Northern Powerhouse Rail
Public Accounts Committee
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Inquiry
Opened: 20 Mar 2026
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Since 2014, successive governments have acknowledged the limitations of rail infrastructure in the North of England. Several large cities - including Leeds, Liverpool, Manchester, Newcastle and Sheffield - are poorly served by transport connections. The Northern Powerhouse Rail programme is intended to improve connectivity between major cities in the North …
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3
Recommendations
27
Conclusions
1
Report
1
Oral session
1
Event
Activity timeline 2 events
1 Jul
2026
2026
Report published
27 Apr
2026
2026
Oral evidence
Oral evidence sessions 1 session
27 Apr 2026
View on parliament.uk
Jo Shanmugalingam · Department for Transport
Nick Bisson · Department for Transport
Tom Riordan CBE · HM Treasury
Will Davis · Ministry for Housing, Communities and Local Government
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| 8th Report - Northern Powerhouse Rail | HC 97 | 1 Jul 2026 | 30 | Pending |
Recommendations & Conclusions
30 results
2
Recommendation
8th Report - Northern Powerhouse R…
There is a clear risk that the Department will not be able to manage the...
There is a clear risk that the Department will not be able to manage the programme within its £45 billion funding cap. HM Treasury has set a £45 billion funding cap for the programme. This may help affordability, but we …
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HM Treasury
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3
Conclusion
8th Report - Northern Powerhouse R…
The Department has not yet put in place appropriate governance arrangements with other central government...
The Department has not yet put in place appropriate governance arrangements with other central government departments. Northern Powerhouse Rail requires input from and coordination with other central government departments like HM Treasury and the Ministry of Housing, Communities and Local …
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HM Treasury
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4
Recommendation
8th Report - Northern Powerhouse R…
The Department’s arrangements for working with local government do not appear sufficient to manage the...
The Department’s arrangements for working with local government do not appear sufficient to manage the trade-offs it will need to make on funding and scope. The Department has agreements in place with individual local areas and is working with local …
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HM Treasury
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5
Conclusion
8th Report - Northern Powerhouse R…
The Department has not yet set out how Northern Powerhouse Rail will work alongside national...
The Department has not yet set out how Northern Powerhouse Rail will work alongside national and local transport plans and priorities. The government intends for Northern Powerhouse Rail to support future work to improve north-south connections on the West Coast …
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HM Treasury
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6
Recommendation
8th Report - Northern Powerhouse R…
We are not convinced that the Department has embedded all lessons from past failures into...
We are not convinced that the Department has embedded all lessons from past failures into its management of the programme. We recognise that the Department has adapted its approach to Northern Powerhouse Rail in response to lessons from High Speed …
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HM Treasury
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1
Conclusion
8th Report - Northern Powerhouse R…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Transport (the Department), the Ministry of Housing, Communities and Local Government (MHCLG), and HM Treasury’s Northern Growth Envoy.1
HM Treasury
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7
Conclusion
8th Report - Northern Powerhouse R…
The Northern Growth Strategy sets out how the government expects providing better connections between northern...
The Northern Growth Strategy sets out how the government expects providing better connections between northern city regions and towns through Northern Powerhouse Rail to support economic growth, for example by widening the pool of workers available to firms and the …
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HM Treasury
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8
Conclusion
8th Report - Northern Powerhouse R…
HM Treasury has set a funding cap of £45 billion (2025 prices) on programme spend...
HM Treasury has set a funding cap of £45 billion (2025 prices) on programme spend from 2026–27.12 The funding cap amount was based on factors including early estimated cost ranges based on potential scope options and assessment of long-term affordability, …
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HM Treasury
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9
Conclusion
8th Report - Northern Powerhouse R…
However, the Department has a track record of high infrastructure costs and poor cost estimation...
However, the Department has a track record of high infrastructure costs and poor cost estimation on its major rail projects. For example, in February 2025 we reported that the £45 billion budget for High Speed Two (HS2) Phase 1 was …
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HM Treasury
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10
Conclusion
8th Report - Northern Powerhouse R…
We asked the Department how it would ensure within-budget delivery for Northern Powerhouse Rail phases...
We asked the Department how it would ensure within-budget delivery for Northern Powerhouse Rail phases 1 and 2 so that there is funding left for the cross-Pennine improvements in phase 3. The Department replied that its approach was to not …
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HM Treasury
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11
Conclusion
8th Report - Northern Powerhouse R…
The Department told us that local places could also top up the funding from central...
The Department told us that local places could also top up the funding from central government.19 We asked how the Department was supporting local funding contributions and ensuring areas less able to mobilise funds are not left behind. The Department …
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HM Treasury
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12
Conclusion
8th Report - Northern Powerhouse R…
The NAO found the Department had established appropriate steps to identify lessons from other major...
The NAO found the Department had established appropriate steps to identify lessons from other major programmes, but that it needed to go further to embed these in Northern Powerhouse Rail.23 In oral evidence, the Department was clear on the importance …
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HM Treasury
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13
Conclusion
8th Report - Northern Powerhouse R…
However, a Department-wide review by the Government Internal Audit Agency (GIAA) in January 2026 found...
However, a Department-wide review by the Government Internal Audit Agency (GIAA) in January 2026 found that programme and project teams across the Department were not consistently applying lessons they had identified.25 We asked the Department how it was responding to …
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HM Treasury
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14
Conclusion
8th Report - Northern Powerhouse R…
In February 2025, we reported that HS2 Ltd’s efforts to reduce the environmental impact of...
