Northern Powerhouse Rail is back – and small firms should care

Business founders rarely ask for big transport schemes. They ask for time back, for journeys that run to plan. They ask for hiring to be simpler, and for customers to be easier to reach. That's why Northern Powerhouse Rail (NPR) matters.

Last week, the government set out a renewed commitment to NPR, positioning it as a long-term programme to improve east-to-west rail links across the North.

It has a funding envelope capped at up to £45 billion and £1.1 billion earmarked in the current Spending Review period to move planning, design and early work forward.

What the announcement says

The government is describing NPR as a phased programme, with most construction spend expected in the 2030s and 2040s, and benefits building over time rather than arriving in one big "opening day" moment.

The phase outline the government has put forward includes:

• early enhancements around Leeds, Sheffield, York and Bradford, plus development work on the Leamside Line in the North East

• a later new route between Liverpool and Manchester, via Manchester Airport and Warrington

Our industry letter welcoming the announcement

On the same day, seven major business groups – including Enterprise Nation – wrote publicly to the Prime Minister, the Chancellor and the Transport Secretary to back the commitment.

The letter does two important things.

1. First, it frames NPR as a growth project, not a "nice-to-have" transport upgrade.

2. Second, it supports the idea of phasing, but warns that phasing must not turn into delay, doubt or funding gaps.

That's the right warning. We've all seen big infrastructure announcements drift when there's no clear line of sight from plan to delivery.

The Enterprise Nation view

For the smallest businesses, the transport economy is personal. It's the founder doing sales meetings, client work, training, childcare pick-ups and late-night admin, often in the same day.

So here's what we think NPR is really about.

1. A bigger hiring pool, without forcing people to move

When rail links are slow or unreliable, firms narrow their recruitment to what is "commutable on a bad day".

That shrinks the talent pool and pushes up hiring risk. Faster, more reliable connections across city regions widens the realistic labour market.

2. More customers within reach, especially for service businesses

If you sell services, your next phase of growth is often the next city, not the next continent.

Better east-to-west connectivity makes it easier to win work, deliver it and keep relationships warm without losing half a day to travel.

3. Stronger supply chains and more collaboration

Small suppliers and manufacturers need tight working relationships and quick access across the region.

Better connectivity supports cross-city collaboration, site visits and practical problem-solving that currently costs too much time.

4. Better access to Manchester Airport for exporters

Exporting is rarely one big leap, but a series of manageable steps. If getting to Manchester Airport is easier and more reliable, international sales, trade events and overseas client meetings become less disruptive for small teams.

The government's plan places Manchester Airport on a core part of the Liverpool to Manchester route.

5. Confidence that shows up in investment and local demand

Small firms feel it when a place is confident. You see it in footfall, commercial activity, new contracts and the supply chain spend that follows larger investment.

The risk of long timelines and partial delivery

This plan is a long-term one – and that isn't a criticism, just reality. But long-term plans only work if the near-term steps are clear and visible.

Phasing is sensible, but only if the government publishes milestones that are easy to track, and sticks to them. That is exactly the point the business groups made in the open letter.

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