Northern Powerhouse Rail pledged for North

Jan 14, 2026

Chancellor Rachel Reeves has insisted major rail upgrades across northern England “will actually happen”, acknowledging HS2 has become a “byword” for poor planning and overspending.

The Government has outlined its vision for Northern Powerhouse Rail (NPR), a multibillion-pound programme to improve links between northern towns and cities. It aims to reduce journey times, increase train frequency, upgrade stations, and construct new sections of line where necessary. Reeves said passengers should begin to feel the benefits by the early 2030s, though new-build elements would not start construction until after 2030.

One key corridor, between Leeds and Manchester, is already undergoing an upgrade. Reeves told the BBC that travellers would see improvements there sooner because the Government would not wait for the entire route to be completed before delivering benefits.

An initial £1.1bn has been set aside for design and preparation. Delivery will be phased, starting with upgrades between Leeds, York, Bradford and Sheffield. The second phase would deliver a new route between Liverpool and Manchester, followed by further improvements linking Manchester with cities across Yorkshire.

The Government said the programme could add up to £40bn to the UK economy by improving commutes and encouraging investment. A central funding cap of £45bn has been set, with the possibility of additional contributions from local authorities. Beyond the current spending period, no firm budgets have been confirmed.

Transport Secretary Heidi Alexander said the North had suffered from years of underinvestment and delay. Industry figures welcomed the announcement but warned against “stop-start” funding, while Conservatives accused ministers of pushing delivery further into the future.

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