The Government is still committed to building Northern Powerhouse Rail, despite claims that the scheme could be scrapped.
Boris Johnson's spokesman said reports the planned high speed cross-Pennine rail line will be axed are wrong.
Speaking to journalists, he acknowledged there had been speculation the Government would scrap Northern Powerhouse Rail, adding: "And that is incorrect."
However, Mr Johnson's spokesman could not say when the Government would publish the long-delayed Integrated Rail Plan for the Midlands and the North.
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The Integrated Rail Plan is supposed to set out the final plans for Northern Powerhouse Rail as well as High Speed Two (HS2), the high speed line linking Leeds, Manchester, Birmingham and London.
Northern Powerhouse Rail is expected to include a cross-Pennine line linking Newcastle, Leeds, Hull and Sheffield with Manchester and Liverpool.
Ministers have previously said they plan to ensure Northern Powerhouse Rail is integrated with HS2, creating a national high speed network. The northern part of the scheme would be known as High Speed North.
The Integrated Rail Plan is meant to set out exactly how this will be done. As well as ending speculation about the future of Northern Powerhouse Rail, it will also confirm the final decision about phase 2b of HS2, the section of track connecting the West Midlands with Leeds. There have been reports that this part of the HS2 project could be cancelled or scaled back.
The Department for Transport said in February 2020 that the Integrated Rail Plan would be published "by the end of the year", which means it is now six months late.
Mr Johnson's spokesman told journalists: "There have been reports about Northern Powerhouse Rail which are wrong.
"The Integrated Rail Plan will soon outline exactly how major rail projects, including HS2 and Northern Powerhouse Rail, will work together to deliver reliable train services that passengers need and deserve."
Asked when the plan will be published, he said: "that work is ongoing". He later said: "We will set out the plan in due course."
"We are pushing on with the work and we are going to set out via the Integrated Rail Plan how those major projects will proceed."
The Prime Minister's spokesman also dismissed reports that Treasury and Department for Transport officials were due to meet this week, to discuss scrapping Northern Powerhouse Rail. He said: "The reports about a meeting this week are incorrect."
A Department for Transport spokesperson said: "The Integrated Rail Plan will soon outline exactly how major rail projects, including HS2 phase 2b, the Trans Pennine Route Upgrade and other transformational projects such as Northern Powerhouse Rail, will work together to deliver the reliable train services that passengers across the North and Midlands need and deserve.”
It's also been reported that the cost of HS2 has risen by around £1.7bn in the past year due to delays caused by Covid, adding to the project’s estimated £106bn budget.
A Department for Transport spokesperson said: "Our focus remains on controlling costs, to ensure this ambitious new railway delivers its wealth of benefits at value for money for the taxpayer. The response to Covid-19 remains ongoing and final assessments of its effect have not been made."
