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The Parliamentary Under-Secretary of State for Transport (Jesse Norman)
What a delight it is to serve under your chairmanship, Mrs Moon. I want to place it on the record that I am an admirer of my right hon. Friend, or rather my hon. Friend—he is not yet right hon., but I am sure it is only a matter of time. It is wonderful to see him as—I think I am right in saying—the first Conservative Member of Parliament ever in his constituency, and the first for a long time in Middlesbrough. It is also a delight to have him speak today with the intelligence, energy and advocacy he has brought to his job. I congratulate him on that and on the powerful speech he has made.
It is a slight shame, if I may say so, that there are no Opposition Members here in this debate, no other Members of Parliament for the region and no one from the Opposition Front Bench. These are locally important issues, and my hon. Friend’s speech speaks powerfully not just to his constituency, but to the needs of the city and region as a whole. I congratulate him on that, and I think his words deserve a wider hearing. I am sure they get a wider hearing in his own council, neighbouring councils and the combined authorities, but they deserve a wider hearing from his fellow MPs.
My hon. Friend has been tireless in raising awareness of the Marton crawl, and I know he will be discussing it with my right hon. Friend the Secretary of State when he visits the Tees Valley on Friday, as part of a properly choreographed process of putting the matter on the Government’s radar screen. I would also be delighted to meet my hon. Friend and a delegation of local councillors and officials in the new year, so that we can discuss some of the propositions he has made today, some of the schemes the Government are bringing forward and how those things can be brought together.
Transport, as my hon. Friend knows, is enormously valuable not merely to the Tees Valley, but to the whole of the north and the country as a whole. It is an important priority of this Government, and we agree with local partners that good transport infrastructure is essential to economic growth and social development. That is why we are investing so heavily in transport infrastructure across the north, with precisely that goal of opening up bottlenecks and delivering sustained economic growth. I hope, just as my hon. Friend gave a virtual tour of his constituency with regard to the Marton crawl, I may be allowed to give a virtual tour of Government policy in this area before looking at specific ways in which we may be able to help him in his constituency.
The Government are committed to creating a northern powerhouse, rebalancing the economy and supporting the north in its economic and transport aspirations. That is part of the long-term goals we have set ourselves, and it is one that is widely shared across the country, certainly across the north of England. We are investing £13 billion in transport in the north precisely to advance that agenda and to connect the region, so that there can be greater pooling of strength and greater economic development.
To that end, we have created Transport for the North to develop and drive forward the transport plans that are central to local needs, and we are taking legislation through Parliament, as my hon. Friend will be aware, that should see Transport for the North established as the first of the statutory sub-national transport bodies from 1 April 2018, with a key role in advising Government on the north’s priorities for rail and road investment.
The Tees Valley is a key part of the northern powerhouse and has a major contribution to make in building a stronger economy. It is a region of 660,000 people, a renowned industrial centre with major global companies such as ConocoPhillips, Huntsman, Mitsubishi and others operating there. Of course, through the devolution deal, we now have Ben Houchen in place as the first directly elected Mayor of Tees Valley, with more autonomy and control to drive forward the economic transformation as a whole that the area needs.
Getting the right road infrastructure in place will be a crucial part of that transformation. I am taking another step in my virtual tour, as we zero in on the road transport needs of the local economy. That is why the Government are investing record amounts of money in improving and maintaining highways across the country, to help motorists. That includes £15 billion on our strategic road network and, crucially, £5 billion for local schemes through the local growth fund historically. That is designed to improve growth, support communities and the wider economy and inhibit the effects of the congestion that comes with economic development.
Much of that funding is not ring-fenced, and therefore it is for local authorities to determine how best to use it, based on their needs and priorities. In the current spending review period, we have allocated a total of £6.1 billion to local highways maintenance between 2015 and 2021, and £1.5 billion through the integrated transport block for capital investment in smaller transport improvement projects. For the Tees Valley, that funding is worth about £14 million a year. As it forms part of the combined authority’s single capital pot agreed in the devolution deal, there is flexibility to use the funding in the most effective way to meet the area’s needs. I am sure that the Mayor and councils will reflect on my hon. Friend’s speech as they think about the different pots of money they can bring together to create an integrated plan, of which he has so eloquently spoken.
The Government have also supported transport improvements through local growth funding provided to the Tees Valley local enterprise partnership, through the three growth deals. That includes such projects as providing access to the Central Park enterprise zone in Darlington, making improvements to the Teesside Park and A66 interchange, and dualling Ingleby Way and Myton Way, with further schemes in development.
The Government have recognised the importance of good connectivity and accessibility to improving productivity by providing additional funding through the national productivity investment fund, for all the reasons we have described. The first £185 million of that fund was allocated to local highway authorities by formula in the present financial year, so that work on the ground could be started quickly. Within Tees Valley, it was agreed that the funding would be used to improve the area’s key route network, by delivering local interventions on the A66 and its connecting routes to improve the strategic connection between the A1(M) and Teesport. The Government allocated a further £244 million through a competitive bidding round. In Tees Valley, that has supported three schemes, with funding of more than £8 million, including £3 million to Middlesbrough Council for the A66 and A171 cargo fleet roundabout scheme to improve access to the port, and £2 million for Redcar and Cleveland Council to remove a congestion bottleneck at the A171 Swans Corner roundabout in my hon. Friend’s constituency.
