(1 day, 22 hours ago)
Commons ChamberI call the Chair of the Transport Committee.
Whether they are walking or cycling, riding on buses, trams or trains, or planes, transport plays a huge role in the daily lives of our constituents, and for the businesses and public services on which we all depend. I welcome the fact that the Government are investing properly in transport, particularly local transport. I also welcome the Chancellor’s announcement of £15.6 billion to connect our cities and towns, as well as the fourfold increase in local transport grants by the end of this Parliament. This Government’s ambition on transport is way ahead of the last Government’s.
The Transport Committee is tasked with holding the Department to account on its programme, in respect of both delivery and the use of resources, so I welcome the opportunity to speak in this debate and to discuss the estimated departmental spend for the coming financial year. It is inevitable that Members will also want to consider the wider transport issues that affect their constituencies, but I will try to keep my remarks mainly to the estimates.
As our scrutiny role means seeking assurance that the departmental estimates link to the Department’s strategic objectives, this debate is important. Following the publication of the supplementary estimates for 2024-25, I wrote to the Department in March seeking clarity on how the spending aligned with the Department’s strategic objectives. The Transport Secretary replied saying that officials would
“work with the House of Commons Scrutiny Unit and HM Treasury to consider any changes to the presentation of the Department’s Estimates.”
I have not received more detail directly, and the Department’s main estimate memorandum provides no additional information to explain how spending is aligned with the Department’s strategic objectives. That memorandum and correspondence is linked to on the Order Paper.
Furthermore, the Department’s main estimate memorandum was not received on time, making it harder for my Committee and others to undertake effective and timely scrutiny. The Department for Transport was one of only three Departments, along with the Cabinet Office and the Home Office, whose memorandums were not provided alongside the publication of the main estimate.
Under the previous Government, outcome delivery plans were produced that listed the outcomes that Departments hoped to achieve through their spending, alongside specific metrics by which progress could be measured. The Department for Transport’s most recent outcome delivery plan was published in 2021. In the 2025-26 main estimates memorandum, the Department said:
“DfT’s Outcome Delivery Plan for 2025-26 outlines the ambition to build a modern, efficient, and sustainable transport network that raises living standards for communities. It details how resources are allocated between DfT’s three Priority Outcomes”,
which are given as growth; greener, safer and healthier transport, and improving transport for people. The memorandum later states that the
“DfT’s ODP includes delivery strategies, delivery plans and a suite of core metrics to articulate progress against each Priority Outcome.”
But the outcome delivery plan for 2025-26 has not been published, and the estimates memorandum does not explain how spending in the estimates relates to core metrics and so on.
The Cabinet Secretary recently promised to share the next set of ODPs with the Public Administration and Constitutional Affairs Committee, subject to ministerial approval. Without the ODPs, how can our Committee, and therefore the House, be assured that the Department’s policy objectives are clear, and that its spending aligns with those objectives and with the Government’s really important and very welcome missions? I accept that the Minister may want to write to me after the debate to answer some of my questions. Will the Department for Transport follow the Cabinet Office in planning to publish its outcome delivery plan for 2025-26?
To move on to devolution and accountability, there have been increases in funding in the main estimates, with £100 million allocated to the mayoral combined authorities. Subsequently, at the spending review, there were increases to devolved institutions in England, with just over £15 billion for city region sustainable transport settlements and local transport grants.
The previous Government forced Transport for London to come with a begging bowl every year to get the money needed to keep the tube and the buses going in the capital. Does my hon. Friend welcome this Government’s multi-year funding deal for TfL, which is the largest settlement for over a decade, and does she agree that it will bring stability to TfL’s finances and the ability to plan ahead?
I welcome the intervention from my hon. Friend and constituency neighbour. As a London MP, I know that stability in transport provision in London will be of huge benefit to my constituents, Londoners, visitors and commuters to London. We did not get everything we wanted in the spending review—in our case, the west London orbital—but we certainly got a lot more than we got from the previous Government, and for that we are very grateful.
This Government’s commitment to supporting transport across the country has led to a quadrupling of money for local transport grants, meaning that Bracknell Forest council will receive almost £7 million of transport funding through the spending review. To return to her previous point about strategy, does my hon. Friend agree that, in developing and setting out their national road safety strategy—I hope, later this year—it is important that the Government listen to local communities and areas such as Bracknell Forest. I plan to launch a consultation with my constituents on road safety this summer. Does she hope that the Government will listen to those views?
My hon. Friend anticipates what I will say about road safety later, but I agree about listening to communities on the devolution of funding. There are also the adjustments to the Green Book, which may have cost us a little bit in London compared with the funding we have had in recent years, but communities across the country will benefit from the overall national perspective on devolution and considering the country as a whole.
Mayor of the East Midlands, Claire Ward, has secured £2 billion for transport to and between Derby and Nottingham. Considering that the east midlands has languished at the bottom of the list for transport spend per person, does my hon. Friend agree that this Government are taking strides to ensure that the growth that comes through transport is felt in every corner of the country?
My hon. Friend and fellow Transport Committee member is absolutely right. The changes that this Government are making will be felt across the country and in all types of cities and regions.
To return to the specifics of the £15 billion for city region sustainable transport settlements and local transport grants, which I mentioned, they are deliberately not ringfenced, which is good for local democracy, but does create challenges for the Department in achieving national priorities. I heard from one colleague who is concerned that the politics of their authority is very based on cars, and although we want to encourage people to use public transport and active travel, what can the national Government do if the local authority uses that funding for cars?
My hon. Friend is making an important speech, and her passion for transport is clear for all to see. I welcome the additional funding for bus travel in Essex, but I am very aware that it is for Essex county council, which oversees bus travel there. Does she agree that this is not just about providing that funding to local authorities, but about accountability and ensuring they act in the best interests of residents and spend that money efficiently and in the correct way?
Efficiently and correctly, but also transparently, and I hope all local authorities do fully, properly and accessibly account for their spending to their residents.
The hon. Member talks about £100 million being available for mayoral combined authorities, but is she confident that that is genuinely new money, rather than money reallocated from other pots for mayors to distribute?
The hon. Member asks a good question and the answer is that it is a mixture. It is the philosophy of devolution that is important because mayoral combined authorities in particular can deliver in ways that will be different according to their specific priorities and needs.
There has been a potential challenge to the Department in achieving national priorities. It is also worth noting that the main estimate for the Ministry of Housing, Communities and Local Government provides additional funding for the West Midlands and Great Manchester combined authorities, so there are other pots of money from other Departments that mayors can pool together to put to best use for their authorities. Will the Minister set out what happens if a devolved institution diverges from departmental priorities, for example by opting not to fund active travel despite the Department’s objective to increase active travel?
The future introduction of place-based business cases, as set out in the spending review, has the potential to transform how Government think about the value and benefit of transport interventions and outcomes. When business cases are reformed along those lines, we look forward to seeing a difference in how the Government draw and think about those connections.
I welcome my hon. Friend’s comments about the importance of place-based transport investment. Does she share any of my concerns that some of that place-based transport investment is a little too urban and concentrated too much in mayoral combined authorities, and that there may be areas outside those regions where more transformational place-based investment is warranted?
My hon. Friend makes a good point. One reason that the initial emphasis has been on mayoral combined authorities and urban areas is because work is already being done on such transport strategies, so they are often further ahead. Our buses inquiry deliberately focused on buses connecting communities away from the large urban areas. My hon. Friend is right that as local authorities have been stripped out over the past 15 years, much of that expertise among members and particularly among officers, just is not there, so there are often not the people needed to do that strategic work. I hope that will change and that when our buses inquiry report is published that element of the debate will be included.
I will move on to specific transport modes, starting with buses. Evidence to our Committee inquiry on buses connecting communities emphasised the value of bus services, and the need for measures to promote their use, especially in rural and suburban areas.
Buses are important to my community in Wales, including the No. 65 that connects Monmouth and Chepstow and is supported by an incredible community group called the Friends of the 65 Bus. Does my hon. Friend agree that we must have more funding for buses across the UK?
I cannot remember whether my hon. Friend was in the debate on the Bus Services (No. 2) Bill, but there will be more opportunities to make those points. As she says very well, it is one thing to look at the structures through the Bill, but for many areas, unless the funding is in place, the buses are not there. It is interesting that she mentions the 65: I also have a local battle about the 65 bus. However, that battle is within the context of Transport for London, a regulated transport network, so we have a level of accountability, expectation and information about our buses that was stripped out in the 1980s by the Thatcher Government, when buses outside London were deregulated.
We must ensure that there are strategic objectives underlying the Government’s buses policy, funding and fares approach. We welcome the retention of the £3 bus cap until at least March 2027, as it gives bus companies and local authorities an element of certainty that they did not have. I note that fare subsidy from Government has been cut as the cap was raised from £2 to £3, and I would like to understand from the Minister how the funding links with Government objectives. What is the Government’s bus fare strategy? Are they aiming to achieve economic growth, particularly in those towns centres that are failing because the people just cannot get to them to spend their money? Or is this about increased connectivity? Is the bus fare cap policy being used to tackle the cost of living, to increase ridership or to achieve modal shift? We are still waiting for some sense of what the Government are trying to achieve in their bus fare strategy.
I am now going to move on to roads. We are still waiting for the list of road investment projects in the third road investment strategy—RIS3. No scheme was published at the spending review. The more recent UK infrastructure 10-year strategy stated:
“A full list of projects will be set out as part of the development of the third Road Investment Strategy.”
