Prime Minister Boris Johnson has said the Northern Powerhouse Rail project is something that should "definitely" happen.
On his first day as PM in Commons, Mr Johnson told MPs he was a "huge fan" of the scheme, which it’s hoped will link cities such as Newcastle, Hull, Leeds, Manchester and Liverpool.
During his inaugural Commons address in his new role, Conservative MP Andrew Percy urged the new PM to "continue all the efforts" to support British Steel - and suggested support for the Northern Powerhouse Rail could help this.
He added that Mr Johnson should "commit quickly" to NPR, also known as HS3, set to connect cities across the north to one another and southern locations using high-speed rail.
Responding, Mr Johnson said: "I am a huge fan of the Northern Powerhouse Rail. I went up to Manchester Airport and saw the plan.
"It's a truly visionary and exciting plan and I think we should definitely be doing it."
The director of Northern Powerhouse Partnership, Henri Murison, welcomed the news.
Mr Murison said: “Northern Powerhouse Rail will unlock the North’s economic potential, raising productivity and underpinning the creation of hundreds of thousands of new jobs. 
"Without new and substantially improved rail lines connecting our cities across the north, it will be impossible to create as dynamic a labour market as London, with people taking jobs either side of the Pennines with ease. This will rebalance the º£½ÇÊÓƵ’s economy and close the North-South divide.
"In Jake Berry as Minister of State alongside Rishi Sunak as Chief Secretary to the Treasury, we finally have strong voices for the North at the Cabinet table.
"Long-standing supporters of Northern Powerhouse Rail, today’s encouraging words from our new PM alongside the fact we now have a team better placed to drive forward the Northern Powerhouse agenda means a project to create jobs and homes will be seen through, alongside essential progress on devolution, education and skills.â€
On Thursday, Mr Johnson also hinted he might change Government policy on a third runway at Heathrow Airport.
He told MPs he will "study the outcome of the court cases" in relation to the expansion of the west London airport with a lively interest.
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Last year, MPs backed a third runway at Heathrow Airport, however, several environmental groups are challenging that decision in the courts.
Green Party MP Caroline Lucas asked if the PM would scrap the third runway given his opposition to the scheme as London mayor.
She said: "Few will forget his pledge to lie down in front of the bulldozers to stop the construction of a third runway at Heathrow Airport.
"Luckily for him, luckily for us all, he is now at the steering wheel and can turn those bulldozers around."
Responding, Mr Johnson said: "Of course, the bulldozers are some way off but I am following with lively interest the court cases.
Boris Johnson - business reacts
"Because I share her concerns about air quality and about pollution."
He added: "I will study the outcome of the court cases with a lively interest".
It was also announced on Thursday that Northern Powerhouse Minister Jake Berry will attend cabinet.
A Number 10 source said: "It's a Cabinet role that reflects the Government's emphasis on the Northern Powerhouse and regional economies."
