Committee publication · Correspondence · 1 June 2026
Letter from the Permanent Secretary at the Department for Transport relating to Follow-up to the oral evidence session of 27 April 2026 and the Committee’s tenth report of Session 2024-26, 14 May 2026
From: Public Accounts Committee
Inquiry: Delivering HS2 and Euston
Summary
The Permanent Secretary at the Department for Transport responds to the Public Accounts Committee's request for information on two matters: the practical implementation of the Nature Restoration Fund (NRF) in major infrastructure projects, and lessons learned from the Sheffield to Rotherham tram-train pilot. The Department confirms the NRF is not yet operational and states it is too early to detail application to complex transport projects, though it commits to updating the Committee once Defra reports to Parliament on initial implementation.
Key findings
- The Nature Restoration Fund, established by the Planning and Infrastructure Act 2025, will allow developers to meet environmental obligations through levy payments into Environmental Delivery Plans (EDPs) rather than site-specific mitigation, transferring responsibility to Natural England.
- The NRF and EDPs are not yet live; first planned EDPs will focus on nutrient pollution from housing, with Defra to report to Parliament before expanding to other environmental issues such as bats.
- It remains unclear when the NRF framework will be sufficiently developed to apply to complex transport infrastructure like HS2, limiting the Department's ability to provide timely updates on Recommendation 4 of the Committee's tenth report.
- The Department has embedded lessons from the Sheffield Tram Train Pathfinder through the Tram Train Learning Hub, which serves over 50 registered organisations globally and supports ongoing projects in Greater Manchester, South Yorkshire, and South Wales.
- Network Rail has established a Light Rail Centre of Excellence to provide dedicated support to tram-train and light rail projects on or adjacent to the mainline network, currently assisting South Yorkshire Mayoral Combined Authority.
Tone
ProceduralTopics
Key actors
Jo Shanmugalingam CB, Department for Transport, Department for Environment, Food and Rural Affairs (Defra), Natural England, Network Rail, Greater Manchester Combined Authority, South Yorkshire Mayoral Combined Authority
Notable line
“… it is too early to set out the detail of how they will work in practice for large, complex transport projects.”
Key Quotes
“EDPs will give developers a simpler and more predictable way to address environmental impacts, by allowing them to meet their environmental obligations through levy payments into the EDP.”
“The NRF and supporting EDPs are not yet live so it is too early to set out the detail of how they will work in practice for large, complex transport projects.”
“The Hub has registered users from over 50 organisations across the world. It has been extensively used by those developing Tram Train projects in Greater Manchester, South Yorkshire and South Wales.”
“Network Rail has created the Light Rail Centre of Excellence which provides those promoting Tram Train and other light rail solutions on or adjacent to the mainline network with a dedicated and informed point of contact.”
Source · parliament.uk record ↗