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 Government (MHCLG) to ensure it enables the wider economic benefits intended for the North, such as urban regeneration and industrial growth. However, no formal governance is in place to bring the relevant central government departments together on joint decision-making. In 2025, the government announced changes to how it manages mega-projects to help remove obstacles to delivery for its largest and most complex projects. Northern Powerhouse Rail has all but one of the characteristics of a mega-project based on the Office of Value 4 for Money’s definition, but the government is not yet treating it as one. Whether it is formally a mega-project or not, the Department must ensure governance is as clear and effective as possible. recommendation a. Within six months, the Department should write to us to confirm whether Northern Powerhouse Rail is a mega-project or not. b. Within six months, the Department should write to us to explain how the governance arrangements in place are appropriate for the programme’s scale, longevity and dependence on other central government bodies for success.