When will that strategy and that list be published?
My constituents in Chichester are beyond frustrated by the congestion on our A road, the A27. A bypass was originally included in the road investment strategy pipeline covering 2025 to 2030, but that has since been deferred to 2030 to 2035, with no guaranteed funding. Does the hon. Member agree that strategic investment in key arterial roads is vital not only to unlocking economic growth but to easing the daily pressures on communities such as mine and across the country?
I do not know the detail of the proposals of which the hon. Member speaks, but I am well aware that there are bottlenecks on our road systems. This has to be looked at carefully. I learned a lesson about increasing road capacity many years ago when I was a planning student, and of course I remember the widening and further widening of the M25. I once had a boss who said, “You can throw seeds to the pigeons but you will get more pigeons coming to get the seeds.” People will remember the old days when we were able to feed seeds to the pigeons in Trafalgar Square, but that was stopped. We have to do the right stuff in the right way, because otherwise we could end up making the problem worse, but I take her point about the sense of frustration for her constituents.
I want to touch on road safety. Given that our serious road casualty and road injury statistics have flatlined in the UK in recent years, I am concerned that the funding for road safety research has been cut, despite the backdrop of the Government’s plans for road safety. I know that we are due to see the road safety strategy towards the end of the year, so why has that research funding been cut?
To move on to maritime, the UK Shipping Office for Reducing Emissions, otherwise known as UK SHORE, has a research and development programme that was set up to develop innovation to reduce maritime emissions and create skilled jobs across the country. Funding for UK SHORE is coming to an end this year. We are still waiting for the final evaluation report. Meanwhile, the advanced manufacturing sector plan, published this week, said that there would be
“a further £30 million towards the development of clean maritime solutions through the UK Shipping Office for Reducing Emissions (UK SHORE) from 2025 to 2026”.
My question is, will that £30 million be sufficient for the Government’s long-term plans for UK SHORE, given that, as I am hearing, the UK appears to be lagging behind competitor countries on decarbonising maritime?
On walking and cycling, I welcome the sizeable increase for day-to-day and capital spending for Active Travel England after the cut made by the previous Government, and the fact that this is an increase for the next year. However, these figures for growth appear inconsistent with the spending review announcement of a four-year figure, which, when divided by four, looks like a reduction. I wonder whether the Minister could respond to that.
The last mode I will mention is rail. Rail reform will no doubt significantly affect the size and shape of the Department’s spending on rail. The Department is right to be planning for savings and efficiencies as a result of the creation of Great British Railways removing duplication, in particular, while also delivering a better rail service for passengers. My Committee will pay close attention to the Department’s rail reform plans—not just the new structures it establishes, but how effectively those new structures are able to achieve the Government’s aims.
Does the Department have a costed, achievable plan for reducing the cost base by £200 million, as stated, and for growing passenger revenue, as shown in the estimates memorandum? What level of subsidy will continue to be required?
I look forward to responses to my specific questions on the estimates, but I would like to address a couple of other issues on revenue and investment funding. Fines, fees and charges are mentioned only once in the main estimates for transport, namely in the increase in the charge for the existing Dartford crossing. In a report published last week, the National Audit Office has said that
“The government is missing opportunities to deliver efficiencies and share good practice.”
and that
“it is unlikely that the current arrangements for fees and charges will deliver value for money for customers, businesses and taxpayers.”
I will provide two examples. The Driver and Vehicle Licensing Agency spends £175 million a year on the costs of licences, but only £135 million comes in through fees. Is that sustainable? The fee for the driving test has been unchanged for years. In effect, learner drivers are incentivised to take their tests too early, as it is cheaper to have a go at the test than to have another lesson. Should the Driver and Vehicle Standards Agency not be empowered to respond to that?
Are the Government addressing this policy vacuum on fines, fees and charges? We need a coherent strategy where each is set at a level that addresses a particular objective—this might be to incentivise or disincentivise, to cover costs, to track the retail prices index, or whatever.
It is important to evaluate how capital investment is spent, given past challenges with managing large infrastructure projects such as High Speed 2. I welcome the announcement regarding its reset; the Committee is planning to hear from Mark Wild, chief executive of HS2, on 9 July.
Finally, I will repeat the point I have made before in this Chamber about the need to develop more, and more innovative, forms of funding transport infrastructure —land value capture, risk sharing, private finance initiatives and more. Putting all that together, we can ensure that all parts of the country can benefit from badly needed transport infrastructure investment in the future.
I agree with the hon. Member for Brentford and Isleworth (Ruth Cadbury) on one thing, which is the importance of transport for connecting communities. I then diverge from her a little, because if this Government are serious about unlocking and delivering economic growth, particularly across the west midlands, they would be serious about funding transport.
This Government’s commitment to £10.2 billion for rail enhancement is welcome, but, as ever with the Government, it lacks detail and leaves unanswered questions. Take the example of the midlands rail hub, for which the previous Government not only committed to the initial £123 million, but pledged £1.7 billion to deliver the hub in full under Network North. However, today, through the spending review and responses to my written questions, it has become clear that the hub is funded not to delivery, but only to the next stage. I hope that, in his summing up, the Minister will clarify once and for all whether the new Government are committed to fully funding the delivery of this project. If so, when will it be completed? It is critical to the infrastructure of the west midlands and beyond.
Staying on the topic of trains, I cannot let this debate go without mentioning Aldridge train station. The city region sustainable transport settlements are also covered in these estimates. It was thanks to the hard work of the previous mayor, Andy Street, working with the then Conservative Government that we secured and set out a fully funded CRSTS programme. That included £30 million to deliver Aldridge train station in my constituency. The funding for the delivery of the station was earmarked for 2027, providing rail connectivity for the first time since the 1960s. Sadly, it was the decision of the Transport Secretary, together with the Chancellor, to approve Mayor Parker’s decision to convert the capital funding to revenue. The funding had been ringfenced for our station, but it has now been moved away from Aldridge train station—I suspect that it has been moved to fund the mayor’s vanity bus project.
The 2025 spending review also confirmed £15.6 billion in funding to provide transport for city region settlements for nine mayoral authorities, including £2.4 billion for the west midlands. The mayor could have chosen to get Aldridge station back on track, but no, he has chosen to keep it in the sidings. This is despite the Chief Secretary to the Treasury indicating in this House on 4 June that the mayor had not spent all his money, and even encouraging colleagues to lobby him on how he might wish to spend the rest. Suffice it to say, the Mayor of the West Midlands knows my views and he knows my ask, and I will continue asking.
Let me turn now to bus services, which are key to connectivity and to opportunity, particularly for communities such as mine which find themselves still without a train station. We have seen in the estimates that the national bus fare cap, which was increased from £2.50 to £3 in January 2025, is being extended to March 2027. That is fine, but the Transport Secretary claims that this is a measure to reduce the cost of everyday journeys for working people, yet for those of us in the west midlands, it is yet another hit on top of what we have already seen from the mayor, who has hiked fares and monthly and annual bus passes by more than 8%.
In the debate on the Bus Services (No, 2) Bill earlier this month, I asked the Transport Secretary about how the so-called “socially necessary” services referenced in the Bill would be protected and how they would be defined. She told me that it is down to individual local authorities to define what is socially necessary, but gave no assurances about how they would be supported to continue to provide these vital services. As we saw, £750 million per year announced in the spending review is to maintain and improve bus services. It would be really helpful to understand what allocation from the spending review will go to fund these services in the west midlands.
My right hon. Friend talks about the Bus Services (No. 2) Bill, which is now in Committee. Does she share my concern that the franchising arrangements that that Bill offers have little attraction for small local authorities such as mine on the Isle of Wight, because if it were minded to go down the route of franchising, it would take all the risk and could end up with a very large shortfall that perhaps metropolitan boroughs can swallow, but certainly smaller local authorities such as mine could not?
My hon. Friend makes an interesting point on franchising. He is right to highlight the potential impact and the challenge for smaller authorities, but there are also challenges for the bigger authorities. My constituency is part of the West Midlands combined authority, and also part of Walsall metropolitan borough, but I am equally concerned about how this new model that our mayor is pushing will be sustainable. I fear that, in the future, my residents might find either a reduction in services, or increases in cost. For constituencies on the edge of a large combined authority, there is always that feeling that services are sucked into the centre and that we are left out on the periphery.
Transport is vital to people and communities, and it is vital in accessing employment and opportunity. From the Government’s plans, it is quite clear that they have simply used reviews to move money around to their pet projects, and they are not joining up communities—simply another missed opportunity. For as long as my constituents continue to raise with me the question of Aldridge station, I assure you, Madam Deputy Speaker, I will continue to raise it in this place.
Let me begin by agreeing with the Chair of the Transport Committee, my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury). She is right to welcome the huge ambition that the Government have shown on transport. It is certainly much more ambitious than what we saw under the previous Government. I urge the Government to grow that ambition boldly, particularly for the areas that were left behind under the previous Government, and to enable growth and opportunity to reach every corner of the UK.
