A new report from the Public Accounts Committee has cast fresh uncertainty over the government’s long-promised Northern Powerhouse Rail programme, warning that the Department for Transport risks repeating mistakes seen in previous major rail projects, most notably HS2.
Despite more than a decade of development, NPR remains in its infancy, with critical elements of the scheme still unresolved. The PAC has warned that without stronger governance, clearer planning and more robust cost controls, the programme could struggle to deliver its intended economic transformation across the North within its £45bn funding cap.
Persistent Uncertainty After 12 Years
The committee’s findings highlight the extent to which NPR remains undefined. Key aspects of the scheme – including journey times, service frequency, network capacity, route alignments, delivery partners, and how regeneration benefits will be distributed – are yet to be finalised.
This lack of clarity is particularly concerning given the strategic importance of NPR. Improved east-west connectivity has long been viewed as essential to boosting productivity and unlocking economic growth across northern cities, an agenda closely aligned with ongoing policy discussions around infrastructure and regional inequality.
However, the PAC report concludes that, as it stands, it is still unclear how these ambitions will translate into tangible benefits for communities and businesses across the North.
Echoes of HS2 Governance Failures
One of the most striking warnings centres on governance. The PAC has identified significant gaps in how the DfT is managing cross-departmental decision-making and collaboration with local authorities.
The report cautions that the absence of formal joint governance structures mirrors early weaknesses in the HS2 programme, weaknesses that later contributed to cost overruns, delays, and reduced scope.
There are also concerns about how difficult regional trade-offs will be handled. The PAC suggests that without clearer mechanisms, investment decisions could disproportionately benefit some areas, such as Greater Manchester, at the expense of others, particularly where local funding contributions differ.
Concerns Over HS2 Ltd’s Role
The decision to appoint HS2 Ltd to develop plans for the Liverpool–Manchester section of NPR has also come under scrutiny. Given the company’s track record on cost estimation and delivery challenges, the PAC has questioned whether its involvement introduces further risk into the programme.
The committee has called on the government to explain how it will ensure that HS2 Ltd’s plans, particularly for later phases, are realistic, affordable and aligned with the programme’s funding constraints.
£45bn Cap Under Pressure
Perhaps the most significant concern raised relates to the £45bn funding cap itself. According to the PAC, this figure was set before the programme had been fully scoped or designed, raising fundamental questions about its credibility.
The report states that the DfT currently lacks a convincing plan for managing costs within this envelope, while also warning that regions less able to attract private investment or contribute local funding could be sidelined.
The Treasury has also been asked to clarify how the cap was determined in the first place, amid concerns that it may not reflect the true cost of delivering the full NPR vision.
Call for Greater Transparency and Accountability
The PAC is urging the DfT to provide regular updates to Parliament as the programme develops, alongside clearer plans for governance, cost control and benefit realisation.
Clive Betts, 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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