Funding to help those affected by HS2

A electronic billboard in Birmingham promotes the city and the HS2 high-speed railway project. [TOBY MELVILLE/REUTERS]

UK Transport Secretary Chris Grayling says funds will be set aside to help local governments and communities affected by construction along the route of the HS2 high-speed rail project.

Grayling said the government is committed to building the new route, linking London and the north of England.

Analysts say China's CRRC Corp is keen to bid for a role in the new link, building on the expertise the company gained in creating China's high-speed rail services, which link major cities.

"We need HS2 for the capacity it will bring on routes between London, the West Midlands, Crewe, Leeds and Manchester," Grayling told reporters. "We need it for the boost it will give to our regional and national economies."

He said 70 million pounds would be set aside by the government to enhance community facilities along the HS2 route, improve access to the countryside, conserve the natural environment, and support local businesses disrupted by the construction.

He said a decision on a second phase of HS2, which would link Leeds and Manchester, would be taken later this year.