Worried MPs Fear Northern Rail Costs Will Soar Above £45 Billion Budget

By the Editorial Team · Wednesday, July 1, 2026

Members of Parliament have expressed concern that the Northern Powerhouse Rail project may exceed its £45 billion budget, citing unresolved governance issues and lessons unlearned from the HS2 rail project. This scrutiny highlights the need for stronger accountability and oversight as the project advances, with ongoing debate over how funding limits were set amid incomplete plans.

Concerns are mounting among Members of Parliament over the potential for the Northern Powerhouse Rail (NPR) project to exceed its £45 billion budget, according to a recent inquiry by the public accounts committee (PAC). The committee warned that lessons from the escalating costs of the HS2 high-speed rail project appear not to have been fully applied to NPR’s development.

Clive Betts, deputy chair of the PAC, highlighted ongoing governance issues, noting that HS2’s involvement in shaping NPR plans raises further apprehension. “HS2 has been a casebook example of how not to run a major project,” Betts said, expressing skepticism about the project's management and financial controls. He also questioned how the government set the £45 billion funding cap given that the NPR project remains in an early stage, lacking a complete scope and detailed design.

The inquiry also raised concerns about oversight, particularly the role of mayoral authorities in ensuring robust scrutiny and effective delivery of the programme. Betts underscored the need for clear accountability mechanisms to manage the large-scale infrastructure effort.

Northern Powerhouse Rail, championed by Andy Burnham, the Greater Manchester mayor and a potential future prime minister, aims to improve east-west rail connectivity across northern England. Burnham has previously stressed that inadequate rail infrastructure in the North hampers its economic growth potential.

Responding to the criticism, a Department for Transport spokesperson assured that the mistakes experienced with HS2 will not be repeated. They stated the government is adopting a disciplined, phased approach to the NPR scheme and emphasised that plans have been developed collaboratively with regional mayors. According to the spokesperson, this cooperation seeks to ensure the project moves forward effectively and addresses local and regional needs.

The inquiry’s findings underscore the challenges facing large infrastructure projects in balancing ambitious goals with financial discipline and governance. As NPR moves beyond planning stages, scrutiny of its budget, management, and delivery frameworks is expected to intensify.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.