Talks planned on reviving full Northern Powerhouse Rail route with 'local funding'

In a letter to the Transport for the North board sent on December 17 but published this week, Transport Secretary Mr Shapps said that while he did not intend to “revisit” decisions made in the controversial IRP, he would “welcome discussion on any proposals to locally fund infrastructure beyond the scope of the core pipeline”.

It comes after Greater Manchester mayor Andy Burnham suggested at the last TfN board meeting in November using a process called ‘land value capture’ to raise funds for the full NPR scheme after the Government only committed to a section of the route.

The IRP set out plans for a £17.2bn investment in NPR - involving a new high-speed line between Warrington and Marsden on the boundary of Yorkshire that would be part of improving the network between Liverpool and York.

But the plan fell short of the full £42.1bn scheme which envisioned improvements between Liverpool and Hull centred around a full new high-speed line between Leeds and Manchester via Bradford.

Mr Burnham suggested that land value capture, which would work by raising taxes along the proposed route and is used in places like Hong Kong, could be a way of making up at least part of the £25bn deficit between the Government commitment and the original plans.

The proposal won cross-party support amongst board members and TfN officials have subsequently been working on how potential funding options could work.

A report going to the next TfN board meeting on Tuesday reveals initial talks on the progress of that work is planned with officials from Mr Shapps’ Department for Transport next Thursday.

The report says: “The board remitted the Finance Director to explore funding options in relation to the delivery of its preferred Northern Powerhouse Rail network.

"A working group made up of partner officers and LEP members has been established to take forward this work.

"A meeting with DfT officials (to be attended by Transport for the North Officers and representatives of the working group) has been arranged for January 27, the primary objective of which will be to understand the parameters within which any immediate proposals will need to sit.

“Officers have also working closely with the Northern Powerhouse Partnership who have been asked to look at related opportunities for funding transport infrastructure, including Northern Powerhouse Rail.”

The development comes despite a row between Mr Shapps and northern mayors, started by the Transport Secretary branding their criticism of the IRP as “irrational” in this newspaper just 48 hours ago.

West Yorkshire mayor Tracy Brabin described his remarks as “extraordinary” and said she would continue to fight for a new line between Leeds and Manchester via Bradford.

Support The Yorkshire Post and become a subscriber today. Your subscription will help us to continue to bring quality news to the people of Yorkshire. In return, you'll see fewer ads on site, get free access to our app and receive exclusive members-only offers. Click here to subscribe.