A private consortium has proposed the new 50-mile Midlands-Northwest Rail Link as an alternative to the scrapped HS2 northern leg, following a review commission by the mayors.

The proposed new line would run from Lichfield to High Legh, south-east of Warrington.

A review commissioned by the mayors found said a new railway line was vital to addressing the growing strain on the existing West Coast Main Line (WCML) and the M6 motorway.

It said the proposed new line would cost between 60 and 75 per cent less than the proposed HS2 northern leg, which was axed last year by former Prime Minister Rishi Sunak.

The savings would be delivered through lower design speeds, ballasted track, UK rather than European standard cross-sections and building on the existing rail network.

Henrietta Brealey, chief executive of Greater Birmingham Chambers of Commerce, said: “The previous Government's decision to curtail the progress of HS2 beyond Birmingham was a kick in the teeth to the regional growth agenda so the release of this report couldn't be more timely.

“It's great to see the Combined Authority mayors working in tandem to explore practical options to enhance rail connectivity between our great cities.

“By utilising private sector expertise, we can hopefully move forward with building a railway that will help to improve capacity on the network, create jobs, boost productivity levels and ultimately drive economic growth.

“As a Chamber we look forward to working with the West Midlands mayor and other key local stakeholders to drive this agenda forward.”

West Midlands mayor Richard Parker said: “Additional rail capacity to and from the North is vital for the West Midlands.

“It's about more than quicker journeys, it's about connecting people, communities, and businesses to jobs and opportunities.

“I'll work with the Government to ensure this happens.”

Greater Manchester mayor Andy Burnham said: "The report is clear: if we fail to put in place a plan soon to fix rail capacity and connectivity between the North and the Midlands, the already-congested West Coast Main Line and M6 will become major barriers to economic growth in the UK.

“But there is good news for the Government. The report concludes that we do not have to revive HS2 to unlock those benefits.

“There is a viable option to build a new rail line between Lichfield and High Legh, connecting HS2 to Northern Powerhouse Rail, with almost all of the benefits of HS2 delivered quickly and, crucially, at a significantly lower cost.”