DfT says underground Manchester Piccadilly ‘needs testing further’ as NPR agreements signed

The government unveiled its vision for NPR earlier this month as a three-phase plan to improve railway connections across the north of England with a £45bn funding cap. The transport secretary, housing secretary and chancellor have now signed individual compact agreements with the mayors of six combined authorities involved in the plan, confirming outline phasing, funding mechanisms, including local contributions and overall scope for each.

In all agreements, the government has clarified: “We will work together to develop a blended funding approach. The majority of funding will be from central Government, but local contributions will be considered for specific or additional scope.

“Our starting assumption is that local contributions will largely be towards stations, integration, onwards travel and surrounding development, supplementing investment from central government. Additional local contributions may be made where cities wish to prioritise infrastructure beyond what is needed for the core outcomes of the scheme.”

Each authority has specific projects that the government has agreed will be investigated or taken forward.

Greater Manchester: Manchester Piccadilly

Part of the agreement with Greater Manchester Combined Authority (GMCA) is that further work will take place on assessing the value of an underground station at Manchester Piccadilly, which was a bone of contention with the previous government.

It was first argued that an underground through station in central Manchester would be needed to accommodate both HS2 and NPR services. This, it was argued, would futureproof the network by providing greater connectivity potential and enabling greater oversite development to draw maximum economic benefit, as compared to the previously agreed surface turnback station.

However, in 2022 the DfT said that it is not feasible as it would cost more and cause more disruption for a longer period. It released a sift report showing its studies and calculations on a through station, but experts dismissed them as “not logical”.

The debate was ongoing in the petitioning stage of the HS2 Phase 2b Bill when the project was cancelled.

With NPR now revived and the long-term promise of a Midlands to Manchester line on the table, the government has promised to revisit the proposal – and has now put that in writing.

The government agreement with GMCA reads: “An underground solution at Manchester Piccadilly could be a catalyst and enabler for major regeneration and economic growth for Greater Manchester and the wider North by unlocking land for redevelopment and additional connectivity.

“We agree that the option needs testing further in terms of value for money and delivering the right pan northern growth and transport objectives and a joint process with full transparency between all parties will analyse this further against alternative options. We acknowledge that local funding would be required to contribute to the final package, in addition to contributions towards Manchester Airport Station which would include third party contributions.”

Greater Manchester mayor Andy Burnham said: “This agreement demonstrates the government’s commitment to working with us. Together, we will deliver the best version of this transformational project.”

Manchester City Council leader Bev Craig said: “We have campaigned long and hard for Northern Powerhouse Rail to be delivered, including an underground Piccadilly Station to maximise the benefits. It’s great that this Government is listening.”

Liverpool City Region: Routes and stations for Liverpool-Manchester Railway

In its agreement with the Liverpool City Region Combined Authority, the government says: “We will in particular work together to ensure Liverpool route options, Gateway station choices, and integration with investment in Liverpool Central are fully explored as part of the forward joint development work of the NPR programme, noting links to conversations on local funding.”

Transport secretary Heidi Alexander said: “With a new line between Liverpool and Manchester at the heart of our plans to deliver more frequent, reliable services to Manchester, Manchester Airport, Warrington and beyond, we’re ensuring the benefits are felt across the city by integrating NPR with major city-centre regeneration, including improvements around Liverpool Central and Liverpool Lime Street stations. By providing early clarity on scope and phasing, we are giving the region the certainty it needs to plan ahead and unlock the full economic and social benefits for its people.”

Liverpool mayor Steve Rotheram said: “After more than a decade of delay and broken promises, we finally have a government backing proposals in full and a framework to deliver it.”

North East: Leamside Line

As promised in the initial NPR announcement, the reopening of the Leamside line from Tyneside to Washington will be funded as part of the package – though the first phase will be finded by the North East Combined Authority’s funds from the Transport for City Regions Fund.

The Leamside line is a 34km abandoned railway that connected various areas including Washington and Fence Houses before its closure in 1948. The first phase of its restoration will be an extension of the Tyneside Metro, a project referred to as the Washington Metro Loop. In 2024, North East mayor Kim McGuinness committed £8.6M towards a business case to for this initial phase and last year Aecom was appointed to study the feasibility for the full reinstatement.

The government says: “We will work with the North East on the business case for the remainder of the proposed Leamside reopening, including considering better connectivity for Sunderland, and subsequent delivery (subject to that business case) as part of ensuring NPR services reach Newcastle and as part of enhancing NPR benefits to the North East, in the same timeframe as the first phase of NPR. We will ensure that if HMG agrees the business case and it demonstrates good value for money that resources are made available (e.g. through RNEP or future rounds of TCRs) for its delivery.”

McGuinness said the Leamside line is a “once in a generation project” for the region, adding: “For the first time in decades, the new line will give communities a rail link which will be transformational for local people – in the same way the Northumberland Line has been for South East Northumberland.”

Yorkshire authorities: Station upgrades and improvements

For all three Yorkshire authorities – South Yorkshire, West Yorkshire and York and North Yorkshire – the government commits to “seek more rapidly to assess options for Bradford-Manchester as part of the work on Bradford station business case, and to unlock early benefits on Sheffield-Manchester (the planned third hourly service) as part of the [NPR] phase one work at Sheffield station”.

On Bradford station specifically, its agreement with West Yorkshire Combined Authority promises “to drive forward the joint work on Bradford station business case to reach decisions on the preferred way forward by summer 2026”.

It also promises “to align NPR and West Yorkshire Mass Transit development; and to seek a single holistic plan for Leeds station which then allows the surrounding development to proceed, noting links to conversations on local funding”.

For South Yorkshire, there is a commitment from government “to improving services between Sheffield and Leeds, including providing the capacity required at Sheffield Station”.

It continues: “We recognise the benefits of the proposals in the White Rose report for a service for four fast trains per hour and confirm that Network Rail’s development work will include a full assessment of how to deliver those benefits alongside other options. We will in particular work together to ensure tram-train interdependencies and options are fully explored as part of the forward joint development work for Sheffield station capacity.

Lastly, for York and North Yorkshire, the government promises to “work together to ensure a coherent plan for York station, building on the work already in hand as part of York Central to maximise the growth opportunities through development and redesign of York Station, noting links to conversations on local funding”.

It adds: “In the development of plans for York station to increase rail capacity, we will look for opportunities to help to further improve performance, delivering benefits to services on the East Coast Main Line between London and Edinburgh, and towards Leeds and Manchester.”

Alexander said: “With Sheffield at the heart of the first phase of our plans for NPR, we will deliver more frequent, reliable services to Leeds, expand capacity at Sheffield station and invest in a new Rotherham station while supporting Sheffield’s tram-train extension – helping support thousands of new homes and jobs.

“NPR will deliver a true turn-up-and-go railway for passengers going between York and cities across the North. Building on the Transpennine Route Upgrade and including a regeneration of York Central Station, we will unlock more reliable, and frequent services, support thousands of new homes and strengthen York’s role as a key national rail hub.”

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