some MPs and think tanks already believe HS2 could eventually cost up to £80billion. But Transport Secretary Patrick McLoughlin insisted last week there is still cross-party support for HS2 and stood by the £42.6billion budget. Ministers say high speed rail lines are being constructed all over western Europe and HS2 is vital if the UK network is to cope with growing demand over the next 20 years.