Chancellor George Osborne has called for a new rail link to connect the north's major cities and create a "northern powerhouse".

Speaking at the Museum of Science and Industry in Manchester, the chancellor pointed out that the cities of the north are individually strong but this performance is not replicated on a collective level.

"We need a northern powerhouse. Not one city, but a collection of northern cities - sufficiently close to each other that combined they can take on the world," he said.

A HS3 rail link would help to ensure the cities of the north compete on the global stage, building on the HS2 line which is set to connect Sheffield, Manchester and other cities with the rest of the UK.

The chancellor said the issue of commuting times is currently being addressed and £600 million has already been committed to the Northern Hub, which will cut journey times on trains between Manchester, Leeds, Bradford and Sheffield.