Business secretary Grant Shapps has confirmed that the planned Northern Powerhouse Rail link has been downgraded, in a major blow to the government’s “levelling up” programme for the North of England.
The announcement came after Rishi Sunak was warned by the CBI not to undermine growth by cutting capital spending as he struggles to fill a £50 hole in the government’s finances, with reports that he is also reviewing the mooted Sizewell C nuclear power station in Suffolk.
The initial plan for a new high-speed line between Liverpool and Hull was scaled back by former PM Boris Johnson to an upgrade of existing track, with a planned stop at Bradford dropped. But the decision was reversed by Liz Truss, who committed to build the £40bn project in full.
