The UK government has pledged up to £45 billion to a major northern England rail project, aiming to fix decades of underinvestment in transport links across the North.
The plan, centred on Northern Powerhouse Rail (NPR), is being positioned as a reset after the troubled HS2 project and a key part of Labour’s promise to rebalance the UK economy.
What is the £45bn northern England rail project?
The northern England rail project is a multi-decade infrastructure programme designed to improve east–west rail connections between major northern cities.
According to the government, the investment will be delivered in three phases, with most spending taking place during the 2030s and 2040s.
The project focuses on faster, more reliable links between cities that currently rely on rail lines built in the Victorian era, many of which are overcrowded and prone to delays.
“If economic growth is the challenge, investment and renewal are the solution,” said Chancellor Rachel Reeves, confirming the government’s commitment to the scheme.
Which routes will be built first under Northern Powerhouse Rail?
The first phase prioritises improved rail links between:
- Sheffield and Leeds
- Leeds and York
- Leeds and Bradford
These routes are among the busiest in the North but currently suffer from slow journey times and limited capacity.
Phase Two: Liverpool–Manchester via the airport
The second phase includes a new railway line between Liverpool and Manchester, running via Manchester Airport. This is seen as a critical economic corridor, linking two major cities and one of the UK’s largest airports.
Phase Three: Manchester to Yorkshire upgrades
The final phase focuses on improving connections between Manchester and Yorkshire, helping to support commuting, business travel, and regional trade.
Why does northern England need this rail investment?
Independent bodies such as the OECD have repeatedly highlighted poor transport links as a major reason why cities outside London lag behind international competitors on productivity.
Key facts:
- Northern England is home to three of England’s five largest metropolitan areas
- Rail bottlenecks date back over 150 years
- Productivity gaps between northern UK cities and European peers remain wide as of 2024 data
For example, travelling between Leeds and Manchester, two major cities less than 45 miles apart, can still take as long as cross-country journeys in parts of Germany or France with modern rail systems.
How is this different from HS2?
The government has been keen to distance the northern England rail project from the failures of HS2, whose northern leg was cancelled in October 2023 due to soaring costs.
Key differences:
| HS2 | Northern Powerhouse Rail |
|---|---|
| Focused on north–south | Focused on east–west |
| Fixed opening dates | No binding opening dates |
| Escalating costs | £45bn spending cap (constant prices) |
| Limited regional benefit | Region-wide economic focus |
Officials say the absence of fixed opening dates is a deliberate lesson learned from HS2, which is now expected to open after 2033, later than originally planned.
Will the project include Birmingham connections?
Yes, but not immediately. The government confirmed it intends to build a new rail line between Manchester and Birmingham after Northern Powerhouse Rail is completed. However, it stressed this would not be a reinstatement of HS2, but a separate future project.
What does this mean politically for the UK?
Prime Minister Keir Starmer’s Labour government has made reducing regional inequality a central goal, particularly as opinion polls show growing pressure from Reform UK.
Investing in the North allows Labour to demonstrate a visible break from previous Conservative decisions, especially the cancellation of HS2’s northern leg.
