Council and business leaders have urged Rishi Sunak not to scrap the northern leg of HS2, claiming Cheshire and Warrington could lose a combined £2bn a year and 27,000 jobs.

The controversial rail project was due to be built in three phases, with the first from London to the Midlands, the second from Midlands to Crewe and the third from Crewe to Manchester. But speculation is rife that the Prime Minister and Chancellor want to scrap all sections of the project north of Birmingham amid rising costs.

But in an open letter signed by Cheshire West and Chester leader Louise Gittins, Russ Bowden, leader of Warrington Borough Council, Cheshire East leader Sam Corcoran and Clare Hayward MBE, Chair of Cheshire and Warrington Local Enterprise Partnership (LEP), they have urged the Prime Minister to retain the Birmingham-Manchester section of the high speed rail project.

The letter also calls for a meeting with the Prime Minister ahead of any further decisions being made, to discuss how Cheshire and Warrington councils and the LEP can ensure the scheme is successfully delivered.

The letter said that axing the 'once in a generation' HS2 project would mean the region fails to realise the potential HS2 brings to 'unlock significant housing, employment and productivity gains'.

And it would have a devastating impact on the region’s jobs market with HS2 set to create 27,000 jobs in Cheshire and Warrington, the letter claims.

According to  the letter:

Crewe, due to be home to a new commercial hub surrounding Crewe station, 'would be particularly badly affected by cancellation or significant delay to HS2'.

HS2 was a 'a once in a generation opportunity to level up' Crewe, delivering nearly 5000 new jobs and adding £750 million per annum to the town’s economy.

In Chester 'as a direct consequence of the improved connectivity offered by HS2', Cheshire West and Chester Council has been working with Government owned London & Continental Railways (LCR) on a vision and development framework that would 'deliver significant regeneration and development around Chester Station'.

And Warrington Borough Council was 'identifying the opportunities and benefits' for the area around Bank Quay station which comprises 112 hectares and is the second largest project on HS2/ Northern Powerhouse Rail (NPR) outside of London. It would deliver one third of the housing the borough needs in the next 30 years and deliver in excess of £2bn per annum of direct economic benefits and enable high-speed rail links between Liverpool and Manchester utilising existing latent infrastructure.

The letter said: "Cancellation of HS2 would have a significant impact on private sector confidence in Cheshire and Warrington and throw away the opportunities the line offers to grow the economy and level up under-performing parts of the North".

It added: “History has shown time and again that committing to investment in major infrastructure pays dividends.

"Whilst large-scale projects will always be challenging to deliver, they bring significant long-term economic benefits.  It is essential, therefore, that HS2 and NPR (Northern Powerhouse Rail) are delivered in full as quickly as possible.”