How Northern Powerhouse Rail and the Panning and Infrastructure Act 2025 will transform transport in the north

The Northern Powerhouse Rail

On 14 January 2026, the UK Government announced a multi‑billion‑pound programme aimed at transforming rail infrastructure and supporting economic growth across Yorkshire and the North East of England. The announcement comes after years of delays and alternative proposals.

Central to this announcement is the expansion of Northern Powerhouse Rail (“NPR”). NPR promises to deliver faster, more frequent, and more reliable train services between major northern cities such as Leeds, Bradford, Sheffield, York and beyond, including operating alongside HS2 providing access to the broader rail network. The expansion plans include upgrading and electrifying key routes, progressing the business case for reopening the Leamside Line to Newcastle, and significant station regeneration projects that are expected to unlock tens of thousands of jobs and new homes across the region.

This strategic push is not only about faster journeys, but rather it is framed as a broader economic growth strategy. Government officials argue that boosting productivity in the North’s five largest cities to the national average could add up to £40 billion annually to the UK economy. Investments include £1.1 billion for early planning and development work, as well as targeted local transport funding to support initiatives like the Rotherham Gateway station in South Yorkshire.

However, the delivery of such transformative infrastructure depends on more than funding; it hinges on a planning and regulatory environment capable of turning proposals into reality at pace. This is where the Planning and Infrastructure Act 2025 becomes directly relevant. The Act, which came into force on 18 December 2025, aims to streamline the planning system and accelerate major infrastructure projects throughout the UK.

Streamlining infrastructure delivery

As outlined in our recent article, one of the core features of the Planning and Infrastructure Act is its reform of Nationally Significant Infrastructure Projects (NSIPs). By removing certain pre-application requirements and limiting the grounds for legal challenge at the early stages of project development, the Act seeks to speed up delivery timelines for projects such as new rail lines and upgrades.

The Act also amends key transport and highways legislation to broaden the powers of public authorities in delivering major transport initiatives, such as the NPR. This is critical for rail programmes that require complex coordination across regions, authorities, and private stakeholders. With statutory deadlines for decisions and wider cost recovery powers, infrastructure promoters have clearer pathways to starting construction sooner rather than later.

Looking ahead

Together, the NPR proposal and the Planning and Infrastructure Act reflect a coherent government approach to growth planning, one that combines major public investment with regulatory reform to try to unlock infrastructure delivery on a large scale. This follows on from lessons learned in delivering previous large-scale infrastructure projects. Whether these ambitions translate into tangible improvements for commuters, residents, and local economies in the North will depend on effective implementation, sustained funding and continued engagement between national and regional partners.

If you would like to understand how these developments may affect your projects, please contact Nadir Hasan or Karina Alibhai.