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George Osborne: 'Northern powerhouse' high-speed rail needed

23 June 2014 Last updated at 08:51 BST

The Chancellor George Osborne has said that a so-called HS3 high-speed rail link in the north of England between Manchester and Leeds could help to create an economic area to rival London.

Mr Osborne told the BBC that Britain needs to create a "northern powerhouse".

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