Northern Powerhouse Potential: New Liverpool-Manchester Railway Could Spark Oxford-Cambridge Level Growth

A bold vision to create a “Northern Arc” economic powerhouse, powered by a new high-speed rail link between Liverpool and Manchester, has been unveiled by regional leaders. Mayors Steve Rotheram and Andy Burnham believe the project could rival the success of the Oxford-Cambridge Arc, unlocking billions in investment and transforming the North West’s economic landscape.

The proposed Liverpool-Manchester Railway, described as the “missing piece” in the North’s infrastructure, is central to the plan. Studies suggest it could inject £7 billion into the UK economy, support the construction of 300,000 new homes, and create over 40,000 high-quality jobs by 2050.

Speaking at an investor roundtable, the Mayors highlighted the “Northern Arc’s” existing strengths: two investment zones, 5.4 million residents, and a combined annual economic output of £150 billion. However, they stressed that a joined-up approach, underpinned by the new railway, is crucial to realising the region’s full potential.

Steve Rotheram, Mayor of Liverpool City Region, said: “The Northern Arc is about connecting these hubs with Greater Manchester and beyond. The Liverpool to Manchester railway presents us with a fantastic opportunity to do this. 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.”

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

“In the Liverpool City Region, we’re already primed to lead the way in high-growth industries such as life sciences, advanced manufacturing and low-carbon technologies. And with investments like the £550m Health Innovation Liverpool Campus and the expanding Sci-Tech Daresbury, we’re creating opportunities for businesses to thrive and innovation to flourish.

 Andy Burnham, Mayor of Greater Manchester, said: “The sheer scale of untapped growth potential of the North means that, with the right government support, the size of the prize could match that of the Oxford-Cambridge Arc. 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.”

“Our city-regions have their own growth stories and opportunities, such as the Old Trafford regeneration project and Atom Valley in Greater Manchester. But our combined pipelines of investment opportunities – the Northern Arc – will create a powerful northern engine to fuel national growth, one greater than the sum of our parts. 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.

The project aims to capitalise on the region’s strengths in key sectors, including life sciences, advanced manufacturing, low-carbon technologies, AI, and sustainable aviation fuels. It will also enhance connectivity between vital assets like the Port of Liverpool and Manchester Airport, boosting international trade.

The Mayors are working with economists to fully assess the potential of this “economic supercluster,” drawing inspiration from the Oxford-Cambridge Arc’s successful model. They are also establishing a partnership board, chaired by former Rail Minister Huw Merriman, to drive the railway project forward.

Huw Merriman, Chair of the Liverpool-Manchester Railway Partnership Board, said: “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. If we deliver this then we can help further transform the region and, with it, the balance of the UK economy.”

“The world’s first inter-city railway was built between Liverpool and Manchester by the region’s industrial pioneers. Almost 200 years on, the Mayors and council leaders have set up the Partnership Board which, like last time, aims not just to deliver a new railway for people and freight but a backbone of new economic and social opportunities.

The project represents a shift towards a “bottom-up” approach to infrastructure development, involving local leaders and the private sector. With the right national support, the Northern Arc could become a major driver of UK economic growth.

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