Steve Rotheram, Rachel Reeves, Oliver Coppard at NPR announcement, c Kirsty O'Connor, HM Treasury

Chancellor Rachel Reeves announced funding for Northern Powerhouse Rail on Wednesday at a visit to Neville Hill Train Depot in Leeds. Credit: Kirsty O'Connor, HM Treasury

Govt to unveil economic Northern growth strategy in spring

The commitment of £45bn for Northern Powerhouse Rail was just the start, with an economic plan leaning into the region’s strengths in clean energy, advanced manufacturing, life sciences, and more to be detailed within a few months.

The Northern Growth Strategy: Case for change policy paper, published Wednesday, noted that the North’s productivity was 10% lower than the UK average in 2023, and 25% lower than London and the South East.

Raising productivity figures in Greater Manchester, Liverpool City Region, South Yorkshire, West Yorkshire, and the North East to the UK average would bring in £40bn in additional GVA a year, the paper contends. This would, in turn, translate into £15bn in additional annual tax revenue.

To do this, the government argued that it needs to improve three things: density and connectivity in the region, business investment figures, and educational opportunities and graduate retention.

An economic plan to accomplish this will be published in the spring. Tom Riordan, the government’s envoy for Northern growth, will lead the delivery of this strategy.

The North East will receive a special highlight in the work, according to the policy paper.

“The scale of the North East’s potential and its distinct geography warrant a separate focus,” the paper reads. It promises support for unlocking clean energy industry opportunities along the east coast, supporting reopening of the Leamside Line, regenerating Newcastle city centre, and strengthening the region’s relationship with Scotland.

Northern Powerhouse Rail is at the heart of the government’s plans to improve productivity in the region.

“It is self-evident to anyone who has lived, worked or visited that transport is the key barrier to improving the productivity of our economy,” Riordan wrote on LinkedIn. “It’s just too hard to get around between our towns and cities.”

To those sceptical of the long-promised NPR becoming reality, Riordan countered:

“This time (more than any other time 🙂) we can get it right. First, this is a genuine partnership between an elected government and elected mayors and council leaders – a collective endeavour. Today’s announcement is better because the North has shaped it.

“Second, we have a capped long term commitment for sequenced priorities that backs the words with funding.

“And third… it is part of an evidence-based growth strategy designed to benefit the whole of the North. Thanks to everyone involved for your brilliant support, and looking forward to working together with Westminster, Whitehall and the North to make sure this makes a lasting difference.”

The policy paper provides additional detail about NPR’s delivery, which is outlined below.

Northern Powerhouse Rail phases, HM Treasury, p HM Treasury

The timeline for NPR delivery has been set out in the government’s Northern Growth Strategy policy paper. Credit: via HM Treasury

First phase, to be delivered in the 2030s:

  • Electrification and upgrades to the Leeds, Sheffield, and York rail corridors
  • Improving Leeds station and releasing adjacent development sites
  • Developing business case for Bradford Station (decision by summer)
  • York station masterplan redesign
  • Improve capacity at Sheffield
  • Finalise business case for proposed Leamside reopening with a look at improving connections to Sunderland

Second phase, to have work start in the 2030s and beyond:

  • New route between Liverpool and Manchester via Manchester Airport and Warrington Bank Quay Low Level (development work has been fully funded)
  • New station for Manchester Piccadilly – details as to whether this is underground or above ground still to be determined
  • Liverpool Central improvements and assessment of possible gateway stations in the city region. Expect consultation in due course regarding the full detailed route between Liverpool and Warrington
  • Look into potential of extending NPR beyond Chester to North Wales

Third phase

  • Look at improving cross-Pennine links over and above Transpennine Route Upgrade
  • Birmingham and Manchester line that can support wider North West and Scotland connections

Read the policy paper.

Your Comments

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“Envoy” for the North. What a strange and telling use of language.

By English teacher

Why is the use of ‘envoy’ strange in this instance?

By Not an English teacher

Are Lancashire and Cumbria no long in the North?

By Anonymous

Experts further expect U turn on promises will then be announced in the Autumn!

By CB

The Birmingham line needs to serve Liverpool and Warrington or it won’t release West Coast Mainline capacity even if it doesn’t go to Manchester

By Frank

‘Envoys’ are normally sent out by Government’s to foreign countries to negotiate – that’s why it weird

By urbanista

By the time they get electrification the this new mode of public transport will be obsolete

By Joe Ninety

Also ‘correspondent’ for the north. Shows their mentality.

By Anonymous

Dead before it starts . We can all sit there and waffle which is what Labour do best but Reeves and Starmer are already yesterday’s chip paper..as relevant to the future as the wireless telegraph.

By Starmers Toast

“ and railway lines will be plentiful in the North and everyone shall be happy and we won’t break any promises and deliver unto the northerners many good things, and we’ll still be here..yes mostly that..’ I’m pretty sure that’s how it sounds in their heads when they make this stuff up.

By Anonymous

Given the utter failure of the last tory government to deliver any meaningful infrastructure projects in the north I understand the cynicism of many of the people posting here about the NPR. We know that Reform has little interest in the North and will cancel this project, we know the tories have for generations failed the north so we either trust this government to deliver and judge them on their results or lack of results. The alternative is that the north breaks away and we form our own parliament with tax raising powers.

By Anonymous

By the time this comes to fruition we’ll all be teleporting

By Anonymous

Ambassador rather than envoy might be more appropriate.

By Elephant

Given ‘Rachel from Accounts’ has the record for the pace at which she has damaged the economy , i have no faith given her incompetence of delivering anything!!!

By JC

We need a train station for Liverpool Airport. This is important , we dont need another Manchester Airport station.

By Carl S

There’s no money for any of this

By The Blob

For years I’ve suspected the North was a separate country, and the wording of this latest masterpiece finally confirms it.
And that adorable little line diagram of the railways? Brilliant. So much cheaper to draw pretend trains than actually build real ones. Not a lot cheaper, granted, but probably not far off the mark with this lot.
At what point will this clownish, half‑awake Government realise they won’t even be in power by the time the reports, reviews, sub‑reviews and “consultations” finally trundle to a halt? And given their track record of borrowing and baffling policy choices, there won’t be any money left anyway.
Stop feeding us dreams and promises. Commit actual spending to the UK, cut the fluff, get the deficit under control, and just for once try achieving something tangible.

By Steve5839

Labour governments are never going to deliver anything for the north because they never have. Their whole ethos is always the race to the bottom, heavy on the regulation, centralise everything and add no real value or growth. This can’t happen because everyone has already seen through them and who they really are. We do need real power in the north though, a Westminster of the North that will be able to raise to raise real capital and fund projects whose benefits are seen as investments that remain here. Easier said than done though…apparently.

By Anonymous

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