Six mayors sign Northern Powerhouse Rail compacts
On 22 January 2026, the Transport Secretary signed six compact agreements with metro mayors across the North to progress Northern Powerhouse Rail. The Department for Transport names Tracy Brabin, Andy Burnham, Oliver Coppard, Kim McGuinness, Steve Rotheram and David Skaith among the signatories alongside ministers. (gov.uk)
The compacts outline a three‑stage programme built on the Transpennine Route Upgrade: early electrification and station upgrades on Leeds–Bradford, Leeds–Sheffield and Leeds–York; parallel development and then delivery of a new Liverpool–Manchester line; followed by further cross‑Pennine connections. (assets.publishing.service.gov.uk)
Funding is framed by two guardrails: £1.1bn released in this Spending Review period for development and design, and an overall cap of £45bn to keep costs in check and apply lessons from HS2. That framework was set out in the government’s 14 January announcement and is reflected in the compacts. (gov.uk)
Each compact confirms a blended funding model: the Treasury will meet most costs, while local contributions are to be considered for specific elements such as stations, interchange, onward travel and surrounding development. City regions can add more where they want enhancements beyond the core scope. (assets.publishing.service.gov.uk)
In Greater Manchester, officials will test an underground option at Piccadilly against surface alternatives on value‑for‑money grounds. The document flags that any final package would require local funding, and that Manchester Airport Station would involve third‑party contributions. (assets.publishing.service.gov.uk)
For the Liverpool City Region, the compact requires detailed work on route options, a gateway station choice and integration with investment at Liverpool Central, with explicit links to potential local funding. (assets.publishing.service.gov.uk)
West and South Yorkshire align to the White Rose plan: bring forward phase‑one benefits in the 2030s, accelerate options for Bradford–Manchester via the Bradford station business case, unlock an early third hourly Sheffield–Manchester service, and fully assess four fast Sheffield–Leeds trains per hour. West Yorkshire aims to reach a preferred way forward on Bradford station by summer 2026. (assets.publishing.service.gov.uk)
York and North Yorkshire focus on a single, coherent plan for York station linked to the York Central development, seeking capacity and performance gains on the East Coast Main Line as well as better connections to Leeds and Manchester. (assets.publishing.service.gov.uk)
The North East compact sets out ‘turn‑up‑and‑go’ services to Newcastle via Darlington and Durham and steps toward reopening the Leamside line. Phase one, from Tyneside to Washington, will be led locally using Transport for City Regions funds; the remainder depends on a business case and could draw on RNEP or future TCR rounds. (assets.publishing.service.gov.uk)
Governance is designed to be tighter: Delivery Boards attended by mayors and ministers will steer decisions, with Tom Riordan acting as Envoy to the Northern Growth Corridor. The first 18 months of work will inform prioritisation and sequencing at Spending Review 2027. (assets.publishing.service.gov.uk)
For suppliers and investors, the near‑term action is design, surveys and enabling works through 2027–28. Government messaging stresses cost discipline within the cap and learning from HS2. Expect alliance‑style packaging in places, given Transpennine Route Upgrade’s use of a Network Rail‑led alliance with BAM, Arup and Amey. (gov.uk)
Local contributions are the swing factor. London’s Crossrail raised much of the GLA’s £6.9bn share via a 2p business rates supplement and developer levies-mechanisms northern authorities could adapt if they choose. The compacts stop short of naming instruments but keep the option open. (london.gov.uk)
Timings remain phased: ministers signalled first benefits from the 2030s on upgraded Leeds‑area corridors, followed by the new Liverpool–Manchester route and then wider cross‑Pennine improvements. Any future Birmingham–Manchester line would follow only after NPR is delivered. (gov.uk)