A HS3 high-speed rail link could help to rebalance the UK economy and enable the north to reclaim its historical prominence.

This is according to Richard Threlfall, partner and UK head of Infrastructure, Building and Construction at KPMG, who compared it to major infrastructure projects such as the construction of the M25 and the Channel Tunnel.

Mr Threlfall pointed out that over the past ten years the north's share of the UK economic output has declined by more than five per cent.

"We have for too long invested billions of pounds more in the south than the north - throwing money at our strongest region and abandoning our weakest," he commented.

The proposals were also welcomed by the British Chambers of Commerce (BCC) and the Confederation of British Industry (CBI).

However, the BCC said the focus should be on connecting more of the north's core cities and not just Manchester and Leeds. The CBI cautioned that the project should be organised in such as way as to ensure the best use is made of taxpayers' money.