The Government should scrap its £50bn high speed rail plans and instead press ahead with fracking in poor parts of the north as a means of generating wealth, a Conservative former chancellor has said.
Lord Lawson said the Coalition's efforts to rebalance the economy were "foolish and unwise" and that there was no case for the proposed HS2 rail link between London and northern cities.
He insisted it was time to "go for" the controversial shale gas extraction technique, particularly in the northwest of England, saying the controversial practice had transformed the economy in parts of the United States.
Speaking to The House magazine, Lord Lawson said: "I think that is foolish and unwise.
"The only sort of rebalancing I would like to see is the north of England share more in the economic success.
An exploratory shale gas drilling site in Salford "But the way to do that is not by building this absurdly expensive High Speed 2, for which there is no sensible case at all.
"The way to do it is by developing shale gas resources in the north of England, particularly in the North West. We need to go for that.
"If you look at what's happened in the United States it has completely transformed the economies of some of the poorest parts of the United States. We could have that here."
Fracking - hydraulic fracturing - involves pumping water, chemicals and sand at high pressure underground to fracture shale rock and release the gas trapped in it.
HS2 and fracking are hugely controversial Wells can be drilled horizontally, leading to exploration under land around the site.
The Government is pushing for the development of a shale gas industry in the UK, claiming it would create jobs and growth, reduce energy prices and cut the country's reliance on gas imports.
But critics say the process causes earthquakes, can pollute water supplies, lead to inappropriate development in the countryside and damage house prices.
Lord Lawson also said David Cameron's EU referendum pledge had "united the party enormously" - but suggested he may have a job to convince his MPs a treaty change can be negotiated.
"I don't think it's on," he said.
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