Much of my speech relates to my constituency and the great city of Bradford, which will not be lost on you, Madam Deputy Speaker. I welcome the recent announcement in the spending review of £2.1 billion for a new tramline and bus station in Bradford. Those projects represent an important step forward, and I am grateful that Bradford is finally receiving the long-overdue attention that it deserves. Communities in Bradford such as mine, and indeed yours, Madam Deputy Speaker, have waited too long to see promises become progress. I have long campaigned for improved transport links in Bradford and across West Yorkshire, alongside colleagues, campaigners and Bradford council, because I know how vital transport is to unlocking economic growth. It is a driver for regeneration, a bridge between communities and a pathway to opportunity.
If the Government are serious about long-term regional growth, they must go further. We need additional funding to ensure that Bradford receives the full investment in transport that it needs, not only to support our local communities but to strengthen the economic performance of West Yorkshire and the wider north. Despite being one of the largest cities in the UK, Bradford has historically been left behind when it comes to national transport planning. The absence of strong rail connectivity continues to limit our potential, and that must change.
I believe that Bradford would benefit significantly from a new, modern and fit-for-purpose railway station. While I welcome improvements to Forster Square, we must be far more ambitious if we want to deliver a station that truly connects Bradford to the rest of the country and enables wider regeneration in our city centre. A new railway station is deliverable and could be built at pace, with low risk of cost increases. I understand that different Departments have already been looking at the business case and evidence for it. The benefits would be transformative. Improved connectivity between Leeds and Bradford would unlock our huge growth potential.
I would also like to make the strong case for Bradford to be linked into the £11 billion trans-Pennine upgrade. I know that there have already been consultations on its feasibility, and I ask the Minister to address that in his remarks.
By linking Bradford to Huddersfield on the trans-Pennine line, we would have direct access to the wider region. It would speed up journeys to Manchester by half, help put Bradford on the map and be a huge boost for growth. I ask the Treasury to continue to work with the Department for Transport and regional partners to explore improvements in east-west connectivity to complement the city’s long-term growth strategy.
Let me turn to the huge economic benefits not just to Bradford or West Yorkshire but to the whole of the north. Maximising investment in mass transit and Bradford rail would open key regeneration and housing sites. It is central to delivering Bradford’s southern gateway—West Yorkshire’s largest regeneration opportunity—and could unlock up to 10,000 homes across the wider city centre. More investment in Bradford would be not a cost but a long-term saving: it would mean lower welfare dependency, better access to jobs and learning, and a more prosperous, healthier population.
If Bradford were just to meet the UK average for productivity, enterprise and employment, we would unlock over £4.5 billion in additional annual economic output. As the House will know, Bradford’s 2025 city of culture programme is already unlocking billions in regeneration across West Yorkshire, but to truly meet the Government’s growth objectives and level up opportunity, we need a fair, ambitious settlement, because without mobility there is no capability.
I welcome what the Government have done for transport in Bradford so far, but again I make the case for a new rail station, which I know the Minister and different Departments are looking at seriously. I also ask the Minister to consider the strong case for giving Bradford real access to the trans-Pennine line. I urge the Government to set out what additional funding and support can be made available.
Madam Deputy Speaker, you and I know that a fully connected Bradford will lift the entire region. We will continue to campaign for the transport investment that Bradford so clearly deserves.
I am grateful to the Chair of the Transport Committee and the Chair of the Backbench Business Committee for allowing us to debate the transport estimates.
I felt a bit underwhelmed by the Chancellor’s offering for transport following the spending review. I am not really sure what she had to offer my constituents in North Norfolk. We saw funding for the continuation of the bus fare cap, which is welcome, but still an increase to the £2 cap that was previously in place. Other than that, what will help them? Upgrades to the Ely and Haughley junctions, which would support improved connections for business and passengers out of Norfolk, were once again overlooked, which will lead only to a higher cost when the Government eventually realise they are necessary. There were also questions over funding for active travel at a time when we should be investing more to encourage modal shift and making walking and cycling an easier and more attractive option, and a complete fiscal straitjacket was placed on the future of the Bus Services (No. 2) Bill, on which I will focus my remarks.
I am serving on the Bill Committee, and we have learned that the Government have applied a money resolution that means the Bill can incur expenditure only under existing Acts and not create anything of its own that would require any actual money. It often feels like we are living through a certain political sitcom in this place. In this instance, the Treasury has effectively shut the Department for Transport in the back of a taxi and tasked it with coming up with something incredibly popular and completely free. I fear it is only a matter of time until we get a ministerial statement doubling the number of quiet carriages on trains.
The serious point is that we cannot deliver the radical change and improvement that our rural public transport network needs without new money to support it. The Minister responsible for buses, the Under-Secretary of State for Transport, the hon. Member for Wakefield and Rothwell (Simon Lightwood), has made laudable efforts—I believe that he really believes in buses—and there is a lot of really good stuff in the Bill, but just creating and distributing powers without any funding to support their use, and barely any funding to support and develop best practice on how to use them, will not deliver the improvements we need. Indeed, the Department’s Bus Centre of Excellence is staffed by a grand total of three people, and with day-to-day spending cut by the spending review, we are not likely to see a hiring spree any time soon.
Supporting rural public transport helps across Departments. It supports people’s access to medical appointments in a timely manner, reducing missed appointments or worsened conditions. It reduces the benefits bill by widening access to employment and training opportunities. It is better for the planet, reducing car journeys and the resulting emissions. Revolutionising rural public transport would be a cross-Government win. I hope the Treasury can see it that way too and finally give it the funding that it needs.
Monmouthshire is a rural county and access to transport is critical, so I am delighted to speak in this estimates day debate. Transport enables people to get to work, school, hospital appointments and, of course, anywhere else they need to be. It also enables me to get up here from Monmouthshire. I have already talked about my favourite bus service, the No. 65, which goes through the lovely villages of Trellech and Devauden, and is incredibly important for allowing young people who cannot drive yet to get to work and so on.
I am delighted with the expenditure outlined in the comprehensive spending review for improving transport links across south Wales and reaching over the border. This has the potential to be an absolute game changer for my constituents. A lack of regular, reliable public transport is holding our county back, and it is frustrating and restrictive for residents. More importantly, it is a major barrier to economic growth, which is the main mission of this Government.
That is why I and Monmouthshire residents were over the moon when, in the spending review, £445 million was committed to Welsh rail. The funding is being made available for the Burns stations—five stations outlined in the Burns review that run between my constituency of Monmouthshire and across to Cardiff. That includes an important station to me: the station of Magor and Undy. Hundreds of new homes have been built at Magor and Undy, and the commuters who live in them do not have a viable option to get to work other than by road. There are major road congestion problems around Magor, particularly on the nearby M4, so this transformative rail funding will see huge benefits for my community and allow huge numbers of people to avoid using a car at all for their commute.
My hon. Friend makes an excellent point. My community, like hers, also depends on rail services running from London to south Wales. I want to underline the benefits she is outlining based on my own experience. Reading has benefited hugely from the Elizabeth line and the rebuilding of the station, and that is linked to new homes and businesses clustering around the station. Does she agree that the Government’s strategy, as outlined earlier, brings forward real benefits to many constituencies across the country, and that there are already such examples where Labour councils and the Government are working well together?
I strongly agree. It is great to see two Labour Governments working together, here in Westminster and down in Cardiff, to deliver those better transport links between London and Reading and all the way down to south Wales.
It is important that we have Magor and Undy station as soon as possible. It is a walkway station, which is really innovative; people will walk to the station from the surrounding area. It is innovative, it is green and it is an affordable choice to kick-start this important new set of transport links. We have to start somewhere with our five stations down in south Wales, so I am using this debate to strongly suggest that Lord Hendy and the other Transport Ministers support starting the journey at Magor and Undy.
Another key issue we face is the closure to heavy goods vehicles of the M48 bridge over the Severn. That is really impacting businesses around Chepstow, particularly on the Newhouse Farm industrial estate. Drivers are being forced to add miles to their journeys. Of course the safety of our bridges is incredibly important, but the closure of the M48 bridge is bad for businesses, bad for the environment and bad for everyone driving locally, as they face even more congestion. Sadly, the situation is expected to continue until late 2026, but I am delighted that the Roads Minister has confirmed to me today that she is encouraging National Highways to expedite the process as soon as possible. I must stress that current timescales are going to hit Monmouthshire hard, so support for local businesses, many of which are in the logistics sector, and help for National Highways to move faster would be extremely welcome.
We need the bridge fixing and we need our station at Magor. Those are two really big transport issues for Monmouthshire, proving the importance of the UK and Welsh Governments working together to improve connectivity, sort out congestion, reduce vehicle emissions and, ultimately, supercharge economic growth. I wholeheartedly welcome the funding outlined in the spending review to help us take steps in that direction.
I praise and thank the hon. Member for Brentford and Isleworth (Ruth Cadbury) for her wide-ranging opening speech to this important debate. I also thank the Backbench Business Committee for giving time for it.
There is much to welcome in the spending review announcements for transport, particularly the capital investment in many parts of the country, but it is going to be important to hold the course and be consistent in the support for such schemes. For example, proposals for a West Yorkshire tram have been in and out so many times that people living in that region have understandably lost count. Hopefully, this time it really will happen.
Beneath the positive headlines about capital spending, and hidden a little in the footnotes, is a 5% cut to operational expenditure during the spending review period. Looking at the detail, there are some somewhat optimistic assumptions that form the basis of how that will be borne. For example, in section 1.7 of the DFT memorandum for the main estimate 2025-2026, it is clear that the assumption as to how some of those savings will be made is through ongoing recovery of passenger revenues since the pandemic, as well as planned cost efficiencies from rail reform. It states,
“Should revenue growth be lower or implementation of rail reform be slower than anticipated then that could result in spending pressures.”
