I would be in favour of splitting the present day Northern franchise into what used to resemble the former British Rail Regional Railways North West and regional Railways North East with the following modifications:
Preston - Ormskirk and Wigan Wallgate - Kirkby transferred to Merseyrail with extension of electrification. Also extending the present day Southport - Hunts Cross to Warrington Central or Birchwood with the necessary infrastructure improvements.
Greater Manchester, South Yorkshire, West Yorkshire, and Tyne & Wear Passenger Transport Executives to have direct input into service levels, infrastructure improvements, and quality of local services within their patch.
Lancaster - Morecambe/Heysham Harbour to operate as a shuttle, maybe converted to tram operation with Lancaster city centre being seriously penetrated and/or possibly extended to Lancaster University.
The present day Leeds - Lincoln Central via Barnsley to be revised to run Leeds - Nottingham (which would double the frequency between Leeds and Nottingham via Wakefield Kirkgate, and Barnsley to every 30 minutes) with the Lincoln Central trains being curtailed to run Lincoln - Sheffield (or Dore & Totley). This would eliminate the present day Leeds - Lincoln trains interacting with Nunnery Main Line Junction twice. Furthermore, being as the Leeds - Nottingham would be running on mostly former Midland Railway metals, this service would be transferred to the East Midlands franchise.
The present day Manchester - Sheffield via Hope Valley locals would remain unchanged. When the Hope Valley Capacity Upgrade is eventually completed, the present day Cleethorpes - Manchester Airport TPE to be revised to run Cleethorpes - Liverpool Lime Street via Warrington Central vice the Airport. A second Hope Valley TPE to be introduced between Liverpool Lime Street and Hull Paragon via Warrington Central. This would maintain the 30 minute frequency between Liverpool and Sheffield via Warrington Central and Manchester Pic, with the present day Sheffield - Hull via Goole limited stop transferring to TPE. A new East Midlands Manchester Pic - Nottingham (so as to maintain the 60 minute frequency between Manchester and Nottingham via Chesterfield) calling at Stockport, Hazel Grove (maybe), Chinley, Dore & Totley, Chesterfield, Alfreton, Toton Interchange for HS2 (maybe when it reaches the East Mids), Beeston, and Nottingham.
The Liverpool Lime Street - Crewe via Earlestown, Manchester Pic, and Airport local all stations to be revised to run Liverpool Lime Street - Manchester Victoria, Manchester Piccadilly - Airport, and Crewe - Airport. This would improve timetable reliability and robustness.
The present day TPE franchise to be revised with the Manchester Airport/Liverpool Lime Street - Glasgow/Edinburgh via Preston services transferring to the Intercity West Coast franchise. The remaining TPE routes to be merged into the new Regional Railways North East franchise, which would include the Hope Valley routes and maybe the York - Blackpool via Halifax and Burnley route.