MPs warn £45bn Northern Powerhouse Rail budget may not be enough

The Government faces a growing challenge to deliver the full Northern Powerhouse Rail (NPR) programme within its £45 billion funding envelope, according to a new report from Parliament's Public Accounts Committee (PAC).

The cross-party committee has warned there is a "clear risk" that the Department for Transport (DfT) will be unable to deliver all planned schemes and associated economic benefits without exceeding the current budget.

MPs are calling on both the DfT and HM Treasury to explain how funding will be allocated across each phase of the programme and why a spending cap was set before the railway had been fully designed or costed.

The concerns extend beyond funding. The PAC also questions whether lessons from HS2 have been fully absorbed, highlighting weaknesses in governance, cost forecasting and programme management. The involvement of HS2 Ltd in developing some of the cost estimates has also raised concerns among MPs.

Clive Betts MP, Deputy Chair of the committee, said while Northern Powerhouse Rail remains essential for unlocking economic growth across the North, the project risks repeating many of the mistakes that have plagued previous major rail programmes.

The committee also warns that the programme's third phase, improving rail links east of Manchester, could ultimately be scaled back if early cost estimates prove optimistic or spending pressures increase.

Further uncertainty remains over key elements of the scheme, including the final route of the proposed Liverpool-Manchester railway, delivery responsibilities and governance arrangements with regional authorities. MPs also questioned how the Government intends to manage future capacity constraints on the West Coast Main Line before new infrastructure is delivered.

The Department for Transport insists the project is taking a more disciplined approach than HS2, stating it has accepted recommendations from the James Stewart Review and is working closely with regional mayors and industry partners before final decisions are taken. Network Rail has already begun developing engineering designs, while new partnership arrangements are intended to provide greater certainty over costs, delivery and expected benefits.

The PAC says greater transparency will now be critical if Northern Powerhouse Rail is to avoid repeating the cost overruns and delays that have overshadowed previous major infrastructure projects.