UK: The National Audit Office says the Department for Transport has made some progress with setting up the Northern Powerhouse Rail programme over the past decade, but more needs to be done to ensure effective cross-government collaboration and closer alignment with wider economic growth strategy.
In a report published on March 11, the NAO recommends that the government:
- fully aligns its strategic case for NPR with the government’s developing Northern Growth Strategy;
- establishes how it will work with key strategic partners in decision-making and funding, ensuring that roles and responsibilities are clear and understood;
- reviews the benefits it can deliver from each phase of the NPR programme against the expected costs;
- regularly assesses how it is applying lessons learned from High Speed 2 and other major rail programmes, including having in place strong governance processes, the right skills and capabilities and effective contract and financial management. DfT has identified 11 lessons from previous major rail programmes, and 24 actions for embedding these lessons into NPR.
NAO says regional stakeholders indicated that poor engagement and a lack of clarity from central government had hampered their ability to progress local plans until January 2026. At that point, the government announced more details on NPR as part of the wider Northern Growth Strategy.
Network Rail is responsible for the first phase of NPR, with completion envisaged for the 2030s. This is now expected to comprise line of route and station enhancements between Bradford, Leeds, Sheffield and York.
The audit body says DfT still needs to decide who will undertake Phase 2, predominantly comprising a new line between Liverpool and Manchester. Options include the creation of a new delivery body; until then, HS2 Ltd is responsible for developing the scope and obtaining consents.
The third phase of NPR in the 2040s would see further upgrades across the Pennines, building on the current Transpennine Route Upgrade programme.
NAO says the government has not yet set up appropriate governance arrangements between the national and local level or between the different departments responsible for delivering the programme’s benefits. It says DfT needs to determine who will be responsible for building the new lines, how the creation of Great British Railways will affect the programme, and how it can best maximise the benefits from NPR given the £45bn funding cap.
NAO says DfT will need to make trade-offs between the benefits it can achieve and how much different options might cost. The cancellation of HS2 Phase 2 and expanding the scope of the NPR programme to include Sheffield, Hull and Bradford have increased the estimated cost of NPR by £13·4bn to £30·6bn at 2019 prices. With the HS2 cancellation impacting on the level of benefits, this has reduced DfT’s expected benefit-cost-ratio for NPR under conventional transport appraisal methodology from 0·8 to 0·4, indicating poorer value for money.
Responses
Commenting on the report, NAO head Comptroller & Auditor General Gareth Davies said ‘improving rail service and infrastructure in the north of England is a vital enabler of economic growth and productivity. DfT has taken steps to set up Northern Powerhouse Rail for success, including identifying key lessons from other programmes. But further work is needed to ensure it aligns with national and local growth plans.’
Sir Geoffrey Clifton-Brown MP, Chair of the Committee of Public Accounts, said ’the north of England has waited far too long for problems with rail infrastructure to be addressed. We finally have some clarity over what DfT will do as part of the Northern Powerhouse Rail programme, which will be an opportunity for the department to salvage its severely tarnished reputation following the litany of failures in the HS2 programme.’ He added ‘it will come as no surprise that the Committee of Public Accounts will be following the programme closely’.
DfT has accepted the NAO’s recommendations and is working to embed them into NPR. A spokesperson said ‘for too long, the north has been held back by a rail network that hasn’t kept pace, but we are changing that by delivering Northern Powerhouse Rail in full. We are committing up to £45bn for NPR, working closely across government and with local leaders, with lessons learned from HS2 and other major rail projects, to make sure we deliver the economic growth the north needs.’
Railway Industry Association CEO Darren Caplan said that for the supply chain, the report ‘underlines why long-term clarity and consistency are so important. Businesses need confidence in the scope, delivery timetable and funding profile of major projects if they are to invest in skills, facilities and innovation.’
