A HIGH-SPEED rail line should be built southwards from Scotland to improve connections to the North of England, a committee of MPs says today.

The Scottish government – which enjoys much higher public spending and borrowing power – is urged to start work on its own 250mph link by the all-party Commons transport committee.

Its report rejects calls for the Westminster government to start construction of its planned High Speed Two (HS2) line in the North, arguing that “capacity needs are greatest” between London and Birmingham.

Instead, the study suggests the North-East would be brought into the network quicker if Edinburgh began preparatory work on a Scottish high-speed line.

Louise Ellman, the committee’s Labour chairman, said: “We see no reason why the Scottish government should not begin work on a Scottish high speed line to connect with the English network in due course.”

The Scottish National Party has put pressure on Westminster to be “fully integrated into the high-speed rail network” – but has insisted London must pay for it.

However, the Scotland Bill, currently in the Lords, will allow Edinburgh to issue bonds to raise cash from capital markets and to borrow against future business rates – an extra £2.7bn of borrowing power.

That muscle comes on top of much higher public spending through the 30-year-old Barnett Formula, which is worth £507-per-head extra north of the border, compared with the North- East.

Today’s report backs the controversial HS2 link, arguing it would “provide a step change in the capacity, quality, reliability and frequency of rail services between our major cities”. But it urges ministers to bring forward firm plans for phase two – for lines north of Birmingham, to Leeds and Manchester – before London-to-Birmingham gets the go-ahead.

And it calls for Yorkshire and the North-East to feel the benefits of that first phase, through the building of a new link to the Midland Main Line.

Under current plans, the London to Newcastle journey would be slashed from 3hrs 9mins to 2hrs 37mins – because high-speed trains from London would switch to conventional tracks.

However, that benefit would not be felt until 2032-33, when phase two is completed to Leeds. A link to the Midland Main Line would cut journey times from 2016, when the line reaches Birmingham.

In evidence to the inquiry, Professor John Tomaney, professor of regional development at Newcastle University, warned that HS2 was likely to widen the North-South divide, because investment and jobs would be sucked to the South.

Today’s report does not back that view, but it does conclude the impact is “not easily predicted”, adding: “Only time will tell whether or not HS2 will help to rebalance the economy and reduce the North-South divide.”