Grant Shapps has said promises the government made to the North on rail are “absolutely being fulfilled” despite the eastern leg of HS2 to Leeds being scrapped and plans for Northern Powerhouse Rail being downgraded.
The transport secretary told Sky News that the government’s new £96bn Integrated Rail Plan for the North and the Midlands will deliver “faster” train journeys both earlier and cheaper than the original HS2 plans would have done.
But ministers have been widely criticised – including by individuals within the Conservative Party – for reneging on promises to upgrade links and instead proposing a scaled-back plan for the region.
Image: Passengers had hoped the time of rail journeys from Bradford would be cut
One senior Tory criticised the government for “selling perpetual sunlight” and delivering “moonlight” for people in the north of England.
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Labour leader Sir Keir Starmer said: “The north of England has been betrayed.”
And speaking to Sky News on Friday, shadow Northern Ireland secretary and MP for Sheffield Heeley said: “For this transport secretary to pretend to the people of the North that they are delivering what they promised is quite frankly nothing less than an insult to their intelligence.”
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Addressing reporters on Thursday, Prime Minister Boris Johnson described the announcement as “a much better plan” and said it was “total rubbish” to suggest he was breaking his former promises on rail connections.
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1:45
‘North of England has been betrayed’
Unveiling the new plan in the Commons, Mr Shapps confirmed that the eastern leg of HS2 will no longer go all the way to Leeds. It will instead stop in the East Midlands near Nottingham.
But on Friday morning, the transport secretary denied plans for the eastern leg are being scrapped, telling Sky News that to say otherwise is “not accurate reporting”.
He claimed some complaints were from “largely Labour leaders who are completely misleading people” – despite several Tory MPs also expressing their disappointment with the plan.
Image: The government unveiled its new Integrated Rail Plan on Thursday
Plans for HS2 were originally meant to connect London with the city centres of Birmingham, Manchester, and Leeds.
The transport secretary told MPs the new £96bn rail plan will instead deliver three high-speed lines – HS2 Crewe to Manchester, Birmingham to East Midlands Parkway, Warrington to Manchester – but not HS2 to Leeds or Northern Powerhouse Rail Leeds to Manchester.
Image: The government’s own chart shows rail times will be improved but will fall short on original plans in some areas
Justifying the revised project, Mr Shapps said it “will bring benefits at least a decade or more earlier”, adding that under the original scheme, HS2 would not reach the North until the early 2040s.
“We will provide a journey time of 33 minutes from Leeds to Manchester, a significant, a very significant, improvement,” he told MPs, adding that the new project “will provide a better service than the outdated plan for HS2 a decade ago”.
But Conservative chairman of the Transport Select Committee Huw Merriman told the Commons the government’s new plan “compromises some fantastic projects that will slash journey times and better connect our great northern cities”.
Image: The prime minister said the announcement on rail links in the North is the greatest thing to happen ‘this century’
Another Conservative MP, Craig Tracey, said it is “really difficult” to share the optimism in the announcement because it is “very disappointing to hear that HS2 will not be scrapped in full”.
Fellow Tory MP Robbie Moore pointed out that Bradford – the seventh-largest city in the UK – will still not have a mainline station under the new plans.
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2:21
New rail plan ‘a monumental achievement’
Conservative MP for Thirsk and Malton in Yorkshire, Kevin Hollinrake, added that the original HS2 project could have been a great economic boost for Bradford.
But Mr Shapps said the “landmark” programme would still deliver and promised work will start “by Christmas”.
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3:36
Labour: ‘Great train robbery’ for North
Mr Shapps said the government will “study how best to take HS2 trains into Leeds”.
Northern political leaders had warned the government will pass up huge economic benefits and betray promises to voters if, as expected, it cancelled the eastern leg of HS2 and a new Manchester-Leeds line.
The daughter of a Post Office victim has told Sky News she suffered “dark thoughts of suicide” in the years after her mother was accused of stealing.
Kate Burrows was 14 years old when her mother, Elaine Hood, was prosecuted and subsequently convicted in 2003.
