THE region needs the controversial high-speed rail project to go ahead if it is to remain economically competitive, business leaders have warned.

In an open letter, chamber of commerce presidents from across Yorkshire yesterday called on the Government to press on with HS2.

The plans for a new high-speed line from London to Birmingham, with eventual links to Leeds, Manchester and Glasgow, have received a furious response from communities in the South worried about the impact on the countryside.

However, the chamber of commerce leaders, including Richard Flanagan, from York and North Yorkshire Chamber of Commerce, said HS2 was essential to help rebalance the economy by accelerating the growth of Northern towns and cities.

The letter, which was last night backed by the North East Chamber of Commerce, stated: "High-speed rail will connect Yorkshires businesses with the Midlands, London and Europe and further afield via the link to Heathrow, improving the competitiveness and productivity of the region.

"Investment in infrastructure is vital for us to remain a competitive economy."

The business leaders said that delivering extra capacity on the countrys rail network would not cost significantly more via HS2 than conventional rail.

Moreover, much of the cost will be covered by the fares paid by passengers, the letter said.

It added that while high-speed rail was essential, it was not a panacea.

Electrification and new rolling stock with expanded capacity must be introduced on regional connections.

Upgrades to the East Coast Main Line are a priority.

Commenting on the letter, James Ramsbotham, chief executive of the North East Chamber of Commerce (NECC), said the North-East would benefit more than any region in England from swifter links to and from the capital.

He said: "The ability to connect rapidly with customers both here and abroad is vital for the future success of our economy.

"NECC has long been a passionate advocate of high-speed rail and it is vital the North East is integrated into the network at the earliest opportunity if the Government does give it the green light."

The deadline for responses to the HS2 public consultation is July 29, 2011.