Budget 2012: Osborne answers business 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 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 Sheffield and Manchester 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.”

Tim West, tax partner at Ernst & Young in Leeds, 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 Yorkshire.

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