Rachel Reeves said she wants people in northern England to “feel the benefits” of a major scheme to boost connections by “the early 2030s”.
The Chancellor who is the Labour MP for Leeds West and Pudsey, described the decision to build Northern Powerhouse Rail (NPR) as “personal”.
The first phase of the programme would involve improved connections on existing lines on these routes: between Sheffield and Leeds; between Leeds and York; and between Leeds and Bradford.
A second phase of NPR would involve a new route between Liverpool and Manchester via Manchester airport and Warrington, using a combination of new and existing lines.
The third and final phase involves better connections eastwards from Manchester to Leeds, Bradford, Sheffield and York.
A funding cap of £45 billion would be set for NPR, although this could be topped up by local contributions, such as through increased revenue from business rates.
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.
On a visit to a rail depot in Leeds, Ms Reeves said: “By the early 2030s I want people to feel the benefits of these investments.
“I don’t want to have to wait until the whole line is built for anyone to get any benefit.”
She continued: “For me, this isn’t just political, this is personal.
“Because for a long time, the north of England and my constituents have been let down and been fed false promises.
“I’m determined that we are now finally going to deliver, and that this Labour Government is going to deliver what previous governments have promised but failed to get over the line, and that is Northern Powerhouse Rail.”
NPR was first proposed in 2014, and was originally envisioned as a new line between Liverpool and Hull.
The Government also announced its intention to build a new railway line between Birmingham and Manchester.
A previous plan to extend HS2 between the cities was scrapped by Rishi Sunak’s Conservative government in October 2023 to save money.
The Treasury said it wants a new Birmingham to Manchester rail line, but that it would not be “a reinstatement of HS2”.
No timescale was provided on when it would open, but it will not be until after the completion of NPR.
NPR is the focus of the Government’s wider Northern Growth Strategy, which will be published in the spring and aims to provide better jobs, more homes and increased investment in the region.
