A Huddersfield business leader says Yorkshire must not be disadvantaged – whatever the outcome of a row over the cost of high-speed rail.

The Institute of Directors (IoD) has joined those calling for HS2 to be scrapped, branding the £50bn high-speed rail project to connect London with Birmingham, Manchester and Leeds as “a grand folly”.

A survey of IoD members found that just 27% feel HS2 represents good value for money and 70% say the scheme will have no impact on the productivity of their business.

The poll also showed there was little enthusiasm for the project even in the regions where the benefits are supposed to be strongest.

In August, 2011, a survey of IoD members found 54% rated HS2 important to their business. This figure has now fallen to 41% – with the IoD saying that this illustrated “how businesses see high-speed rail as a lower priority than it was two years ago”.

Steven Leigh, head of policy for the Lockwood-based Mid Yorkshire Chamber of Commerce, said: “Our position has always been that if HS2 happens, it definitely has to come to Yorkshire.

“We don’t want a high-speed rail line that just goes from London to Manchester because that will put us in an economic backwater.”

But he said weighing up the costs and benefits of a scheme which would not even be completed for 25 years was impossible for people who did not have all the facts.

Mr Leigh said: “The decision is one for politicians to make. If it happens, we will campaign that HS2 comes here because we would not want to see ourselves disadvantaged.”

Mr Leigh said many chamber members – drawn from Kirklees, Calderdale and Wakefield – would prefer to see better regional rail links rather than a project “that shaves 10 minutes off journey times to London.”

And he said: “If HS2 was to be scrapped, we would want to see the money spent on improving regional connectivity.”

The first phase of HS2, running from London to Birmingham, is expected to be completed about 2026. A Y-shaped scheme to take the line north-west to Manchester and north-east to Leeds would be completed by about 2032-33.

The IoD’s scepticism follows a report last week by the Institute for Economic Affairs which said the cost of HS2 could be as high as £80bn.

There were also reports that the Treasury was working on a figure as high as £73bn for the project.

Former Labour chancellor Alistair Darling has come out strongly against the project. Others to express reservations include former Labour industry secretary Lord Mandelson..

HS2 Ltd chief executive Alison Munro said: “We believe that HS2 will provide value for money and will bring about a transformational change to the economic geography of our country through creating thousands of jobs and opportunities .”