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Government commits £45bn to Northern Powerhouse Rail – London Business News | London Wallet

Philip Roth by Philip Roth
January 14, 2026
in UK
Government commits £45bn to Northern Powerhouse Rail – London Business News | London Wallet
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The Government has announced major investment to improve rail links across the North of England. The aim is to cut journey times and increase capacity, bringing economic benefits to a host of northern cities ranging from Liverpool to Newcastle.

The long-awaited programme will be delivered in three phases:

1) Improved connections between Sheffield and Leeds, Leeds and York, and Leeds and Bradford. In the North East, development work on the Leamside Line will also be taken forward alongside Northern Powerhouse Rail.

2) A new route between Liverpool and Manchester, running via Manchester Airport and Warrington

3) Improved connections across the Pennines between Manchester, Leeds, Bradford, Sheffield and York. Regular services will run onward to Newcastle via Darlington and Durham; Hull; and Chester for North Wales connections.

Reacting to the announcement on Northern Powerhouse Rail, Subrahmaniam Krishnan-Harihara, Director of Business Policy and Research at Greater Manchester Chamber of Commerce said: “Regardless of the specifics, the core economic case for Northern Powerhouse Rail remains unchanged: it is about bridging the ‘mental distance’ in the North of England.

To become a successful economic region that can contribute to rebalancing the UK economy, the cities in the North should function as a single, cohesive labour market. In the North of England, a distance of 40 to 60 miles, such as between Manchester and Leeds or Leeds and Hull often feels like a barrier rather than a bridge.

“Therefore, a high-speed east to west link becomes critical. It is not just about saving minutes in a journey timetable; it is about building new capacity and enabling psychological proximity thus transforming the North of England into a unified economic powerhouse where talent and investment can freely flow. And that is the standard by which any new proposal must be measured.

Former Chamber President Wayne Jones OBE, who is a member of the Liverpool to Manchester Railway Board, added: “Today’s announcement regarding the progression of NPR will be welcome news for the business community after years of speculation and as a member of the Liverpool to Manchester Railway Board (LMRB) it is great to see this project clearly mentioned in the brief.

Improving connectivity in the North is essential to boost our economy, improve employment opportunities and deliver much needed housing development in this area. Reducing journey time and increasing capacity are of course very welcome but this railway is much more than this. It’s about driving growth, creating thousands of new jobs and connecting our region to improve national and international investment enhancing our local ports and airports. Of course there is more information needed but at least we now have the clear message to connect the North and drive national prosperity.”

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