New Liverpool-Manchester railway expected to get green light in Spending Review

The Liverpool-Manchester rail link is set to be given the green light in the upcoming Spending Review, RAIL understands.

Chancellor Rachel Reeves is expected to announce on Wednesday that the Government will ensure funding is in place to begin work on the scheme which, once completed, would connect Liverpool and Manchester via stops at Manchester Airport and Warrington Bank Quay, as well as a new Liverpool Gateway station near John Lennen Airport, though the final location has not been decided.

The full project is expected to cost nearly £20 billion which would be delivered in three phases. Those behind it want to start construction in the 2030s. It’s understood that the Government will not commit to that total in the spending review however.

Sources close to the project have told RAIL that funding will be released to begin scoping of the first phase between Manchester Piccadilly and Manchester Airport, alongside a commitment to deliver the full project as part of the Government’s wider infrastructure strategy - also expected to be unveiled on June 11.

“The noises we’re hearing are all positive concerning the project and we’ve had encouragement regarding investment," the source told RAIL.

The initial funding for scoping of phase one will be to tackle of the most contentious parts of the whole project – a new underground station at Manchester Piccadilly. Mayor of Greater Manchester Andy Burnham has been vociferous in his support for any new station or station expansion at Piccadilly to be underground, however it is understood that the Department for Transport is lukewarm towards the idea.

The sources RAIL spoke to did not believe that the funding announcement meant that the Government was ready to put its support behind an underground station at Piccadilly. One source said that they “remained hopeful” that that the Government would signal its support for the idea on June 11.

“That would show its intent and give clarity on what is possible within this term of parliament.” The source added.

The Manchester–Manchester Airport leg of the route would follow the original HS2 Phase 2b route between Piccadilly and Crewe which was cancelled in 2023.

Since then, the Government has reintroduced the High-Speed Rail (Crewe-Manchester) Bill that is expected to cover any new Liverpool-Manchester route but progress on its passage through parliament has stalled with a strong possibility it will not be resolved before the autumn.

The news of the expected go-ahead for the project follows the announcement from the Chancellor last week that the Government was investing £15 billion on projects across Northern England – including metro extensions in Manchester and metro and tram projects announced in Leeds, East Midlands and South Yorkshire.