Zero-emission Buses

(Limited Text - Ministerial Extracts only)

Tuesday 5th July 2022 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Trudy Harrison)]

It is a real pleasure to serve under your chairmanship this morning, Mrs Murray. It is also a pleasure to respond to this debate. I would like to begin by thanking my right hon. Friend the Member for Scarborough and Whitby (Sir Robert Goodwill) for securing the debate. We have stretched on that subject and I am very happy to respond on all the matters that have been raised.

I hope that I can reassure Members, and I will set out how I will take further action, which will start with a visit to Alexander Dennis. As the hon. Member for Strangford (Jim Shannon) mentioned, one of the benefits of my trip of Ballymena was visiting Wrightbus and seeing for myself the ingenuity with which that company had been turned around, increasing employees, and diversifying production with both battery electric buses and hydrogen. It is helpful to see that in action and to appreciate the amount of UK content that Wrightbus so proudly talked about.

[Sir Robert Goodwill]

I forgot to invite the Minister to Scarborough to come to the factory, and to meet a company called Mellor that is intending to build another factory to build smaller buses on the Scarborough site using the skills that we already have in the town.

--- Later in debate ---

[Trudy Harrison]

I am delighted to accept that invitation, and I pledge to visit both Alexander Dennis and Mellor during the summer recess. Buses are at the centre of public transport networks. We have all talked about that this morning. They have an essential role to play to achieve net zero, driving that green transformation and creating the cleaner, healthier places that we all want to live in.

I will begin by setting out what we have done and how we are investing £525 million of funding to support the introduction of zero-emission buses over the course of this Parliament. There have been many questions about how many buses there are and which part of the UK they are in. The indicative funding shows that we have funded 2,921 buses across the UK. The breakdown for that funding is 84 buses in Wales, 138 in Northern Ireland, 548 in Scotland, and 2,151 in England. Not all of them are on the road.

[Gavin Newlands]

I am grateful for that granular detail, but the Minister suggested that the UK Government have funded the buses in Scotland, which is not the case. The Scottish Government have funded the buses in Scotland. What does she say in response to that?

[Trudy Harrison]

The caveat is that the UK has funded the buses. How the Scottish Government want to use the money from the UK Government is, of course, up to them. I am being absolutely clear that the indicative funding has supported zero-emission buses across the UK.

In response to the hon. Member for Strangford, clearly the climate has no boundaries, so we need to work together—all four corners of the United Kingdom—to solve the grand challenge of decarbonising our transport system, which is what I am setting out. I also want to make it clear that not all of the zero-emission buses are on the road. Many of them will be ordered this year, and I hope to take further action to chivvy that on, because I absolutely understand why we want to support British innovation, manufacturing and apprenticeships, the training and graduate opportunities, and the value that British manufacturing provides to our communities right across the country. That is where we are on the numbers.

One thousand, two hundred and seventy-eight zero-emission buses have been supported through funding from both rounds of the zero-emission bus regional area scheme, or ZEBRA—a new kind of horsepower. We have announced nearly £270 million in funding to 17 areas through both the fast track and standard process of the scheme. As Ministers, we are super-keen to ensure that that progress continues. I am keeping a keen eye on it, and it is really pleasing to hear from officials that the 17 areas funded through the scheme are now progressing towards the delivery of their projects.

I really welcome the news that Stagecoach, working with the Cambridgeshire and Peterborough Combined Authority, has placed orders for all the buses for its project. The remaining successful areas are at various stages of conducting their procurement processes. It is great to note that Kent County Council launched its tender for vehicles earlier this year, and I expect to see the introduction of further procurement competitions in the coming months. I anticipate that further orders for buses will be placed following the conclusion of the procurement processes, and I also expect to see the majority of buses funded through the ZEBRA scheme to be on the road in local communities around the country by March 2024—that is the latest indicative date I have at the moment for those funded buses to be on the road.

Additionally, up to 300 zero-emission buses will be supported through the Coventry all-electric bus city project, which is supported by £50 million in funding for the West Midlands Combined Authority. This will ensure that every single bus in the city of Coventry is zero emission by 2025, and I was really pleased to see that the first order for 130 electric buses was placed in December 2021. I therefore anticipate that they will be on the roads of Coventry by autumn this year.

Furthermore, more than 100 zero-emission buses have been supported through the ultra-low emission bus scheme, with hundreds more zero-emission buses supported in London as a result of Government funding. We must build on that and go further by introducing even more zero-emission buses. There is more than £200 million of dedicated funding for ZEBs over the remainder of the spending review period, and the Department can provide more information on how the funding will be allocated in due course. To further incentivise the transition, we also introduced an uplift for ZEBs through the bus service operators grant in April 2022.

