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The Parliamentary Under-Secretary of State for Transport (Rachel Maclean)
It is a great pleasure to serve under your chairmanship for the first time, Mrs Miller. I am extremely grateful to the hon. Member for Bermondsey and Old Southwark (Neil Coyle) for securing this debate on Government funding for the Bakerloo line extension. I agree with him—I think the debate is definitely about quality. He has demonstrated that in his remarks, in which he set out his passionate case to represent his constituents. I commend him on that wholeheartedly.
Of the 270 operational London Underground stations, only 29 are in south London. As I am sure the hon. Gentleman already knows, there are more underground stations in Hertfordshire and Buckinghamshire than there are in his home borough of Southwark. We agree that transport infrastructure is critical in ensuring that communities can work together to achieve their ambitions of having prosperous, safe and vibrant places to live. Indeed, it has never been more important than in the period of recovery from the covid-19 pandemic.
The proposals for the Bakerloo line would extend the route from Elephant and Castle to Lewisham. Transport for London’s plans include new stations along the A2 Old Kent Road and at New Cross Gate, a new Bakerloo line ticket hall at Elephant and Castle, and an improved interchange at Lewisham station. It is important to note, as I know the hon. Gentleman already understands, that this is a Transport for London project and Transport for London is devolved, so this is the responsibility of the Mayor of London and Transport for London, whose responsibilities include capital projects. Therefore, it is for the Mayor of London and Transport for London to assess the merits of capital projects and make decisions on investment.
As the hon. Gentleman has discussed already, the Secretary of State has recently issued safeguarding directions for the proposed extension route. Safeguarding does not represent a Government commitment to fund the project, but it does ensure that the route is protected for the future, because without safeguarding the project’s costs could become significantly higher over time.
Safeguarding directions have been issued because the Government agree with the hon. Gentleman that the Bakerloo line extension has the potential to unlock housing and economic growth. Therefore, it is key to understanding the opportunities that the Bakerloo line extension, and other projects in London and across the country, present for our goals on housing supply.
The hon. Gentleman will know that Transport for London is yet to secure the funding required to progress this project and Transport for London’s commissioner confirmed to the London Assembly earlier this month that the extension is on hold for the time being. We believe that safeguarding has provided Transport for London with the opportunity to take the extension forward at a future time.
I will use this opportunity to briefly reflect on the broader context in which we are having today’s debate. The hon. Gentleman has referred to some of these matters. Our focus right now remains on responding to the pandemic, and there are significant challenges facing the whole country, including the transport network. In London’s case, the Department for Transport is continuing to work closely with Transport for London to ensure that the transport network can support the restart and recovery of the city. The Government have already shown a significant commitment to supporting London’s transport network and Londoners throughout the pandemic, including more than £3 billion in emergency funding since May 2020. That is a significant amount of money that has been provided to help Transport for London keep the essential networks going. On Monday, the Government agreed an extension to the current Transport for London funding deal, which had been due to expire on 31 March.
Neil Coyle
I am keen to explore the future funding specifically. from the, Point 5 of the letter from October from the Transport Secretary to the Mayor of London says:
“In relation to any long-term plans, HMG define financial sustainability as TfL’s ability to cover, from sources available to it (including, the consideration of potential new sources of income but excluding government grant): operating expenditure; capital renewals; servicing and repaying debt; and capital enhancements. For major capital enhancements and major renewals (i.e. replacement of life expired rolling stock and signalling), TfL would not be expected to solely finance these from operating incomes; as is consistent with other transport authorities.”
It is about that next step, rather than the immediate temporary measures to carry the capital through the covid crisis. I am keen for the Minister to move on to that agenda, if possible.
Rachel Maclean
I fully understand the hon. Gentleman’s desire to move on to the future of the project. What I wish to say on that point is that, obviously, the Government will be working very closely with Transport for London on the future funding settlement, so that we can continue to ensure the sustainability of the transport network. I very much encourage him to continue his work and his communications with my noble Friend in the other place, Baroness Vere, who is intimately involved in the discussions, and with the Secretary of State for Transport, because the Government absolutely wish to ensure that there is a sustainable transport network for London and the whole country.
I thank the hon. Gentleman for securing the debate on this topic; it is a very important matter. The issuing of safeguarding directions has protected the proposed route for the future, which is a very positive step. It provides Transport for London with more time to put together a funding package without the cost of the project significantly escalating. That is a very important step in the right direction. I also encourage the hon. Gentleman to aim his questions about funding at the Mayor of London and Transport for London following May’s election.
Question put and agreed to.