In February 2025, we reported that HS2 Ltd’s efforts to reduce the environmental impact of HS2 were not delivering value for money. For example, it was building a 1km ‘bat tunnel’ at a cost of around £100 million to reduce …
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HM Treasury
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15
Conclusion
8th Report - Northern Powerhouse R…
While the Department for Transport is responsible for delivering the railway, it will need others...
While the Department for Transport is responsible for delivering the railway, it will need others in central government to conduct supporting activities to deliver the intended wider economic benefits.30 The Department told us that “it absolutely relies on the partnership …
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HM Treasury
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16
Conclusion
8th Report - Northern Powerhouse R…
In 2025, the Office of Value for Money set out its definition for mega- projects—the...
In 2025, the Office of Value for Money set out its definition for mega- projects—the government’s largest and most complex projects—and the government announced changes to how it manages mega-projects to help remove obstacles to delivery.34 The NAO found that …
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HM Treasury
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17
Conclusion
8th Report - Northern Powerhouse R…
However, the NAO also set out that the government views Northern Powerhouse Rail as a...
However, the NAO also set out that the government views Northern Powerhouse Rail as a programme of different projects rather than one single mega-project.36 In oral evidence, the Department told us Northern Powerhouse Rail was “in effect [ … ] …
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HM Treasury
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18
Conclusion
8th Report - Northern Powerhouse R…
The Department told us it was discussing with HM Treasury whether Northern Powerhouse Rail would...
The Department told us it was discussing with HM Treasury whether Northern Powerhouse Rail would be designated a mega-project. It said its key concern was how to get the benefits of the mega-project governance reforms as well as the benefits …
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HM Treasury
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19
Conclusion
8th Report - Northern Powerhouse R…
The Department told us that the government would ultimately take final decisions on the programme,...
The Department told us that the government would ultimately take final decisions on the programme, but that it was seeking to design a governance system and partnership with local leaders “such that—to every extent possible—we get to a consensus on …
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HM Treasury
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20
Conclusion
8th Report - Northern Powerhouse R…
At the local level, it has discussions with mayors and local councils about specific stations...
At the local level, it has discussions with mayors and local councils about specific stations or corridors, integration with local transport and development plans, and local funding contributions.41 The NAO reported the Department has signed agreements with individual combined authorities …
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HM Treasury
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21
Conclusion
8th Report - Northern Powerhouse R…
The Department explained it was working with sub-regional groups to develop the railway plans for...
The Department explained it was working with sub-regional groups to develop the railway plans for phases 1 and 2.43 The NAO reported these delivery boards—including the Liverpool–Manchester Railway Board and the White Rose Partnership—are attended by combined authority mayors and …
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HM Treasury
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22
Conclusion
8th Report - Northern Powerhouse R…
At the programme-wide level, the Department described “unified discussions” with mayors and ministers, where the...
At the programme-wide level, the Department described “unified discussions” with mayors and ministers, where the indicative allocations for each phase of the programme will be set.45 The Treasury’s Northern Growth Envoy, who had been in post since this new role …
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HM Treasury
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23
Conclusion
8th Report - Northern Powerhouse R…
We are concerned that this partnership-based system is not clear on responsibilities and may not...
We are concerned that this partnership-based system is not clear on responsibilities and may not be robust enough for difficult trade-off decisions between local areas.48 For example, an underground station at Manchester Piccadilly would enable more development opportunities above the …
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HM Treasury
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24
Conclusion
8th Report - Northern Powerhouse R…
The Treasury’s Northern Growth Envoy acknowledged that “it is really hard to agree stuff across...
The Treasury’s Northern Growth Envoy acknowledged that “it is really hard to agree stuff across the north of England” and that “there are really difficult decisions still to come”.50 However, he said he was confident in the approach they were …
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HM Treasury
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25
Conclusion
8th Report - Northern Powerhouse R…
As part of its January 2026 announcements, the government committed to building a new line...
As part of its January 2026 announcements, the government committed to building a new line between Birmingham and Manchester to improve north-south connections and meet expected capacity requirements. To enable these improvements, the government confirmed Northern 45 Q 18 46 …
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HM Treasury
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26
Conclusion
8th Report - Northern Powerhouse R…
We highlighted this gap to the Department.
We highlighted this gap to the Department. It told us it was looking at a range of measures to boost capacity without new infrastructure, but did not provide further detail on the measures. It also explained there was significant uncertainty …
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HM Treasury
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27
Conclusion
8th Report - Northern Powerhouse R…
The Department was clear on the need for Northern Powerhouse Rail to integrate with local...
The Department was clear on the need for Northern Powerhouse Rail to integrate with local transport, stating that “maximising the benefits of major rail investment requires coherent local planning that joins up rail, regeneration and local transport [and] that is …
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HM Treasury
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28
Conclusion
8th Report - Northern Powerhouse R…
We asked the Department how it was managing interdependencies with other transport plans and how...
We asked the Department how it was managing interdependencies with other transport plans and how it could ensure Northern Powerhouse Rail was integrated with local transport networks, if local transport decisions were left up to mayors. The Department told us …
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HM Treasury
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29
Conclusion
8th Report - Northern Powerhouse R…
The Treasury’s Northern Growth Envoy emphasised that their approach with local areas was about more...
The Treasury’s Northern Growth Envoy emphasised that their approach with local areas was about more than just transport and stations, but “placemaking”.63 MHCLG also set out that it was trialling ‘place-based business cases’, which consider how a set of interventions …
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HM Treasury
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30
Conclusion
8th Report - Northern Powerhouse R…
We asked how the programme’s strategic case would recognise the wider social benefits of investments,...
We asked how the programme’s strategic case would recognise the wider social benefits of investments, and how decisions would prioritise catalysing growth (such as in Bradford) rather than generating marginal gains in already strong economies (such as in Leeds and …
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HM Treasury
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