A cross-party group of MPs has warned that the Northern Powerhouse Rail project is at risk of repeating the failures of HS2, including poor planning, lack of oversight, and escalating costs. The warning comes in a report from the Public Accounts Committee, which scrutinizes government spending.
Key Findings from the Report
The report, published on Wednesday, highlights that the government has not yet produced a detailed business case for the Northern Powerhouse Rail scheme. MPs argue that without clear cost estimates and a realistic timeline, the project could suffer from the same problems that plagued HS2, which has seen its budget balloon from £37.5 billion to over £100 billion and its completion date pushed back by years.
Committee chair Meg Hillier said: “The government must learn the lessons of HS2. Northern Powerhouse Rail cannot be allowed to become another expensive and delayed project. We need a clear plan, robust oversight, and a realistic budget from the outset.”
Concerns Over Governance and Funding
The MPs also expressed concern about the governance structure of the project. They noted that the lack of a single accountable body could lead to confusion and inefficiency. The report recommends establishing a dedicated delivery authority with clear responsibilities and powers.
Funding is another major issue. The government has pledged £3.9 billion for the project, but MPs say this is insufficient. They estimate that the full cost could be up to £20 billion, and they urge the Treasury to commit to a long-term funding plan.
Impact on the North of England
The Northern Powerhouse Rail project is intended to improve connectivity between cities such as Manchester, Leeds, and Newcastle. Supporters argue that it is essential for economic growth in the region. However, the MPs warn that delays could undermine these benefits.
“Every year of delay costs the northern economy billions in lost productivity and investment,” said Hillier. “We cannot afford to get this wrong.”
The government has responded by saying that it is committed to delivering Northern Powerhouse Rail and that lessons from HS2 are being applied. A spokesperson said: “We are already taking steps to improve project management and ensure value for money.”
Next Steps
The committee has called on the government to publish a full business case by the end of the year. It also wants regular progress reports to be submitted to Parliament. The MPs have warned that if these recommendations are not followed, they will consider further action.
