Government unveils multi-billion-pound North of England rail upgrade blueprint

A multi-billion-pound blueprint has been unveiled aimed at transforming rail travel across the North of England.

The Government has launched plans to build a new Liverpool to Manchester line, upgrade Yorkshire routes and explore a North East track revival.

Ministers say the venture – revealed under the Northern Powerhouse Rail banner – will add £40 billion a year to the UK economy and end “years of dither and delay”.

Business leaders have welcomed the “game-changing” plans, but warned Westminster to avoid a “disastrous repeat” of HS2 delays and spiralling costs.

The proposals include the creation of a new route between Liverpool and Manchester, running via Manchester Airport and Warrington.

Earmarked to be delivered in the 2030s, officials say it would form part of a “landmark upgrade to rail travel” and act as a “central building block” for the wider North of England economy.

The blueprint also includes a commitment to upgrade and electrify commuter lines between Leeds and Sheffield, Leeds and York and Leeds and Bradford during the 2030s, modernise Bradford, Leeds, Sheffield and York stations, and create a new Rotherham Gateway halt.

And ministers have agreed to take forward a business case looking into the revival of the 21-mile Leamside Line between Tursdale, in County Durham, and Pelaw, in Gateshead.

Hit by Beeching cuts and left idle after the departure of freight trains since the early 1990s, campaigners have long called for the route to be reopened to extend the existing Tyne and Wear Metro light rail system and ease East Coast Main Line congestion.

Hailing the “faster commutes, greater job opportunities and increased investment” promised by the plans, Transport Secretary Heidi Alexander said: “For too long, the North has been held back by underinvestment – but that ends now.    

“This new era of investment will not just speed up journeys, it will mean new jobs and homes for people, making a real difference to millions of lives.   

“The exciting improved stations across Leeds, Sheffield, York and Bradford will regenerate vibrant, bustling districts in these cities.”

She added the Government has set a funding cap of £45 billion for the programme to “learn lessons from HS2”, and promised ministers will “work closely with local partners to… reduce delays and prevent projects going over budget”.

Reacting to the proposals, Mark Casci, head of policy and representation at West & North Yorkshire Chamber of Commerce, said: “That Northern Powerhouse Rail is to finally be delivered is superb news.

“The great city of Bradford, in particular, will see the fruits of this investment. 

“Despite being the sixth largest city in England, Bradford is consistently rated as the worst connected of all the core cities. 

“You could travel between Leeds and Bradford faster during Edwardian times, when steam trains operated, than in 2026.

“However, now it will receive a proper, through railway station, speeding up travel and ensuring greater prospects for the city’s businesses and residents.”

John McCabe, chief executive of the North East Chamber of Commerce, echoed the positivity, but warned ministers they must act with speed.

He said: “This announcement is a significant step forward we have long called for.

“The focus now must be on pace. Businesses will judge this by how quickly plans become projects, and projects become jobs, with clear progress and momentum that shows this is moving from promise to reality. 

“For the North East, the commitment to taking forward development work on the Leamside Line is critical.

“It has the potential to support thousands of skilled jobs, strengthen our region’s connectivity and unlock major opportunities for investment and growth.”  

Zoë Billingham, director of think tank IPPR North, agreed.

She said: “The North of England needs a credible growth strategy to unlock its economic potential.

“Transport provides a backbone to the economy by connecting people with jobs, businesses and supply chains. 

“Yet over the past decade, the North of England has been shortchanged in its transport investment.  

“The Government needs to get moving and get spades in the ground quickly; only then will the public place their trust in this critical project.” 

Mark Goldstone, CBI UK competitiveness manager, said: “Getting on with Northern Powerhouse Rail is about far more than simply delivering a rail project.

“It’s a transformative opportunity to connect local economies, unlock regional growth and create vibrant hubs and thriving communities.

“The Government must now use this moment as a springboard to press ahead with other important infrastructure projects that will catalyse jobs, investment and growth across the country.”

Sam Richards, chief executive of campaign group Britain Remade, added: “The ambition of Northern Powerhouse Rail is laudable.

“But without further planning reform, there is a big risk it will be a disastrous repeat of HS2: delayed, over budget and cut back.

“The test isn’t which towns and cities get connected, it’s whether ministers will finally tackle the reasons infrastructure costs so much in Britain and takes so long to build: gold-plated specifications, endless redesigns and a planning system that treats every new project as a legal battle.”

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