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It is a pleasure to serve under your chairship, Ms Nokes. I congratulate the hon. Member for Birmingham, Hall Green (Tahir Ali) on securing this debate about the construction of three new stations on the Camp Hill line in Birmingham, namely Moseley, Pineapple Road at Stirchley, and Kings Heath. At least, that was the title of the debate; anyone who had wandered in might have thought it was on the election next year or a Labour pile-on on the current Conservative Mayor, but I will do my best, as I always should, to stick to the subject in hand.
I trust that we are at least in firm agreement that the successful delivery of these three stations will provide a welcome boost to the hon. Member’s constituents in Birmingham, Hall Green and beyond. Passenger services on the Camp Hill line were withdrawn in 1941, but since then demand for public transport in the area has grown substantially. Investment in rail infrastructure can have transformative impacts on local communities. Reopening the Camp Hill line stations will bring 75,000 people within 1 km of a new railway station and unlock untapped potential in the region.
The business case for the stations, which I received in 2020, presents a compelling array of benefits that align with the Government’s wider objectives for the country. They include supporting the local economy, expanding labour markets, reducing carbon emissions, reducing congestion on roads, helping to tackle regional inequalities, and levelling up the country. The Department therefore approved the release in June 2021 of the fixed £59 million contribution of rail network enhancement pipeline funding to the West Midlands Combined Authority for the delivery of five new stations in Birmingham, three of which are on the Camp Hill line, together with two more on the Walsall to Wolverhampton line.
I will make some progress first. The West Midlands Combined Authority and Birmingham City Council have also contributed funding toward the Camp Hill line stations, which I regard as a positive example of the joint working and strong local consensus formed around this scheme. All of this means that I am hugely excited to see how the new Camp Hill line stations can improve the lives of the people around them. However, West Midlands Rail Executive—the organisation delivering the new stations for the West Midlands Combined Authority—has reported that unprecedented microeconomic challenges, coupled with the emergence of unexpected issues across all three work sites, have delayed the expected completion of the stations to late 2024.
The pandemic, inflation, resource shortages and supply chain disruption have all posed substantial challenges for the construction industry. Meanwhile, on one work site a protected species was discovered that can only be moved at a certain time of the year, and most of the work on the site had to be delayed until the animals were safely relocated. Elsewhere, a historic well, which was not registered on any public records, was discovered, meaning works had to be paused while the public realm was redesigned accordingly. Furthermore, a locally listed historic wall situated close to a worksite was in an unstable condition and had to be carefully deconstructed in a way that means it can be restored later.
While I share the disappointment at the delay to the stations, I accept that construction must not be rushed at the expense of local heritage and biodiversity in local communities, so I support and commend West Midlands Rail Executive’s best efforts to ensure that construction is undertaken in a way that is sensitive to the built and natural environment in which it takes place. My officials are working closely with the West Midlands Combined Authority and West Midlands Rail Executive to track progress and seek opportunities to accelerate delivery where possible. I understand that there are scheduling efficiency opportunities being explored that might see one or two of the stations open earlier in 2024. I give way to the hon. Member for Birmingham, Selly Oak (Steve McCabe), who wanted to intervene.
The Minister is too generous. I wanted to refer to a point he raised earlier. He rightly said that the Department had given a £59 million grant to the transport authority. Can he confirm that additional funding was anticipated through a round 2 levelling-up bid, but it was not authorised, and that that is one of the reasons for the current delay? I understand about the protected species and the historic wall, but what is the explanation for the delay at Stirchley, where there does not seem to have been any answer as yet?
I encouraged the hon. Member to rise to his feet to interrupt me, so I hope I am being generous in that regard. The Department for Levelling Up, Housing and Communities is responsible for the levelling-up fund and I do not have information about unsuccessful bids, but I will write to him about that. I will also write to him regarding the other station impact. We tend to find a knock-on from one to another: I recently visited the Northumberland line where there was a similar matter of a protected species—great crested newts in that case—and that had a little knock-on effect as well. I will write to the hon. Gentleman on both those points.
On costs, the hon. Gentleman is right; the contribution I mentioned earlier from the Department is £59 million. There is no doubt that inflation, as I find across my portfolio, presents a challenge in ensuring projects are delivered on budget. The Office for Budget Responsibility recently reported that construction inflation is running at around 15%, so that is a big challenge for us. That is why the Department is afforded flexibility on how the £59 million of RNEP funding is distributed between the five new stations.
Obviously, this is a contribution made by the Department. As mentioned, my portfolio, which also includes HS2, is experiencing great challenge. There is a limited amount the Department is able to offer, but it has offered that amount as well, and we look to our partners to raise the financing that may be required to deliver the project.
Although I have focused on the three Camp Hill line stations, I have also touched on the two other stations in the five-station project. It would be remiss of me not to mention also the host of other exciting rail infrastructure enhancements that will imminently be delivered in and around Birmingham by Mayor Andy Street. I hope this affords me an opportunity to rebut a little what struck me as “What has the Mayor ever done for us?”, like Monty Python’s “Life of Brian” and “What have the Romans done for us?” Allow me to list them: a new station at Perry Barr, which was delivered on time for the Commonwealth games; Edgbaston tram extension opened for the games; extensions being built in the Black Country and Birmingham Eastside; sprint bus routes opened for the games, clearly reducing the journey times; the lowest bus fares in the country outside London, and fares still below those in 2017, when the Mayor was elected; 90% of the pre-covid bus network is protected, well above many city regions; on target for a 100% Euro 6 bus fleet by the end of the year; West Midlands Trains are the most improved under Mayor Street’s collaboration; and—something that the Labour party may struggle with—seven times more transport capital now being invested per year than before Andy Street was the Mayor. Actually, that is why we trust Andy Street to deliver.
One thing that is really interesting, Ms Noakes, is that there is a lot of criticism of the delivery of this line, but if my recollection serves me well, the Labour party was in power between 1997 and 2010, and the three stations—this line—were not delivered. The line has been closed for more than 70 years. When it is delivered, it will be under the Conservative Government and the Conservative Mayor, Andy Street, who are both being criticised.
I would not wish to stray off the brief, so I hope that the Department’s substantial investments in rail infrastructure throughout Birmingham provide assurances to constituents represented here today that they will soon be able to enjoy the benefits of new and improved services, both on the Camp Hill line and beyond. I would also reaffirm my confidence in Mayor Street, who in my view is the best of Mayors.