I'll believe it when I see it... Northerners need to be able to rely on politicians or cynicism will only grow
The government has been urged to ensure that the Northern Powerhouse Rail project more closely aligns with national and local growth plans and involves better collaboration between central and local authorities in a new report from the National Audit Office (NAO).
The Labour Government confirmed its plans for Northern Powerhouse Rail in January, aiming to improve east-west rail connections across the north. The project is set to include new and upgraded tracks and stations to provide more frequent trains and shorter journey times between Liverpool and Manchester, and Leeds, York and other cities to the east.
The Department for Transport (DfT) has been working on plans for Northern Powerhouse Rail for over a decade, during which time it has had to make key decisions on the overall scope of the programme following the cancellation of the HS2 connection to Manchester in October 2023.
The report said the DfT had identified important lessons from HS2 and other major rail programmes, including having in place strong governance processes, the right skills and capabilities, and effective contract and financial management.
However, it emphasised that the government has more work to do to show how it plans to deliver the wider economic benefits for the north of England enabled by Northern Powerhouse Rail. The government has not yet set up appropriate governance arrangements between the national and local level or between the different central government departments.
The report said the DfT must also determine who will be responsible for building the new rail lines, how the creation of Great British Railways as part of wider rail reforms will affect the programme, and how it can best maximise the benefits from the programme given the £45bn funding cap.
Further work needed
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 Northern Powerhouse Rail for success, including identifying key lessons from other programmes. But further work is needed to ensure it aligns with national and local growth plans."
To manage Northern Powerhouse Rail effectively and secure value for money, the NAO recommends that, at this early stage of the programme, DfT:
- Fully aligns its strategic case for the programme with the government's developing Northern Growth Strategy
- Establishes how it will work with key strategic partners in decision-making and funding as part of programme governance, ensuring that roles and responsibilities are clear and understood
- Reviews the benefits it can deliver from each phase of the programme against their expected cost
- Regularly assesses how effectively it is implementing relevant lessons learned from other programmes
‘Learn from previous mistakes’
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."
‘I’ll believe it when I see it’
India Gerritsen, researcher at IPPR North, said: "’I'll believe it when I see it’. The words of most northerners when Northern Powerhouse Rail funding was announced earlier this year.
"The major infrastructure upgrade will take decades, but of the government's £45bn commitment to Northern Powerhouse Rail, only £1.1bn has been guaranteed this Spending Review. That leaves the success of this project up to subsequent governments.
"We echo the call from the National Audit Office for cross-government co-operation, but we'd go further: Northern Powerhouse Rail must have cross-party co-operation. Northerners need to be able to rely on politicians of any stripe to advocate for them and support economic growth in their region – until this happens, cynicism will only grow."