New figures from HM Treasury show an underspend of 3.2 billion GBP on infrastructure and construction projects during the 2024–25 financial year, with several rail schemes among those affected.
According to the data, the Department for Transport recorded an underspend of 264 million GBP against a baseline budget of 6.8 billion GBP across its portfolio. The figures were published by the National Infrastructure and Service Transformation Authority (NISTA) in its first annual report, using data drawn from the Infrastructure and Projects Authority’s Government Major Projects Portfolio as of 31 March 2025.
Northern Powerhouse Rail aims to improve rail connections between Liverpool and Manchester
© GOV.UK
Northern Powerhouse Rail, which had an allocated budget of 132 million GBP, spent 80.59 million GBP. The 51 million GBP gap contributed to NISTA assigning the project a red rating for deliverability, indicating that it “appears unachievable”. The paused Midland Main Line electrification also underspent by 10 million GBP. East West Rail stages 2 and 3 were excluded from the portfolio following a re-baselining exercise.
Responding to the figures, Railway Industry Association (RIA) Chief Executive Darren Caplan said:
Whilst we recognise the Government’s commitments to rail investment announced over the last year, this underspend reported by NISTA is concerning as it includes vital investment needed to build rail infrastructure needed for the future and which the UK’s world-class rail supply sector would have been working to deliver.
Specifically on major rail schemes like Northern Powerhouse Rail, NISTA has now determined that the development of this ‘appears unachievable’. East West Rail and Midland Mainline have also encountered investment difficulties. So we ask the Government to announce its long-term strategy for rail and rolling stock as soon as possible to give clarity to the railway industry, and to ensure the amounts committed to the various projects are spent efficiently.
The report marks the first publication from NISTA, which was established in April 2025 to monitor and assess government infrastructure delivery.
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