'Underinvestment ends now': Everything you need to know about Northern Powerhouse Rail

The initiative is aimed at improving connections between the North's major cities - here is everything we know about the scheme.

What is Northern Powerhouse Rail?

Northern Powerhouse Rail is a new rail network for the North of England aimed at increasing capacity. The scheme feature new and significantly upgraded railway lines, and is set to be the region's single biggest transport investment since the industrial revolution.

Its purpose is to improve journey times and boost the number of trains per house so that the northern economy can operate on a better level. It will also mean making it easier to move between the region's towns and cities.

What do the Northern Powerhouse Rail plans include?

Phase one: Yorkshire

The first phase will prioritise upgrades and electrification between Leeds-Sheffield, Leeds-York and Leeds-Bradford to transform commutes, and is set to be delivered during the 2030s.

Plans also include improvements for Leeds, Sheffield and York stations - supporting significant regeneration plans to unlock tens of thousands of homes and jobs - as well as moving forward with work on Bradford Station.

Phase two: Liverpool - Manchester

The second phase of NPR will build a new route between Liverpool and Manchester, running via Manchester Airport and Warrington, following in the 2030s.

Phase three: Manchester - Sheffield/ Leeds and Bradford

The third phase will focus on improved connections between Manchester and Sheffield, Manchester and Leeds, and explore options for Manchester to Bradford. Work on the business case for the Leamside Line will also be taken forward, as part of ensuring NPR services reach Newcastle.

NPR impact on the economy

Currently, the journey from Sheffield or Bradford to Manchester can take up to 54 minutes, despite both cities being around 30 miles away. Reading to London Paddington takes 22 minutes covering 35 miles. There also are only two fast trains an hour between Leeds and Manchester - a very popular route that suffers from severe overcrowding.

It can take up to one hour 23 minutes to get to Manchester airport from Leeds or Sheffield, despite being around 40 miles away.

The Department for Transport said that NPR plans have the potential to significantly improve how people travel for work, education and leisure. It said that growing the productivity of five of the largest cities to the national average would add up to £40bn a year to the UK economy.

Additionally, the redevelopment of stations and surrounding neighbourhoods will bring in new homes, jobs and local businesses.

Regeneration of Leeds Station will include plans for the South Bank, while development around the new Bradford Station and York Central will add new housing in the bustling city centres.

The Advanced Manufacturing Innovation District spans 2,000 acres along the Don Valley corridor, linking Rotherham and Sheffield, with the potential to enable thousands of new homes and jobs.

How is NPR being funded?

The treasury has set a funding cap of £45bn for the programme, including £1.1bn over the Spending Review period allocated from existing budgets first.

The government said that learning from HS2, it will work closely with local partners to ensure planning processes are carried out efficiently, and approvals are streamlined to reduce delays and prevent projects from going over budget.

Industry reaction

Transport secretary Heidi Alexander said: "For too long, the North has been held back by underinvestment and years of dither and delay – but that ends now. 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."

Andrew Clarke, commercial director at the Business Travel Association said: “The needs of the North and Midlands are finally being prioritised, after years of calls for a truly functional rail network. The current system is close to breaking point and simply isn’t meeting passenger needs.

“We welcome the renewed focus on east-west connectivity, but this must not become another HS2. We need delivery, not just promises. Businesses want clarity on integration and realistic timelines, not another decade of uncertainty.

“A joined-up national network, fully integrated with regional rail, local transport, and city centres, is the paramount objective. Without this, we risk repeating the mistakes of HS2. A link between Birmingham and Manchester will support face-to-face interactions essential for relationship-building, facilitate the work of professionals across sectors, and address the 62 per cent of business trips that happen domestically.

"To realise its full potential, it must provide reliable services, universal accessibility, space to work while travelling, and come hand-in-hand with ticket reform to ensure it is cost-effective for travellers.

"The benefits of this infrastructure must be felt across the North and Midlands, not just in London.”