Labour’s annual conference was in trouble before it began last night as the Government was forced to delay the announcement of a major new rail line in the north. The revived Northern Powerhouse Rail project was set to be the centrepiece of the gathering in Liverpool, which begins Sunday, as the Government attempts to demonstrate it is supporting economic growth in every part of the country.
But a source said ministers were “taking time to get this right”. The delay was criticised by Greater Manchester Mayor Andy Burnham, who has championed the scheme along with Liverpool City Region Mayor Steve Rotherham, while the rail industry called for “more urgency”.
Northern Powerhouse Rail (NPR) would include a new line between Liverpool and Manchester, with services to Manchester Airport and Warrington. It could also include connections to Crewe, Leeds and Bradford, possibly using existing track.
The Department of Transport is understood to have asked the Treasury to provide funding of £1.5bn for preparatory work, with construction beginning around 2030.
Plans were first proposed by former Tory chancellor George Osborne in 2014. The last Conservative government promised to move forward with the scheme as part of a project called Network North, when former Prime Minister Rishi Sunak scrapped the northern leg of the HS2 high speed rail line.
A Government source said: “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.”
Mr Burnham, who is to speak at fringe events at the party conference, told BBC Radio Manchester: “The news today around, if you like, the rail project we’ve worked on kind of being put on hold, when we saw projects going on in the south, I don’t think that is the plan we need.
“We need to prioritise investment here, in a place that’s growing stronger than anywhere else in the UK.”
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.”
