'Lessons learnt' review being carried out into Northumberland Line after costs spiral

Officials at Northumberland County Council have confirmed a 'lessons learnt' report is being carried out into the Northumberland Line project after costs spiralled due to delays and inflation.

The project's final cost is expected to be just under £300 million, £130 million more than originally estimated. Delays on the project have been blamed on bad weather and other issues such as the discovery of an unexploded bomb.

Three of the stations are expected to open at the end of the year, while the three remaining stations will welcome passengers at some point next year. Speaking at Wednesday's meeting of the council's audit committee, the council's executive director of place and regeneration Simon Neilson confirmed a Government-sponsored report was being carried out looking into the issues faced by the project.

READ MORE:Call for annual report on exit payouts at Northumberland County Council following £1 million scandal

READ MORE:Pep Guardiola promises solution to major issue for Newcastle United game

He said: "The Northumberland Line is a major project that is now close to opening. It is well evidenced in the press that we have had some cost challenges on that project.

"There are a number of reasons for that. On rail projects, there is a very good sophisticated computer system that works through and quantifies risks and gives you a risk profile. We have used that extensively on the Northumberland Line. During the last couple of years those costs have gone unexpectedly high. That is a different environment.

"It is currently subject to a live lessons learnt report sponsored by the Treasury, which was a condition of the extra funding."

Mr Neilson also confirmed that a refreshed business case had shown that the long-awaited project would still provide value for money for the taxpayer despite the increased cost. Furthermore, the lessons learnt report was likely to be utilised in efforts to reopen the Leamside Line between Pelaw in Gateshead and Tursdale in County Durham.

He added: "We have refreshed the business case to ensure it was still compliant with criteria around cost benefit ratios. For every pound invested we expect to see a £1.60 return.

"The independent review is a condition of the new funding. I should say that isn't a negative consequence of this, it's actually lessons learnt for the entire industry of how you manage more devolved railway projects.

"For the North East it's actually very helpful as the North East Combined Authority considers the Leamside Line reopening to take some of the lessons about what have we learned how have we managed, what have we done really well and what might we adjust in the future."