The Government has announced a landmark £45 billion investment to deliver the long-awaited Northern Powerhouse Rail (NPR) project, marking the most significant overhaul of the North's railway network for a generation. The plan promises to transform creaking services with new lines and major infrastructure upgrades, directly tackling years of chronic underinvestment.
A Three-Phase Plan for Transformation
Ministers are set to unveil detailed plans for the NPR, which will be delivered in three distinct phases. The first phase, scheduled for the 2030s, will focus on improving connections on existing lines between Sheffield and Leeds, Leeds and York, and Leeds and Bradford. This initial stage was prioritised as it avoids the need for major new land purchases.
The second phase will create a new route between Liverpool and Manchester, travelling via Manchester Airport and Warrington using a mix of new and upgraded existing tracks. The third and final phase will deliver better eastward connections from Manchester to Leeds, Bradford, Sheffield, and York.
Funding and Economic Promise
A funding cap of £45 billion has been set for the entire NPR programme. An initial tranche of £1.1 billion will be released during the current Spending Review period to enable development and detailed design work. The Treasury indicated this cap could be supplemented by local contributions, such as revenue from business rates.
Government analysis suggests the economic potential is vast, describing the North as an "untapped gold reserve." They estimate that lifting productivity in the region to the national average could inject up to £40 billion annually into the UK economy. The programme is a cornerstone of the wider Northern Growth Strategy, due in spring, aiming to provide better jobs, homes, and investment.
Ending Years of "Broken Promises"
The announcement follows years of passenger misery, with reliability hitting record lows; last year saw over one in 25 trains cancelled. Passengers have endured the most expensive fares in Europe alongside daily delays and overcrowding.
Prime Minister Keir Starmer stated that northern communities had been "let down by broken promises" for too long, vowing: "This cycle has to end. No more paying lip service to the potential of the North, but backing it to the hilt." The plan also includes funding for a new station in Bradford and will enhance services to Newcastle and North Wales.
Chancellor Rachel Reeves, who will elaborate in a speech, said: "If economic growth is the challenge, investment and renewal is the solution. That’s why we’re reversing years of chronic underinvestment in the North." The announcement was warmly welcomed by regional mayors, with Greater Manchester's Andy Burnham calling it "a significant step forward" and Liverpool City Region's Steve Rotheram heralding "the start of a new era."
