The mayors of the West Midlands and Greater Manchester have set out proposals for a new railway line between Staffordshire and Manchester Airport in a bid to improve connections to the north.

Work commission by West Midlands mayor Andy Street and Greater Manchester mayor Andy Burnham has concluded the new line is the preferred option to tackle congestion on the West Coast Mainline, following the government’s decision to curtail HS2 beyond Birmingham. A private sector group – chaired by infrastructure expert Sir David Higgins – had been looking at three potential options to improve connectivity between Birmingham and Manchester.

The options included undertaking significant engineering upgrades to the West Coast Main Line, building bypasses at the pinch points on the line and building a new railway between Handsacre and Manchester Airport. The group, convened by the mayors, is led by global engineering firm Arup with input from over 60 partners from six other firms – Arcadis, Addleshaw Goddard, EY, Dragados, Mace and Skanska.

They have been exploring the different roles the private sector could play in the delivery and financing of the three different connectivity options, with the aim of helping to identify a new way of delivering infrastructure projects in the UK. The group has provisionally concluded that a new line – running approximately 70 miles between HS2 at Handsacre and Northern Powerhouse Rail at High Legh – is likely to offer the best combination of costs and benefits.

Mr Street said: “When the Prime Minister made his decision to cancel HS2 North, he said he would welcome proposals from me on how to better connect the Midlands and the North – and that’s what this work is doing.

“Although only provisional findings, it is clear that a new line between Handsacre and Manchester airport is the best option for improving connectivity, and the most attractive option for significant private sector involvement. Not only do we have to solve the congestion on the West Coast Main Line and the M6, but we also have to rethink how we tackle major infrastructure projects in this country.

“That’s exactly what this work is looking at, and I hope the final conclusions will help shape the future of our country." Mr Burnham added: “We were disappointed by the decision to cancel the Northern leg of HS2 and the way it was done, but right now we are focused on delivering an alternative.

“We are very grateful to Andy Street, Sir David Higgins and the private sector-led working group for taking on this task and helping to develop robust proposals to capture the benefits that could be lost if a new plan is not put forward. It’s becoming drastically clear that the existing West Coast Mainline and the congested M6 will not be sufficient to cope with increasing passenger and freight volumes.

“Without an alternative, they could very soon become a barrier to growth in the North and the West Midlands.” The mayors say the initial proposals have been shared with the Department for Transport.

Raj Kandola, director of external affairs at Greater Birmingham Chambers of Commerce, said: “As a Chamber we were bitterly disappointed by the Government’s decision to curtail HS2 beyond Birmingham and we welcome the proactive approach undertaken by the mayors of the West Midlands and Greater Manchester to try and find a workable alternative.

“In particular, it’s great to see a coalition of public and private sector partners trying to address a critical issue which is holding back growth across our region and beyond – namely the congestion on the M6 and the existing West Coast Line Mainline and the impact that has on the movement of people and goods. We would urge the Government to keep all options on the table and offer careful consideration to the recommendations made in this proposal.

“Clearly, if the government is serious in its intentions to level up the country, then offering better connectivity between the great cities of the UK outside of London needs to figure highly in any worthwhile plan for growth.”