New studies drawn up by Atkins, the engineering consultancy, show how developing the existing west and east coast main lines could see journey times from London to Manchester reduced to 74 minutes, London-Birmingham to just one hour, and London-Sheffield to 79 minutes.

Economic gains to the UK of £63bn far exceed the £31bn cost of building the network, says Atkins.

The government welcomed the report: 'We will be looking at the need for new transport capacity as part of our new approach to planning. We will consider all available options to provide the most efficient and beneficial solutions for passengers and taxpayers.'

Network Rail said at the weekend: 'In the future it is likely we are going to have to build new lines, and whilst there are obvious advantages to do this using existing high-speed technology, we must not forget the wider picture.

'The challenge is to look at the developing and changing demographics, and demand along particular corridors, and see what fits best. High-speed travel is likely to be one of a multitude of ultimate solutions. As we develop our plans to build a bigger, better railway over the next few years, we will look at this in more detail.'

Atkins's report envisages that high-speed lines would run on the east and west sides of the country, going as far north as Glasgow and Edinburgh. They would replace most of the existing services and free up capacity for local trains.

The current plan for rail is to make strategic investments to maximise capacity, but increasing passenger growth within 20 years will require bolder thinking.

Renewed enthusiasm for high-speed rail comes thanks to the success of the high-speed channel tunnel rail link - Britain's first high-speed line - which opened last November. Passenger levels have exceeded projections.

See also:

Fast rail links would bring £63bn benefit

Sunday Times: March 9, 2008
Dominic O’Connell

NEW TGV-style rail lines linking southeast England to the Midlands and Scotland would bring economic benefits of £63 billion, according to a study to be released this week.

Atkins, the engineering group, will say that without new lines, the network will run out of capacity by 2026 - or even 2016 if the recent rapid growth in rail passenger numbers continues.

The conclusions come from an update of the investigation into the case for high-speed rail commissioned by the government from Atkins in 2003.

The consultants looked at three options – a new line for the west coast, one up the east coast, and the “full network” option, which includes both.

It said the latter generated the highest benefits, worth about £63 billion. The full network would cost about £31 billion to build.

Atkins also looked at expanding the road and airport network as an alternative, and found this option wanting. “A major expansion of the road network may lead to some reductions in journey times, although these are likely to be marginal outside peak hours,” the report will say, adding: “High-speed lines need to be viewed less as a rail project and more as a national transport, economic and environmental project, as the benefits and costs go far beyond the rail industry.”

The report is likely to receive the backing of Theresa Villiers, shadow transport secretary, and Network Rail, which owns and operates the UK network.