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 specify outputs but instead work with local leaders 10 HMG, Northern Growth Strategy: Case for Change, CP 1549, 14 January 2026 11 C&AG’s Report, para 10 12 C&AG’s Report, para 1.14; HMG, Northern Growth Strategy: Case for Change, CP 1549, 14 January 2026 13 C&AG’s Report, paras 13, 1.14 and 2.13 14 Qq 9 and 49 15 Transport for the North (NPR0003) 16 Committee of Public Accounts, HS2: Update following the Northern leg cancellation, Tenth Report of Session 2024–25, HC 357, 28 February 2025 17 Qq 43-44 9 on the outcomes to be delivered within the cap and therefore the scope decisions to be made. It also explained that its phased approach should provide a consistent pipeline of work for the supply chain, thus minimising construction costs. However, the witnesses did not set out a plan for cost management or explain how they would make trade-off decisions to remain within the cap.18