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Government Unveils £45bn Northern Powerhouse Rail Plan in Three Phases

A capped budget with initial design funds signals a phased, no‑deadlines strategy after HS2 overruns.

Overview

  • Ministers set a central funding cap of £45bn in 2025 prices and released £1.1bn this Parliament for planning, development and design.
  • Phase one prioritizes upgrades and electrification on existing West Yorkshire routes between SheffieldLeeds, Leeds–York and LeedsBradford, targeted for the 2030s.
  • Phase two establishes a new LiverpoolManchester connection via Manchester Airport and Warrington using a mix of new and existing lines, followed by phase‑three trans‑Pennine enhancements.
  • The government states a long‑term intention to build a Birmingham–Manchester line after NPR, not a reinstatement of HS2, with relevant HS2 land retained and no timetable provided.
  • Regional mayors welcomed the direction of travel, while unions and experts warned of limited guaranteed funding and absent dates; discussions now cover station choices, a new Bradford station, reopening the Leamside Line and possible local contributions including for a Manchester Piccadilly underground option.