The Public Accounts Committee (PAC) has warned that the Northern Powerhouse Rail (NPR) scheme is at a 'clear risk' of exceeding its £45 billion funding cap, echoing the mismanagement that plagued the HS2 project. The committee stated that considerable uncertainty remains over key details, including journey times, frequency, capacity, the exact route of the new line, and who will build it.
Background and Delays
First announced by the Conservatives in 2014, NPR has suffered from years of delays and changes in scope due to decisions by successive governments. Labour revived the scheme in January 2025 with a £45 billion funding cap. However, the PAC expressed concern that the Department for Transport (DfT) has not learned from past failures, particularly those of HS2.
Clive Betts, Deputy Chair of the PAC, 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.'
Phases and Ambiguity
The NPR project is divided into three phases. The first phase aims to improve connections on existing routes between Sheffield and Leeds, Leeds and York, and Leeds and Bradford by the 2030s. The second phase involves a new route between Liverpool and Manchester via Manchester Airport and Warrington, using a mix of new and existing lines. The third phase will enhance connections eastward from Manchester to Leeds, Bradford, Sheffield, and York.
Despite over 12 years of planning, the PAC noted that the programme remains at an early stage. They added: 'There is a clear risk that the Department cannot deliver the full programme and benefits within its £45 billion funding cap.'
Concerns Over HS2 Involvement
Betts highlighted that HS2, which has been described as a 'casebook example of how not to run a major project,' has been brought on board to develop NPR's plans. 'Their involvement in NPR does not fill us with confidence,' he said. He also questioned how the government arrived at a hard £45 billion cap given that the project has not been fully scoped or designed.
Government Response
A Department for Transport spokeswoman defended the project, stating: 'Northern Powerhouse Rail will deliver the biggest investment in rail connectivity in a generation, giving the North the transport links it deserves and driving growth, jobs and investment across the region. NPR will not repeat the mistakes of HS2... and we are taking a disciplined, phased approach - completing detailed technical work with all stakeholders before fixing precise choices for major infrastructure.'
She added that since announcing NPR in January, the DfT has worked closely with mayors, established new joint partnership forums, and Network Rail has begun developing engineering designs.
