CHANCELLOR George Osborne sparked disbelief yesterday with a sudden vision of a “powerhouse” northern economy centred around a new Manchester-Leeds high-speed railway.

Train drivers’ union Aslef leader Mick Whelan accused Mr Osborne of peddling a political stunt to shore up the Tory vote in next year’s general election.

Labour shadow chancellor Ed Balls declared that nobody would believe the Tories could deliver the jobs, growth and investment which the north of England needed.

And Northumberland MP Ian Lavery accused austerity architect Mr Osborne of “totally alienating” people in the English north-east by ignoring the severe problems that they faced.

“His suggested High Speed 3 is from Manchester to Leeds. But Leeds is not the north-east,” Mr Lavery said.

Mr Osborne’s flights of fantasy came in a speech at Manchester’s Museum of Science and Industry.

“I’m here to talk to you today about what we can do to make the cities of the north a powerhouse for our economy again ­ with new transport and science and powerful city governance,” he announced.

He praised “remarkable” changes in Manchester, Liverpool, Leeds and Newcastle over the past thirty years.

“I feel the buzz and the energy every time I’m here,” he said.

But he then went on to urge a joining together of northern cities to overcome London’s economic dominance.

“I want us to start thinking about whether to build a new high speed rail connection east-west from Manchester to Leeds based on the existing rail route,” he said.

The new HS3 should, he said, be considered as part of a review into the second phase of the £50 billion HS2 high-speed rail project.

Mr Osborne also urged a “conversation” about elected mayors for Greater Manchester and Leeds, with powers similar to the Mayor of London.

Mr Whelan said the union welcomed any investment which could help build a modern, integrated railway fit for the 21st century.

“But where is the time-line, where is the money and where is the strategic thinking?” he asked.