News Beat
Government plans new rail line from Birmingham to Manchester
Rishi Sunak’s Conservative government scrapped a previous plan to extend HS2 between the cities in October 2023 to save money.
While the Treasury said it wants a new Birmingham-Manchester rail line, it confirmed it would not be “a reinstatement of HS2”.
Land that was previously obtained for HS2 between Manchester and Birmingham will be held onto while the project is developed.
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Government calls for new Birmingham to Manchester rail line
A new line would ease pressure on the West Coast Main Line but a timescale for when it would be built hasn’t been confirmed.
However, the Treasury said the new line wouldn’t be open until after the completion of Northern Powerhouse Rail (NPR), a scheme that aims to boost east-west rail connections across northern England.
Prime Minister Sir Keir Starmer said the Government was “rolling up its sleeves” to deliver NPR.
The first phase of the programme would improve connections on existing lines in the 2030s on the following routes: between Sheffield and Leeds; between Leeds and York; and between Leeds and Bradford.
Development work would also be taken forward on reopening the Leamside Line, a 21-mile route between Pelaw, Gateshead, and Tursdale, County Durham, which was closed in 1964.
A second phase of NPR would involve a new route between Liverpool and Manchester via Manchester Airport and Warrington.
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The third and final phase involved better connections across the Pennines between Manchester, Leeds, Bradford, Sheffield and York.
Regular services would run on to Newcastle via Darlington and Durham and Chester for North Wales connections.
The Treasury said a “funding cap” of £45 billion would be set for NPR.
An initial £1.1 billion for development and design work would be available to enable the creation of a “detailed delivery plan which will include timings”, the Treasury said.
Sir Keir commented: “Over and over again, people in northern communities, from Liverpool and Manchester to York and Newcastle have been let down by broken promises.
“This cycle has to end. No more paying lip service to the potential of the North, but backing it to the hilt.
We are freezing rail fares for the first time in 30 years and unlocking millions of discounted train tickets in the Great British Rail Sale.
We are tackling the cost of living.
— Keir Starmer (@Keir_Starmer) January 6, 2026
“That’s why this Government is rolling up its sleeves to deliver real, lasting change for millions of people through Northern Powerhouse Rail: a major new rail network across the North that will deliver faster, more frequent services.”
NPR is the focus of the Government’s wider Northern Growth Strategy, which will be published in spring and aims to provide better jobs, more homes and increased investment in the region.
Chancellor Rachel Reeves said: “If economic growth is the challenge, investment and renewal is the solution.
“That’s why we’re reversing years of chronic underinvestment in the North.
“Our transformative plans will create jobs, build homes and unlock opportunities for businesses to invest.”
In case you missed it…
All bus and tram fares – including the £2 fare cap for an adult single journey – will be frozen for the whole of 2026. 🐝 pic.twitter.com/9MTljKcqnD
— Bee Network (@BeeNetwork) December 28, 2025
Andy Burnham, Mayor of Greater Manchester, said: “Finally, we have a Government with an ambitious vision for the North, firm commitment to Northern Powerhouse Rail and an openness to an underground station in Manchester city centre.”
He added: “Today marks a significant step forward for Greater Manchester.
“We’ll now work at pace to prove the case for an underground station and work up detailed designs for the route between Liverpool and Manchester.”
Steve Rotheram, Mayor of the Liverpool City Region, said: “After more than a decade of dither, delay and broken promises, this is the start of a new era, with a genuinely strategic approach and a Government finally backing Northern Powerhouse Rail in full.
“This is the kind of ambition we’ve been crying out for.”