Although Great British Railways certainly has the potential to improve things, I think all concerned would accept that on its own, it will not solve all our problems.
Given that our transport system is not going anywhere —we are not going to see closures of railways or large cuts—I think it is time that we collectively stop viewing it as a burden and spend intelligently to make the most of the assets and the costs that come with them. By spending a little bit more or approaching things a little radically, we can make far more of those sunk costs that go into our transport system and will continue regardless.
It is important to recognise the suggestions at the moment that funding for the existing network may well be constrained by the expensive disaster that the implementation of HS2 has become. We do need high-speed rail in this country, but the costs are simply unbelievable. However, I suggest to the Government that it would be as wrong to punish the conventional network for HS2’s failings as it would be to deprive local roads of investment because of an over-budget motorway project.
Here are a few friendly suggestions to the Minister and his colleagues for how that 5% operating expense gap could be plugged by growing revenue. When it comes to taking the railway to the next level, there are some things that cost very little, if anything, that could be done. I personally find on-train ticket checks to be inconsistent. Where guards are present, they really should be present on the train, ensuring that we maximise revenue gathering from ticket sales. Full electrification of our busiest and fastest inter-city and freight routes would lead to higher train reliability, better acceleration and therefore more capacity, making the most of what we already have. It is not just me who thinks that a rolling programme of electrification would reduce costs; chief executive of Network Rail Andrew Haines recently said in front of the Transport Committee that it is “incontrovertible” that it would do so.
Does my hon. Friend agree that the electrification of railway lines boosts capacity and enables them to ship more freight across our great nation?
My hon. Friend is quite correct. Having previously worked on this subject in my past life, modelling of acceleration shows that electrically hauled freight is transformative compared with diesel, and it enables more to be hauled, making the most of the limited capacity that we have.
Let me give an example from my constituency. The electrification of the 10 miles between Didcot and Oxford would reduce operating complexity and costs by reducing the long periods when trains sit idle at Didcot because of the split between London to Didcot, which is electrified, and Didcot to Oxford, which is not. It would also enable the sort of fast and frequent suburban service that is needed to serve a proposed major housing development and an artificial intelligence growth zone site at Culham. Full electrification of East West Rail would cost very little, as the project is based on new and heavily upgraded railways, yet massively increase its potential.
Rail freight promotion would reduce the need for costly upgrades to roads such as the A34. Even National Highways acknowledged that to me in a meeting the other day. The A34 through my constituency has heavy freight traffic from Southampton’s ports, including container haulage heading to the midlands and the north. There are capacity constraints that prevent more of that freight being taken on the railway between Southampton, Reading and Birmingham.
As a recent excellent report by the Transport Committee on accessibility highlighted, accessibility improvements make our railways far more attractive. Last night, it was my pleasure to attend a meeting in Cholsey, where people are campaigning hard for accessibility improvements at their station. Such improvements have been made down the line at Pangbourne, Goring and Streatley. New stations on existing lines, such as at Grove and Wantage—an area of major population growth in my constituency—would make more of the infrastructure that we already have.
Do the Government plan to think radically, or will they be stuck in a rut, doing more of the same? Government support for more depot capacity at Temple Mills in Stratford is all that is needed to get more people using international rail services. The private sector will do the rest. That would free up landing slots at the ever-busier Heathrow airport, potentially avoiding the need for a costly and disruptive third runway. I call on the Government to provide sustained and generous funding for Active Travel England, so that it can continue its strong work of ensuring that local authorities provide not tokenistic cycle paths that go nowhere, but the highest quality infrastructure to get us all walking and cycling. Innovation in retail systems to make it clearer where and when the cheapest fares are to be had has the potential to increase revenue yields.
As we found on a recent visit to the port of Dover, there is great electrification potential for the Dover-to-Calais route, which is one of the shortest and busiest shipping corridors in the world. French ports are ready for rapid charging of battery ships, but we were told that Dover needs power supply and grid capacity upgrades. No plans are in place for those, which means that we are missing an opportunity to achieve a global first: fully decarbonised freight.
The hon. Member is making a detailed and impassioned speech about the possibilities for transport investment throughout the country. Does he recognise the value of electrification of the Cornish main line? The benefit would be in the region of 10 times the cost, and there would be potential for a grid upgrade of the kind he mentioned.
I agree that full electrification is the best solution for the Devon and Cornwall main line, and we can use battery trains on the branch lines once that has been done. I would welcome a longer conversation with the hon. Member, because I understand that the current thinking is for discontinuous electrification with batteries, which is not the right solution for that critical artery across Devon and Cornwall, given that there are dual carriageways, but the railway has had very little investment in the past 40 years.
Integrated transport is key to growing confidence in and therefore use of public transport. It improves interfaces between modes, as well as easing pressure on our creaking road network. The forthcoming Government integrated transport strategy is welcome, but it must address disintegrated timetables for the railways, buses and other forms of transport, baffling and expensive fare structures, unwelcoming bus stations, and the lack of walking and cycling routes. Integrated transport is how Switzerland achieves the highest rate of public transport use in Europe.
The key question for our transport system, which is so critical to our economy, our environment and social inclusion, is whether we want more of the same, or whether we want to create a transport system that really enables access to jobs, social mobility and economic change. Current plans suggest a little too much of the same, rather than a real change of course.
I thank speakers who have taken part in the debate, and I particularly thank my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury), the Chair of the Transport Committee, for her comprehensive speech.
Transport is a huge priority for residents of Dartford. The constituency contains the only Thames crossing east of London, as well as a stop on High Speed 1. My constituency has several key railway stations and bus services that need major investment. It is fair to say that Dartford provides some good examples of Government policy starting to get it right, as well as of challenges that we all face.
I will start with roads, and I put on record my appreciation for the announcement in the spending review that the Department for Transport will create a £1 billion structures fund to repair the rundown transport infrastructure—roads, bridges and the like—that this Government inherited, and for which there is no other available funding. Nowhere will that be more welcome than in Swanscombe, where the collapse of Galley Hill road more than two years ago has left residents unable to use the main road out of their town. They are also blighted by heavy goods vehicles that are using roads that are far too small for them. I particularly thank the Under-Secretary of State for Transport, my hon. Friend the Member for Nottingham South (Lilian Greenwood), for visiting soon after her appointment following last year’s election. I look forward to more information in the coming months about how Kent county council, and other councils across the country, can apply to that structures fund.
I warmly welcome the development consent order, and the funding announced for vital work on the proposed Lower Thames crossing, which, when finally built, will relieve the traffic overspill that regularly brings Dartford to a complete halt. Residents in Dartford and beyond eagerly anticipate further news on the funding package. We saw £690 million announced in the comprehensive spending review, but they want further funding in the months ahead—private sector funding, as well as more public sector funding. I look forward very much to working with Ministers to make that happen. The jobs, training and new business opportunities that the construction and operation of the crossing will offer will help to drive economic growth across the Thames estuary, and in the wider region beyond.
Money for potholes, including £54 million for Kent this year, is incredibly welcome, after our roads in Kent became a visible sign of decline under the Conservative party. Residents will be looking to the new Reform county council to make a real improvement to our roads with that money, so let us see it properly spent.
It sounds as if the hon. Member is placing his faith in his new Reform county council. Is that really the case?
Having seen the DOGE unit turn up in Kent on day one—people with no knowledge of Kent, wearing baseball hats—I am not hugely confident that the council will spend the money well, but let us give it a chance. I throw that challenge out to them. Our community needs Kent county council to put the £23 million of funding that the Government have provided to good use. It must also use the new franchise powers that will be available through the Bus Services (No.2) Bill to improve bus services in Dartford and across Kent. Again, we will be holding the council to account. I also want to say a quick word about welcome developments in rail.
Up north, we are chuffed about the record investment in the trans-Pennine route, and chuffed about Northern Powerhouse Rail. Will my hon. Friend back my calls for better train wi-fi, so that our constituents can check their emails speedily, and my little boy Robin can stream “Paw Patrol”?
My hon. Friend makes an extremely good point. Wi-fi not only enables people to work on trains and maintain the connectivity that they need to live their life while using public transport, but provides huge opportunities for entertainment. I know there are many “Paw Patrol” fans out there who will want improved wi-fi on my hon. Friend’s services.
The other equally important rail development that we want in Dartford is further improvements to the reliability of services provided by the Southeastern and Thameslink lines. It is encouraging that on Southeastern, which has been Government-owned for some time, we see an early example of integrated management—the track was previously run by Network Rail—and train operations of the kind that will become the norm under Great British Railways. We are pioneering that in the south-eastern part of Network Rail in Dartford. If we only had more stations with step-free access, including at Swanscombe, where that access is particularly badly needed, that would be incredibly welcome.
On high-speed rail, I note the welcome development mentioned by the hon. Member for Didcot and Wantage (Olly Glover): new entrants to the international rail services routes have signalled their intention to stop at one or both of Ebbsfleet and Ashford in Kent, restoring international services to our county. We welcome continued support from Ministers for that new international rail connectivity.
