The government has unveiled proposals for a new railway line linking Birmingham and Manchester, but has stopped short of committing to a specific timetable for its construction. The announcement, made late on Tuesday, 13 January 2026, explicitly stated the project would not be a revival of the cancelled second phase of HS2.
A Replacement for the Scrapped HS2 Leg
This new line initiative follows the controversial decision by Rishi Sunak's Conservative government in October 2023 to axe the northern extension of the high-speed rail project to save money. The government has confirmed it will retain land originally purchased between Manchester and Birmingham for HS2 while development of the alternative project proceeds.
The primary aim of the new line is to alleviate significant pressure on the existing West Coast Main Line. According to the Treasury, the new Birmingham-Manchester route will not open until after the completion of the wider Northern Powerhouse Rail (NPR) scheme, which is designed to enhance east-west rail connections across the North of England.
The Phased Plan for Northern Powerhouse Rail
Prime Minister Sir Keir Starmer stated his government was "rolling up its sleeves" to deliver NPR, which will be rolled out in three distinct phases. The Treasury has set a funding cap of £45 billion for NPR, with potential for local contributions to increase this sum. An initial £1.1 billion has been allocated for development and design work to create a detailed delivery plan.
The first phase, targeted for the 2030s, will focus on upgrading existing lines to improve connections between Sheffield and Leeds, Leeds and York, and Leeds and Bradford. This phase was prioritised as it requires minimal new land acquisition.
The second phase will involve creating a new route between Liverpool and Manchester via Manchester Airport and Warrington, utilising both new and existing track.
The third and final phase will deliver better eastward connections from Manchester to Leeds, Bradford, Sheffield, and York, including funding for a new station in Bradford. Regular services will extend to Newcastle and Chester for North Wales links. Development work will also advance on reopening the Leamside Line in County Durham, closed in 1964.
Reactions and Political Debate
Northern leaders welcomed the announcement. Andy Burnham, Mayor of Greater Manchester, called it a "significant step forward" and praised the government's "ambitious vision" and openness to an underground station in Manchester. Steve Rotheram, Mayor of the Liverpool City Region, hailed it as "the start of a new era" after "a decade of dither, delay and broken promises".
Chancellor Rachel Reeves framed the investment as reversing "years of chronic underinvestment in the North," aimed at creating jobs, building homes, and unlocking business opportunities.
However, the plan faced immediate criticism from the Conservatives. Shadow rail minister Jerome Mayhew accused the government of "watering down" NPR, lacking cost control, and creating a "permanent mirage" that risks being "endlessly redesigned, downgraded and never delivered."
NPR forms the centrepiece of the government's forthcoming Northern Growth Strategy, set for publication in spring, which aims to boost jobs, housing, and investment in the region.
