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The Minister of State, Department for Transport (Mrs Theresa Villiers)
I congratulate my hon. Friend the Member for Kettering (Mr Hollobone) on securing the debate, and on his very detailed and well-informed analysis. It is also good to see my hon. Friend the Member for Loughborough (Nicky Morgan) in her place. Both my hon. Friends have played a leading role in the campaign for the electrification of the midland main line.
I understand the importance of the issue not only to my hon. Friends’ constituents, but to many communities in the east midlands and south Yorkshire that are served by the midland main line. I am also aware of the wide-ranging coalition of MPs, local authorities, businesses and other stakeholders, many of whom were mentioned by my hon. Friend the Member for Kettering, who are all campaigning for improvements to the line and, in particular, electrification. The Government’s response to the campaign will depend on what is affordable within budgets that are constrained by the pressing need to deal with the deficit we inherited from Labour. Despite the deficit, we have already embarked on a major programme of rail improvement that is bigger in scale than anything attempted for 100 years. Improving our transport networks is a key part of our strategy for growth, and rail electrification is playing an important role in those efforts to improve our transport system and to boost our economy.
This is a timely opportunity to consider and debate electrification of the midland main line. Electrification can support our carbon reduction goals, as well as contribute to economic growth and the benefits outlined by my hon. Friend. In the longer term, some electrification schemes can also help us to achieve our goal of cutting the cost of running the railways; it is essential that the cost come down, because that is the only way to see an end to above-inflation fare increases. A more financially sustainable railway will also help us to deliver the sort of improvements called for by my hon. Friend today, and by other hon. Members day in, day out, in this Parliament.
Where the business case is strong and funding is available, the Government support progressive electrification of the rail network. As my hon. Friend said, electric trains are cheaper to run and maintain than their diesel equivalents. They emit less carbon and are quieter and lighter, which saves wear and tear on the track. Our committed programme of electrification includes the great western line to Oxford, Newbury, Bristol and Cardiff, and a significant programme in the north-west, including Liverpool to Manchester and Blackpool to Manchester. In his autumn statement, the Chancellor added the route from Manchester to Leeds and York to our electrification proposals, subject to confirmation of the business case.
The action taken by the coalition on electrification is in marked contrast to the approach of the previous Government. Their 30-year strategy for the railways, published in 2007, paid almost no regard to electrification and set out no sensible plans for it. In their 13 years in power, they managed to electrify less than 10 route miles of track on our network.
The midland main line has received some important investment in recent years. New stations have been built at Corby and East Midlands Parkway. Major station improvements have been delivered at Loughborough, Derby and Sheffield, and St Pancras has been transformed with the arrival of High Speed 1. Further improvements are in the pipeline.
Paul Blomfield
Will the Minister acknowledge, contrary to her previous point, that they were actually achieved under a Labour Government?
Mrs Villiers
I was not saying that the previous Government did not do anything; I am saying that they did almost nothing in relation to electrification.
By 2014, £69 million will have been invested by Network Rail to cut journey times for passengers between London and Sheffield by eight minutes. In the longer term, the second phase of High Speed 2 will slash journey time to the east midlands and Yorkshire. As I have said on a number of occasions, both in the House and outside it, the Government recognise that the business case for the electrification of the midland main line is strong—a point emphasised by my hon. Friend the Member for Kettering and a number of hon. Members. Useful supporting evidence has been provided by the report commissioned by East Midlands Councils and the South Yorkshire passenger transport executive, “The Case for Upgrading and Electrifying the Midland Main Line”.
The report highlights the significant potential economic, environmental and financial benefits that would come with electrification and other improvements, a number of which were outlined by my hon. Friend. He is right to focus on significant passenger growth on the line in recent years. It is important to take on board the points he made about projected population growth, the wider economic benefits that could be generated by improvements to the midland main line, and the potential for running- cost reductions—always an important concern—of electrification. I also note the points he made very strongly about the scope of electrification to provide capacity expansion. It is important for the Government to consider all those matters when making a decision on which schemes can receive funding.
