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.
