The government’s flagship Northern Powerhouse Rail programme is facing renewed scrutiny after a critical report from the Public Accounts Committee warned that there is still significant uncertainty around how its promised benefits will be delivered.
Despite more than a decade of planning, NPR remains at a relatively early stage, with fundamental aspects of the scheme yet to be finalised. Questions remain over journey times, service frequency, route alignments and even who will ultimately deliver large parts of the infrastructure.
The PAC report raises serious concerns about whether the Department for Transport has learned from past rail project failures, particularly those associated with HS2. MPs highlight gaps in governance structures and warn that weak coordination between government departments could undermine delivery.
Of particular concern is the absence of formal mechanisms for joint decision-making across Whitehall, alongside uncertainty about how effectively local authorities will be involved when difficult trade-offs arise.
The report suggests that without sufficient local funding contributions, improvements in one area – such as Greater Manchester – could come at the expense of investment elsewhere. This raises fears that less affluent regions may struggle to benefit equally from the programme.
Echoing lessons from HS2, the PAC has also questioned the decision to appoint HS2 Ltd to develop plans for the Liverpool–Manchester section of NPR. The company’s past struggles with cost estimation have led MPs to question whether current projections can be trusted.
The committee warns that relying on HS2 Ltd may increase the likelihood of cost overruns and delays, particularly if early estimates prove unrealistic. This, in turn, could jeopardise the later phases of NPR that are essential for delivering full connectivity across the North.
A key issue highlighted in the report is the £45bn funding cap placed on NPR. The PAC found no convincing evidence that the DfT has a clear strategy for managing costs within this limit, particularly given that the scheme has not yet been fully designed or scoped.
The origins of the cap itself have also been called into question, with the Treasury now being asked to explain how the figure was determined before the programme reached sufficient maturity.
There are growing concerns that financial constraints could force difficult choices about which elements of the scheme proceed, potentially leaving some regions behind.
The PAC has urged the DfT to improve transparency and provide regular updates to Parliament as the programme progresses. MPs are particularly keen to ensure that governance structures are robust enough to avoid repeating past mistakes.
The committee is also seeking clarity on how mayoral authorities will be involved in overseeing delivery and ensuring that investments align with regional priorities.
Clive Betts MP, Deputy Chair of the Public Accounts Committee, said:
“The government’s growth strategy earlier this year signalled that there is still an appetite to finally deliver the transport infrastructure the North so badly needs. But the spectre of HS2 hangs over Northern Powerhouse Rail. Our Committee has heard troubling echoes of the same mistakes in loose governance that HS2 made early on, and so much of the project remains almost impressionistic, twelve years on. HS2 have even been brought on board to develop NPR’s own plans. As HS2 has been a casebook example of how not to run a major project, so their involvement in NPR does not fill us with confidence.
“Both the Treasury and DfT have questions to answer about the project’s £45bn funding cap. Given the fact that this project has not been fully scoped or designed, it is hard to see how the government was able to arrive at a hard £45bn cap. We have therefore written to the acting accounting officer asking that question. We need to know how this figure was arrived at and how DfT will keep to it. Capping a project’s funding before it was even designed or costed feels like putting a roof on a house before the foundations are even laid. We also need to understand how mayoral authorities will have enough scrutiny for this project to be delivered successfully. Northern towns and cities desperately need better connectivity, and the growth that it will provide; what they and this Committee need right now, is a clear and deliverable plan to achieve that.”
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