The first public inquiry report on the Post Office – examining redress and the “human impact” of the scandal – is due to be published today.
“I’ve suffered with panic attacks from about 14, 15 years old, and I still have them to this day,” Kate said.
“I’ve been in and out of therapy for what feels like most of my adult life and it absolutely categorically goes back to [what happened].”
Image: Kate and Rebecca with their mother, Elaine
Kate, along with others, helped set up the charity Lost Chances, supporting the children of Post Office victims. She hopes the inquiry will recognise their suffering.
“It’s important that our voices are heard,” she said. “Not only within the report, but in law actually.
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“And then maybe that would be a deterrent for any future cover-ups, that it’s not just the one person it’s the whole family [affected].”
Her sister, Rebecca Richards, who was 18 when their mother was accused, described how an eating disorder “escalated” after what happened.
“When my mum was going through everything, my only control of that situation was what food I put in my body,” she said.
Image: Elaine with her husband
She also said that seeing her mother at court when she was convicted, would “stay with me forever”.
“The two investigators were sat in front of my dad and I, sniggering and saying ‘we’ve got this one’.
“To watch my mum in the docks handcuffed to a guard… not knowing if she was going to be coming home… that is the most standout memory for me.”
The sisters are hoping the inquiry findings will push Fujitsu into fulfilling a promise they made nearly a year ago – to try and help the children of victims.
Image: The siblings were teenagers when their mum was unfairly prosecuted
Last summer, Kate met with the European boss of the company, Paul Patterson, who said he would look at ways they could support Lost Chances.
Despite appearing at the inquiry in November last year and saying he would not “stay silent” on the issue, Kate said there has been little movement in terms of support.
“It’s very much a line of ‘we’re going to wait until the end of the inquiry report to decide’,” she said.
“But Mr Patterson met us in person, looked us in the eye, and we shared the most deeply personal stories and he said we will do something… they need to make a difference.”
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1:38
2024: Paula Vennells breaks down in tears
Fujitsu, who developed the faulty Horizon software, has said it is in discussions with the government regarding a contribution to compensation.
The inquiry will delve in detail into redress schemes, of which four exist, three controlled by the government and one by the Post Office.
Victims of the scandal say they are hoping Sir Wyn Williams, chair of the inquiry, will recommend that the government and the Post Office are removed from the redress schemes as thousands still wait for full and fair redress.
A Department for Business and Trade spokesperson said they were “grateful” for the inquiry’s work, describing “the immeasurable suffering” victims endured and saying the government has “quadrupled the total amount paid to affected postmasters”, with more than £1bn having now been paid to thousands of claimants.
Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK
Donald Trump has warned that all goods from Japan and South Korea will face tariffs of 25% from 1 August.
The announcement, via his Truth Social platform, marks the restart of the threatened “liberation day” escalation that was paused in April, for 90 days, to allow for negotiations to take place with all US trading partners.
The president showed off copies of letters to the leaders of both Japan and South Korea informing them of the tariff rates. Those duties will come on top of sector-specific tariffs – such as 50% rates covering steel – already in force.
He warned the rates could be adjusted “upward or downward, depending on our relationship with your country”.
Country-specific tariffs had been due to take effect from Wednesday this week but Mr Trump had earlier revealed that nations would start to get letters instead, setting out the US position.
The letters sent to Japan and South Korea cited persistent trade imbalances for the rates and included the sentence: “We invite you to participate in the extraordinary Economy of the United States, the Number One Market in the World, by far.”
He ended both letters by saying, “Thank you for your attention to this matter!”
The European Union – the biggest single US trading partner – is among those set to get a letter in the coming days.
Mr Trump has also threatened an additional 10% tariff on any country aligning itself with the “anti-American policies” of BRICS nations – those are Brazil, Russia, India, China and South Africa and whose members also include Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.
The UK, bar a massive shock U-turn, should be exempt.
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2:49
What does the UK-US trade deal involve?
The country was the first to be granted a trade deal, of sorts, in May and the Trump administration has claimed many others had been offering concessions since the clock ticked down to 9 July.
