January 16, 2026
Area Guide / Manchester
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Earlier this week, the government announced plans to invest £46 billion into transport systems across the North – with an initial £1.1 billion granted for design and preparation. The proposals aim to strengthen connections between major northern cities such as Manchester, Liverpool and Leeds, making commutes quicker, more reliable and more efficient.
The scheme will build on the Transpennine Route Upgrade, which began in 2014. Improving connections between Sheffield and Leeds, Leeds and York, and Leeds and Bradford forms part of the first phase of Northern Powerhouse Rail (NPR), alongside further development work on the Leamside Line.
Following this, a new route between Manchester and Liverpool will be introduced, running via Manchester Airport and Warrington. These plans were announced in mid-2025 and are estimated to create 22,000 jobs and deliver a £15 billion boost to the economy. The project is designed to rival the success of the Oxford–Cambridge Arc, which saw housebuilding rates double and generated £90.5 billion in GVA (Gross Value Added) by 2014 – just 11 years after its launch.
Finally, the plans include improved connections across the Pennines between Manchester, Leeds, Bradford, Sheffield and York, with regular services running onward to Newcastle.
It’s not just upgraded transport infrastructure that this will unlock for people in the North. A project of this scale will also require a significant expansion of the workforce. Colleges across the country are set to receive £570 million to expand their training facilities, while the government works closely with employers and local leaders to help address regional skills gaps.
Alongside the upgraded rail lines, there is also the option to include a new underground station at Manchester Piccadilly. These are ambitious plans that could act as a major catalyst for growth across Manchester and the wider North of England.
“This is a massive moment for Manchester, and Greater Manchester as a whole. We have campaigned long and hard for much-needed investment in rail across the North, better linking the great cities and towns of our region to create and support jobs, regeneration and new opportunities for our people. The previous Government failed us, but today’s announcement is a serious commitment to that vision after years of frustration.
“For people in Manchester this will mean more reliable and more frequent – not just faster – services to Liverpool, Leeds, Bradford, Sheffield, Warrington and York. After many years of making the case, for the first time a Government has recognised the potential benefits of an underground station, and in the coming years we will work closely and constructively with them to see that become a reality.
“At long last, people across the North will finally feel the benefits.”
– Counsellor Bev Craig, Leader of Manchester City Council
The new plans form a bold strategy to drive growth from the Mersey to the Pennines and are expected to generate around £90 billion in additional GVA by 2040 from the North West section of the Northern Arc alone.
Since 2015, Greater Manchester has recorded average annual growth of 3.1% – more than double the UK average. The city region is home to one of Europe’s largest tech hubs, with over 10,000 companies contributing to a £5 billion digital ecosystem.
Looking ahead, the proposals could see Greater Manchester’s economy grow by 36% by 2035, adding a further £38 billion in GVA to the regional economy.
Final Thoughts
Northern Powerhouse Rail is far more than a transport upgrade – it’s a long-term investment in how the North works, grows and competes. For Manchester in particular, improved connectivity and the potential addition of an underground Piccadilly station could reshape the city’s development over the next decade.
As infrastructure improves, demand for well-located housing typically follows, especially in city centres and regeneration hotspots. With Manchester already outperforming national growth rates, projects like this only strengthen its position as one of the UK’s most attractive locations for long-term property investment and owner-occupiers alike.
If delivered as planned, NPR could mark a defining chapter in Manchester’s evolution – supporting jobs, unlocking new neighbourhoods, and reinforcing the city’s status as the North’s leading economic powerhouse.
