Labour urged to create 'Transpennine Growth Corridor' helmed by minister to capitalise on rail project

The report, Nation Rebalanced, from the influential think tank Labour Together, found that the gap in growth spend per head between London and the South East and the rest of England is £667 per head.

This proportionally is even higher with transport, housing and science and tech spending.

Nation Rebalanced claimed this has got bigger since 2010, despite the Conservative governments’ efforts agenda on levelling up.

The report outlined four key recommendations to drive economic growth, improve infrastructure and boost regional economies.

One of these was to create growth corridor plans, agreed between the government and mayors, around major transport schemes.

The report specifically cited the Transpennine Route Upgrade (TRU), which will significantly speed up travel times between Leeds, York and Manchester.

The £11.5bn project involves electrifying the 76-mile route, building new tracks, installing digital signalling equipment and upgrading stations. It is due to be completed by 2033.

This will increase capacity – allowing eight more trains to run each hour – improve reliability and also cut journey times, so people can travel between York and Manchester in 61 minutes and from Leeds to Manchester in 42 minutes.

On a recent visit to West Yorkshire, Sir Keir Starmer recently announced an additional £415m for the project - which is currently on time and on budget.

The report says a Transpennine Growth Corridor, chaired by a government minister and bringing together local mayors, could drive investment along the route in transport, housing and businesses into something greater than the sum of its parts.

JP Spencer, director of devolution policy at Labour Together and author of Nation Rebalanced, said: “The TRU is vital to connecting up the North.

“But despite the £10bn price tag, the previous government failed to deliver a growth plan for it.

“Now, Labour has a chance to do things differently.

“A Transpennine Growth Corridor would be a crucial step in delivering a joined-up approach so the economies of our towns and cities are connected into something greater than the sum of their parts.”

The report also called for the region’s mayors to have great spending and fundraising powers, particularly around transport, business and skills.

The report has been endorsed by the Red Wall Group of Labour MPs and also the Labour Growth Group.

Jo White, Labour MP for Bassetlaw and convenor of the Red Wall Group, said: “The towns of the Midlands and the North were once the power houses of our nation.

“They were the homes of the pits, steel production, and heavy manufacturing.

“Today, these post-industrial towns have never recovered, all bear the burden of neglect by consecutive governments.

“London and southern-centric Treasury formulas have consistently stacked against much needed investment into infrastructure and skills training that attract businesses and investors and provide the oxygen for growth.

“Government can continue with the easy choices, or they can rip up the copy books and be the government that takes on this huge challenge.”

West Yorkshire Mayor Tracy Brabin said: “This report sends a stark message about the cost of overlooking the North - South divide, with £100 billion of lost investment for the North impacting wages, opportunities and quality of life.

“This government knows that working with mayors will deliver better outcomes for the whole country by boosting growth during these turbulent global economic times.