East West Rail: NAO investigation into planned rail line

The government's spending watchdog has opened an investigation into the planned £5bn rail link between Oxford and Cambridge.

East West Rail (EWR) would link the two university cities via a new section of track between Bedford and Cambridge.

The National Audit Office (NAO) said it would assess the "economic and strategic" case for the project.

An MP along the proposed route welcomed the move and said "the maths just don't add up" in EWR's business plan.

The NAO said its investigation would look into:

In a route update published in May, EWR said the line was a "once-in-a-generation opportunity to connect people and businesses in the communities between Oxford, Milton Keynes, Bedford and Cambridge".

The Department for Transport said that by 2050, EWR could increase economic growth by £103bn.

The NAO said although it is a transport project "the intended benefits are much wider than improving travel connections and journey times" and that "one of the most significant intended benefits" was to "enable the creation of new housing".

An EWR report suggested the rail link could help increase the population between Oxford and Cambridge by more than 213,000 by 2050.

Work has already begun on the western end of the route with upgrades to existing lines between Oxford and Bedford, as well as a new station being built at Winslow and extra platforms at Bletchley.

In January 2021, the Department for Transport announced £760m of funding for the Bicester to Bedford section of the route.

The most expensive section will run from Bedford to Cambridge, where new stations are proposed for Bedford St Johns, Tempsford and Cambourne, as well as new tracks.

It is understood the NAO investigation was prompted in part by a letter from Bedfordshire MP Richard Fuller to its comptroller and auditor general in July.

Mr Fuller, a Conservative representing North East Bedfordshire, said opening the investigation was a "very important move".

He added that he hoped the investigation would "really test" and "give that independent view on the business case" for EWR.

"On a simple basis, the maths just don't add up," he added.

He said he believed both EWR and Cambridge 2040 – a plan to "supercharge" housebuilding in Cambridge put forward by the Housing Secretary Michael Gove – were "competing".

As such, he added, EWR should no longer count new homes in and around Cambridge as part of its business case.

"I hope the NAO will look at which of those two competing strategies makes most sense and ask the government to drop the one that doesn't," he said.

"It's just not possible – unless East West Rail say their ambition is to concrete over all of Bedfordshire – for them to have an economic case that adds up, and that, I think, is the truth, that the NAO will find.

"And being independent of government, I think local residents can have some confidence that they will be fearless in trying to work out what's the best way to spend taxpayers' money."

The Department for Transport said it would assist the NAO with its investigation.

A department spokesperson added: "East West Rail will serve as a catalyst for growth across the Oxford-Cambridge region by boosting local economies and bringing communities closer to job opportunities, families and friends.

"Work is already under way to deliver the first passenger service from Oxford to Bletchley and Milton Keynes by 2025 and in May, we set out our preferred route for the remaining stages of the project."

It is understood the NAO is looking at publishing its investigation report before the end of the year.

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