East West Rail: New probe into project in Bedford says it's ‘unclear’ how the benefits of the project will be achieved

A new report into the £6-7billion East West Rail (EWR) route says it’s ‘unclear’ how the benefits of the project will be achieved.

Independent public spending watchdog – the National Audit Office (NAO) – has examined EWR’s and the Department for Transport’s (DfT) assessment of its benefits and costs. It also said residents are unhappy with how EWR Co has engaged with them.

In a statement about the report – which was published today (Wednesday) – the NAO said DfT’s cost-benefit analysis suggested the costs of the project may outweigh the benefits. In 2021, DfT assessed that every £1 spent on the project would result in between 50p and £1.10 in benefits – but the calculated benefits have reduced further since then.

However, it added these assessments do not quantify the benefit from the wider aims of the project to transform the economy of the region, adding “there is a strong strategic case for the project”.

The statement said: “DFT has not yet decided how to power EWR trains, so the projected costs do not include the costs of electrifying the line. The department is committed to achieving a net zero carbon emissions rail network by 2050 and wants to remove diesel-only trains from UK railways by 2040. Initial estimates suggested that full electrification of the line could cost up to £1 billion. However, DfT and EWR Co are considering options, including partial electrification or alternative approaches to full electrification of the line, which they consider could be delivered at a lower cost.”

It went on to say that although EWR Co is coordinating with local authorities, universities and enterprise partnerships to identify growth opportunities at stations along the route, the company still has more to do to respond to the concerns of residents – some of which could be negatively affected by the project and are unhappy with how EWR Co has engaged with them.

The report concluded: “East West Rail represents a £6-7billion investment to support growth in a park of the UK that the government regards as economically important, but it is not yet clear how the benefits of the project will be achieved nor how it aligns to other government plans for growth in the region. As with many transport projects, the rationale for East West Rail does not rest on the strength of the benefit-cost ratio for the project alone - which is poor - but on its wider strategic aim of overcoming constraints to economic growth in the Oxford-Cambridge region.”

The Bedford section of EWR is still being planned, with train services expected to run from the early 2030s.

Bedford MP Mohammad Yasin said: "The report is a damning indictment on the lack of a coherent Government strategy on East West Rail and its intended benefits.

"If the Government has no cross-department strategy for economic growth in our region then how can a business case for East West Rail which is supposed to enable growth be justified?

"The report also highlights the communication issues with East West Rail company that I, local councillors, and residents have consistently raised. To date, residents do not have the information needed to give an informed response to the statutory consultation – such as ground reports or a business case – which is due to begin in the first half of next year. The Government should now review East West Rail project based on the reality of today, not the vision of yesterday. I will be writing to both East West Rail and the Rail Minister following the National Audit Office's report to ask what concrete actions they intend to take following the report's findings."

A Government spokesperson said: “We have supported the National Audit Office’s review of East West Rail and will carefully consider its recommendations.

“East West Rail will serve as a catalyst for economic growth in the Oxford-Cambridge region, bringing communities closer to job opportunities, and progress is already being made to deliver the first passenger service from Oxford to Bletchley and Milton Keynes by 2025.

“As the NAO report recognises, the region’s huge economic potential is an important factor in the business case for East West Rail, and we will continue to work closely across government to ensure the full benefits of the rail investment are realised."

A spokesperson for East West Railway Company said: “The NAO report confirms what we set out when we announced the route – that the case for EWR rests on the economic benefits that a new railway brings in terms of new businesses, jobs and investment, rather than just improved connectivity alone.

“As we’ve said, and as the NAO makes clear, not all of these benefits are captured in the conventional benefit-cost ratio (BCR), and therefore it is essential that we work closely with partners in Government and locally to make sure these benefits are delivered for the communities that we serve. The report acknowledges that we are already doing so, but also makes clear that more needs to be done. We welcome that – and are committed to working with Government to take forward the NAO’s recommendations.”

Justin Richardson, CEO, Bedfordshire Chamber of Commerce, said: “Bedford stands to gain significantly from East West Rail when you look at what is planned across the route, so it’s crucial that this transformational project gets delivered as quickly as possible.

“EWR will bring jobs, growth and prosperity to Bedford for the benefit of both business and local communities – it’s vital to enhance our high streets and is an essential catalyst for local and regional growth, the project deserves our strong support.”

Rob Wood, co-owner of Boss Controls – an independent Building Energy Management Systems company in Bedford – said: “One of the main reasons we have recently opened a new office in Bedford is because of its location and its potential for further transport connections including East West Rail.

“Some of our staff live along the line of the route at places like Bicester, so connecting Bedford with the towns and cities west and east will help us retain our staff and attract new talent. EWR will also help bring us closer to our supply chains and the potential to collaborate with other tech industries in an area which is rapidly growing for our industry.”

Meg Hillier MP, chair of the Committee of Public Accounts said: “To achieve value from the investment of taxpayers’ money in East West Rail government must be strategically aligned. Central government and local bodies must work together better if benefits are to be realised over the long term.”