Sources suggest PM could announce new spending on bus, tram and train schemes if he decides to axe part of HS2

Rishi Sunak could announce a series of transport improvements for the north of England including bringing forward the high-speed link between Manchester and Leeds as he seeks to limit the political fallout over the future of HS2.

Government sources suggested the prime minister still planned to press ahead with a proposal to axe the Birmingham to Manchester link of HS2 despite a furious response and Tory fears that it would fatally undermine their commitment to levelling up.

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