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The new UK railway mega-project that’s set to give £7bn boost to UK economy | UK | News

amedpostBy amedpostMarch 15, 2025 News No Comments3 Mins Read
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The proposed Liverpool-Manchester railway could add £7billion to the UK economy and “deliver the same, if not greater economic clout in the North West than anywhere else in the country”. According to research into the project, it is also predicted to create over 40,000 “high-quality” jobs by 2050, enable the construction of 300,000 new homes over the next 20 years, as well as boost industries such as life sciences, advanced manufacturing, low-carbon technologies and artificial intelligence (AI).

The high-speed train in the Northern Arc, which spans from Mersey to the Pennines, would link Liverpool to Manchester through Northern Powerhouse Rail, connecting vital assets such as the Port of Liverpool and Manchester Airport. Greater Manchester and Liverpool mayors Andy Burnham and Steve Rotheram noted how a collaborative approach could transform the North West in a similar fashion to the Oxford-Cambridge corridors, where an East-West railway is being built. The pair established the Liverpool-Manchester Railway Partnership Board last May.

Manchester’s Burnham said that the Northern Arc “will create a powerful northern engine to fuel national growth, one greater than the sum of our parts”.

He added, as reported by the New Civil Engineer: “To achieve its full potential, we need a new Liverpool-Manchester railway – a crucial missing link that must be a priority for the UK’s infrastructure plan.

“This is not about competing – we are already creating valuable partnerships with Cambridge – it’s about recognising that this approach to creating superclusters can deliver the same, if not greater economic clout in the North West than anywhere else in the country.”

Greater Manchester is undertaking a 10-year plan to drive £1billion annual investment, targeting six growth locations, including the Old Trafford Regeneration Scheme to create thousands of jobs and homes.

Liverpool mayor Rotheram said: “The Northern Arc represents a once-in-a-generation opportunity to transform the North West into a global powerhouse for world-leading businesses.

“With Government backing, this strategic move will unlock new jobs, drive economic growth, and secure the North’s place at the forefront of the UK’s future prosperity.”

A new tech hub is expected to create around 1,000 AI-related jobs in Liverpool, and a major regeneration project at Central Station is valued at £2.5billion.

Liverpool-Manchester Railway Partnership Board chair Huw Merriman said the board aims “not just to deliver a new railway for people and freight” but be a “backbone of new economic and social opportunities”.

He added: “Our objective is clear; to deliver a new railway which delivers faster, more reliable and decarbonised journeys on a new corridor for jobs, homes, green energy production, skills and regeneration.”

The Northern Arc refers to a strategic area for economic growth from Mersey to the Pennines, with a population of 5.4million, generating an annual Gross Value Added (GVA) of £150billion, and £23.5billion in exports.

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