Plans for high-speed rail line in northern England suffer fresh delay
Proposals for link between Liverpool and Manchester held up by discussions involving the Treasury
Plans for a new high-speed rail line in northern England have been delayed again, with Sir Keir Starmer no longer expected to outline the project at Labour’s annual conference next week.
Northern leaders had been hoping to hear government confirmation of proposals for a rail link between Liverpool and Manchester either in the run-up to the conference or in the prime minister’s keynote speech on Tuesday.
But people familiar with the matter said that discussions with the Treasury were holding up an announcement.
“I’d always been led to believe an announcement was coming around conference,” said one well-placed rail industry figure, adding that others had been led to believe the same.
The latest delay comes after an announcement about the northern rail line was slated for inclusion in the government’s spending review in June, but did not subsequently materialise.
Labour promised in its 2024 general election manifesto to upgrade northern rail links, but since then has not explained what that means, or how much it would cost.
In the spending review, chancellor Rachel Reeves promised to back what she termed “Northern Powerhouse Rail”, but she did not outline details of any financial commitment or set out the scope of the project.
Northern leaders have been lobbying for improvements to rail connectivity in their areas, and a new line between Liverpool and Manchester is supported by Andy Burnham, Labour mayor of Greater Manchester, and Steve Rotheram, his counterpart representing Liverpool city region.
Part of the plans would involve expensive tunnelling between Manchester city centre and Manchester airport, which originally formed part of the northern leg of the High Speed 2 rail line. That portion of HS2 was cancelled in 2023 by the then Tory premier Rishi Sunak.
Many of those backing the Liverpool-Manchester rail link hope such tunnelling would allow for the revival of some version of HS2’s northern leg in the future.
However, several people briefed on the situation said that, while the link had long been supported by the Department for Transport, the Treasury had continually sought more time.
“We want to scope out the work and make sure everything is nailed down,” said one Labour official.
Other officials said Reeves might decide to hold back an announcement on Northern Powerhouse Rail until close to her Budget on November 26.
“The whole Budget is about growth and infrastructure is a big part of that,” said one.
Louise Haigh, a former Labour transport secretary and MP for Sheffield Heeley, said news of further delays to Northern Powerhouse Rail was “incredibly disappointing”.
“The north was promised time and again, including by this government, that our desperately poor connectivity would be improved,” she added.
The latest delay will also disappoint Burnham and Rotheram, who have proposed a Liverpool-Manchester rail link and argue it is essential for economic growth in the North-west. Their scheme would cost at least £12bn.
With Starmer coming under intense pressure following Angela Rayner’s resignation as deputy prime minister and the sacking of Lord Peter Mandelson as US ambassador, Burnham has been at the centre of speculation about a possible bid for the Labour leadership.
The Greater Manchester mayor is weighing up whether to attempt a return to Westminster ahead of any potential leadership challenge, and is due to speak alongside Rotheram at Labour’s conference.
A government insider said it remained “fully committed” to Northern Powerhouse Rail, adding that it was “determined to learn from the mistakes” of Conservative rail plans that had unravelled or been cancelled.
“That’s why we’re taking our time to get this right. We will set out our plans in the coming weeks,” they added.