The Chancellor said the government will ‘take forward’ Northern Powerhouse Rail – but she’s not set out exactly what that means
17:54, 19 Jun 2025Updated 18:14, 19 Jun 2025
Chancellor Rachel Reeves(Image: WPA Pool, Getty Images)
After months of waiting for news about the future of the north’s railways, Rachel Reeves finally put us out of our misery last week.
Well, not quite. Unveiling her Spending Review, the Chancellor promised to set out plans to ‘take forward’ Northern Powerhouse Rail.
The problem is, she didn’t say what this means. The project, which was first announced by then-Conservative Chancellor George Osborne more than a decade ago, was originally envisaged as a new high-speed railway line right across the north of England.
But in recent years, much of the focus has been on the Manchester to Liverpool section which Andy Burnham has been lobbying for.
Last month, the Manchester Evening News joined the Liverpool ECHO in backing the plans for a new line between our two cities.
The M.E.N. understands that ‘hundreds of millions’ of pounds have now been set aside for the development and preparatory building work involved in the project which promises half-hour express trains from a new underground station at Piccadilly every 10 minutes.
Greater Manchester mayor Andy Burnham pitched the plans to the government in London last month(Image: James Manning/PA Wire)
But some northern leaders are hopeful that the government will go much further than that with new lines and upgrades further east.
They had been expecting more details to come in the government’s 10-year infrastructure strategy which has now been published.
However, this week it became clear that the details of Northern Powerhouse Rail would be saved for a separate announcement.
Asked about the project on Wednesday (June 18), Ms Reeves told the M.E.N.: “I do recognise the importance of Northern Powerhouse Rail and we absolutely will be saying more about it.
“I’m a Leeds MP so I’m very well aware of the broken promises on Northern Powerhouse Rail. We will have more to say but that’s not for today.”
The 100-page document unveiled today (June 19) makes only one mention of the project, above a map in which it does not feature.
A map in the document misses out the project(Image: HMT)
It does not make reference to any plans to replace the cancelled northern leg of HS2 either which Mr Burnham has also lobbied for, nor does it mention the regeneration of Old Trafford which the mayor asked the government earlier this year to put £300m towards.
It comes after the Chancellor said in January that the government would back the plans to redevelop the area, but didn’t say how.
Ministers have ruled out putting any money towards building a new stadium, but Mr Burnham wants government money to move a freight line behind the existing football ground to create space for the new 100,000-seater that the club wants to build on the site.
The Greater Manchester mayor has also called for funding for ‘major upgrades’ to the M60 and other infrastructure needed for the new Atom Valley development which promises to create more than 20,000 jobs on the border of Bury, Oldham and Rochdale.
The infrastructure strategy does not mention any of these projects, but repeats promises of an extra £3.5bn for the Transpennine Route Upgrade, boosting rail services and cut journey times between Manchester and Leeds, which Ms Reeves announced last week.
The strategy also mentions Manchester’s Victoria North where 15,000 homes are planned, without making any funding commitments.
Chief Secretary to the Treasury Darren Jones unveiled the infrastructure strategy in Parliament today(Image: Wiktor Szymanowicz/Future Publis)
These projects, including Northern Powerhouse Rail, could now be announced in mid-July as part of the ‘infrastructure pipeline’.
But the M.E.N. understands that the government is hoping to make an announcement about the major rail project before that.
Speaking in Parliament on Thursday (June 19), Chief Secretary to the Treasury Darren Jones said: “The pipeline will be published in a couple of weeks in mid-July. The reason for a small delay between the strategy and the pipeline is because we wanted to integrate the data from the Spending Review last week and it just takes a little time to be able to do that.
“We’ve worked in partnership with industry and skills providers and others to develop the pipeline. It will show on a map of the country which projects we’re procuring, when and where to give investors and businesses that long-term confidence about the jobs that are going to be available so that they can invest in their own workforce.”
Henri Murison, Chief Executive of the business group Northern Powerhouse Partnership, welcomed the infrastructure strategy.
He said: “In the coming weeks, we expect to see detailed plans for Northern Powerhouse Rail, connecting both sides of the Pennines – from Liverpool through Manchester to Bradford, Leeds, Sheffield and beyond. In the months ahead, the government has pledged to resolve the uncertainty left by the previous administration following the cancellation of HS2 between Manchester and Birmingham.
“The North is the solution, not the problem, for the UK, not least when it comes to solving our productivity puzzle. This government will find business ready to co-invest where we can make the biggest difference to the long-term sustainability of the public services we all rely on.
“Only by raising wages here in the North can we increase tax revenues and ease the burden for future chancellors compared to the situation inherited by the current one.”
Northern Powerhouse Partnership chief executive Henri Murison(Image: Northern Powerhouse Partnership)
Paula Walsh, UKIMEA Managing Director at global consultancy Arup, added: “Together, the Infrastructure Strategy and the Spending Review signal that the UK is ready to lead again in infrastructure delivery.
“Experience shows that infrastructure cannot delivered from Whitehall alone. Schemes like the Liverpool-Manchester Railway (LMR) exemplify a new model built on regional leadership and public-private collaboration. By drawing on the expertise of local leaders and industry from the outset, we can unlock the power of devolved decision-making.
“The LMR is not just a transport project; it’s a catalyst for national renewal. It will connect more than five million people across Liverpool, Cheshire, Warrington, and Greater Manchester, unlocking economic potential, attracting investment, and supporting innovation in sectors like life sciences and AI.
“It will also strengthen trade links through enhanced freight capacity and better access to strategic assets like the Port of Liverpool and Manchester Airport.
“Crucially, it offers a fresh approach for how we plan, fund, and govern major projects. By integrating strategic planning with private investment and local insight, the LMR is set up to avoid the pitfalls of past infrastructure efforts – delays, overspends, and fragmented governance.
“As we await further details on Northern Powerhouse Rail, the LMR shows how we can take a joined-up, place-led approach to deliver real outcomes. We’re looking forward to continuing our work with local and national leaders to demonstrate the benefits of this new model across transport, aviation, energy, water, housing, and digital infrastructure.”