There has been much discussion today of different areas and particularly of the stimulus for the bus industry. I feel confident that the combination of future funding and incoming orders can provide that stimulus. UK bus manufacturers are well placed to benefit from those orders, which will support new green skilled jobs in local communities such as Scarborough and Whitby and help to spark a clean recovery for the sector.

While I am aware that 4,000 buses are a good starting point, they are only a starting point, representing approximately 10% of the overall fleet. We need to go further and faster to decarbonise the entire bus fleet—indeed, the entire transport network—across the country. That is why, as stated in the national bus strategy, we are committed to setting an end date for the sale of new diesel buses, with an expectation for when the entire bus fleet will be zero emission to be announced shortly. To support those ambitions, in March of this year, we consulted to determine when to end the sale of new non-zero-emission buses and launched calls for evidence on decarbonising our coach and minibus fleets.

My hon. Friend the Member for Redcar (Jacob Young)—surprise, surprise—bigged up hydrogen. He and I share a passion for industrial communities really benefiting from hydrogen production capacity, which the Prime Minister has doubled to 10 GW. Our approach to the delivery of zero-emission buses is technology-neutral. Local areas under the ZEBRA scheme could apply for funding for both battery electric and hydrogen fuel cell buses, depending on the technology best suited to them. However, I understand that we must drive down the cost by driving up the market and driving up demand. That is why we are funding hydrogen buses and also zero-emission road freight demonstrators, which are not limited to buses and more about supporting heavy goods vehicles. The Department for Transport is investing £200 million across hydrogen, battery electric and catenary to understand where heavy goods vehicles will need to be charged in future. I hope that will increase the number of publicly available hydrogen refuelling stations across the UK from the current 14.

It is also interesting to respond to the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss), because I was in Sheffield visiting ITM, which is a fantastic British company investing to provide some of the world’s biggest—if not the world’s biggest—gigawatt production of electrolysers. The Government are backing hydrogen and I work closely with BEIS. The Department for Transport is creating that demand, and we have set out the certainty that the hydrogen economy has an incredibly bright future in Britain under this Government. On 26 March, the Government announced that the West Midlands Combined Authority has received funding from the ZEBRA scheme to support the introduction of 124 hydrogen buses and refuelling infrastructure, in the country’s largest ever hydrogen bus project. Meanwhile, the Advanced Propulsion Centre supported an investment of £11.2 million to develop and manufacture low-cost hydrogen fuel cell technology for buses and create a hydrogen centre of excellence with Wrightbus in Ballymena, Northern Ireland.

I have been blessed with sharing the debate with two former Transport Ministers, my right hon. Friend the Member for Scarborough and Whitby and my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones). I thank my hon. Friend the Member for Harrogate and Knaresborough for his point about the infrastructure, which is right. As we embark on this transport revolution, we need to ensure that it works for everyone, everywhere. That is why I work closely with BEIS, Ofgem, National Grid and the distribution network operators across the country to ensure that we have the connectivity for electric and the generation capable of supporting the transport revolution. Without that, we clearly will not be in a fit position.

I have set out the commitment from the Department, and across Government, to zero-emission buses. I would like to go further to understand how we can support British-built buses. The supply chain for ZEBs is global, and UK manufacturing sources key components, such as vehicle batteries, from foreign-based companies. Foreign-based companies are expected to continue to play an important role in the supply of ZEBs for the UK market. I want to explore whether there are other relevant factors—I am sure there are—that we can build into that requirement that may help to encourage competitive bids from UK firms, without compromising wider commercial outcomes and delivery. I will take that away, and I look forward to updating Alexander Dennis when I visit the company during the summer recess.

[Gavin Newlands]

I am grateful to the Minister for giving way and I am conscious of the time. I mentioned in my speech that transport is devolved and that, for that reason, the 4,000 bus pledge must be England-only. Can she confirm whether the 4,000 bus pledge is UK-wide?

[Trudy Harrison]

I will have to come back to the hon. Member on that point. I am not aware of what has been said. The climate sees no boundaries, so if the Scottish Government are making particular progress, let us meet and understand how we can learn from each other. That is the grown-up thing to do.

In conclusion, it has been a pleasure to set out what the Government are doing and what more we need to do. I hope I have reassured my right hon. Friend the Member for Scarborough and Whitby about the Government’s commitment and determination and the fact that we acknowledge that there is more work to do. I thank all Members for their contributions, their support for the bus sector and their enthusiasm for the decarbonisation of the transport system. We know that emissions from the transport sector represent the overwhelming majority of emissions in the UK. That is why we are putting so much Government investment into road, rail, aviation and local communities to ensure that there is the infrastructure to support the transport revolution the UK needs.