The organisation which works to improve transport in the North is looking to “move forward” as a “smaller and leaner organisation” after the Government slashed its funding.

Transport for the North’s new business plan shows it has lost almost £70m, after Westminster seized control of the Northern Powerhouse Rail Project, and made 34 redundancies and closed its office in Leeds.

The organisation, which is run by a board of Northern mayors and council leaders, had been given £75m of funding to draw up plans for Northern Powerhouse Rail and prepare a business case.

But the Government was accused of a “power grab” by Labour in November, when it refused to take on Transport for the North’s (TfN) plans for the high-speed rail network, decided to take charge of the project and gave the organisation an advisory “co-sponsorship” role.

The organisation, which was set up with devolved powers from the Conservative Government in 2018, will have just £5.66m to provide analytical support for the project in 2022/23. It also applied for £10m of core funding – the amount it received in 2020/21 – but will only be given £6.5m.

Chief executive Martin Tugwell told The Yorkshire Post it has “not been an easy time” for TfN, which is now “smaller and leaner”.

But he also said the organisation’s team of transport specialists will continue to work with the Government to develop and deliver major projects and “act as one voice for the North of England to ensure that the region gets the investment in its transport network that the people who live and work here deserve.”

The Northern transport body will continue to call on the Government to revert to the original plans for HS2 and Northern Powerhouse Rail, and ensure it delivers the upgrade of the TransPennine Route.

Transport for the North board members West Yorkshire Tracy Brabin, Mayor of Greater Manchester Andy Burnham and Mayor of South Yorkshire Dan Jarvis, outside Leeds Railway Station

Its other priorities include: ensuring the North’s transport emissions reach net zero by 2045, supporting the post-pandemic recovery of the rail industry and helping to secure investment for major road projects.

TfN had called on the Government to ensure Northern Powerhouse Rail allowed passengers to travel on high-speed new lines running between Liverpool and Leeds, via Manchester and a new train station in Bradford.

But the Government sparked a backlash in November, when it announced scaled-back plans, which include a 40-mile line between Warrington and Marsden and an upgrade of the existing TransPennine Route, rather than as a high speed one, in a bid to save around £18bn.

Liz Truss has promised to revert back to the original plans, if she becomes the next Prime Minister.

The Foreign Secretary said delivering Northern Powerhouse Rail in full is “absolutely crucial for the future of the North of England”, but she will not commit to reinstating the old plans for HS2 and ensuring the high-speed railway line reaches Leeds.

Mr Tugwell said TfN “needs to be humble enough” to recognise it will not deliver that project, but it will remain involved in the planning and ensure “the North’s voice continues to shape the detail”.

Northern transport organisation 'smaller and leaner' after Westminster slashes its funding