Transport Secretary Chris Grayling announced in July that plans to electrify the Great Western Main Line in South Wales, the Midland Main Line north of Kettering and a route through the Lake District were being scrapped.

 

He said electrification was no longer necessary and, instead, passenger journeys could be improved sooner than expected by using ‘bi-mode’ trains capable of switching seamlessly between diesel and electric power.

 

However the NAO’s investigation concludes that the desired passenger benefits may not be delivered without the electrification schemes in place. At the time of the Transport Secretary’s announcement, the Department for Transport was still uncertain whether existing bi-mode trains could be modified to achieve the required speed and acceleration, it reveals.

 

It adds that the major reason for the project cancellations was affordability, as Network Rail faced a funding shortfall of £2.5Bn for its 2014-19 investment programme.

 

Government found that this shortfall could not be reduced through asset sales alone, and in March last year Chris Grayling and the Chancellor agreed a package of cancellations and deferrals, including the scrapping of the electrification projects.

 

Commenting on the NAO’s findings, Transport Select Committee chair Lilian Greenwood said: “The Secretary of State promised my Committee that completing electrification would ‘be more expensive’ than buying bi-mode trains which deliver the same passenger benefits. He said this knowing the technology does not exist.”

 

She added: “Business cases built on hope are not a substitute for business cases built on a proper cost-benefit analysis and a firm grasp of economics.”

 

A DfT spokesperson said: “As this report makes clear, we are focused on delivering better trains and services to passengers more quickly, at better value for money for the taxpayer, without the significant disruption to services that electrification can cause.”