The Northern Powerhouse Rail will reportedly be revived this winter, as part of Labour’s commitment to improving transport connections to the north and to boost UK infrastructure.
Sir Keir Starmer is set to make the announcement before the Labour conference in a speech with chancellor Rachel Reeves.
Transport secretary Heidi Alexander is also set to make the rail project a central topic of her conference speech, which is due to take place on 28 September.
A government source told The Guardian that the announcement was likely to take place before then but that the timing was not yet confirmed.
It comes after a series of recent U-turns that have frustrated Labour voters and backbench MPs, as speculation continues that the Treasury will announce tax rises to plug a £40bn spending hole.
Since being elected last July, political and industry leaders in the north of England have been pushing for Starmer to revive the Manchester section of HS2 and to commence building for Northern Powerhouse Rail.
With plans set for the railway to connect Liverpool to Hull, it is seen as a crucial development for the UK as it would also provide connections Leeds, Bradford and Sheffield.
Current infrastructure in the north is frequently criticised, with train routes falling into disrepair coupled with poor bus and road connections.
Former prime minister Rishi Sunak decided not to extend the HS2 railway between the West Midlands and Manchester in 2023, after the project exceeded its budget and became mired in delays.
The previous Conservative government’s Integrated Rail Plan sparked outrage among northern leaders in November 2021, when it said that a new line would only be built on one section, and the rest of the route would get enhancements to existing lines.
In July, Ms Reeves said: “In the coming weeks I will set out this Government’s plan to take forward our ambitions for Northern Powerhouse Rail.”
The Chancellor has also announced £3.5 billion more funding to support the TransPennine Route Upgrade, a project to improve the railway between York and Manchester.
She said the Government would provide £2.5 billion of additional funding to enable the “continued delivery” of East West Rail, a new line between Oxford and Cambridge.
In her spending review she also said railways in Wales would get £445 million investment over 10 years.
