HM Treasury announces Northern Powerhouse Rail with £45bn funding cap
HM Treasury has announced a £45bn Northern Growth Strategy centred on Northern Powerhouse Rail (NPR), the largest transport upgrade in the North of England in a generation. The plan will deliver faster, more frequent rail services linking major cities including Liverpool, Manchester, Leeds, Bradford, Sheffield and York, with onward connections to Newcastle and Hull, supported by £1.1bn for planning and design during the current spending review. The government expects the project to reduce journey times, create jobs, support housing and attract investment, estimating that raising productivity in the five most populous northern Mayoral Strategic Authority areas to the UK average could add around £40bn in Gross Value Added annually and generate approximately £15bn in additional tax revenue. These figures are illustrative and based on the Office for National Statistics productivity data and fiscal ratios, assuming gains are additive and do not displace activity elsewhere. NPR will remain within its funding envelope to ensure value for taxpayers, with long-term plans for a Birmingham-Manchester link considered after completion. Local leaders and industry representatives welcomed the announcement as a transformative step to unlock growth and strengthen competitiveness across the region.