Andy Burnham has agreed to give train drivers on the country's key London to Manchester line a substantial pay rise amid concerns over potential strikes.

In his first major public sector wage deal since becoming Prime Minister, Burnham has accepted a pay deal with union representatives for Avanti West Coast, which runs services between London, Birmingham, Manchester and Glasgow.

Burnham was reportedly obliged to back down in a quick deal in order to avoid major disruption to Avanti services, The Sunday Times reports.

Industrial action on the West Coast line would have caused a political headache with delays for thousands of commuters.

However, commentators also attribute the deal to the PM's own close association with Manchester - which has been dubbed No 10 North in a "huge transfer of power" from London.

The deal is the latest victory for unions, following employment legislation expanding workers' rights overseen by Angela Rayner.

Avanti drivers typically start on salaries of around £70,000, as well as time-and-a-half on Sundays.

Aslef union has arranged a single-year wage rise of 3.6 per cent above the most recent inflation rate of 2.9 per cent. It comes despite Avanti cutting 38 daily services over the summer, after drivers refused to work on rest days.

Currently, Avanti is ranked as Britain's least punctual rail firm, with just over half (57.4%) of rail services running on time over the last 12 months.

Elsewhere, statistics from the Office of Rail and Road (ORR) has the second-worst record for reliability, with 5.6 per cent of scheduled services cancelled.

Meanwhile, ministers have also a 12 per cent pay rise for LNER drivers operating the east coast mainline, as well as easier working regulations including rules to show sick notes.

LNER, which was nationalised in 2018, currently has a higher track record than Avanti as 72.4 per cent of trains arrive on time, meeting the industry average.

Aslef donated over £300,000 to Labour in 2024, the same year in which Sir Keir Starmer swept to victory in a general election.

The government has defended its new pay deals, arguing ministers "prioritised resolving the rail union disputes, improving services for passengers and saving hundreds of millions in lost revenue to ease the burden on taxpayers".

But shadow transport secretary Richard Holden insists Labour has capitulated to their "union paymasters".

He added: "Taxpayers are being asked to stump up millions simply to save Burnham's blushes. This is Labour paying more for less with passengers and taxpayers footing the bill. Given this is his first major decision in the face of internal Labour opposition it bodes well for militant unions and far-left Labour MPs but terrible for taxpayers and Britain's national interest."