New data released by HM Treasury (HMT) has revealed an underspend of £3.2 billion on infrastructure and construction projects in the financial year 2024-25. The figures show the schemes being developed by the Department for Transport (DfT) recorded an underspend of £264 million from a baseline budget of £6.8 billion across all the different categories of projects.
The underspend includes schemes like Northern Powerhouse Rail, which had a budget of £132 million but only saw £80.59 million spent on it. The unspent £51 million contributed to the National Infrastructure & Service Transformation Authority’s (NISTA) red deliverability rating, meaning it ‘appears unachievable’. The paused Midland Main Line electrification also had an underspend of £10 million.
Commenting on the data, 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.”
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