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'HS3' high-speed rail link needed to boost north - Osborne High-speed rail link needed to boost north - Osborne
(about 1 hour later)
A so-called HS3 high-speed rail link in the north of England between Manchester and Leeds could help to create an economic area to rival London, Chancellor George Osborne is to say. A so-called HS3 high-speed rail link between Manchester and Leeds could help to create a "northern global powerhouse", George Osborne has said.
A "northern powerhouse" is needed as London's dominance is "not healthy" for the economy, he is expected to say. He told the BBC better road and rail links would allow cities across northern England from Liverpool to Hull "to take on the world", as London did.
He will say better transport links will allow it to "take on the world". The chancellor said the plan could cost up to £7bn - but could be cheaper if existing rail lines were updated.
Labour's Ed Balls said "nobody" will believe the Tories can deliver jobs, growth and investment for the North. Labour said "nobody" believed the Tories could deliver jobs in the north.
Second phase Mr Osborne told BBC Radio 4's Today programme - before a speech in Manchester - that the cities in the North of England were individually strong but were "collectively not strong enough".
In a speech in Manchester, Mr Osborne is expected to say that cities in the north of England are individually strong but are "collectively not strong enough". He said that in the past few decades giant global cities, such as London, had emerged - and that the string of northern cities, with better transport links and careful planning, could take them on and be "greater than the sum of their parts".
Mr Osborne will say the building of the east-west link should be considered as part of a review into the second phase of the £50bn HS2 high-speed rail project. Mr Osborne said the building of the east-west link should be considered as part of a review into the second phase of the £50bn HS2 high-speed rail project.
The current plan for the first phase of the project between London and Birmingham has proved controversial with some residents set to be affected and critics of its price tag. The current plan for the first phase of the project between London and Birmingham has proved controversial. Some residents are set to be disrupted and there is criticism of its price tag.
The government's preferred route for the second phase is an extension linking Birmingham with Manchester and Leeds - with the final route expected to be chosen by the end of 2014. The government's preferred route for the second phase involves extensions linking Birmingham with Manchester and Leeds - with the final route expected to be chosen by the end of this year.
Mr Osborne will say: "The whole is less than the sum of its parts. So the powerhouse of London dominates more and more. Mr Osborne will say in his speech that it is not "healthy for our economy, not good four our country" if "the powerhouse of London dominates more and more".
"And that's not healthy for our economy. It's not good for our country. We need a northern powerhouse too. Along with improving roads - the M62 already links Liverpool on the west coast with Hull on the east coast, via Manchester and Leeds - Mr Osborne says a new high-speed rail link should be considered, based on the existing rail route but with new tunnels and infrastructure.
"Not one city, but a collection of northern cities - sufficiently close to each other that combined they can take on the world." The fastest rail services between Leeds and Manchester currently take about 50 minutes - already quicker than many journeys across London.
More connected
Along with improving roads, Mr Osborne will call for the new high-speed rail link to be considered, based on the existing rail route but with new tunnels and infrastructure.
The fastest rail services between Leeds and Manchester currently take about 50 minutes.
"We need an ambitious plan to make the cities and towns here in this northern belt radically more connected from east to west - to create the equivalent of travelling around a single global city."We need an ambitious plan to make the cities and towns here in this northern belt radically more connected from east to west - to create the equivalent of travelling around a single global city.
"I want us to start thinking about whether to build a new high-speed rail connection east-west from Manchester to Leeds.""I want us to start thinking about whether to build a new high-speed rail connection east-west from Manchester to Leeds."
BBC political correspondent Vicki Young says Conservative support in the north of England has been declining and Mr Osborne's statement will be seen as an attempt to show the party is keen to increase prosperity beyond its traditional strongholds in the south. BBC political correspondent Vicki Young says Conservative support in the North of England has been declining and Mr Osborne's statement will be seen as an attempt to show the party is keen to increase prosperity beyond its traditional strongholds in the south.
There is, however, little detail about how these plans will be funded, our correspondent said. There is, however, little detail about how these plans would be funded, and Mr Osborne said he did not yet have timescales - but he wanted "to start a conversation".
Mr Osborne will say the current HS2 proposal will "change the economic geography of our country", but will add that "we must do much more to connect our northern cities". Mr Osborne also told the BBC he wanted to see new positions of elected mayoralties being created - including one for Greater Manchester along the lines of London's - to help drive forward economic growth in the north.
Shadow chancellor Mr Balls said regional growth divides had "widened markedly since 2010", when the coalition government was formed. For Labour, shadow chancellor Mr Balls said regional growth divides had "widened markedly since 2010", when the coalition government was formed.
"On high-speed rail, we said months ago that we need value for money for the taxpayer and to improve the existing plans to maximise the benefits for the whole country and strengthen the links between northern cities. Ministers need finally to start listening." "On high-speed rail, we said months ago that we need value for money for the taxpayer and to improve the existing plans to maximise the benefits for the whole country, and strengthen the links between northern cities. Ministers need finally to start listening."
Do you live in the north of England? How will a high speed rail link impact the economy in your area? Send us your experiences by emailing haveyoursay@bbc.co.uk using the subject line "HS3".