The UK is not expected to face any changes to its current 10% rate due to the trade truce, which came into effect last week.
While UK-made cars aerospace products face no duties under a new quota arrangement, it still remains to be seen whether 25% tariffs on UK-produced steel and aluminium will be cancelled.
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5:08
Can the UK avoid steel tariffs?
They could, conceivably, even be raised to 50%, as is currently the case for America’s other trading partners, because no agreement on eliminating the rate was reached when the government struck its deal in May.
It all amounts to more uncertainty for the UK steel sector.
A No 10 spokesman said on Monday: “Our work with the US continues to get this deal implemented as soon as possible.
“That will remove the 25% tariff on UK steel and aluminium, making us the only country in the world to have tariffs removed on these products.
“The US agreed to remove tariffs on these products as part of our agreement on 8 May. It reiterated that again at the G7 last month. The discussions continue, and will continue to do so.”
China and Vietnam have also secured some US concessions.
The dollar strengthened but US stock markets lost ground in the wake of the letters to Japan and South Korea being made public, with the broad-based S&P 500 down by 1%.
Stock markets in both Japan and South Korea were closed for the day but US-traded shares of SK Telecom and LG Display were down 7.5% and 5.8% respectively.
Shares in Elon Musk’s Tesla have reversed sharply over renewed concerns about his focus on the company’s recovery as he plots against Donald Trump.
Shares in the electric car firm plunged by more than 7% at the start of trading on Wall Street – taking about $71bn (£52bn) off its market value.
The stock has often come under pressure since Musk started his association with the president, latterly helping bring down federal government costs through a new department known as DOGE (Department of Government Efficiency).
But it is now suffering as their political relationship has soured.
Musk has publicly opposed the so-called “big, beautiful bill” – Mr Trump’s flagship tax cut and spending plans that received Congressional approval last week – since he left his DOGE role.
Musk wrote in a post on his X platform on 30 June: “It is obvious with the insane spending of this bill, which increases the debt ceiling by a record FIVE TRILLION DOLLARS that we live in a one-party country – the PORKY PIG PARTY!!”
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Once the bill was passed, he created a poll on X, asking people if they would want him to launch the America Party.
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1:32
Musk v Trump: ‘The Big, Beautiful Breakup’
He wrote on 4 July: “Independence Day is the perfect time to ask if you want independence from the two-party (some would say uniparty) system!”
The vote ended with 65.4% in favour of creating the party.
The formation of the America Party was announced the following day.
“By a factor of 2 to 1, you want a new political party and you shall have it! When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy.”
“Today, the America Party is formed to give you back your freedom,” Musk posted.
Trump responded on his Truth Social account: “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.
“He even wants to start a Third Political Party, despite the fact that they have never succeeded in the United States – The System seems not designed for them.”
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1:25
Trump threatens to ‘put DOGE’ on Musk
Trump has previously threatened to go after Tesla‘s government subsidies and contracts through the DOGE department to save “big” as their relationship deteriorated.
Such threats have also pressured the share price at Tesla.
It has suffered throughout Trump 2.0 and, in fact, has trended lower since last December – shortly after Mr Trump’s election win was confirmed.
The possibility of tariff hits to the business, followed by actual tariff disruption, along with a consumer and investor backlash against Musk’s previous DOGE role have contributed to a 35% decline on the December peak.
The very absence of Tesla’s CEO dragged on the shares.
Tesla sales suffered globally as the trade war ramped up due to the imposition of tariffs by a government he supported, until the public row between him and the president began in early June.
Musk had only just renewed his 100% focus on Tesla and his other business interests by that time.
Tesla sales were down during the presidential election campaign last year and continued to decline, on a quarterly basis, during the first half of 2025.
Neil Wilson, UK investor strategist at Saxo Markets, said of the company’s share price woes: “Investors are worried about two things – one is more Trump ire affecting subsidies and the other more importantly is a distracted Musk.
“Investors had cheered Musk stepping back from frontline politics but are now worried he’s going to sucked back in and take his eye off Tesla.”