The Government recognise that electrification of the midland main line could help to spread the benefits of high-speed rail, because it would enable through-running of services between the new high-speed network and the midland main line. That is something we will consider as we prepare our response to HS2 Ltd’s advice on phase 2 of the project to complete the Y network to Manchester and Leeds.
My hon. Friend the Member for Loughborough rightly highlighted the importance of considering the impact on freight of improvements to the midland main line, and we will do so carefully. We will also consider carefully the proposals for the range of improvements stakeholders are calling for in relation to the midland main line. I acknowledge that there is an aspiration to go beyond electrification and combine it with addressing some of the pinch points referred to by my hon. Friend the Member for Kettering. I note his analysis of the potential that a sixth train per hour might be able to deliver in terms of reconfiguring services and benefiting his constituents.
The hon. Member for Sheffield Central (Paul Blomfield) compared the prospects for the midland main line with the resources spent on the west coast main line. Yes, it is important to consider the relative levels of support for different parts of the country. Network Rail learnt many lessons from the west coast main line. Obviously, that project cost far in excess of what was originally envisaged. We hope that whatever schemes go ahead in future, whether midland main line improvements or others, Network Rail is able to avoid some of the mistakes made in relation to the west coast.
Electrification of the midland main line and a number of other upgrades are included in Network Rail’s initial industry plan, which sets out the rail industry’s view of options for inclusion in the next HLOS—high-level output specification—statement, for delivery in the period between 2014 and 2019. That plan is playing an important role in our deliberations on which projects can be funded in that five-year control period.
Although the case for electrification looks good, it is a major undertaking with a significant price tag. Just electrifying the line is expected to cost more than £530 million. The further upgrades that many campaigners are asking for could add more than £100 million to that figure. The Government already have commitments to improve the rail network in the period up to 2019, amounting to some £5 billion.
Mr Hollobone
I have listened carefully to the Minister. Is she impressed that the annual £60 million saving in running costs means that the electrification would effectively pay back within 10 years, which is almost unheard of for an infrastructure project of that sort?
Mrs Villiers
It is rare for an infrastructure project to pay for itself. Yes, that point will be important for us to consider when we take our decisions. My hon. Friend has made that point clearly and we are aware of it. However, even with the importance placed on transport by the coalition and with the positive business case for improving the midland main line, we will still need to make choices between competing priorities, because, of course, colleagues from throughout the country have priorities in their own areas.
We need to strike a balance between the aspirations of many communities for improved rail services and the need to ensure that the Government’s finances are not overstretched in these difficult times. The scale of what can be delivered to improve the midland main line depends on what is affordable and on a careful, fair assessment of competing priorities elsewhere on the rail network. The points that my hon. Friend made about the running-cost savings that could be delivered by electrification will be at the forefront of our minds when we take our decisions. However, we have not taken those decisions yet. I assure my hon. Friend that we are aware of the strength of the business case and of the support for going ahead with electrification.
Not all the projects that will take place in control period 5 will be expressly mentioned in the HLOS statement that we will publish. Some of the bigger ticket items may be expressly listed, but for projects that are not on such a big scale we are more likely to specify an outcome to be achieved on a route or into a certain city, such as increased capacity or faster journey times, and then it will be left to the industry, overseen by the regulator, to decide how best to deliver those improvements for passengers. Some improvements that campaigners have asked for over and above electrification would be more likely to fall into that category. If they were to go forward in CP5, they would therefore be subject to the industry HLOS process—an assessment by the rail industry and the Office of the Rail Regulator on how best to deliver them. I thought it might be useful to give that procedural clarification of what hon. Members can expect in terms of the type of scheme that would be headlined in the statement and those that might still be delivered during the CP5 period, but would be subject to further work by the rail industry.
Nicky Morgan
Briefly, since the Minister is dealing with procedural aspects, will she give us an update on timing? I have been told that we should expect some announcement in July. Is that still the timetable?
Mrs Villiers
Yes, the announcement will be made some time before the end of July, but we have not set a date.
The case for electrifying the midland main line continues to be made impressively by my hon. Friend the Member for Kettering and many others. Debates such as this provide important, timely input to the process of deciding which rail improvements can be funded in the five-year period up to 2019. I will ensure that all the points made today are carefully considered when the decisions on the HLOS statement are made.