Prime minister reviewing major northern powerhouse projects

Major infrastructure projects including a major high-speed rail line in northern England are being reviewed as Rishi Sunak tries to find £50 billion through savings and tax hikes.

Business Secretary Grant Shapps hinted Northern Powerhouse Rail between Liverpool and Hull would be scaled back from a grander vision for the project committed to by former prime minister Liz Truss.

Downing Street was forced to deny it would be scrapping a commitment to build a new nuclear plant in Suffolk as part of efforts to find savings ahead of the autumn budget. Concerns that Sizewell C could be axed or delayed were sparked by suggestions from officials but No 10 insisted it is a “crucial” project and that it hopes to conclude negotiations quickly.

Chancellor Jeremy Hunt and the prime minister are looking for cuts ahead of the November 17 budget, as the Bank of England warns of the longest recession on record.

The manifesto the Conservatives won the 2019 election on promised Northern Powerhouse Rail between Leeds and Manchester.

While in No 10, Ms Truss backed a full-fat vision for the line, pledging expanded plans would include a stop at a new station in Bradford.

But Mr Shapps told the BBC: “The line itself can deliver a 33-minute journey from Manchester to Leeds, quadruple nearly the capacity of that line, and do so without having to wait an extra 20 years beyond the delivery of what the upgrade can do.

“It’s not true to say we’re not delivering on what we said we would do on levelling up the north.”

Shadow transport secretary Louise Haigh accused the government of having “crashed the economy” and then making the north pay for the fall-out.