The Government is anticipated to postpone a long-anticipated announcement on Northern Powerhouse Rail (NPR), raising fresh concerns over delays to one of the UK’s most high-profile regional infrastructure projects.
Officials had been expected to unveil plans for the Liverpool–Manchester route to coincide with the Labour Party conference in Liverpool. However, sources indicate that ongoing discussions with the Treasury over funding are holding up the public announcement.
The postponement follows previous delays. NPR, first proposed in 2014 under then-Chancellor George Osborne, was expected to feature in the Government’s June spending review — an announcement that never materialised. The Government says it remains “fully committed” to NPR, stressing that caution is aimed at avoiding past mistakes seen with HS2.
Broader Context
The delay is seen as part of a wider pattern of postponements affecting UK rail infrastructure. Critics argue that northern projects often face slower progress compared with southern schemes. Experts also note potential consequences for investors, local authorities, and communities:
- Investment uncertainty: Unclear timelines may deter developers and suppliers from committing resources.
- Rising costs: Projects paused and restarted frequently are prone to budget overruns.
- Credibility risk: Repeated delays may undermine the Government’s “levelling up” agenda.
Comparisons with HS2 are inevitable. The high-speed rail project has seen repeated delays and cost escalations, particularly for its northern leg, which was scaled back after years of planning and controversy.
Darren Caplan, Chief Executive of the Railway Industry Association, said: “The Railway Industry Association acknowledges and appreciates the significant investment which the Government has dedicated to rail this year amid constrained public finances, and we recognise its commitment to delivering rail reform under a new Great British Railways body.
“However, with rail reform progressing at a slower pace than many expected, and with the Northern Powerhouse Rail scheme reportedly delayed, we and our members would like to see more urgency injected, particularly into setting out clear plans for investments in the years ahead, which is needed to support business confidence. This is especially urgent if the Government wants to see the kind of accelerated economic growth it says it wants in the years ahead, and which rail is ideally placed to support as its industry generates hundreds of thousands of high-quality jobs, and billions of pounds of investment and tax revenue.
“Continuing the theme of urgency, we don’t need to wait for rail reform to be completed to publish a long-term rail strategy setting out the Government’s priorities, we don’t need rail reform to push on with previously announced schemes like Northern Powerhouse Rail, East West Rail and Midlands Rail Hub, we don’t need rail reform to publish a rolling stock strategy and pipeline, and we don’t need rail reform to develop and bring in new and innovative forms of funding. Pushing forward more rapidly and setting out clear and consistent pipelines of work will bring confidence to the railway industry, and help the Government lower the cost of the railway for rail’s customers – passengers and freight – as well as delivering value for money to the Treasury and taxpayer.”
Government sources suggest a formal announcement on NPR may now come with the November budget or at a later date, leaving stakeholders in the north awaiting clarity. Analysts warn that further delays could jeopardise the project’s ability to act as a catalyst for regional growth and connectivity.
For now, expectations set around the Labour conference have passed, and the focus is on whether the Government can restore momentum for the long-awaited northern rail links.
