I have done some more reading around this and it does not appear to be an EMT or their succesor EMR's decision.
Castlefield has been designated 'congested infrastructre' the definition of which is the infrastructure cannot meet the demands of the services scheduled to cross it. In May/June EMT were instructed by the DfT to renew/rollover their path access agreement with Network Rail for 12 months to ensure continuity for the replacement operator.
Network Rail have then refused the application (even though it is identical to the existing setup) specifically for paths beyond Manchester Piccadilly, due to the Castlefield corridor congestion. Arriva Rail North appear to have lodged a complaint as part of the consultation to grant these paths as they are unable to obtain paths for the new services they are trying to bring in through over the same section of track.
According to documents on the ORR's
website detailing the back and forth:
Tim Write of Network Rail - 7 June 2019 said:
Network Rail, whilst noting that no changes are sought, does not support firm rights for any train services which involve the use of the section of route between Castlefield Junction and Manchester Piccadilly East Junction. Network Rail notes the declaration of congested infrastructure between Castlefield Junction and Manchester Piccadilly East Junction inclusive as notified to ORR in its letter of 16th April 2019.
Lanita Masi of East Midlands Trains - 20 June 2019 said:
As acknowledged in NR’s letter, EMT is not seeking additional services or access rights through this application. With regard to the issue of Castlefield Corridor, we would expect NR to be fair and consistent with the approach taken with Northern and TPE in which NR took their existing services in May 2019 as a baseline and insisted on contingent rights to apply only for additional paths over the Castlefield Corridor. It is in this spirit that EMT believes the Declaration of Congested Infrastructure was intended and EMT strongly believes that the continued status of its existing services (as Firm Rights) should not be disadvantaged in this circumstance.
So despite the fact everybody agrees that there is nothing in EMT (now EMR)'s application that is new, due to the TPE services from Victoria having been granted "Firm Rights" without the infrastructure being able to cope, and EMT (now EMR) being in the unfortunate position that it is now their time to renew access rights, it is EMR that will loose their rights to provide a service. So it does appear that East Midlands Railway, the population of Warrington, Widnes and the wider Liverpool City region are the ones being penalised for the misguided* projects that have led us to this point. It is clear from those responses that any culling of this service beyond Manchester will not result in a replacement, entering the section of track between Castlefield Junction and Manchester Piccadilly East as that too would fall foul of the same requirement to negotiate a path across congested infrastructure.
Oh what a wonderful joined up railway we have. I have absolutely every sympathy for those from Warrington, Widnes and Liverpool who will no doubt be feeling like this is a right stich up to prioritise 2 tph from the North East to Manchester Airport rather than provide the simple basic connectivity these populations have built their lives around.
*It is worth remembering at this point that the increase in congestion occured when the long distance Transpennine Express services were re-routed via the new Ordsall chord due to the insistance that having reached Manchester Victoria, their western terminus must be Manchester Airport rather than one of the other potential western Termini (Blackpool / Chester for example). It is also worth remembering just how long the various ministers in charge of the DfT have been sitting on the TWA Order that would undoubtedly provide some relief to the congestion in this corridor.