Updated 08.30, 08.35, 09.20

Chancellor Rachel Reeves is announcing a ‘New Growth Plan for the North’ in Leeds today, which includes a £45 billion-pound plan to upgrade the region’s railways.

The projects include a new line between Liverpool and Manchester, more electrification and a potential line between Birmingham and Manchester at least partly on the alignment of abandoned HS2, and the plan has been welcomed by civic leaders.

Prime Minister Sir Keir Starmer said: ‘A reliable commute, a secure job, a thriving town centre - these are all things that everyone should expect. But over and over again people in Northern communities, from Liverpool and Manchester to York and Newcastle have been let down by broken promises.

‘This cycle has to end. No more paying lip service to the potential of the North, but backing it to the hilt. 

‘That's why this government is rolling up its sleeves to deliver real, lasting change for millions of people through Northern Powerhouse Rail: a major new rail network across the North that will deliver faster, more frequent services.

‘This investment is proof we’re putting our money where our mouth is, working with local leaders to deliver the transport links that will help working people do what they need to in life – getting to work, taking the kids to school, or days out with the family.’

Liverpool City Region Mayor Steve Rotheram said: ‘This is the kind of ambition we’ve been crying out for. Not another empty slogan or back of a fag packet plan but real investment, delivered in a proper partnership with local leaders that will unleash our latent potential and unlock growth in all of our communities right across the great North.’

His colleague in Greater Manchester Andy Burnham welcomed the ‘ambitious vision’ set out by the government. The Mayor continued: ‘Firm commitment to Northern Powerhouse Rail and an openness to an underground station in Manchester city centre. A modernised Manchester Piccadilly could become the King’s Cross of the North, acting as a catalyst for major growth in our city region and beyond.

‘Over the past decade, we’ve become the UK's fastest growing city region, but underinvestment in rail infrastructure has long acted as a brake on further growth. Today marks a significant step forward for Greater Manchester. We’ll now work to prove the case for an underground station and work up detailed designs for the route between Liverpool and Manchester.’

Railway Industry Association chief executive Darren Caplan said: ‘Both rail suppliers and users will welcome any plans to improve connectivity between Leeds, Sheffield and Bradford and options for electrifying those routes, as well as ambitions for a new line between Liverpool and Manchester via Warrington and Manchester Airport.

‘RIA is also pleased that a north-south railway along the lines of the original HS2 Birmingham to Manchester route will eventually link to NPR. With the West, Midland, and East Coast main lines all filling to capacity, we have always said that to get the full benefits of HS2 you need to build the full scheme. Whatever the scheme is eventually called, bringing Manchester and Leeds back into play via both NPR and extension to HS2 is crucial.

‘RIA and our members now ask to see detailed plans, timescales and committed budgets to all three phases of the Government’s plans, in order to ensure that this statement of intent becomes a reality well within its 2040s deadline.’

However, some observers have expressed doubts about whether it can really happen.

The general secretary of ‘white-collar’ railway union TSSA Maryam Eslamdoust said: ‘This announcement seems to be long on aspiration but desperately short on delivery details.

‘The fact remains that following nearly 15 years of Conservative austerity, rail workers and millions of passengers have heard too many promises about transforming northern rail, only to see projects delayed, diluted or dropped.

‘It’s vital the government acts to deliver these plans and signal a break with the austerity of the past, funding projects like Northern Powerhouse Rail by properly taxing the super-rich, not just ordinary hard-working people.

‘If not, this risks becoming another press release instead of a plan, with delays, exclusions and public trust once again paying the price.’ 

The Conservatives said ministers had ‘put back any plans and rewritten timetables on the fly’.

Shadow rail minister Jerome Mayhew added: ‘Labour lurch from review to review, deadline to deadline, with no grip on costs, no clarity on scope and no courage to make decisions.

‘Northern Powerhouse Rail could have been transformational, empowering regional growth and regeneration. Under Labour it risks becoming a permanent mirage that is endlessly redesigned, downgraded and never delivered.’

Sam Gould, director of policy and external affairs at the Institution of Civil Engineers, said: ‘The news that the government has committed to delivering Northern Powerhouse Rail is hugely welcome and long overdue. But the government and other stakeholders must learn the lessons from HS2.

‘Namely, as the ICE set out in our report in 2024, the purpose of the project must be clear, who is in charge must be clear, the right capability and understanding must be present in government departments, and the project must be sufficiently developed before ground is broken.’

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