The Chancellor, the Rt Hon Rachel Reeves MP, announced today in Leeds a ‘New Growth Plan for the North’, which sets out proposals to develop the economy across the north of England, including investment in new rail infrastructure such as Northern Powerhouse Rail (NPR).
The Chancellor reported that £1.1bn over the current Spending Review period would be allocated from existing budgets first, with an overall cap of £45bn into the 2030s and 2040s.
Reacting to the Plan, RIA Chief Executive Darren Caplan said: “Today’s announcement is a significant declaration of intent from the Government on future rail investment in the North, that Northern Powerhouse Rail (NPR) will now be initiated.
“Both rail suppliers and users will welcome any plans to improve connectivity between Leeds, Sheffield and Bradford and options for electrifying those routes, as well as ambitions for a new line between Liverpool and Manchester via Warrington and Manchester Airport.
“RIA is also pleased that a north-south railway along the lines of the original HS2 Birmingham to Manchester route will eventually link to NPR. With the West, Midland, and East Coast main lines all filling to capacity, we have always said that to get the full benefits of HS2 you need to build the full scheme. Whatever the scheme is eventually called, bringing Manchester and Leeds back into play via both NPR and extension to HS2 is crucial to deliver the economic growth and connectivity the UK needs in the years ahead.
“RIA and our members now ask to see detailed plans, timescales and committed budgets to all three phases of the Government’s plans, in order to ensure that this statement of intent announced today becomes a reality well within its 2040s deadline.”
Sam Gould, Director of policy and external affairs at the Institution of Civil Engineers said: “The news that the government has committed to delivering Northern Powerhouse Rail is hugely welcome and long overdue. But the government and other stakeholders must learn the lessons from HS2. Namely, as the ICE set out in our report in 2024, the purpose of the project must be clear, who is in charge must be clear, the right capability and understanding must be present in government departments, and the project must be sufficiently developed before ground is broken.
“If the government’s vision for the North is realised it could be transformative not just for Leeds, Manchester and the other great Northern cities, but for the whole UK. The ICE is ready to work with government to ensure the right pieces are in place to stay the course and deliver this vision successfully.”
A spokesperson from the High Speed Rail Group (HSRG) said: “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 into 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 develop 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.”
Colette Carroll OBE, Managing Director – Transportation, UK & Ireland, AtkinsRéalis, said: “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 of improved transport links offer to communities across the North.”
Amish Patel, Transport Leader, PwC UK said: “The renewed commitment to Northern Powerhouse Rail is a significant and welcome step towards addressing the North’s long-standing connectivity challenges and barriers to productivity and growth. The strategic intent is right: better transport links are essential to unlocking growth, widening labour markets and attracting sustained private investment across the region.
“The focus must now shift decisively from ambition to delivery. That means sequencing investment carefully, securing early and visible benefits, and ensuring the right delivery capabilities are in place in the right locations at the right time. Major programmes of this scale succeed not just through funding, but through strong governance, commercial discipline, and a realistic approach to skills and supply-chain capacity.
“If Northern Powerhouse Rail is delivered as part of an integrated economic system – aligned with housing, skills and local growth plans, and led in genuine partnership with city regions – it has the potential to be truly transformational for the North and for the UK economy as a whole.”
Logistics UK Chief Executive Ben Fletcher said: “Logistics delivers economic growth across the UK – nothing moves without the work of our industry and members,” he said “and every pound of investment in new infrastructure is vital if we are to improve competitiveness and enhance efficiency.
“Today’s announcement establishes a clear and deliverable plan for greater rail capacity, which is much needed, and we must now work to ensure that the needs of the logistics sector are front and centre when making plans to maximise the impact of this investment. The proposed Liverpool-Manchester railway will create additional capacity, which must benefit freight as well as passenger traffic – faster, cleaner, and cheaper movement of goods helps reduce prices and drives growth”.
“Rail has a key role to play in the decarbonisation of logistics, while ensuring that heavy or bulky loads can still be delivered in a timely fashion. As this new scheme is developed, it is critical that northern leaders, our sector and government work closely together for the benefit of all parties, which will ensure that logistics business can deliver for the north, and further afield. We stand ready to engage and help, to ensure that today’s announcement builds confidence and delivers the growth we all want.”
Director of Policy & Public Affairs for the Civil Engineering Contractors Association (CECA) Ben Goodwin said: “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 are 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 make sure it is now successfully delivered, it needs to work with industry to ensure that inefficiencies associated with delays, redesigns, or stop-start decision-making are avoided.
“CECA members have the expertise and capability to deliver complex major infrastructure such as Northern Powerhouse Rail and will be itching to get started – providing all stages of the project are supported by stable pipelines, realistic procurement models, and early contractor engagement.
“The lessons from recent major projects are clear – the commitment to delivering a once-in-a-generation scheme like this must be matched by a clear funding structure and a detailed delivery plan, which allows businesses to invest in skills, plant, and resourcing, confident in secure forward pipelines of work.”
Jason Geall, Executive Vice President, SME at American Express Global Business Travel: “Better connectivity between the UK’s major economic hubs outside of London is essential to unlocking balanced, sustainable economic growth. Business travellers want to choose rail where they can because it allows them to be more productive while on the move. To make it a credible alternative and capitalise on that demand, UK rail travel must be more reliable, affordable and connected.”
Ben Rudkin, Operations Director at Resonate Group, commented: “The ambition to connect cities more effectively across the North highlights how vital technology is in creating a truly integrated rail network. Modern signalling, data-driven planning tools and live network visibility enable operators to extract more capacity, improve reliability and keep services moving, making it easier for people to travel for work, access new job opportunities and experience more seamless journeys.”
