Today : Sep 25, 2025
Politics
24 September 2025

Northern Powerhouse Rail Faces New Delays Amid Cost Fears

Government officials postpone high-speed rail plans for northern England, citing past mistakes and rising costs as regional leaders demand urgent action.

Plans for a transformative high-speed rail network across northern England, known as Northern Powerhouse Rail (NPR), have once again hit the buffers, with government officials delaying a long-awaited announcement amid mounting concerns over costs and the specter of past rail fiascos. The scheme, which aims to link Liverpool and Manchester via Manchester Airport, extending further to Leeds and Hull, was expected to be unveiled by Chancellor Rachel Reeves ahead of the Budget on November 26, 2025. Instead, another round of reviews and "tyre kicking," as some insiders have wryly put it, has pushed the timeline back, leaving northern leaders and businesses in suspense.

According to BBC reporting, the latest delay means the prime minister will not announce the NPR plans at the Labour Party conference, scheduled for September 28 to 30, 2025. The move comes after months of anticipation, with earlier hopes pinned on announcements at the June Spending Review, the government’s infrastructure strategy rollout, and a highly anticipated pipeline of key projects. Each time, the can was kicked further down the road.

The roots of NPR stretch back over a decade. The idea was first floated by former Conservative chancellor George Osborne in 2014, as part of a broader vision to boost economic growth and connectivity in the North—an area often left feeling sidelined by London-centric infrastructure investments. Yet, as the years have ticked by, NPR has been repeatedly reimagined, downgraded, and delayed by successive governments. The most recent setback, insiders say, is a direct result of the government’s determination to avoid repeating the costly mistakes of HS2, the high-speed rail project now infamous for its ballooning budget and missed deadlines.

HS2, originally envisioned as a Y-shaped network linking London, Birmingham, Manchester, and Leeds, has been beset by setbacks. Its costs are now expected to exceed £70 billion, with the first section unlikely to open before the mid-2030s. The government recently scrapped plans for HS2 to reach further north, saving £12 billion of its budget for NPR instead. Yet, as Policy Exchange’s Andrew Gilligan noted in a report published earlier this month and backed by Reform UK, the proposed £17 billion Liverpool-to-Manchester line could paradoxically take longer than the existing rail route—a claim that has fueled skepticism and debate in Westminster and beyond.

Reform UK has gone so far as to call for NPR to be scrapped entirely, suggesting a northern version of London’s Crossrail (now the Elizabeth Line) as a more viable alternative. Richard Tice, deputy leader of Reform, warned companies "not to bother" bidding for NPR contracts, underscoring the political and economic uncertainty that continues to swirl around the project.

Despite the turbulence, the government insists its commitment to NPR is unwavering. A government source told The i Paper, "The government remains fully committed to NPR. We are determined to learn from the mistakes of the past and not repeat the previous government’s failures over HS2 and the botched Network North plan. That’s why we’re taking our time to get this right. We will set out our plans in the coming weeks." The Department for Transport, for its part, is understood to have proposed releasing up to £1.5 billion in preparatory and development funds, with the aim of beginning construction around 2030. But the Treasury’s hesitancy—especially over the value for money of connecting Manchester Airport to the city center—has kept the project in limbo.

The airport link is a particularly contentious point. Proponents argue that easy access to Manchester Airport from across the North would deliver a major boost to investment and exports, helping to close the economic gap with the South. Chris Woodroofe, the boss of Manchester Airport, told the BBC back in August that "poor transport links across northern England were holding back its economic potential," and that NPR would be "vital to boosting investment and exports for northern businesses."

Political and business leaders in the North have been vocal in their frustration. Greater Manchester Mayor Andy Burnham and Liverpool City Region Mayor Steve Rotheram have jointly advocated for a route including Manchester Airport, emphasizing the potential for NPR to unlock wider regeneration and economic growth. Burnham’s camp, weary of repeated delays, told the BBC, "Any more tyre kicking and there will be no tyre left." Louise Haigh, former transport secretary, was equally blunt, describing the news of further delays as "incredibly disappointing." She added, "The North was promised time and again, including by this Government, that our desperately-poor connectivity would be improved. Further delays will only increase costs. We should be cracking on and delivering NPR as soon as possible."

For many in the region, NPR is more than just a rail line—it’s a symbol of long-promised investment and a test of the government’s commitment to levelling up. Business leaders view the project as crucial not only for cutting travel times and improving daily commutes, but also for keeping alive hopes that future phases of HS2 could one day be built at a lower cost. As reported by The i Paper, there’s a belief that delivering the Liverpool-to-Manchester route could pave the way for HS2 phases 2a and 2b, linking Crewe to Manchester Airport and eventually down to the West Midlands, to become more attractive and affordable.

In June, ministers instructed HS2 Ltd, the company responsible for delivering the high-speed line, to retain key sections north of Birmingham for possible future development. Transport Secretary Heidi Alexander specifically directed the company to keep two "spurs" of HS2 at Handsacre, ensuring that options remain open if political winds shift or funding becomes available.

Yet, as the debate rages on, the North waits. The repeated delays have sown frustration and skepticism among those who have long championed the project. Some insiders had hoped that NPR would be a centerpiece of Sir Keir Starmer’s speech at the Liverpool Labour conference, but interventions in recent weeks have seen the announcement pulled from the agenda. With champions of the scheme like Lucy Powell and Angela Rayner no longer in cabinet, the political momentum behind NPR seems less certain than ever.

For now, officials are promising that a final decision will be made in the narrow window between the Labour conference and the Budget on November 26. Whether this latest round of reviews will finally deliver the long-promised rail revolution—or simply lead to more tyre kicking—remains to be seen. The North, for its part, is watching closely, anxious for action after years of waiting on the platform.