The north of England and Scotland has been promised a huge package of improvements to rail services worth £1.2 billion, as part of the new contracts agreed for two major rail franchises. The TransPennine and Northern franchises will be taken over by First Group and Arriva Rail North Limited, respectively. The improvements will be seen as a successful implementation of George Osborne’s ‘Northern Powerhouse’ initiative.

Arriva will invest £400 million into 281 new carriages, adding more than double what the government required. They will also remove all Pacer trains, which were built in the 1980s and are widely unpopular, by 2019. Services will be expanded with 2,000 additional journeys each week, including 400 more on Sundays. More direct routes will be added and capacity will be increased by almost 40%. The five major cities for commuters that are serviced on this network are Manchester, Leeds, Sheffield, Newcastle and Liverpool.

First Group are also to invest more than £400 million in new carriages to service their lines in the north of England and into Scotland. A direct route from Liverpool to Glasgow will be introduced, as well as additional services connecting the Edinburgh to Manchester and Newcastle. Capacity at morning peak times will be increased by almost 70% across the north of England. People of jobseekers and 16 – 18 year olds, will be offered discounted rates.

Free Wi-Fi will be provided on all services by December 2019, and £55 million will be invested into upgrading and improving stations. Between both franchises, almost 250 apprenticeships will be created over the franchise term, and they have committed to pay the living wage, and not make use of zero hours contracts.

The Department for Transport and Rail North Limited, which represents 29 local authorities across the region, will jointly manage the franchises from Leeds.

Patrick McLoughlin, the Transport Secretary, said: “The award of these franchises is a hugely positive story for rail in the north of England. They are further proof that private sector competition is good for passengers, local communities and taxpayers. This government promised passengers we would give them the premium-quality rail services that a Northern Powerhouse deserves. I am delighted that these awards will deliver exactly that.”