Government explores privately-funded Birmingham-Manchester rail link

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Proposals for a new privately-funded rail link connecting Birmingham with Manchester are “perfectly viable to explore”, transport secretary Louise Haigh has said for the first time.

“We’re working with Andy [Burnham] and with Richard Parker,” she said on Thursday, referring to the mayors of Greater Manchester and the West Midlands. “We’re assessing the options, including the potential for private finance, which look perfectly viable to explore.”

The proposals for the line, which could run along a similar route to the axed northern leg of HS2, were first published in September by Burnham and Parker. 

A study carried out on their behalf concluded that without a new rail line, the already congested west coast transport corridor would collapse within a decade. 

But despite support for the idea in parts of government, ministers have been previously tight-lipped about the plan.

Analysis by businesses including Arup and Mace suggests a new line is needed in the absence of HS2’s northern leg, which was axed by the last government due to cost overruns on the southern phase of the high speed rail project.

They argue the new route could be provided more cheaply, using a lower specification and a form of public-private partnership.

Haigh was speaking during a visit to Greater Manchester with chancellor Rachel Reeves, where they committed to the upgrade of the Transpennine route, a decade-long electrification project which is already well under way.

As well as the Manchester-Birmingham proposals, Burnham is also working with his counterpart in Liverpool, Steve Rotheram, on plans for a new rail line between their two cities. 

Asked whether east-west links in the north were more of a priority than the west coast route, Haigh and Reeves confirmed that was the case, citing the Labour manifesto. 

The manifesto promises to improve rail connectivity “across the north of England”.

However it remains unclear whether the Labour government will match a £17bn funding commitment for the Liverpool to Manchester project, pledged by the last government. 

Haigh acknowledged that ministers were “under huge amounts of pressure to start investing” in new infrastructure. 

“The previous government went round, pointed at marginal constituencies and announced projects in a very random way,” she said.

“We want to make sure it’s done in a strategic way that supports the economy as a whole.”

All major transport investments are being considered as part of the government’s new 10-year national infrastructure strategy, Haigh added. The plan is currently in development and not expected until the spring.