The Government recognise that local areas can have strategic priorities that require funding beyond the scope of their local growth fund allocations to deliver. We are getting closer to the nub—the central roundabout, if I can put it that way—of my hon. Friend’s speech. That is why we set up our large local majors programme to enable local areas to develop and bring forward proposals for very large schemes. In Tees Valley, we have provided development funding for the combined authority to work up business cases for two of its strategic road schemes: the north Darlington bypass, to provide a better route to the A1 and release land for housing; and a second Tees crossing, to relieve congestion on both the A19 and the local road network. Those are likely to be very large schemes, so we will need to see rigorous business cases—I emphasise that they need to be rigorous—from the combined authority before considering whether they are able to proceed.
It is not just local roads that require investment. We are taking action on the strategic road network as well. The present road investment strategy outlines how we are investing in the strategic road network until 2021. In total, we are investing something like £15 billion in more than 100 major schemes, and that significant investment is being used to develop major new schemes, as well as to support asset renewal and maintenance.
We are taking a much longer-term approach to the acknowledgment, understanding and maintenance of our assets, and that is reflected in all the investments we make. Within Highways England’s Yorkshire and north-east area, which includes the Tees Valley, we are investing £1.4 billion in new road schemes. That includes a major new scheme on the A19 in the Tees Valley—the Norton to Wynyard scheme—that will benefit local residents and businesses by relieving congestion and improving journey times. Both carriageways will be widened to provide three traffic lanes, and the replacement of the road surface is designed to reduce road traffic noise. The scheme will promote local growth and allow new developments to be brought forward in the Tees Valley area. The scheme will complement two earlier Highways Agency pinch-point schemes at the Wolviston interchange and the A174 Parkway junction on the A19, and will smooth the way along the entire route. The Norton to Wynyard scheme is currently under development and is still on track to meet the committed start-of-works date of March 2020.
As my hon. Friend said, a very important part of this is sustainable and public transport. That needs to be a crucial part of the way that not just Middlesbrough but all our cities and potentially rural areas think about the change to a genuinely multi-modal transport system of the 21st century. I want to talk about that in some more detail and the priority we place on encouraging people to get out of their cars and take the train or bus, and to cycle or walk.
I was pleased to learn that the Department has provided funding for the new station at James Cook Hospital on the Marton Road, as my hon. Friend acknowledged, which opened in 2015. We also provided £37 million towards the Tees Valley bus network scheme—an innovative package of bus lanes, junction improvements and improved passenger information systems that was also completed in 2015. More recently, the combined authority has taken forward a programme of schemes using local growth funding to support public transport, cycling and walking. Last year, the Department awarded the combined authority £3.3 million for its “Connect Tees Valley” project, to increase the number of children travelling sustainably to school. We are providing technical support to help the authority to develop a local cycling and walking infrastructure plan. Through those initiatives, I hope that people will be encouraged to consider other options for travelling into Middlesbrough and across the region.
I hope I have reassured my hon. Friend that the Government are supporting the growth of the Tees Valley by providing investment to improve connectivity across the area and beyond. We continue to bring forward new initiatives that may address some of the problems he has described. In the Budget the week before last, the Chancellor announced a new £1.7 billion fund to improve intra-city transport with projects that drive productivity by improving connectivity, reducing congestion and using new mobility services and technology. The transforming cities fund is part of our commitment to place cities and city regions at the heart of the industrial strategy. Half of the funding is being allocated to the six combined authorities with elected metro Mayors on a per capita basis. That means that Tees Valley will receive £59 million over the four years between 2018-19 and 2021-22. We are aiming to say more about the fund shortly, but the intention is that it will empower the Mayor to take strategic decisions about the interventions he wants, very much along the lines that my hon. Friend described.
My hon. Friend mentioned the major road network. As the Government announced in the transport investment strategy, we have accepted the case made in the Rees Jeffreys report of October 2016 to give special recognition to the most strategically important local authority roads. The major road network will receive dedicated funding from the national roads fund. We will consult on our proposals for the creation of the MRN before the end of this year. The consultation will consider all the questions that my hon. Friend raised, such as how we define the MRN, how we plan for investment in it, how schemes are brought forward for funding and the timetable.
It is too early to say whether the routes we have discussed today would be eligible for MRN funding, but I urge my hon. Friend and all those who support the powerful agenda for change in transport in south Middlesbrough that he has advocated to put forward their views through the consultation process and to continue to make the case with all the force he has brought to the debate and the wider initiative. I hope I have been able to demonstrate the Government’s commitment to improving connectivity, and I thank my hon. Friend for his energetic and timely intervention.
Question put and agreed to.