Chancellor Rachel Reeves indicates she is ready to spend billions on a high speed rail link between Liverpool and Manchester and fund the reopening of Southport Pier. Tony McDonough reports
There was good news for Liverpool city region in the Chancellor’s Spending Review on Wednesday when she gave her backing to two major projects.
Rachel Reeves stood up in the House of Commons and delivered her review to MPs. While many of the announcements had already been leaked prior to the speech, there were two pieces of news that went down well in the city region.
Firstly, the Chancellor said she would back a new high speed rail link between Liverpool and Manchester, expected to cost tens of billions of pounds. She also indicated she is ready to fund the £13m reopening of Southport Pier.
Metro Mayors Steve Rotheram and Andy Burnham have been pushing the Government to fund the rail line which would link Liverpool and Manchester city centres and Manchester Airport.
While it was light on detail Mr Rotheram said these were “really positive signals” from the Chancellor. He added: “We’ll be eagerly awaiting the details in the forthcoming infrastructure strategy.
“Our proposals for the Liverpool-Manchester Railway are about far more than just laying some railway tracks.
“It’s about better connecting people to jobs and opportunities; supporting growth across the north, and unlocking thousands of new homes. A modern rail link befitting two of the UK’s great cities could help spark £90bn of economic growth across the North.”
On Southport Pier he added: “Today’s announcement is great news for Southport – and it couldn’t have come at a better time.
|I had some time with the Prime Minister during our meeting at Lancaster House to talk specifically about Southport, where he gave his word that he’d support the town, and it’s good to see him following through on this commitment – especially after the news earlier this week about Town Hall Gardens.”
Ms Reeves was equally non-specific on the Southport Pier Project. Dating back to 1860, the pier was closed to the public in December 2022 owing to the need for critical structural repairs.
Sefton Council had been looking to the Government to provide the £13m needed to get it reopened. LBN understands that while council officers are remaining cautious they are “very optimistic” that help is on the way.
In a statement it said: “We welcome the Chancellor referencing Southport Pier today as part of the spending review. As a council we have said we are ready to go as soon as funding is secured and we look forward to finding out more detail about the Growth Mission Fund in due course.”
Paul Cherpeau, chief executive of Liverpool Chamber, said: “Businesses in Liverpool city region recognise that better transport can help them to power their growth plans through easier movement of people and goods in all directions.
““The proposed Liverpool-Manchester rail line, combined with further investment in the transpennine route, offers an excellent opportunity to maximise connectivity across the North West if it better connects our key strategic transport assets, including Liverpool John Lennon Airport.
“That enhanced connectivity can also boost our attractiveness as an investment destination. We have long-standing challenges with regards to movement of freight, particularly on the West Coast mainline, so the plans must seek to address those issues and improve access to and from other UK cities such as Birmingham.”
Greg Johnson, managing director of Bootle window and door maker Warwick North West, welcomed the £39bn uplift for social housing was to be welcomed. Warwick is a growing supplier to the affordable housing sector.
He said: “£39bn is a huge number but it is important to remember it is over 10 years which means £3.9bn a year. However that is still a significant rise on the current £2.3bn spent a year.
“Earlier this week we talked about the plans for a New Town comprising 10,000 homes between north Liverpool and Bootle. At some point soon it would be good to see a decision on that. It would show real intent and ambition.
“What we as an industry are now looking for are more similar commitments that will help the Government achieve its target of 1.5m new homes during this Parliament. We need good quality, energy efficient, homes at both ends of the housing market.
“It was heartening, also, to hear progress on a new Growth Mission Fund to, as The Chancellor describes, “expedite local projects that are key to growth of towns and regions”.
“I’m pleased to see Southport Pier included in those plans. This is truly tremendous news for the borough, which has historically drawn investment from its status as a seaside town. As a business operating in Sefton, I’m fully behind the drive to reinvigorate Southport.
“Southport Pier is a powerful symbol of Southport’s heritage and can be a key asset in its ongoing regeneration.”
Dean Rogers, managing director of Liverpool building firm Frank Rogers, said: “After it was elected the Government pledged to get Britain building again and there are positive signs from this Spending Review they are ready to make good on that pledge.
“Obviously the higher spending on social housing will provide a stimulus for the UK construction sector and its supply chains.
“Also, the announcement of a record £1.2bn investment for skills by the end of the parliament is to be welcomed. Extra spending on construction is no good if we don’t have enough skilled people to deliver.
“We are also pleased to see a £1.4bn commitment to address the poor state of school buildings across the UK. Frank Rogers is active in the education sector and we welcome any effort to improve the learning environment for our children.”
The Chancellor also pledged £1.4bn to the rebuilding of 50 schools in England a year – a £550m increase in funding for the rebuilding programme compared to last year.
Paul Spencer from Compliance Education welcomes this news. Compliance Education provides health and safety services and assessments to nurseries, schools, academies and colleges across the North of England and Wales.
“The investment into the rebuilding of schools is incredibly welcome news. As providers to the sector, we are well aware of just how many classrooms have fallen into disrepair,” said Paul.
“We already know that the Government has fallen off target with the Schools Rebuilding Programme, so we can only hope this new investment brings them closer to their targets and more quickly, so that children are not forced to keep learning in ‘crumbling classrooms’ – as the Chancellor rightly puts it.
“What I’d be keen to see though, is a commitment from the Government into the maintenance and upkeep of schools beyond that initial transformation, and an emphasis on ensuring schools continue to provide the safe spaces our children deserve.”
John Gray, head of debt at Liverpool-based small business loan and investment specialist, River Capital, was pleased the Chancellor had committed extra funding to the British Business Bank to support SMEs.
River Capital has been working with the Bank since 2019 on a number of North West based funds that are supporting SMEs across the region to the tune of tens of millions of pounds each year.
“Small and medium-sized businesses are one of the key drivers of the UK economy. They employ millions of people and are often responsible for significant innovations,” John told LBN.
“If we want to raise the level of productivity then investment into the SME sector is critical. The British Business Bank’s total financial capacity will be increased to £25.6bn, which will enable a two-thirds increase in investments to around £2.5bn each year.
“This offers a vote of confidence in entrepreneurs up and down the country and it also gives an incentive to investors, such as the angel investors we work with through Gateway Angels, to back innovative ventures.”
Leading Liverpool lawyer Gregory Abrams, founder of law firm Gregory Abrams Davidson and a renowned champion of the city, said the proposed Liverpool to Manchester railway could have a transformational effect on the city region.
But he insisted that for the city region to reap the full benefits of the line it needs to also include a station for Liverpool John Lennon Airport as well as Manchester Airport.
“Mayor Rotheram has talked about the economic benefits of £90bn coming from the rail link. I don’t know whether that figure is correct but the advantages of connecting our two great cities with a reliable high-speed link are significant.
“We talk about London being a powerhouse, and it is, but Manchester and Liverpool, as well as other locations such as Chester, Warrington and Preston, combine to make one of the biggest conurbations in western Europe.
“For our region to become an economic powerhouse in the north that can rival London’s status, requires significant investment in major infrastructure.
“The cuts to HS2 were disappointing but building the Liverpool to Manchester line would be a serious statement of intent and including Liverpool John Lennon Airport in the plans would be vital, in my view.”