Budget 2012: Osborne answers call for rail investment

CHANCELLOR George Osborne today promised £130m to upgrade the Northern rail network to help kickstart the regional economy.

The money will support the Northern Hub project, Network Rail’s plan to stimulate economic growth by upgrading the rail network of the north to relieve a bottleneck around Manchester to reduce train journey times from Liverpool through to Hull, Sheffield and Newcastle-upon-Tyne.

By making rail travel across the north faster and more frequent, the Northern Hub project is expected to boost the region’s economy by around £4.2bn and create up to 30,000 jobs.

Chancellor George Osborne today confirmed that the Government will support Network Rail to invest a further £130m in order to extend the Northern Hub, adding to the electrification of the transpennine rail route.

It will upgrade the Hope Valley line between Manchester and Sheffield and improve the Manchester to Preston and Blackpool, and Manchester to Bradford lines.

The Chancellor said: “For years, transport investment in the north of England was neglected. Not under this Coalition Government.”

David Higgins, Network Rail chief executive, said: “Today’s announcement of further funding for the initial stages of the Northern Hub is a welcome show of confidence in rail bringing benefits to passengers as well as driving economic growth.”

Mr Higgins said that to realise the project’s total value of £4bn to the northern economy and create between 20,000 and 30,000 new jobs, the final stages of funding will need to be supported in the rail budgets to be announced later this year.

He added: “When completed, this project will be a clear demonstration of how investment in smart infrastructure can unlock economic potential by connecting commerce and communities across cities such as Manchester, Liverpool, Sheffield, Leeds and Newcastle with 700 new train services each day.”

Martin Portnoy, tax partner at Ernst & Young in Manchester, said of the investment: “Upgrading rail links between Manchester and Sheffield, Manchester and Preston, and Manchester and Blackpool is a welcomed boost and commitment to Manchester and the North West.

“Improvements to infrastructure between the hubs will have a positive impact, strengthening the business community and driving economic activity.”

Click here to sign up to receive our new South West business news...
Close