Finally, Dartford residents want a couple of extra things to come down the line. We want the highly successful Elizabeth line—or Crossrail, as it was originally known—to reach Ebbsfleet and beyond, rather than terminating at Abbey Wood. I appreciate that funding is not on the table for that project, but given the size of the growing community in Ebbsfleet and the need for sustainable transport links to our capital, I hope that over the course of this Parliament, we may be able to look at how an extension of the Elizabeth line from Abbey Wood to Ebbsfleet might be funded.
Residents in my constituency will warmly welcome these estimates, the Government policy set out in them, and the action that the Government have taken so far to improve transport infrastructure and connectivity. As I have said, I very much look forward to continuing to work with Ministers to get Dartford moving.
I rise to thank the Government for the emphasis that they have placed on transport and critical national infrastructure in their agenda so far; to urge them to go further; to dangle before them the very exciting prospects offered by my constituency, which has economic potential to unlock; and to draw attention to the unmet needs of my constituents.
Along with the rest of south-east England, Surrey Heath is often seen as a well-connected and prosperous part of the country, but that perception has allowed a troubling complacency to take root. Beneath that surface impression lies a set of worsening transport challenges that limit opportunity, stifle growth and place a daily strain on residents across the towns and villages of my constituency. We are the second most car-dependent constituency in the country, with 1.64 cars per household—well above the national average. That figure is the result not of convenience or affluence, but of necessity. Public transport is patchy, unreliable and poorly integrated, and in some areas it is absent altogether.
That car dependency comes at a huge financial cost to my constituents and places a huge pressure on our road infrastructure. Junction 3 of the M3 is frequently overwhelmed and is a daily staple of the morning and evening traffic reports. Any listener to LBC or BBC Radio 2 will know the otherwise wonderful village of Lightwater by its association with congestion and long delays. That is terribly unfair, because it is a rather lovely place. The A322, our principal arterial route connecting several villages, is frequently at a standstill. Frustrated drivers bail out and cut through nearby villages such as Windlesham, which is equally lovely, turning residential roads into rat runs. The Lightwater bypass, which is designed to ease traffic flow, regularly grinds to a halt. This issue is not only congestion, but safety and liveability for those communities. Residents along the A322 report frequent speeding, dangerous driving and noise. There have been serious accidents, some of which have tragically been fatal, but calls for basic safety measures such as speed enforcement remain unanswered.
My hon. Friend mentions safety measures. In my constituency, we have the Fishbourne roundabout on the A27, which many of my constituents avoid like the plague. I was on that roundabout in my car just the other week with a staff member, and we had a very near miss. Does my hon. Friend agree that dealing with the problem once there has been an accident or a fatality is absolutely the wrong way to ensure protections on these roads? We need to fix the problem before deaths occur.
My hon. Friend will not be surprised to hear that I entirely agree with her. We have had several fatalities, and very often our local county council makes the same claim—that it cannot, or will not, do anything until there is greater evidence of safety need. Tragically, the ultimate expression of that need is often a fatality.
Bus services in my constituency are sparse, and are non-existent in some areas. In villages such as Chobham, there is no regular bus service at all, and where buses do run, they are often poorly timed with train connections, leaving residents waiting or missing links. For many, the only option is costly private transport. That disproportionately affects the elderly; young people who have not yet learned to drive, or have not been able to access driving test appointments because of the current crisis in that particular part of our civic life; and lower-income households. In 2025, the simple act of attending work, school or hospital should not be dependent on car ownership or on expensive taxi journeys, often costing more than £50.
Those pre-existing challenges now collide with demands for rapid additional development. With the Government’s commitment to build 1.5 million homes, Surrey Heath is expected to deliver a 113% increase in housing over the coming years, but 74% of my constituency is already constrained by green belt or other planning restrictions. For example, in the village of Deepcut alone, the former Army base that has become notorious in the public imagination has already delivered new homes, and will continue to deliver 1,200 new homes over the next couple of years. That is good, but it places thousands more vehicles on roads that are already under pressure, because no public transport has been introduced alongside those housing increases.
Meanwhile, our rail infrastructure has not only failed to keep up with the times but gone backwards. Camberley, our largest town and the home of Royal Military Academy Sandhurst, is just 28 miles from central London, yet journeys regularly exceed 75 minutes in duration. There are only three direct trains per day, none of which is aligned with standard commuting hours. It now takes longer to travel from London to Camberley in 2025 than it did in 1925. Commuters are often forced to jump into their cars and travel to Woking, Brookwood or Farnborough, adding to road congestion and hindering any meaningful move towards the realisation of sustainable transport aspirations.
We need a long-term, strategic approach to infrastructure. That means faster, more direct train links, dependable and integrated bus routes, and delivery ahead of—not after—major housing developments. For that reason, I call on the Government to commission a national survey of local connectivity, in order to build an accurate picture of travel times within and between our communities and regional economic centres. We must identify the areas that are most underserved and ensure that investment is guided by evidence and lived experience, not just assumptions of affluence and connectivity. Such a national review would enable a more coherent strategy to emerge.
In an era in which I think we all recognise that every single pound matters, that kind of connectivity mapping would provide a valuable guide for critical investment decisions, which must unlock latent economic potential in areas that have been left behind. Without anticipating the results of such a survey, I have every belief that it would show communities such as mine in Surrey Heath to be ripe for that kind of economic investment. If we are serious about building sustainable, connected communities and making every pound of investment count—which surely we all are—we must begin by listening, identifying the gaps, and acting to close them.
I thank the Backbench Business Committee for allowing this debate to take place. I very much welcome the investment in transport—especially public transport—in the spending review. The commitment is really clear; for example, there is £2.3 billion for the local transport grant, which will support local transport improvements such as bus lanes, as well as £616 million to build and maintain walking and cycling infrastructure and £2.6 billion to decarbonise transport, which is all very important.
Investment in public transport, particularly in buses, brings multiple benefits. First, it reduces congestion.
In the east midlands, we saw our bus routes cut by 60% under successive Conservative Governments. Does my hon. Friend agree that buses have a huge impact upon people’s lives and their ability to access opportunities in training and work, to get to health appointments and to connect with family and friends? Does my hon. Friend agree and welcome this Labour Government’s focus on enabling better bus travel, which is the right direction to go?
I absolutely agree with my hon. Friend. I know she is normally a champion for trains in her constituency, so I welcome her branching out into buses. The Campaign for Better Transport says that £1 of investment in buses brings £4.55 in benefits, and I am absolutely up for that. While we are on the subject of better buses, where we have good public transport, such as busways in my constituency, people come to them. That is why I back the campaign to extend the Dunstable busway west towards Leighton Buzzard and then ideally on to Bletchley.
In her opening remarks, the Chair of the Transport Committee, my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) talked about fees, particularly for driving tests, which we have been discussing in Committee. Will the Minister consider looking at fees as a way to change behaviour? I have been contacted by constituents who have been told they will have to wait up to nine months to get a driving test slot, which is utterly ridiculous. People are putting their lives on hold for such things. One issue we found when we gathered evidence in the Committee is that people are booking up tests, regardless of whether they are ready to take a test. As my hon. Friend said, it is cheaper sometimes to book a driving test than to book a couple of lessons, and that cannot be right.
I cannot imagine any Government out there would relish putting up the price of a driving test. The hon. Member for North Norfolk (Steff Aquarone) was challenging us to find policies that are both popular and free, but we could think about driving tests a little bit differently. For example, how about putting up the fee, but giving everybody one free go at it? Basically if someone passes their driving test, they would get a refund. That would encourage everybody to only go for it when they really thought they would pass. We could probably make it cost-neutral, and it would free up slots, because only those who thought they were definitely ready would go for it, and it would be offset by putting up the charges for everyone who fails again and again. That probably would not have done me any good; I failed my driving test about five times, but I eventually managed it.
Moving on, local roads make up 98% of the road network and carry 60% of all traffic. Every journey, however it starts—whether by foot, by bike, by bus or by car—starts and ends on a local road, and local roads are managed by highways authorities, but highways authorities are not always transport authorities. This will become an increasing issue as the Government roll on with their devolution agenda, which I welcome, and more strategic transport authorities are established. With buses, for example, whether it is an enhanced partnership agreement between a local transport authority and a bus operator, or franchising carried out with a transport authority that is not the Highways Authority, there are things that it is difficult for the transport authority to do to keep a bus running on time, because that is dependent on the road on which it is running.
As we all know, roads can be blocked by roadworks, they can be in a poor state of repair and a bus lane can be obstructed, yet a stand-alone transport authority does not have control over any of that. Such authorities do not manage the planning system, do not collect the community infrastructure levy, do not own the bus stops and do not get any cash from bus lane enforcement—none of that comes their way. However, they are the authorities expected to get on with delivering the funding, such as the £15.6 billion transport for city regions settlement.
May I ask the Minister what lessons have been learnt from CRSTS in respect of delivery? I am thinking especially of any blockages that may have been encountered because of the split between transport and highways, and indeed the lack of passenger transport executives or their equivalents. I have talked to other Ministers about that, but I am delighted to see this Minister on the Front Bench, and it would be interesting to hear anything from him on the subject of passenger transport executives.
As I have said before, we could have a much more cost-efficient system. The Government are rightly bringing track and train together, and I think we now need to have a conversation about bringing bus and bus lane together.
