Select committee: Public Accounts Committee
Conclusion 8
8th Report - Northern Powerhouse Rail
Published 1 Jul 2026
Addressed to HM Treasury
Public Accounts Committee Northern Powerhouse Rail All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
HM Treasury has set a funding cap of £45 billion (2025 prices) on programme spend from 2026–27.12 The funding cap amount was based on factors including early estimated cost ranges based on potential scope options and assessment of long-term affordability, and will be adjusted for inflation over time.13 The Department explained that it is a cap on the funding to be provided by central government rather than a cost estimate. It told us it now needs to develop a scope that can be delivered within this cap.14 In its written evidence to us, Transport for the North stated the funding cap should be used to focus informed decisions on what scope is affordable to achieve the outcomes, and to drive additional value from the spending.15
From: Public Accounts Committee, 8th Report - Northern Powerhouse Rail (HC 97), 1 July 2026
Government response
The government responded to the whole report on 14 September 2026 (deadline 1 September 2026).