Major update and map of £2bn tunnel plan under Peak District connecting Sheffield and Manchester

In a major update on the project, known as Trans-Pennine Connect, it was revealed that the funding has been awarded by the UK Dynamism Fund.

Fund lead Andrew Bennett told the BBC: "It is one of the most ambitious schemes anywhere in the UK and it is very easy for us to support them."

Trans-Pennine Connect would see a 14-mile tunnel built under the Peak District National Park, from Stocksbridge in South Yorkshire to Tintwistle in Derbyshire, effectively replacing the Woodhead Pass.

It could cut journey times between Manchester and Sheffield by 30 minutes and take traffic away from the national park, according to the organisation behind it Future Works.

In 2025, the Woodhead Pass was shut every evening from Monday to Thursday over the entire summer due to roadworks.

This summer wildfires have led to even longer closures, with maintenance work going as well.

In 2016, the Government looked at an estimated £10bn plan for a road tunnel under the Pennines, however deemed it too expensive.

Future Works believes it can be done for £2bn – they’re even including a railway line to go with it.

It is seeking private funding to pay for the project, which could come through a local authority pension scheme, which would then be repaid via a toll.

This is a similar method to how the Mersey and Tyne tunnels were built in Liverpool and just outside Newcastle.

Future Works says that its plan is much cheaper than the original Government scheme, as instead of using the standard British approach of a tunnel-boring machine, it would carry out the drill-and-blast method applied to tunnels in Norway.

This system replaces giant machinery with more traditional mining techniques, the natural strength of the rock and small expert crews.

Although this would not work in many areas of the UK, the expert teams believe this ‘drill-and-blast’ method could work in this area due to the geology of the Pennines.

Michael Dnes was part of the Department for Transport team that failed to deliver the original scheme.

He said the £500,000 in funding would be used to start environmental, technical and financial feasibility studies.

Mr Dnes explained: “We’re very excited to be working with UK Dynamism Fund to unlock the next stage of our project.

“This funding will let us complete the technical and environmental feasibility studies needed to get the right outcomes for people and the Peak District as we deliver better transport connections across the Pennines.”

Future Works has held meetings with the Peak District National Park as well as the Trans-Pennine Trail, and the area’s local authorities.

It is understood that these early talks were “positive”.

A public meeting was held in Stocksbridge, while a second in Yorkshire is planned for Penistone.

The Yorkshire Post previously reported how South Yorkshire Mayor Oliver Coppard was “investigating” the proposal.

He said: “I think a tunnel has to be part of the conversation.

“We know there are limited ways to improve that connectivity, but it has to be improved.”