David Cameron is backing plans to develop a high-speed rail link that will halve travelling times between Manchester and Leeds.
The second phase of HS2, dubbed HS3, aims to reduce the country's economic reliance on London.
"Improving connectivity and reducing journey times between our great northern cities is a crucial part of our long-term economic plan for the north to boost businesses and create more jobs and security," Cameron said in a statement.
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Chancellor George Osborne also supported the plan, saying that his vision of a "northern powerhouse" was on its way to becoming a reality.
Their backing comes as HS2 chairman Sir David Higgins was due to publish a report today outlining plans for the second phase. Here is what we know so far:
Why is HS3 necessary?
The proposed link is promising to cut the journey time between Leeds and Manchester in half, from an average 55 minutes to as little as 26 minutes. The number of trains running along the route could also be doubled. In today's report, called Rebalancing Britain, Higgins says this is a "strategic necessity" for the future of the British economy. "Connectivity equals jobs," he says, with improved transport services making it easier for cities in the north to attract the skills and talent they need to prosper. Higgins, who oversaw the building of London's Olympic Park, also warns of an approaching "crunch point" at which congestion will increasingly act as a "stranglehold" on freight traffic nationally, reports the Financial Times.
How much would it cost?
Ministers claim it is "too early" to put a figure on the project, but one industry expert told the BBC that it could cost £7bn. The budget for HS2 is already at an estimated £50bn, but Higgins has told Sky News that the first and second phases are very different. HS2 involves a new line from Euston to Birmingham, whereas HS3 is just 40 miles long and would be based on the existing line that runs between the two cities, with new tunnels to increase speed. Northern councils have a £15bn road and rail plan, which may help to fund the project.
When would HS3 be completed?
The first phase of the HS2 project is due to open in 2026. HS3 was originally scheduled to be completed by 2033. However, Higgins has been clear that he would like to bring this date forward.
Will it definitely go ahead?
Despite Cameron giving his "backing" to the project, some say it is merely political posturing in light of diminishing support for Conservatives in the north. The BBC's Richard Westcott says the announcement is a "long way shy" of any solid commitment. "The government has just asked for some possible routes and prices... a cynic might say it's all good publicity in the run-up to an election."
What's next?
A strategy report, including options, costs and timetable for the east-west high-speed rail connection will be produced by March next year. The government is also launching a review to find ways of bringing down the cost of both HS2 phases and future high-speed rail projects. Meanwhile, Transport for the North, a new body of representatives from Liverpool, Manchester, Leeds, Sheffield and Hull, will be created so the cities can "speak with one voice". This is expected to work along the same lines as Transport for London.
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