When we talk about national renewal and about building a fairer country, that promise must be visible in places such as Cornwall. I am speaking today not just as the Member of Parliament for St Austell and Newquay and the clay country, but on behalf of a nation and region that has for too long been overlooked when it comes to transport infrastructure. While urban areas receive wave after wave of capital funding, Cornwall—despite its strategic economic potential—has to fight for anything more than basic improvements.
The Mid Cornwall Metro was billed as a flagship rail project for regional regeneration, but this summer we face the real possibility of reduced services, delays in driver training, and a fractured promise to towns such as Newquay that rely on connectivity to survive and thrive. That is not fairness; it is failure. We must move beyond piecemeal, incremental improvements. A “real” Mid Cornwall Metro would link St Austell to Newquay via the western clay country, and is about as shovel-ready as is possible with a major project of that scale in Cornwall. It is backed by rigorous analysis and an albeit outdated feasibility study, and has a cost-benefit ratio of 2.3. It would connect our critical minerals industry with global opportunity, it would help our young people gain access to jobs and training, and it would breathe life into some of the most under-invested communities in the south-west.
We know there are still announcements to come, but Cornwall cannot sit at the back of the queue any longer. Over the period covered by the spending review, the south-west will receive £201 million in local transport grant funding. I think that is about a quadrupling of the present amount, which is extremely welcome, but just £24.4 million of it is allocated to Cornwall. In the same period, the West of England combined authority, despite its similar population, will receive £752 million. We should like to see the same progress on investment in transport as we have seen in so many other areas, such as local government—with its fair funding—and health, given today’s announcement about the Carr-Hill formula. What we need is a Department for Transport that works with us in Cornwall, not around us. We need proper devolved authority over our local rail system to optimise transport integration and to serve forgotten communities such as Foxhole, Nanpean, Treviscoe and St Dennis, where our track turns to trackbed; we need investment that reflects our economic and industrial ambition; and we need decisions that are based on public good, not on postcodes.
The Green Book review, in proposing place-based approaches to investment, sets our Government a clear challenge. Cornwall is ready to step up to that challenge. Much of the shadow of what we now see as our infrastructure was cast in the last industrial revolution, but with the right investment in Cornwall, we can lead in the next.
As we all know, strong connectivity is vital to economic growth and social prosperity. It is not just about convenience; it is key to boosting productivity, attracting regional investment and raising living standards. Central to that is making public transport more available, affordable and accessible.
The transport crisis in this country is clear. Since 2015 the number of local bus journeys has dropped by more than 1 billion—a quarter of all trips—with many routes cut and fares up by more than 50% since 2013. Rail use remains below pre-pandemic levels, while Government rail subsidies have surged to over £22 billion, 65% higher than they were before the pandemic, despite repeated above-inflation fare increases. So what is the plan? The estimates offer us some hope, but the picture is mixed.
Let me begin with the positive aspects. The 4.4% rise in capital spending is welcome, especially the boost for Transport for London and High Speed 2, which shows much-needed recognition of the transport network’s capital needs. The continued support for East West Rail and the trans-Pennine route upgrade is also welcome, as they are vital to connecting communities and driving growth—exactly the kind of strategic investment we need.
Sadly, although the Conservative Government claimed to back motorists, they did the opposite, and fewer than half our roads are now in good condition. The new road funding settlement is good news therefore, but it clearly falls short of what is needed. The support for devolution is also encouraging. Local leaders are best placed to deliver for their areas, and increased autonomy for transport in city regions is positive, even if not all the new money is in fact new. However, areas outside combined authorities must not be overlooked.
Of the negatives, the most concerning is the £150 million cut to day-to-day spending this year and over the spending review period, which will affect subsidies for trains and buses. The reductions threaten already fragile services and the efforts to promote walking and cycling, and raise serious doubts about the Department’s ability to achieve its stated priorities.
There is a clear mismatch between the Government’s ambitious transport goals and their budget priorities. An £81 million rise in central administration costs, largely to cover the higher employer national insurance contributions that the Government introduced, raises questions about whether resources are being prioritised towards administrative overheads, rather than directly supporting frontline transport improvements.
Despite pledges to address climate change, the budget lacks detail on funding for green infrastructure, public transport decarbonisation and active travel, leaving the DFT open to accusations of setting green ambitions without a clear financial or operational pathway—greenwashing, effectively.
The £50 million in costs tied to the closure of phase 2 of the HS2 programme further reflects issues with long-term strategic planning. Not only does the expenditure represent sunk costs, with no return on investment; it casts doubt on the Department’s ability to deliver the major infrastructure projects that are so vital for national connectivity and economic growth.
The Liberal Democrats propose simplifying ticketing, improving accessibility and boosting connectivity, and also increasing usage and income by freezing fares. We also advocate a 10-year rail electrification plan—investing in zero carbon by ensuring that all new lines are fully electrified.
Buses, the nation’s most popular form of transport, get little support from the estimates. The franchising reforms in the Bus Services (No. 2) Bill are welcome, but they will not restore regular, affordable services without funding and expertise. We need more than just three people in the bus centre of excellence. Years of neglect following Tory deregulation have destroyed much of our national bus network, isolating communities and holding back growth. Clearly, the Chancellor’s hike of the fare cap from £2 to £3 should be reversed, as it is causing real hardship for some of the poorest in society, yet the estimates reveal continued cuts to bus subsidies, which is precisely the wrong approach when communities desperately need reliable, affordable bus services.
The Liberal Democrats believe that active travel infrastructure must accompany public transport reform, but the Government’s approach is disappointing. Although £246 million is currently allocated to Active Travel England, funding is set to be cut by more than £90 million next year, undermining Labour’s earlier promises of unprecedented investment. The Liberal Democrats propose a different path: a nationwide active travel strategy to build new cycling and walking networks that are better integrated with existing transport. This cost-effective, ecofriendly approach would connect homes, schools, high streets and transport hubs.
These estimates show a Department and a Government who lack ambition. While increasing capital spending and investing for the future are positive, cutting day-to-day spending is a poor decision from a Government who say economic growth is their highest priority. We need a transport system that works not just for the next decade, but for the next bus, the next train, the next school run and the next hospital visit. This means funding day-to-day services properly, empowering local authorities and putting passengers at the heart of every decision, for which the Liberal Democrats will continue to fight.
It is a pleasure to respond on behalf of His Majesty’s Opposition. I thank the hon. Member for Brentford and Isleworth (Ruth Cadbury) for securing this important debate.
Transport has always been about more than how we get from A to B. Infrastructure is the connective tissue of our economy, and investment in infrastructure can propel economic growth. I think the whole House would agree with that statement. In that light, I welcome the fact that the spending review confirmed that capital investment, excluding spending on HS2, will increase at a real-terms annual growth rate of 3.9% between 2025-26 and 2029-30. The Government have outlined where much of this capital will be directed in the spending review and the 10-year infrastructure plan, and I am pleased that many of these projects align with the commitments set out in the previous Government’s Network North plan. I look forward to the publication of the infrastructure pipeline in July to see further information.
Although some projects in the Network North plan have been transferred over and continued, Aldridge train station was not one of them. It was funded through the city region sustainable transport settlement, so does my hon. Friend share my disappointment for my communities that it has been scrapped by Mayor Parker in the West Midlands?
My right hon. Friend is a doughty champion for her Aldridge constituents. I share her disappointment. It is not the first time I have heard her raise that disappointment in this Chamber in the past few months and—
No, I suspect it will not be the last time I hear it.
There will be occasions when Labour Members fail to read the previous Government’s announcements, so for their benefit let me point out how the funding sums promised to authorities by the previous Government have been closely replicated, in some cases identically replicated, by those promised in this Government’s spending review announcements. For example, for West Yorkshire, £2.115 billion was promised in 2023, and £2.115 billion in 2025; for Greater Manchester, £2.47 billion was promised in 2023, and £2.47 billion in 2025; for the Liverpool city region, £1.58 billion was promised in 2023, and £1.58 billion in 2025; and for West Midlands, £2.65 billion was promised in 2023, and £2.4 billion in 2025. I could go on, but Members will recognise the point. The estimates and the spending review are not new and they are not innovative.
Turning to the substance of the Government’s plans, I want to take this opportunity to examine some of the assumptions underpinning this spending review. I am afraid those assumptions are flawed. The first relates to the supposed benefits of nationalisation. The spending review anticipates that the Department for Transport’s resource departmental expenditure limits, which is its day-to-day revenue spending, will fall by 5% in real terms during the next three years. I do not dispute that it is possible to make savings in the Department for Transport, but I do question the means by which the Government expect to deliver those savings. The spending review claims:
“Resource DEL funding falls in real terms over the period, primarily driven by a declining rail passenger services subsidy as passenger ridership and revenue continue to recover post COVID-19 and efficiencies and savings are made through public ownership.”
This is another entry in the ever-growing list of benefits that Labour claims nationalisation will deliver—lower fares, no strikes, better services and now lower spending.
Let us be clear: this is political daydreaming, not economic reality. The first train operating company to be brought into public ownership by the Government was South Western Railway, and we have already seen unexpected costs with its rolling stock. Credible reports show that mistakes made by the Government will cost the taxpayer an anticipated £250 million more. The Transport Secretary herself has admitted that nationalisation is not a silver bullet. She is right, but the narrative presented in the spending review and these estimates continues to rely on assumptions that remain unproven.
