The Government has unveiled plans for Northern Powerhouse Rail (NPR), a multibillion-pound scheme aimed at transforming rail travel across the North of England and boosting the UK economy by up to £40bn. An initial £1.1bn has been allocated for design and preparation, with construction not expected to start until after 2030 and total central funding capped at £45bn.

High Speed Rail Group warmly welcomes the Government’s announcement of its long-term intention to build a new railway line from Birmingham to Manchester, connecting to HS2 which will run from London to Birmingham. This new line is essential if we are to avoid locking in Britain’s biggest bottleneck to the north of Birmingham and ensuring the investment already made into HS2 Phase 1 is not wasted.

However, the Group remains concerned about the lack of clarity over the new line, including timescales potentially extending over 10 years, and the decision not to extend land purchase powers, which expire next month. Whilst the land north of Birmingham can of course be purchased in future, it will require fresh legislation and inevitably be more costly than doing so under the current powers.

HSRG’s international expertise in high-speed rail confirms that delaying the Birmingham-Manchester link would hinder the London-Birmingham high-speed line from delivering its full benefits.

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.

Mark Goldstone, UK Competitiveness Manager, CBI, said:

“The CBI fully supports the government’s ambitions for greater connectivity and further economic development across the North of England.

“Getting on with Northern Powerhouse Rail is about far more than simply delivering a rail project. It’s a transformative opportunity to connect local economies, unlock regional growth and create vibrant hubs and thriving communities all the way along the proposed Northern Growth Corridor.

“The government must now use this moment as a springboard to press ahead with other important infrastructure projects that will catalyse jobs, investment and growth across the country.”

Anna Leach, Chief Economist at the Institute of Directors, said:

“The Institute of Directors welcomes the Government’s commitment to Northern Powerhouse Rail and the broader Northern Growth Strategy. Improved connectivity between key city regions is essential to unlocking productivity, attracting investment and creating opportunities for businesses and communities across the North.

“This commitment signals a turning point after years of stalled progress. We urge the Government to maintain momentum, ensure timely delivery and work closely with business leaders to maximise the economic benefits of this transformative project.

"Enhanced links will not only improve journeys but also strengthen supply chains, open new markets and accelerate the transition to a more productive, competitive economy. The IoD stands ready to work with government and local leaders to ensure this investment drives lasting benefits for businesses and communities alike."