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Government revives Northern Powerhouse Rail with phased £45bn vision for the North

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January 14, 2026
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Government revives Northern Powerhouse Rail with phased £45bn vision for the North

The government has unveiled a long-awaited blueprint to revive Northern Powerhouse Rail (NPR), setting out a phased programme of rail investment it claims will transform connectivity across the north of England and unlock billions in economic growth.

The multibillion-pound scheme, first proposed more than a decade ago, is intended to deliver faster journeys, more frequent services and improved capacity between the North’s major cities through a mix of new rail lines, upgraded routes and modernised stations. Ministers say the project could add up to £40bn to the UK economy over time by improving labour mobility and stimulating private investment.

An initial £1.1bn has been allocated for design and preparation work, with construction expected to begin after 2030. The programme will be delivered in stages, with early upgrades focused on routes linking Leeds, York, Bradford and Sheffield, before progressing to a new Liverpool–Manchester line and longer-term improvements connecting Manchester with cities across Yorkshire.

Prime Minister Keir Starmer said the plans marked a break with years of unfulfilled promises. “The cycle of paying lip service to the potential of the North has to end,” he said. “This government is rolling up its sleeves to deliver real, lasting change.”

NPR will sit at the heart of a wider Northern Growth Strategy, due to be published in the spring, which aims to link transport investment with housing, skills and regional development. Ministers believe improved rail connectivity is critical to creating a single, more dynamic labour market across the North, closer in scale and opportunity to London and the South East.

Transport Secretary Heidi Alexander said the programme was designed to address decades of underinvestment. “This new era of investment will not just speed up journeys, it will mean new jobs and homes for people, making a real difference to millions of lives,” she said.

Early priorities include upgrades to key stations in Leeds, Sheffield and York, alongside renewed momentum behind a long-mooted new station in Bradford, which local leaders argue could dramatically widen access to jobs and training for younger workers. A new station at Rotherham Gateway is also planned, while the government confirmed it would pursue the business case for reopening the Leamside line in the North East.

However, while ministers have set a £45bn cap on central government funding, they have not committed to spending beyond 2029, leaving future phases dependent on detailed planning, public finances and potential contributions from local authorities. The Department for Transport said this cautious approach reflected lessons learned from the troubled HS2 programme, which has been plagued by delays, cost overruns and a significantly reduced scope.

Industry figures have broadly welcomed the renewed focus on the North, but warned that credibility will depend on delivery. Rob Morris, joint chief executive of Siemens Mobility UK & Ireland, said the plans “look very real” and could unlock productivity gains, but cautioned against a repeat of “stop-start” funding cycles seen under previous governments.

Business groups also stressed the importance of certainty. Henri Murison, chief executive of the Northern Powerhouse Partnership, said the proposals offered “a clear route to higher productivity growth”, adding that improved rail links would allow talent and businesses to operate across the region in ways that are currently impossible.

Opposition figures, however, accused ministers of kicking delivery into the long grass. The Conservatives said the lack of firm timelines and long-term funding risked turning NPR into another reworked promise rather than a transformative project.

For northern cities and investors alike, the next test will be whether the government can move from vision to execution — and finally deliver the rail connectivity that has been promised since the Northern Powerhouse was first conceived.

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