Birmingham council has announced that the construction headquarters for the high-speed rail project HS2 will be based in the city, leading to the creation of 1,500 jobs.

The council also announced that it is creating an urban regeneration company to oversee the development of the area around the city’s HS2 station; this will include offices and 2,000 homes, have the potential to deliver 14,000 jobs and provide a £1 billion-a-year boost to the local economy.

The headquarters will house up to 1,500 HS2 employees and the first phase is expected to commence in 2015. Some jobs will be relocated from London to the new site but the majority will be new skilled jobs for Birmingham. These will include the engineers and designers responsible for preparing detailed construction plans for the track, stations and signalling.

HS2 is expected to revive the fortunes of the Midlands and the north of England by boosting business opportunities both during the construction phase and by improving connections with London and Europe.

With members of the city council, central government and HS2 Ltd all represented on the board, the aim is for important decisions to be made locally rather than in the capital.

Transport Secretary, Patrick McLoughlin, said: “HS2 is a vital part of our long-term economic plan. By locating the new HS2 engineering HQ in Birmingham we are bringing skilled-job opportunities into the area, spreading HS2’s benefits beyond those using the new rail line. It is great news that Birmingham city council has created a company specifically to focus on the regeneration opportunities created by HS2. It will bring new investment and work into the city, helping secure the future prosperity of the region and the country.”