Source · National Audit Office

Northern Powerhouse Rail

Northern Powerhouse Rail’s success is dependent on better cross-government working and stronger ties to the government’s economic strategy.

Published: 11 Mar 2026 Recommendations: 6 Type: Value for Money NAO confirmed: 5 Department: Department for Transport
Dept: Department for Transport Topics: Business and industryEconomic growthInfrastructure financeLocal economyLocal governmentLocal services and housingManaging major projectsProgramme deliveryProject and service deliveryRailTransport nao.org.uk →

Recommendations

6 items
4 accepted 4 in progress 2 awaiting response

Recommendation 1

Addressee: Department for Transport · Source location: Page 12, point a

As part of developing its business case for the programme, DfT should fully align its strategic case with the government?s developing Northern Growth Strategy and its areas of focus.

Response position: Accepted

Delivery: In progress · Q3 2026-27 · Confirmed by NAO

Recommendation 2

Addressee: Department for Transport · Source location: Page 12, point b

DfT should establish 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. This should include determining how its programme governance will align with the government?s wider Northern Growth Strategy governance.

Response position: Accepted

Delivery: In progress · Q3 2026-27 · Confirmed by NAO

Recommendation 3

Addressee: HM Treasury · Source location: Page 12, point c, first bullet point

In line with our recommendations from our 2025 report on mega-projects, the government should ensure that appropriate governance is put in place for delivering the benefits from its Northern Growth Strategy, including those being enabled by the Northern Powerhouse Rail programme. This should include ensuring that roles and responsibilities are clear across central, regional and local government and that those who have the authority to make decisions are accountable for the impact of those decisions. As co-leads for the government?s strategy alongside DfT: HM Treasury should set out and agree how it will engage with DfT, MHCLG and other bodies on the delivery of the benefits of Northern Powerhouse Rail and the wider Northern Growth Strategy and resolve any areas of uncertainty in roles and responsibilities between central government departments; and

Response position: No response position recorded

Delivery: No implementation status recorded · Confirmed by NAO

Recommendation 4

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 12, point c, second bullet point

In line with our recommendations from our 2025 report on mega-projects, the government should ensure that appropriate governance is put in place for delivering the benefits from its Northern Growth Strategy, including those being enabled by the Northern Powerhouse Rail programme. This should include ensuring that roles and responsibilities are clear across central, regional and local government and that those who have the authority to make decisions are accountable for the impact of those decisions. As co-leads for the government?s strategy alongside DfT: [...] MHCLG should also set out and agree its role, including how it will support regional and local government bodies with their involvement in delivering the benefits of Northern Powerhouse Rail and the wider Northern Growth Strategy.

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 5

Addressee: Department for Transport · Source location: Page 12, point d

As part of developing formal cost estimates for the programme, DfT should review the benefits it can deliver from each phase of the programme against their expected cost. This will help inform any trade-off decisions it may need to make around the level of scope and investment for each phase to maximise the overall benefits of the programme within the funding cap.

Response position: Accepted

Delivery: In progress · Q3 2026-27 · Confirmed by NAO

Recommendation 6

Addressee: Department for Transport · Source location: Page 12, point e

DfT should regularly assess how effectively it is implementing relevant lessons learned from other programmes into its management of Northern Powerhouse Rail, including identification of any new lessons relevant to that stage of the programme.

Response position: Accepted

Delivery: In progress · Q3 2026-27 · Confirmed by NAO

Public Accounts Committee follow-up

1 report

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.