EXTENDING the new high-speed rail link into Scotland and reviewing the impact of Air Passenger Duty on the country's airports are among the key recommendations of a new expert study.

The annual State of the Nation transport report for Scotland, carried out by the Institute of Civil Engineers, highlights Scotland's omission from the £50 billion HS2 rail plans. The report argues the economic benefit of the high-speed line - currently only set to run from London to the north of England - would be strengthened by extending it north of the Border.

The report sates: "High Speed 2 has the potential to provide a step change in capacity and connectivity, delivering wider social and economic benefits and encouraging a modal shift from air to rail."

Is adds that the case of UK high-speed rail is strongest when Scotland is included in the plans, and that failure to connect would leave the country "disproportionately further from key UK markets and risks having a detrimental effect on inward investment".

The report also called for an "urgent review" of the economic impact of APD tax on Scotland. Alex Salmond has already called for control over the tax - which is levied on the cost of each plane ticket for flights taking off from a UK airport - to be devolved to Holyrood.

Airport bosses have blamed the tax from deterring airlines from launching routes in Scotland.

Ronnie Hunter, chairman of the ICE Scotland Expert Panel, said: "We look forward to engaging constructively with Government to help address the challenges identified in our report and to build on the achievements we have seen to date."