Northern Powerhouse Rail, the rail project championed by Andy Burnham, is likely to exceed its £45 billion budget, according to an inquiry by the Public Accounts Committee (PAC). MPs warned that lessons from the ballooning cost of HS2 have not been learned.
PAC raises concerns over governance and funding cap
Clive Betts MP, 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, 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.”
The PAC also questioned the £45 billion funding cap, noting that the project has not been fully scoped or designed. Mr Betts added: “Both the Treasury and Department for Transport (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 £45billion cap.”
Andy Burnham's role and the North's growth potential
Mr Burnham, who is set to become the UK’s Prime Minister in less than three weeks, previously said he felt the “lack of high-quality rail infrastructure” in the north of England “holds back its growth potential”. The Northern Powerhouse Rail scheme was designed to transform east-west connectivity across the North of England.
Concerns have now been raised about the £45 billion funding cap, especially after the cost of HS2 ballooned by at least £60 billion from initial estimates. Mr Betts said: “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.”
Scrutiny and deliverability
Mr Betts also emphasised the need for mayoral authorities to have enough scrutiny for the project to be delivered successfully. He said: “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.”
A Department for Transport spokesman responded: “Northern Powerhouse Rail (NPR) 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 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. The plans for NPR were developed jointly with Mayors, and 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.”
