Local authorities directly benefiting from the Government's flagship High Speed Rail 2 (HS2) project face additional costs and the sacrifice of land to support the £33bn scheme, the Department for Transport (DfT) has revealed.

A DfT command paper on the project published last week, suggests it is 'fair and right' that parties benefiting from HS2 including councils and businesses 'work collaboratively with the Government on options to support the project financially'.

'Depending on specific circumstances, this might involve the commitment of funds, the commitment of land, or the alignment of local investment plans (for example in regard to HS2 stations) – to maximise the local and national economic and regeneration benefits of HS2,' the paper states.

HS2 would run from London to Yorkshire via Birmingham, cutting journey times between London and Manchester by around half to just over an hour.

Manchester, Leeds, Nottingham, Sheffield and Derby, which will each receive new high-speed stations, are expected to be asked to contribute.

The DfT command paper states: 'The Government intends to engage with the cities, a range of businesses and other interests to develop funding options… The Government is committed to securing a fair deal for the taxpayer, the cities and other interested parties.'

Paul Bayliss, the leader of Derby City Council, said any extra costs for local authorities could still be good value for money due to the increase in jobs the rail line could bring.

'If the cost of the investment means we have a £145m return and thousands of jobs it's a good use of resources,' he said. A spokesman for the Department for Transport said the contributions expected would depend on 'local circumstances'.