Labour’s ideological plan to nationalise even the best performing rail operators will benefit neither passengers nor taxpayers. Beyond the loss of private sector investment, nationalisation also poses a deep structural risk, because under a single nationalised employer, there will be enormous pressure to harmonise terms and conditions across the entire railway workforce. That may sound harmless or even desirable, but in practice it means the trade unions openly calling for levelling up pay, benefits and working practices to the most generous standards currently found in the system, and they have wasted no time in doing that. I am sure that their members will be delighted by that, but for the Government, the taxpayer and the fare payer, that has one inevitable outcome: rising costs, almost certainly with no corresponding rises in productivity. Far from delivering savings, this sets the stage for spiralling costs, renewed industrial action and even poorer services for passengers.
Turning to the wider economic picture, the Government claim their infrastructure plans are
“creating the conditions for sustainable economic growth in communities throughout the UK.”
However, the truth is that the greatest barrier to growth in this country is not a lack of spending. How could it be when current levels of spending are just about the highest in our entire peacetime history? No, the greatest barrier to growth is the economic mismanagement of the Chancellor of the Exchequer and this Labour Government.
We know that to fund this increased spending, Labour has not got control of the welfare bill, or reduced the size of the state, but simply changed the fiscal rules to allow billions more in borrowing. More borrowing is certainly not the long-term answer—this is not free money. Britain already spends almost £106 billion a year just to service its debt. For context, those payments outweigh what we spend to protect our country not just from foreign threats, but from crime at home, because our debt-servicing payments exceed the combined amounts allocated in the spending review to the Ministry of Defence, the Home Office and the Ministry of Justice. That is not just unsustainable, but irresponsible.
Higher spending and higher borrowing fuels inflation. It undermines growth and it blows a hole in the public finances. Of course, we all know how Labour plans to fill that hole—with higher taxes. Will the Transport Secretary urge the Chancellor to restore discipline to the public finances? I hope she does. Will she set a credible strategy to deliver efficiencies within the Department for Transport? I hope she does, so that come autumn we are not hit with yet another round of tax hikes.
I thank hon. Members for their contributions to this estimates debate, exploring their priorities for Government spending, including those Members who presented a vision with which I might disagree. We must acknowledge that the Government continue to offer more questions than solutions. In transport, we are presented with legislation to change bus policy without the funding that we know will be required to implement it properly. We await pipeline plans, railway reform papers and road investment strategies. When I was appointed shadow Secretary of State, I was initially faced by the former Transport Secretary, the right hon. Member for Sheffield Heeley (Louise Haigh), who constantly declared that she wanted
“to move fast and fix things.”—[Official Report, 10 October 2024; Vol. 754, c. 446.]
But nearly a year into this Government, it feels as though things are moving at the speed of a canal boat in reverse—very slowly and taking the country backwards.
The problem is not the current Transport Secretary, or the Under-Secretary of State for Transport, the hon. Member for Wythenshawe and Sale East (Mike Kane), who is responding to the debate today. The problem emanates from No. 10 and No. 11 Downing Street, because when the captain and the first officer of the ship have no ideas of their own, refuse to scan the horizon and see it for what it is, rather than what they would wish it to be, the journey ends up lost and directionless. For the good of the country, I hope that the Government will come to understand that real change means supporting British business and backing the everyday commuter. In the meantime, I fear these estimates are indicative of a Government who are not listening, failing to heed the warnings and will continue steering the ship of state straight towards the iceberg.
It is a pleasure to see you in the Chair, Mr Deputy Speaker. As you cannot speak from the Chair, may I say what a doughty champion you are for the reopening of Manston airport, in your constituency?
First, I thank my hon. Friends the Members for Brentford and Isleworth (Ruth Cadbury) and for Dunstable and Leighton Buzzard (Alex Mayer) for securing the debate and for the work they have done on the Transport Committee. I am grateful for all Members’ important, interested and varied contributions, and will try to address as many as humanly possible—there were an awful lot of questions in many of them. I know that Members are anxious for news on specific schemes in their local areas, but I will not be able to announce any new decisions today. We will make announcements in due course through the usual processes.
Let me address the comments made by the Transport Committee Chair about how spending is linked to the Department’s strategic objectives. Our spending is wholly orientated towards delivering this Government’s missions and our plan for change. At the heart of our approach is harnessing transport to drive growth, as better transport will connect people and opportunities and ensure that businesses can grow and thrive. That is why we are investing in vital public transport services, repairing our road networks, transforming our railways and providing unprecedented investment for local leaders to invest in their priorities. Five out of the first 10 Bills in this Session were on transport—we did not have five transport Bills in 14 years under the last Government. We are moving at pace.
In the financial year 2025-26 alone, we are delivering £1.6 billion for local road maintenance, £1.3 billion for local transport in our big city regions and over £1 billion for bus services. We are also providing more than £420 million for our smaller cities, towns and rural areas, as has been mentioned today. Our investments will help to drive growth in every part of the country and raise living standards for everyone.
We are supporting the transition to net zero and an economy powered by clean energy, with more than £200 million to accelerate the roll-out of electric vehicle charge points this year. We are investing in active travel infrastructure to improve the health of the nation, with an additional £150 million of investment in cycling and walking infrastructure in this financial year alone. We are supporting bus services and capping fares to connect people to jobs and to boost opportunity. We are also supporting safer streets by making public transport safer—including, most importantly, for women and girls. Across our work, we are making sure that every penny of taxpayers’ money is put to good use, from greater efficiency within the Department to getting to grips with the spiralling costs of HS2 and bringing that project back on track.
Although this debate concerns the estimates for 2025-26, I note that only two weeks ago, the Chancellor set out how our ambitions for the transport sector will last the whole of this Parliament. With the settlement we have received for 2026 onwards, we will deliver increased local transport investment in England’s towns and cities, prioritising funding in the north and the midlands and giving local areas more control over how the money is spent. We will improve everyday journeys across this country and invest in the critical national infrastructure needed to connect our cities and our towns in the long term, enabling economic growth. This will ensure that transport plays its part in delivering the plan for change and a decade of national renewal.
I thank the Chair of the Transport Committee for her speech. She asked me a number of questions about when we will publish the outcome delivery plan. This will be done by all Departments, co-ordinated through the Cabinet Office, later this year. She asked about subsidiarity, and what happens if mayors do not use the money and new powers we have given them on the things that we want to do, citing active travel as an example. Even with subsidiarity, mayors have to deliver against Government outcomes and objectives, and we hope to work with them in a spirit of co-operation to ensure that that is done right.
My hon. Friend asked what our bus reform and £1 billion investment was meant to achieve. We introduced the new £3 fare cap on single bus fares in England outside London, which has had the cap for a long time, ensuring that millions of people have access to affordable fares and better opportunities to both go to college and work and to see friends and family.
With UK SHORE, we have moved fast with the decarbonisation plan, and the research and development funding for this will continue. We have worked internationally with the International Maritime Organisation to reduce greenhouse gas emissions across our planet. We have also announced £185 million through safer roads funds to invest in the 99 most risky A roads, and we have made clear commitments on rail cost base and subsidy.
The right hon. Member for Aldridge-Brownhills (Wendy Morton), the former Rail Minister, is a doughty champion for Aldridge station—well done to her for that. The money was reallocated by the current mayor to cover the costs of schemes implemented by the former mayor that did not have the funding. She also talked about buses; I have already mentioned the £1 billion that we have invested in better buses.
My hon. Friend the Member for Bradford East (Imran Hussain), who cannot be in his seat at the moment, is an astonishing champion for Bradford. May I pay tribute to him and to Councillor Susan Hinchcliffe, the leader of Bradford city council, for their work in this area? The £2.1 billion train line and bus station investment is transformative. Some £35 million of Government money will see an additional five daily services to London, and we will be making announcements in the next few weeks regarding Northern Powerhouse Rail and how important it is to connect the cities of Leeds, Bradford, Manchester and Liverpool.
While the Minister is still talking about rail services, I just want to ask about Aldridge station to be absolutely clear about the situation. When the money for the station was allocated, it was ringfenced. It was his Government who decided to move the money from capital to revenue, so it is simply unfair to blame it all on Andy Street; it is not right.
I thought the former mayor was quite a talented individual and he was succeeded by another talented individual, who has had to make tough choices around funds that were committed but never implemented under the previous Government. Promise after promise was made, but with no delivery whatsoever. None the less, the right hon. Member should carry on campaigning.
The hon. Member for North Norfolk (Steff Aquarone) rightly talked about buses. I have already mentioned the amount of funding that we are putting in there, and the £616 million for active travel, which has been mentioned by a number of Members, on top of the £300 million that was allocated last year. I had a great time last Easter cycling with my wife around the hon. Member’s constituency on Rebellion Way, which is a wonderful piece of Sustrans infrastructure.
I thank the Minister for coming to North Norfolk; he is welcome at any time. Having experienced at first hand the reality of rurality in my constituency, does he agree that we need to look at alternative models for rural public transport?
We are giving back control of buses to local authorities—as difficult as it is in some circumstances. It is a £1 billion commitment. People in rural economies need to get about just as much as people in cities and we are committed to making sure that that happens.
Let me turn to my hon. Friend the Member for Monmouthshire (Catherine Fookes). I cannot wait to visit and to ride on the No. 65 bus. She is a doughty campaigner for her constituency. She also talked about two Labour Governments working hand in hand to bring rail investment to Magor and Undy station, and I am glad that she has had correspondence with the Roads Minister on the safety of the M48.
