Chancellor Rachel Reeves has backed Northern Powerhouse Rail (NPR), after more than a decade of uncertainty over the project’s future.
The Treasury will commit £1.1bn over the Spending Review period, allowing progress on the first stage of planning, development and design work. A funding cap of £45bn will be set for the programme.
NPR will build on the Transpennine Route Upgrade scheme and is expected to be delivered in the 2030s.
The first phase of the programme aims to improve connections between Sheffield and Leeds, Leeds and York, and Leeds and Bradford.
In the north-east, development work on the Leamside Line will also be taken forward alongside NPR.
This will be followed by a new route between Liverpool and Manchester, running via Manchester Airport and Warrington, and finally by improved connections across the Pennines between Manchester, Leeds, Bradford, Sheffield and York.
Commenting on the announcement, Reeves 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.
“Our transformative plans will create jobs, build homes and unlock opportunities for businesses to invest. That’s how we deliver economic growth, a renewed Britain and more money in working people’s pockets.”
But how will the announcement shape the outlook for construction and infrastructure firms? Here’s a round-up of reaction from industry leaders.
Ben Goodwin, director of policy and public affairs at the Civil Engineering Contractors Association (CECA)
Northern Powerhouse Rail will be a once-in-a-generation investment in the economic future of the entire UK, and will bring major gains to the communities and businesses it serves.
But industry needs clarity and confidence if it is to plan, invest and mobilise effectively. Certainty on scope, funding and timescales is essential to controlling costs, building skills capacity and delivering major infrastructure effectively.
The concept of the Northern Powerhouse has been around for more than a decade. If the government is to deliver it successfully, it needs to work with industry to ensure that inefficiencies associated with delays, redesigns, or stop-start decision-making are avoided.
Jerome Frost, CEO of Arup
We welcome the government’s commitment [to NPR] as a truly transformational moment for the north of England. This infrastructure will help unlock the region’s vast economic potential, which will be positively felt across the UK.
At Arup, we’re ready to help turn this vision into reality. Our analysis shows that properly delivered, NPR will do far more than move people faster between cities. It will generate tens of billions in economic benefits and provide the sustainable transport choices essential for future communities.
The region deserves transport infrastructure that matches its ambitions. Today’s announcement represents a once-in-a-generation opportunity to build a transport system that the north of England needs to turbocharge economic growth.
Colette Carroll, managing director – transportation, UK and Ireland at AtkinsRéalis
A well-connected, reliable transport network is the backbone of a thriving economy: the renewed commitment to deliver Northern Powerhouse Rail is good news for businesses across the north.
The UK has a world-class rail supply chain, and there are an increasing number of transport projects completed on schedule thanks to closer collaboration and more integrated delivery partnerships.
Industry is ready to move at pace to deliver projects underway and keep Northern Powerhouse Rail on track to help realise the full benefits improved transport links offer to communities across the North.
High Speed Rail Group spokesperson
The government’s commitment to build a new line from Birmingham to Manchester is essential and the right decision. It will maximise the benefits of the investment already made in HS2 and avoid locking in Britain’s biggest bottleneck north of Birmingham.
The industry is concerned, though, that the timescales for delivering this new line appear uncertain and potentially some decades away. We are also concerned that the government does not intend to extend the land purchase powers between Birmingham and Crewe, which expire next month.
It makes more sense to retain these legal powers whilst the government develops a clear, costed plan for connections north beyond HS2.
Nonetheless, today is a step forward in recognising that the previous plan did not work. We look forward to working with the government to develop the plan for an affordable new line from Birmingham to Manchester, which is key to unlocking economic growth in the north of England.
Mark Dewhurst, managing partner, Manchester office, Ridge
After a decade of being talked about, today’s announcement is more than just an infrastructure milestone – it is a statement of confidence in the North’s future. With government commitment of up to £45 bn, including £1.1bn in early planning and development funding, the announcement can signal a decisive shift from prolonged uncertainty to real delivery.
Making it happen this time around will be important – not just for the economic and regenerative benefits it will bring to the North of England, but for the wider reputation of UK infrastructure, so that much-needed private investors will be persuaded the UK is a safe bet.
Putting a cap on the total expenditure is a sensible move to reassure investors and the public, improve the reputation of UK infrastructure’s ability to deliver to budget, and to focus minds from the outset.
The £1.1bn committed in this parliament towards planning, development and design needs to be spent wisely but quickly, so that we can move now from planning to building as quickly, efficiently and cost-effectively as possible.
Leah Stuart, director at Civic
Efficient, reliable transport is the backbone of successful places. It’s not just about fast trains – it’s about creating an integrated system that includes affordable public transport alongside safe, direct walking and cycling routes. The three-stage plan starting with the current TransPennine Route upgrade is a huge win for Yorkshire and will help to unlock economic growth and improve quality of life.
We need certainty and a dedicated commitment to delivery – especially after the disappointment of HS2 being scaled back. Successive governments have promised to unlock the North’s potential, but stop-start funding and shifting priorities have held us back. This time, clarity on timelines and funding is essential to give confidence to businesses and investors.
I hope that this project will not involve the massive waste in unneeded advertising, painted hoardings, over-engineering, overheads, etc. that have been the norm on HS2.
Interesting comments are from ceo,s that believe that the north ends in Manchester. Nothing in the proposal that will bring investment in the North East . The Leam side works will only bring the metro service to towns that do not have train stations. Those stations and lines were removed many years ago