Northern Powerhouse Rail delay impacted mayors' investment decisions, NAO finds
The delay in the announcement of Northern Powerhouse Rail hampered mayors’ abilities to make investment decisions and progress other projects, the National Audit Office has said.
Today, the NAO, the UK’s independent public spending watchdog, has published its report on NPR, the long-awaited rail network connecting cities on both sides of the Pennines.
In January, Chancellor Rachel Reeves announced the latest version of this decades-long project, which will see £45bn of Treasury money spent on a “turn up and go” railway across the North that mirrors London’s transport network.
By the 2040s, she pledged there would be a new line from Liverpool to Manchester and into West Yorkshire, with simpler upgrades across the region being completed in the early 2030s.
This includes a new through station at Bradford, major improvements to Leeds station and electrification between Leeds and Sheffield.
The NAO confirmed that Ms Reeves had intended to announce the scheme in the spring of last year, however this was delayed due to decisions around the scope of north-south connections.
The report says: “Mayoral combined authorities and local authorities along the route are key strategic partners in delivering the wider growth that the programme would enable.
“However, the combined authorities that we spoke with told us that they felt that the engagement they had with DfT (Department for Transport) has not always been effective due to the delays.
“Without certainty about the programme, it was difficult for them to make investment decisions and progress other plans.
“This included local transport plans that integrate with the programme or wider spatial development plans.”
The NAO report makes the point that mayors and local authorities in the North have already had to deal with the changes from the Integrated Rail Plan in 2021 to Rishi Sunak’s so-called Network North in 2023, which came with the cancellation of the northern leg of HS2.
The watchdog says that NPR must align more closely with national and local growth plans, and involve better collaboration between central and local government, to fully realise its benefits.
Gareth Davies, head of the NAO, 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 NPR for success, including identifying key lessons from other programmes. But further work is needed to ensure it aligns with national and local growth plans.”
Henri Murison, chief executive of the Northern Powerhouse Partnership, said: “The National Audit Office has rightly highlighted the opportunities to learn from previous mistakes by government on some other mega projects so we do not make them again.”
“Having seen first-hand the positive working relationship between Bradford Council and government departments, I agree wholeheartedly on that as a model to emulate.
“The benefits across the route are not limited to transport, and ensuring that this is seen and treated as a wider economic intervention will make sure we get the maximum productivity benefits from the investment this government has committed to.”
A DfT 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.
“This will mean real change for passengers, including turn up and go services, faster journeys, and cities like Liverpool, Leeds, Manchester, Sheffield, Bradford and York connected like never before, creating opportunities and jobs.”