14 January 2026
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, though no further details on the allocation of this was provided.
There has been reference also to a north-south link along the lines of the original HS2 route from Birmingham to Manchester eventually linking to NPR. The specifics of project scoping were to be determined in due course.
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.”