The Northern Powerhouse Rail programme must deliver stronger collaboration between national and local authorities and better align with regional and national growth strategies if it is to realise its promised benefits for the north of England, according to a new report from the National Audit Office.
Announced in January 2026 as part of the Northern Growth Strategy, NPR aims to transform east–west rail connectivity through a combination of new and upgraded track, stations and infrastructure. The programme intends to deliver more frequent services and significantly shorter journey times between Liverpool and Manchester in the west and Leeds, York and other major cities to the east—ultimately benefitting millions of passengers.
The Department for Transport has been developing NPR proposals for more than ten years, repeatedly reassessing scope and delivery options, particularly following the cancellation of the HS2 route into Manchester in October 2023.
In lessons learned from HS2 and other major rail programmes, the DfT acknowledges the need for strong governance, clear decision‑making, specialist skills, financial discipline and effective contract management. It has taken steps to coordinate NPR alongside other rail upgrades in the region, most notably the TransPennine Route Upgrade.
Despite this progress, the NAO warns government has “more work to do” to demonstrate how wider economic benefits will be delivered. Regional leaders indicated that until the January 2026 announcement, unclear engagement and limited information from central government hindered their ability to plan local economic and transport developments.
The NAO also highlights that the government has not yet established appropriate governance structures between national and local bodies, or between the multiple central government departments involved in delivering the programme’s benefits.
Several significant decisions remain outstanding. The DfT must determine:
- Who will build the new rail lines, particularly as the transition to Great British Railways reshapes rail governance.
- How to maximise benefits within the £45bn funding cap, set for spending from 2026–27.
- How NPR interfaces with other major projects, including the TransPennine Route Upgrade and the wider Northern Growth Strategy.
To ensure NPR achieves value for money and delivers on its regional economic ambitions, the NAO makes four recommendations:
- Fully align NPR’s strategic case with the wider Northern Growth Strategy.
- Establish clear roles and responsibilities through strengthened programme governance with regional partners.
- Review costs and benefits for each phase to ensure they represent good value.
- Regularly assess how lessons learned from previous major programmes are being applied.
NAO Head Gareth Davies said:
“Improving rail service and infrastructure in the north of England is a vital enabler of economic growth and productivity.
“DfT has taken steps to set up Northern Powerhouse Rail for success, including identifying key lessons from other programmes. But further work is needed to ensure it aligns with national and local growth plans.”
The NAO notes that many elements of the programme remain “work in progress” as the business case continues to develop ahead of further reporting later this year.
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