Transport hope as Chancellor teases major rail improvement

PLANS FOR NORTHERN POWERHOUSE RAIL WILL BE PUBLISHED IN NEXT FEW WEEKS

- By GRAEME WHITFIELD Business and Agenda Editor

THE North East could be in line for a new transport boost after Chancellor Rachel Reeves signalled the go-ahead for a major rail project.

Ms Reeves used her Spending Review to say that the Government would “take forward our ambitions” for Northern Powerhouse Rail, a scheme that would provide faster trains between Liverpool and Leeds, but which also includes the restoration of the Leamside line in the North East.

Moves to restore the northern half of the disused rail line through County Durham, Sunderland and Gateshead were announced last week when a £15bn Government package included plans to extend the Tyne and Wear Metro to Washington. Restoring the line in full would allow freight trains to be taken off the busy East Coast Main-line and improve reliability on that line.

North East politicians, led by mayor Kim McGuinness, also welcomed Ms Reeves' announcement to change Government investment rules to favour regions like the North East and correct what is seen as a long-standing bias towards schemes in London.

Ms Reeves put a £29bn-a-year rise in NHS funding at the heart of her plans for “renewing Britain”, with extra cash also promised for schools and transport.

She acknowledged that “too many people in too many parts of our country” were yet to feel the benefits of the new Government, with Prime Minister Sir Keir Starmer saying the spending review marked the start of a “new phase” of his Government.