Exclusive:No Northern Powerhouse Rail announcement expected in Budget amid delays

The Chancellor initially revealed her intention to announce plans for the long-promised high-speed rail project at the Spending Review in June.

However, this has been repeatedly delayed, with an expectation it would be made in tomorrow’s Budget at the latest.

A Labour source said that there is “no doubt” of Ms Reeves’ commitment, before adding that the Treasury is “not holding it up”.

However, it is understood that there is little prospect of an announcement tomorrow, with negotiations between the government and regional leaders ongoing.

A Labour source said: “The problem is the Conservatives promised £17bn to the North West, but that money doesn’t exist.”

NPR was first announced by Boris Johnson and then effectively mothballed when Rishi Sunak cancelled the northern leg of HS2.

It was designed to improve connectivity of the North’s great cities across the Pennines, from Liverpool to Hull.

Yorkshire leaders have been pushing for it to include the electrification between Leeds and Sheffield and a new through station at Bradford.

While the Yorkshire sections of the project appear to have been largely agreed, it is understood that upgrades in the North West, which would see Liverpool and Manchester better connected with Manchester Airport, are still being discussed.

Sir Keir Starmer recently said that he remains “absolutely committed to Northern Powerhouse Rail”.

Ms Reeves is facing a number of tough choices in tomorrow’s Budget, as she will likely be forced to hike taxes to fill a black hole in the public finances amid the prospect of a downgrade in the Budget watchdog’s economic growth forecast for every year of this Parliament.

In her search for extra taxes, she could hit more than 100,000 high-value properties with a levy that applies to those worth more than £2m and could raise £400-£450m, The Times reported.

She is expected to announce funding for more than 250 new neighbour health centres, which the Treasury says will “bring patient care closer to home and bring end to postcode lottery of healthcare access”.

Ms Reeves said: “At the Budget I’ll set out how we’ll deliver on the country’s priorities to cut NHS waiting times, cut debt and cut the cost of living.

“We’re driving down waiting lists by bringing healthcare to patients' doorsteps and turbocharging NHS productivity with cutting-edge technology.”

At the Confederation of British Industry (CBI) conference in London yesterday, director-general Rain Newton-Smith said the Government must “change course” and avoid heaping more costs on firms.

In particular, pubs across Yorkshire have called for greater support from Ms Reeves to stay afloat.

It comes as analysis seen by The Yorkshire Post shows that the Chancellor’s constituency of Leeds West and Pudsey has had one of the highest amounts of pub closures in the region.

The British Beer and Pub Association (BPPA) has found that 37 pubs have closed in the market town of Pudsey since 2016 - that's one pub lost for every 3,000 people.

It has outlined a stern warning call across the wider region with 258 pubs closed and a further 260 at risk without "meaningful" reform.