Network Rail has ‘lost its grip’ on projects like the Manchester-Leeds electrification - and it’s costing the taxpayer.

That’s the damning conclusion from the Committee of Public Accounts, appointed by the House of Commons to probe how public cash is spent.

The TransPennine electrification was ‘paused’ after an original budget of £260m escalated to what experts claim could have been £600m following Network Rail ‘failings’.

Transport Secretary Patrick McLoughlin announced it was back on track last month following an M.E.N campaign - and there is now a 2024 completion date. But the cost has not been revealed.

The Committee of Public Account report highlights severe planning and budgeting failures in Network Rail’s current five-year investment programme.

It says the Department for Transport, Network Rail and the Office of Rail and Roads wrongly agreed an ‘unrealistic’ programme for 2014-19.

It says there is still ‘far too much uncertainty’ over costs and delivery dates for the TransPennine electrification.

Such are the committee’s concerns, it has called for a review of the Office of Rail and Roads role and effectiveness.

It also calls for a new and realistic programme of electrification.

Committee chair Meg Hillier MP said: “Network Rail has lost its grip on managing large infrastructure projects.

“The result is a two-fold blow to taxpayers: delays in the delivery of promised improvements, and a vastly bigger bill for delivering them.”

Slamming the ‘continuing uncertainty’ over the Manchester-Leeds electrification, she added: “The government has identified rail infrastructure as a vital part of its economic plans, for example in establishing what it describes as a ‘Northern Powerhouse’.

“It is alarming that, in planning work intended to support these plans, its judgement should be so flawed.”

He said the agreed work could never have been delivered within the agreed timeline and budget - but the DfT and Office and Rail and Road signed up anyway.

“Passengers and the public are paying a heavy price and we must question whether the ORR is fit for purpose,” he added.

(Image: Mark Waugh)

Network Rail sets out five-yearly budget plans.

In October 2013, a £38.3bn rail programme was agreed for April 2014-March 2019.

In June 2015, the government called for three reviews into Network Rail over concerns the scheme was taking too long and costing too much.

In response to the CPA report, A Network Rail spokesman said the industry had been ‘overly ambitious’ with the funds and resources available.

He said they had delivered 5,000 projects over the last five years but added; “Our understanding of how best to plan and deliver major new electrification schemes was not good enough. We have now made significant changes to the way we plan and deliver our investment programme, which will see schemes progress only once they are sufficiently developed that a reliable cost estimate can be established.”

A DfT spokesperson said: “We are proud to have a hugely ambitious investment programme, but agree that lessons should be learned on all sides.

“We are committed to seeing the £38 billion programme through and delivering the railway passengers deserve. That’s why the Secretary of State asked Dame Colette Bowe to look at the lessons learned and make recommendations on what can be done better in future, and why Sir Peter Hendy is developing proposals to get the rail upgrade programme back on track and ensure it is both affordable and deliverable. Both reports will be published later in the autumn. We will respond to the committee in due course.”