Andy Burnham’s Plan to Revive a Birmingham-Manchester High-Speed Rail Link

Andy Burnham, Mayor of Greater Manchester and prospective Labour leader, proposes a new railway between Birmingham and Manchester. The line would run at a maximum speed of 185 mph (300 kph)—lower than HS2’s original 224 mph target—and would use ballasted track rather than the costlier slab track. Burnham argues the route is essential to relieve capacity on the West Coast Main Line and to accelerate northern economic growth.

iNews

The northern leg of HS2 was cancelled in 2023 by former Prime Minister Rishi Sunak. The Labour government under Sir Keir Starmer has not reinstated the original plan; its timetable places any new north-of-Birmingham line no earlier than the 2040s, after projects in Liverpool, Manchester and Yorkshire. Burnham’s proposal, unveiled ahead of the Makerfield by-election, seeks to start construction within weeks rather than wait decades.

iNews

• Andy Burnham – champion of the plan.

iNews

• Louise Haigh – then-Transport Secretary, publicly supportive.

iNews

• Rachel Reeves – Labour Chancellor, calling for a fiscal-devolution roadmap.

iNews

• Anthony Breach – Centre for Cities associate director, policy adviser to Burnham.

iNews

• HS2 Ltd – continues to safeguard roughly 1,000 properties along the corridor.

iNews

• Cut My Tax – campaign group opposing the project.

iNews

• Huw Merriman – former Tory rail minister, chair of the High Speed Rail Group, supportive commentator.

iNews

A 2024 report commissioned by a private-business consortium estimates the Birmingham-Manchester line could be built for about 60 % of the cost of the original HS2 segment, which exceeds £100 bn for phase 1 alone. The report attributes savings to reduced speed, cheaper ballasted track, and reuse of existing infrastructure. HS2 Ltd’s ongoing safeguard of ~1,000 properties indicates land acquisition is largely in place, although compulsory-purchase powers expired in February.

iNews

Burnham points to the £19 bn Crossrail project, 60 % of which was financed by a London business-rates supplement (BRS). He proposes a similar “cleverer” funding model, including a BRS-style levy and land-value capture around new stations in Birmingham and Manchester. Experts caution that replicating the BRS outside London may not generate comparable revenue. An alternative discussed is allowing regions to retain a share of locally generated income tax, with proposals suggesting a maximum of 10 % of such revenue be earmarked for the line. Rachel Reeves has asked the Treasury to draft a fiscal-devolution roadmap ahead of the autumn budget.

iNews

The Department for Transport emphasised the need for a feasibility study on local-funding mechanisms, while the Treasury has been described as lacking creativity in devising such arrangements. Louise Haigh affirmed the government’s openness to Burnham’s plan, and Rachel Reeves signalled intent to give regional leaders greater control over national tax receipts. HS2 Ltd indicated that repurposing existing legislation for the Northern Powerhouse Rail (NPR) improvements could streamline implementation.

iNews

The Cut My Tax campaign condemned the proposal as “throwing taxpayers’ money around like confetti” and labelled the revived HS2 a failed project. Critics also note the political difficulty of securing local contributions and the absence of detailed modelling for such funding. Some observers argue that local tax-sharing could create inequities between regions.

iNews

Sources differ on the projected revenue from a BRS outside London, with some deeming it unlikely to match the £8 bn raised in the capital. No comprehensive modelling of local tax contributions for the full Birmingham-Manchester line has been completed, and the timeline for approval remains uncertain. Burnham’s target start date contrasts with Labour’s official schedule that pushes construction to the 2040s.

iNews

• “No one in the North is asking for HS2 to be back on the table in the same form,” — Labour insider

iNews

• “The short answer is, get on with a feasibility study and start the modelling [for local funding] now – so it can be unlocked. The issue has been lack of direction from the centre,” — Whitehall source

iNews

• “There’s a cleverer way of funding this,” — Andy Burnham

iNews

• “The basic premise that places should be able to fund infrastructure from their own tax proceeds is 100 per cent right,” — Anthony Breach, Centre for Cities

iNews

• “Andy Burnham wants to throw taxpayers’ money around like confetti. His latest proposal is to extend the failed HS2 project to Manchester.” — Cut My Tax campaign

iNews

• “The need for the route is no less pressing today than when HS2 was first announced. A new connection between Birmingham and Manchester will add transport capacity to and from the North, while also helping to deliver the Government’s ambition of a more balanced UK economy.” — Huw Merriman

iNews

A feasibility study on local funding is expected to commence imminently. The Treasury’s fiscal-devolution roadmap, due before the autumn budget, will shape any tax-sharing arrangement. Approval of the Birmingham-Manchester line is likely pending, with negotiations over Manchester’s local contribution slated for the coming months. The outcome of the Makerfield by-election could also influence Burnham’s political standing and the project’s momentum.

iNews