MPs warn Northern Powerhouse Rail risks becoming “another HS2” without delivery reset
The government’s £45bn programme needs stronger governance, tighter cost control, and a credible delivery plan, the Public Accounts Committee has warned.
The scheme is to be delivered in three phases, with the first focusing on improving connections on existing lines between Sheffield and Leeds, Leeds and York, and Leeds and Bradford.
In parallel, development work on reopening the Leamside Line in the North East will progress.
Subsequent phases include a new rail route between Liverpool and Manchester via Manchester Airport and Warrington, followed by further upgrades to cross-Pennine connections between Manchester, Leeds, Bradford, Sheffield, and York.
The report states there is “considerable uncertainty” over the flagship rail programme despite more than 12 years of development, with major questions still unanswered over scope, procurement, routes and affordability.
The committee said it was “not confident” the DfT had learned the lessons from HS2 and warned there was a “clear risk” the full programme could not be delivered within the Treasury’s £45bn funding cap.
While welcoming the government’s renewed commitment to NPR through its Northern Growth Strategy, MPs said the programme remains at an early stage despite first being announced in 2014.
Key decisions, including the final route, delivery arrangements and integration with wider transport investment, have yet to be made.
Funding cap questioned
The PAC raised serious concerns over the decision to impose a £45bn funding cap before the scheme has been fully designed or costed.
It said the DfT has “no convincing plan” for controlling expenditure, prioritising investment or managing inevitable trade-offs if costs increase.
MPs also questioned the role of HS2 Ltd in developing cost estimates for parts of the programme, citing the company’s poor record on cost forecasting and delivery.
The committee has called on HM Treasury to explain how it arrived at the £45bn figure, while urging the DfT to publish a clear strategy showing how spending will be controlled, how benefits will be prioritised and what elements of the programme could be cut if budgets come under pressure.
Governance “echoes” HS2
The report argues that governance arrangements remain inadequate for a programme expected to run for more than two decades.
Although the DfT has established working arrangements with mayoral authorities, MPs warned there are no formal structures for joint decision-making across Whitehall departments, despite the programme’s reliance on bodies including HM Treasury and the Ministry of Housing, Communities and Local Government.
The PAC said this mirrors the weak governance seen during the early stages of HS2, which it argues contributed to many of the project’s long-term problems.
It has called on the DfT to explain within six months whether NPR should be formally managed as a government mega-project and demonstrate that its governance arrangements are robust enough to manage future funding and scope decisions.
Delivery risks remain
The committee also questioned how Northern Powerhouse Rail will fit alongside existing rail investment programmes.
While parts of the West Coast Main Line are expected to reach capacity during the 2030s, key NPR infrastructure is not expected to be completed until the mid-2040s, leaving uncertainty over how the DfT intends to bridge the gap.
MPs also warned that local transport plans across the route remain insufficiently integrated, raising concerns that wider regeneration and economic growth objectives could be undermined.
The report calls on the department to demonstrate how NPR will support wider transport investment while ensuring lessons from HS2, the TransPennine Route Upgrade and other major infrastructure programmes are consistently embedded across the organisation.
The PAC concludes that Northern Powerhouse Rail has the potential to transform connectivity across the North, but says success will depend on far stronger project controls than those currently in place.
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