An improved rail link between Manchester and Leeds is the "critical first step" towards the development of a 'northern powerhouse'.

A new report by Centre for Cities, entitled 'Fast Track to Growth - Transport Priorities for Stronger Cities', argues that this would create an economy of significant scale in the North of England, improving the business environment and boosting the potential for growth and prosperity.

Supported by the Department for Transport, the study claims the link would complement and strengthen current planned investment in the network, as well as ensuring these benefits are sustained in the long term.

Ms Alexandra Jones, chief executive officer of Centre for Cities, described the link as "a critically important, well-overdue upgrade that should be the first stage of delivering on the government’s ambition to build a Northern powerhouse".

The report demonstrates that improving transport links between cities enables firms to collaborate and share knowledge, networks and services, while providing more opportunities and flexibility for workers.