Government commits to phased Northern Powerhouse Rail, with £45bn funding cap

The government has published its long-awaited plans for Northern Powerhouse Rail (NPR), outlining a major programme of rail improvements across northern England. The scheme, set within a £45bn funding cap, will be delivered in phases, with design and development work funded first and construction expected to begin in the 2030s.

Under the current proposal, Phase 1 will upgrade existing lines connecting Sheffield, Leeds, Bradford and York, including electrification and station improvements. Later phases include a new Liverpool–Manchester route via Manchester Airport and Warrington and enhanced cross-Pennine links between major cities. Services are also expected to extend towards Newcastle, Hull and Chester in subsequent stages.

The government has allocated £1.1bn in the current spending period for planning and early works, with the bulk of construction scheduled for the 2030s and beyond. Local authorities and combined transport bodies are anticipated to contribute to project costs.

NPR is designed to sit alongside the Transpennine Route Upgrade (TRU), an ongoing £11bn programme to improve journeys between York, Leeds, Huddersfield and Manchester. TRU has been progressing with electrification, signalling upgrades and station improvements, and is intended to deliver benefits earlier, with some sections completed in the mid-2020s.

In broad terms, Transpennine Route Upgrade is seen as delivering near-term capacity and reliability gains, while Northern Powerhouse Rail represents a longer-term framework for transforming connectivity across northern city regions. Together, the interventions aim to shorten journey times, increase service frequency, and expand rail capacity over the next two decades.