Chancellor Rachel Reeves has made a major financial commitment to overhaul Britain's rail network, pledging "hard cash" to deliver the long-awaited Northern Powerhouse Rail (NPR) project. In a forceful speech in Leeds, she warned that rival parties would take billions out of the North's economy.
A Personal Pledge for Northern Transport
Speaking in her Leeds West and Pudsey constituency on 14 January 2026, the Chancellor framed the decision to revolutionise transport as deeply personal. She accused the previous Conservative government of failing the North for 14 years with empty promises. "I know the potential that we have here in the North of England," Reeves stated, "and I'm determined that this government, with me as chancellor, will back that rhetoric with hard cash."
She emphasised that tangible progress requires real investment, declaring: "It is cash that builds the railways. It is brass tax that gets things done." The Chancellor's economic plan aims to spur growth across all UK regions by creating quality jobs and improving living standards.
The Three-Phase Plan for Northern Powerhouse Rail
The Chancellor confirmed the government's full commitment to NPR, outlining a detailed three-phase construction plan. The first phase will focus on upgrading existing lines to improve connections between key cities immediately.
The initial improvements will target:
- Enhanced links between Sheffield and Leeds.
- Better services between Leeds and York.
- Upgraded routes connecting Leeds and Bradford.
The project's second phase will establish a new route connecting Liverpool and Manchester via Manchester Airport and Warrington. This will utilise a mix of new and existing railway lines.
The third and final phase is designed to create superior eastward connections from Manchester to Leeds, Bradford, Sheffield, and York, completing a fully integrated modern network for the region.
Political Warning and Spending Review Promise
In a direct attack on political opponents, Chancellor Reeves singled out Reform UK and the Conservatives. She claimed that under the leadership of figures like Nigel Farage and Kemi Badenoch, the North would be failed once more.
"Reform are now saying that they will cancel Northern Powerhouse Rail, just as we're putting the money into it," Reeves said. She challenged them to explain their stance to voters, noting: "If they're going to say on their leaflets that they're going to take £45 billion out of the north of England, that's up to them."
The Chancellor pledged that the next Labour manifesto would commit fully to NPR. Crucially, she confirmed that further substantial funding for the project will be announced at the forthcoming government spending review. "If we're going to, as I've just committed, feel the benefits in the early 2030s, there better be some money committed at the Spending Review," she asserted. "I'm the Chancellor, I'm telling you there will be."
This commitment aims to ensure communities see and feel tangible improvements in their transport links and local areas as swiftly as possible, marking a significant shift in infrastructure policy for the North of England.
