A new rail route connecting Liverpool with Manchester has been unveiled by the government as part of efforts to boost the Northern economy.

The two cities were previously planned to be connected as part of HS2, but Phase 2 of the project was cancelled by Rishi Sunak in 2023 as part of a raft of cost-saving measures.

The Department for Transport said the new route, dubbed Northern Powerhouse Rail (NPR), would help to grow productivity in the North and potentially provide a £40bn uplift to the UK economy annually.

The second phase of NPR will include 3 new stations at Manchester Airport, Manchester Piccadilly and Warrington Bank Quay Low Level along the route, with construction beginning in the 2030s. The proposal would also see improvements to busy stations including Liverpool Lime Street and Liverpool Central, as well as upgrades across routes between Leeds, Bradford, York and Sheffield. 

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

“This new era of investment will reignite the economy across Liverpool and Manchester, helping their iconic sport and cultural industries to thrive, and cementing Manchester Airport as the gateway to the North.

“This exciting new line will not only speed up journeys, it will open up new jobs and homes for people, making a real difference to millions of lives.”

The current direct journey from Liverpool to Manchester Airport is one hour and 25 minutes, stopping 21 times over a distance of just 29 miles. Meanwhile, Reading to London Paddington takes 22 minutes, covering 35 miles.

A funding cap of £45bn will be set for the programme overall, including £1.1bn over the current Spending Review period allocated from existing budgets. The government also said it had “learned lessons” from HS2 and plans to work closely with local partners to ensure planning processes are carried out efficiently to reduce delays and prevent projects going over budget.

In a bid to add extra capacity at Manchester Airport sooner, plans have also been approved to lengthen platforms at the existing station to accommodate longer and more frequent trains, backed by £115m in funding.

Huw Merriman, chair of Liverpool–Manchester Rail Partnership Board, said: “This is superb news for the North and for the entire country. NPR is a project I’ve long championed, as a former chair of the Transport Select Committee, rail minister and now chair of the Liverpool Manchester Railway Board. It is excellent to see the government backing it in full from the outset, enabling proper planning and delivery that learns the lessons of HS2, as well as keeping options open for addressing North–South capacity on the West Coast Mainline.”