The government’s flagship Northern Powerhouse Rail (NPR) programme risks repeating many of the costly mistakes that plagued HS2 unless governance, planning and cost control are significantly improved, according to a damning report from the Public Accounts Committee (PAC).
In its latest report, the influential cross-party committee warns that, despite renewed political commitment to improving rail connectivity across the North of England, there remains considerable uncertainty over the project’s scope, delivery and affordability. Perhaps most significantly, MPs question whether the scheme can realistically be delivered within the government’s £45bn funding cap when much of the railway has yet to be fully designed or costed.
The PAC concludes that the Department for Transport (DfT) has failed to demonstrate a convincing plan for delivering NPR within budget and has not provided sufficient evidence that it has learnt the lessons from the failures that beset HS2. The committee is particularly concerned that key decisions on routes, capacity, governance and delivery remain unresolved more than a decade after Northern Powerhouse Rail was first proposed.
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.”
The committee’s concerns centre on the £45bn funding cap announced as part of the government’s transport strategy. MPs argue there is little evidence explaining how this figure was calculated, particularly when the overall programme has yet to be fully scoped. Without detailed engineering designs and reliable cost estimates, the PAC believes there is a significant risk that NPR could follow HS2’s trajectory of escalating costs and repeated revisions.
The report also raises questions about governance. It highlights the involvement of HS2 Ltd in developing plans for the Liverpool-Manchester section of the railway, arguing that the company’s record on cost estimation and programme delivery does little to inspire confidence. MPs warn that unless governance arrangements are strengthened from the outset, the project could repeat many of the structural weaknesses that contributed to HS2’s well-documented difficulties.
Beyond governance, the PAC identifies wider delivery risks. It says there remains uncertainty over how local authorities and combined mayoral authorities will oversee the programme, while planning, environmental mitigation and biodiversity requirements could place additional pressure on costs. As seen on HS2, environmental obligations have the potential to add significant expense if they are not properly managed during the design stage.
The committee nevertheless recognises the economic importance of Northern Powerhouse Rail. Better east-west rail connectivity between cities including Liverpool, Manchester, Bradford, Leeds, Sheffield, Hull and Newcastle is widely regarded as essential to improving productivity, supporting housing growth and creating a more balanced national economy. The PAC says its criticism is intended to improve the likelihood of successful delivery rather than question the need for investment itself.
The Department for Transport has rejected suggestions that NPR will become another HS2. Responding to the report, a DfT spokesperson said: “NPR will not repeat the mistakes of HS2 which is why we accepted all the recommendations of the James Stewart Review and are taking a disciplined, phased approach, completing detailed technical work with all stakeholders before fixing precise choices for major infrastructure.
“Since announcing NPR in January, we have worked closely with Mayors to take the project forward. New joint partnership forums are already overseeing the next stage of development and Network Rail has begun developing engineering designs.”
Industry leaders have also stressed the importance of maintaining momentum while improving delivery discipline. The Northern Powerhouse Partnership has consistently argued that better rail connectivity is fundamental to unlocking economic growth across the North, while calling for greater fiscal devolution and stronger collaboration between central government and regional leaders to ensure projects can be delivered effectively.
The PAC’s report serves as a stark reminder that delivering major infrastructure is about more than political ambition. Without clearly defined scope, robust governance and realistic budgeting, even projects with widespread support can struggle to deliver value for taxpayers.
For Northern Powerhouse Rail, the challenge is now clear. The government must demonstrate that it has genuinely learnt the lessons of HS2 by producing a credible delivery plan capable of meeting both the ambitions for the North and the realities of a £45bn funding envelope. Until then, MPs warn, there remains a real risk that one of Britain’s most important transport projects could find itself repeating the very mistakes it was expected to avoid.