The hon. Member for Didcot and Wantage (Olly Glover) rightly talked about HS2. He highlighted the need to connect our maritime industries on the south coast with the rail network, so that we can take maximum advantage of both maritime and rail to get that freight off our roads.
My hon. Friend the Member for Dartford (Jim Dickson) summed it up when he spoke about the collapse of Galley Hill Road, which I thought was a metaphor for transport under the last Government. We have committed to the Lower Thames Crossing, with an initial investment of £590 million, and we will be making announcements on that in due course. We have also put in £54 million to fix potholes in Kent. The Government are showing that we are committing to the Lower Thames Crossing, with announcements to come, and are fixing the roads, and yet not one Reform Member came to this debate. Let us remind the people of Kent day in, day out about Reform’s lack of commitment to improving their lives compared with what we are doing.
I was with the predecessor of the hon. Member for Surrey Heath (Dr Pinkerton) at the British Ports Association. Do they only elect Scottish Members to the Surrey Heath constituency? I noticed that even some of the mannerisms were the same. The hon. Member made some important points about evidence-based transport systems. I think we are demonstrating that we are not a cultural, woke Government but are looking policy data to drive our decisions about how we best connect this country up. He also talked about road safety. Our manifesto included a commitment to long-term connectivity for transport across the country. That will be coming, so I hope he gets involved in the debate when it comes forward.
The hon. Member for Didcot and Wantage talked about HS2. We have accepted James Stewart’s recommendations about the cost overruns, although the hon. Member was right to highlight them. He also asked about how our railways and maritime industry can work together. Green shipping corridors will be key to the future of shipping, but the grid capacity in our coastal communities is not up to scratch. He knows that and we know that, and that is why we made manifesto commitments on our grid capacity. I note that we have already made announcements about greater European train connectivity, but I understand the point he makes about depot constraints; the Government are looking at that as well.
My hon. Friend the Member for St Austell and Newquay (Noah Law) is a real champion for Cornwall. I was glad that we could announce £4.1 million for Cornwall alone in 2025-26 in addition to the £201 million —which, as he mentions, is four times greater than the last settlement. We hope to see things improve in that wonderful part of the country.
The hon. Member for Wimbledon (Mr Kohler) always astonishes me. He is like some latter-day Hilaire Belloc in his pinstriped suits and polka-dot tie. He was so positive about the Government that I thought he was going to cross the Floor for a second; we will give him time. He mentioned being disappointed about some areas, but we have done more to decarbonise transport this year, more for buses than any Government have done for a generation, and more for active travel in one year than any Government for a generation.
Under this Government, Active Travel England gets settlements that go forward. I have to say that I thought the former Member for Uxbridge and South Ruislip—the former Prime Minister—was actually very good in this space, but the announcements he made were then all pared back. Local authorities need to have long-term continuing investment to connect routes and get people walking, wheeling and cycling. My constituents die of type 2 diabetes, hypertension and chronic obstructive pulmonary disease—all things that can be fixed by more of us walking, wheeling and cycling. Active travel is key to the Government’s health mission as well as to our transport mission.
I thank the shadow Minister, the hon. Member for Orpington (Gareth Bacon), for his contribution. He mentioned that the settlements for West Yorkshire, Greater Manchester, Merseyside and the west midlands were similar to those from 2023. Yes, they are, but this Government are delivering on these settlements. We had so many promises from the last Administration, but we are delivering.
We will take no lessons from the Opposition on the costs of Great British Rail, which I think the nation is proud of, given that we were left to clear up the debacle of the overrun costs of HS2—a project that was cut by the previous Prime Minister while he was at the Tory party conference in Manchester. It was the most astonishing decision, and the most astonishing place to announce it. As a proud trade union member, I am glad that the trade unions have come to the table this past year. After years of industrial strife, we are solving the disputes, particularly in the railway industry, and services are beginning to improve.
On long-term investment, I gently remind the shadow Minister that he voted for Prime Minister Liz Truss’s Budget, which left us with a £22 billion black hole. We have been tackling that as well as setting out our ambition for the future. We are fixing the foundations of our transport system to deliver the Government’s priorities. Our funding settlement for 2025-26 enables us to press ahead with reforming our bus and rail services, to get to grips with the maintenance backlog, to empower local leaders to deliver, and to build transformative new routes for the country. The settlement announced earlier this month will build on that; it will drive progress on the Government’s missions, and improve transport for people and businesses across the country.
I thank hon. Members for contributing to the debate. I am grateful for the important work of the Transport Committee, and look forward to continuing to work with it. I commend the estimates to the House.
I will do what I omitted to do at the start of the debate and thank the Backbench Business Committee for awarding us the opportunity for this debate. I also thank all hon. Members who contributed to it.
I was thinking about the themes of the debate, and the most common issue, mentioned by hon. Members from across the country, was the need for a new station, or even stations, in their constituency. All gave really coherent and rational reasons why those stations are needed. When I was growing up in Edgbaston in south Birmingham, we did not have a Five Ways station or a University station. Those stations were installed about 30 or 40 years ago, but it is unbelievable to think that they were not there, because the amount that they are used is incredible. There is a really fast service to New Street station, as the right hon. Member for Aldridge-Brownhills (Wendy Morton) probably knows, although she represents the other side of Greater Birmingham.
I also want to mention the new mid-Cornwall metro that my hon. Friend the Member for St Austell and Newquay (Noah Law) spoke about. He made a powerful case for the needs of communities that are, in many places, quite deprived. Many people go on holiday to Cornwall, but we must remember that there are economically deprived, left-out places, and they need new lines, whether full rail lines or light rail. The right hon. Member for Aldridge-Brownhills made an important point that we picked up in our buses inquiry about the need for decision-makers to remember outer areas, which are as important as core city areas.
My hon. Friend the Member for Bradford East (Imran Hussain) not only made a passionate plea for a new station, but thanked the Government for at last funding a tramline and bus station. That is a really good example of what the Government are already achieving, and it shows how long the community has been fighting for those services.
The hon. Member for North Norfolk (Steff Aquarone), who is on the Transport Committee, gave a strong speech about the issues facing very rural constituencies, for which public transport solutions are not easy. The hon. Member for Surrey Heath (Dr Pinkerton) mentioned the downsides of high rates of car dependency. In a very rural area, there is literally no way to get about unless one can drive a car, and that often decimates the population of rural villages and hamlets. In the London hinterland, high rates of car dependency have implications for congestion. I do not often drive outside London—or in London—but I recognise the issues well. The hon. Member for Surrey Heath also raised an important point about the inadequate alternatives to car travel for those living in new developments. The Government’s new planning policies seek to address that gap in policy; if that does not happen, we will just build car dependency into new developments.
My hon. Friend the Member for Monmouthshire (Catherine Fookes) made an important point about the implications for the local economy and local people when a major piece of infrastructure is closed. I hope that the M48 bridge is opened before too long. The hon. Member for Didcot and Wantage (Olly Glover), another member of the Committee, made, as ever, many expert points about rail. If anybody has any questions about rail, they can just ask him. He was possibly the only Member here today—or almost—who mentioned freight. He and my hon. Friend the Member for Dartford (Jim Dickson) mentioned the importance of accessibility. I urge those who have not read the Transport Committee’s first report of this Session to pick it up, though the work was done in the previous Parliament. It is called “Access denied: rights versus reality in disabled people’s access to transport”, and it is about the experiences of people with disabilities.
My hon. Friend the Member for Dartford mentioned a subject that comes up for us again and again: potholes. Our second inquiry is on street works, the damage that potholes cause to vehicles, and the disruption caused when utility services do not repair potholes properly and repairs are outstanding for a very long time. My hon. Friend also mentioned the importance of the Elizabeth line extension. Despite criticisms over the years about the cost of Crossrail and the delays to it, now we can only look at the massive success of the Elizabeth line. It has so many huge benefits for growth; it enables new developments; and it takes pressure off underground lines, such as the Heathrow branch of the Piccadilly line in my area. That set of benefits comes from extending lines or bringing in new ones. The Elizabeth line being in London and the south-east is an example of how cheques from the Treasury are not necessarily needed to fund such projects. That is a good example of how land value capture could fund these projects.
My hon. Friend the Member for Dunstable and Leighton Buzzard (Alex Mayer) talked about the value of buses and the bus fare policy. She also made an innovative suggestion around the charging for the driving test, which should be noted by the Minister. I hope, as I say, that the Government look at fees and charges, and that is a new suggestion.
Turning to the Front Benches, there was nothing wrong in any of the individual projects in themselves mentioned by the Liberal Democrat spokesperson, the hon. Member for Wimbledon (Mr Kohler), but as often happens with Liberal Democrat ideas, it would be financially unachievable as a programme. The Labour party is in power already delivering strategies and specific changes, but it is doing so within the financial constraints that this Government inherited.
The shadow Transport Secretary omitted to mention his Government’s lack of coherent transport policies while also trying to criticise our Government’s policies. He omitted to mention that the criteria for funding local schemes under their Government was decided more on the basis of the marginality of their Members’ seats than the rationality of those transport proposals. He also omitted to mention that cutting then stopping HS2 cost billions and billions of pounds.
Finally, the Minister reminded us cogently of the importance of transport to the Government’s missions, and that we cannot make unfunded promises.
Question deferred (Standing Order No. 54).