Multi-billion-pound drive to transform rail and growth across Yorkshire and North East

• government launches new growth plan for the North to unlock the region's economic potential and boost living standards – growing the productivity of 5 largest cities to the national average would add up to £40 billion a year to the UK economy
• faster frequent and reliable trains across Yorkshire, better journeys to the North East, and progressing Leamside Line proposals in plans to vastly improve travel and open up job opportunities
• Northern Powerhouse Rail will see upgrades to lines between Leeds, York, Bradford and Sheffield first in the 2030s, with better connections to Manchester in later phases

People across Yorkshire and the North East will benefit from faster commutes, greater job opportunities and increased investment as part of major Northern Powerhouse Rail plans launched today (14 January 2026).

The new major government growth plans will boost economic potential and living standards across the North, with more reliable and more frequent trains across major cities in the regions. The Northern Powerhouse Rail (NPR) plans unveiled today will drastically improve how people travel for work, education and leisure – growing the productivity of 5 largest cities to the national average would add up to £40 billion a year to UK economy.

The first phase will prioritise upgrades and electrification between Leeds-Sheffield, Leeds-York and Leeds-Bradford to transform commutes, set to be delivered in the 2030s. In the North East, work on the business case for the Leamside Line will be taken forward, as part of ensuring NPR services reach Newcastle.

With £1.1 billion to progress planning and development work as soon as possible, plans include improvements for Leeds, Sheffield and York stations – supporting significant regeneration plans to unlock tens of thousands of homes and jobs. The plan also includes pressing forward with work on Bradford Station, putting a young, dynamic city of 500,000 people at the heart of the northern network.

Over £11 million of local transport funding has now been agreed for South Yorkshire to develop a new Rotherham Gateway station, which spells an end to slow journeys to Leeds and support the ambitious regeneration plans for the town.   

The North East will also benefit from regular services onwards to Newcastle via Darlington and Durham. This follows recent investment of £4 billion in the East Coast Mainline which has seen 60,000 extra seats weekly through the new timetable.

Transport Secretary, Heidi Alexander, said:

For too long, the North has been held back by underinvestment and years of dither and delay – but that ends now.

This new era of investment will not just speed up journeys, it will mean new jobs and homes for people, making a real difference to millions of lives.   

The exciting improved stations across Leeds, Sheffield, York and Bradford will reflect the prestigious place rail holds in the northern economy, and regenerate vibrant, bustling districts in these cities.

The first phase of Northern Powerhouse Rail will prioritise upgrading rail connections across Yorkshire and progressing work on the business case for the Leamside Line as part of ensuring services reach Newcastle, improving opportunities across the region.

Councillor Tom Hunt, Leader of Sheffield City Council said:

This is great news for Sheffield. Being included in the first phase of the Northern Powerhouse Rail plans means that the early stages of delivery will provide better, faster trains to Leeds and Manchester, upgrades to capacity at Sheffield station and an important commitment from government to work with us on our tram-train expansion.

Outdated transport infrastructure has held Sheffield back for too long. Thanks to the Labour government this will change. This is a very positive announcement and a sign of the government's commitment to the North.

Faster, more reliable journeys will help businesses in Sheffield and give people access to more opportunities. The investment will help us unlock new opportunities for homes and jobs around Sheffield station and across our city.

Sheffield or Bradford to Manchester can take up to 54 minutes, despite both cities being around 30 miles away – meanwhile Reading to London Paddington takes 22 minutes covering 35 miles. There also are only 2 fast trains an hour between Leeds and Manchester, which is a hugely popular route and suffers from severe overcrowding.

It can take up to 1 hour 23 minutes to get to Manchester airport from Leeds or Sheffield, even though they are around 40 miles away.   

The second phase of NPR will build a new route between Liverpool and Manchester, running via Manchester Airport and Warrington, following in the 2030s. The third phase will focus on improved connections between Manchester and Sheffield, Manchester and Leeds, and explore options for Manchester to Bradford.   

This landmark upgrade to rail travel is one of the central building blocks of a plan for the North – to be published in the spring. This will include plans for a northern growth corridor from Liverpool to York via West and South Yorkshire and bespoke plans for the North-East to make the most of opportunities in clean energy, AI, innovation and city centre regeneration.

Not only will plans improve travel connections, the redevelopment of stations and surrounding neighbourhoods will bring in new homes, jobs and local businesses. Regeneration of Leeds Station will include exciting plans for the South Bank, while development around the new Bradford Station and York Central will add new housing in the bustling city centres. The Advanced Manufacturing Innovation District spans 2,000 acres along the Don Valley corridor, linking Rotherham and Sheffield, with the potential to enable thousands of new homes and jobs.

Lord Blunkett said:

I am very pleased that as a consequence of the White Rose Agreement, signed last March, and the Rail Plan for Yorkshire – which I was pleased to chair – an essential first step is now to be taken to recognise the critical importance of the cities and towns east of the Pennines.

It is essential that following the initial investment, the Spending Review in 2028 accelerates the development of a rail system to be proud of, and the connectivity of cities across the North to unlock the talent and the growth fundamental to future success.

Yorkshire, with a population greater than Scotland, has long been neglected and this announcement starts the process of putting right years of neglect.

The NPR plans build on the £11 billion Transpennine route upgrade, between York and Manchester, via Leeds and Huddersfield, which is already delivering more efficient journeys for people across the north.

A funding cap of £45 billion will be set for the programme, including £1.1 billion over the Spending Review period allocated from existing budgets first. Learning lessons from HS2, the government will work closely with local partners to ensure planning processes are carried out efficiently, and approvals are streamlined to reduce delays and prevent projects from going over budget.    

The city regions of the North have huge untapped economic potential. Leeds and West Yorkshire are emerging as the ‘Northern square mile' for financial services, while Sheffield and South Yorkshire are at the cutting edge on defence and advanced manufacturing, York's thriving and dynamic cultural and visitor economy, and Newcastle's growing research and innovation sector.

The government is working with mayors, other local leaders, and businesses to announce a wider plan this spring for taking advantage of these strengths, firing up productivity and prosperity across the North.

This plan brings in existing work to unlock immediate benefits for residents, including work to help fill local skills gaps across the country, and will build on this with further policies to improve connectivity, revitalise cities and towns, support people with the skills to access new opportunities, and support businesses to innovate and grow.