Bus Services (No. 2) Bill [HL]

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Committee stage
Thursday 13th February 2025 Grand Committee

[Lord Hendy of Richmond Hill (Lab)]

I thank my noble friend for his intervention. First, the ultra-light tram development in Coventry is still a tram—it has steel wheels on steel rails, so it is still a tram. Secondly, all those schemes, even ones that will, I hope, produce a relative reduction in capital cost, have to be considered through the Transport and Works Act orders and other mechanisms for building infrastructure. The consequence of that is that those schemes are generally under the control of public authorities and are almost always in urban areas. One of the consequences of the freedoms that this Bill will give to local transport authorities will be the introduction of franchising, binding together all the public transport services in those conurbations, including both timetables and fares, to give an integrated service to citizens who live in those towns and cities.

[Baroness Pidgeon (LD)]

The Minister has clearly heard the strength of feeling from across the Committee about rural communities and the importance of connectivity and access to bus services. The comments of the noble Lord, Lord Snape, about funding are important, because funding is always the elephant in the room. But what we are discussing are new measures, including franchising, which will be the new tool to help local government and local transport authorities to address some of these socially necessary routes—not profitable routes—as part of bus route packages. Our amendments simply try to improve this legislation; we are very supportive, overall, of its aims. I am reassured to have heard from the Minister about this wider review and ensuring that rural communities and areas are part of that, so I am happy to withdraw my amendment.

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[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Lord for that. I will certainly think about whether, and at what stage, the department would look at that further. I am certainly not going to commit to it today, because we are looking at wide-ranging legislation about bus services in general, but I wanted to inform the Committee that the work on the £2 bus fare cap is now published.

Amendments 74 and 80 from the noble Baroness, Lady Pidgeon, also concern the £2 bus fare cap, which I have just addressed. They are clearly intended to seek its reintroduction. Bearing in mind what the average bus fare is, that the Government are proposing to continue with a £3 cap and that fares between £2 and £3 will go up only by the rate of inflation, I hope she will agree that those amendments are unnecessary. However, the noble Baroness referred to the wider retailing of bus tickets, which is obviously a good idea; from time to time, I find myself agreeing with the noble Lord, Lord Moylan. Access to bus services should be widely available, and not understanding the fare structure or being able to buy a bus ticket are the worst reasons for not using the service.

In my view, and in the Government’s view, the provisions in this Bill that allow local transport authorities a choice of enhanced partnerships or franchising, or even their own bus companies, will enable local transport authorities to look at wider retailing. Of course, the ultimate aim is not to sell bus tickets at all but for people to use credit cards or bank cards directly as means of payment. We want the bus industry and bus services to move towards that, and I believe that this Bill will facilitate it.

Amendment 77 in the name of the noble Baroness, Lady Jones, looks for a review of the English national concessionary travel scheme. The Government want everybody who needs it to have access to public transport and are committed to improving the system. The English national concessionary travel scheme costs about £700 million annually, and any changes to the statutory obligations, such as the hours in which the pass can be used being extended, would need to be carefully considered. As I said to the noble Lord, Lord Moylan, on a previous occasion in the Chamber, the Government are not considering changes to the scheme at the moment.

However, local authorities in England already have the power to offer concessions in addition to their statutory obligations. We see this in London, where individuals aged 60 and over are eligible for the 60+ Oyster card, and similar schemes already exist in other parts of the country, where local authorities have chosen to provide specific support to their communities through offers that go beyond their statutory obligation. That ability for local transport authorities will continue, and no part of this Bill will restrict it. A review into the English national concessionary travel scheme concluded in 2024, and my department is currently considering the next steps.

Amendment 79 in the name of the noble Baroness, Lady Jones, would require the Secretary of State to review the impact of making buses free for children. The Government remain committed to exploring targeted solutions that deliver value for money to taxpayers while ensuring affordable bus travel for those who need it most, particularly young people. Bus operators can choose to offer concessions to children and young people. In fact, youth concessions are currently offered by at least one commercial bus operator in 73 out of the 85 local authority areas in England outside London. Local authorities also have powers to introduce concessions or discounts for young people. Since buses are local and the Government are committed to devolution, that is where we believe that such choices should be made in respect of free and reduced-rate travel for children.

Finally, I note the observations by the noble Lord, Lord Moylan, about demanding or wanting reports following my noble friend Lord Snape’s helpful intervention. This Bill has been carefully thought through. The first requirement when it becomes an Act of Parliament will be that it works for local authorities, communities and bus passengers. No doubt there will be reports in due course but, frankly, I am not looking for any of them to be carried out now or in the immediate future because, as my noble friend observed, our efforts ought to be concentrated on running the bus service better rather than writing reports about why it does not work.

[Baroness Pidgeon (LD)]

I thank the Minister. I am reassured by him saying that the Government ought to continue to monitor the fare impact at a national level and will circulate the link to the review of the £2 cap. That is to be welcomed. I hope that he will drive forward the point about ticketing and modernisation because it is important for passengers.

However, I go back to the comments that I made earlier. The hefty report that I have here, the final-stage impact assessment, says:

“There may also be benefits associated with increasing bus usage through lowering fares”.


We have heard today about Cornwall’s hugely successful pilot but, if you read the trade press, it is clear that there are concerns about it continuing, and this goes back to the funding point that we discussed earlier. Probably for the first time in this Committee, I strongly disagree with the Minister about the £2 bus cap. We think that it is essential. The Minister described my amendment as unnecessary. We do not agree with that, we think that it is very necessary, but, at this stage, I will withdraw it. I am sure that we will come back to it at a future stage. I beg leave to withdraw the amendment.

Bus Services (No. 2) Bill [HL]

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Committee stage
Tuesday 11th February 2025 Grand Committee

[Baroness Pidgeon (LD)]

My Lords, this one of the most important groups we are debating on this legislation. I will first speak to Amendment 41, which addresses disability training across the sector. Bus services are a lifeline for many people, providing essential access to employment, education, healthcare and social activities. However, for people with disabilities, navigating the bus system can present significant challenges. It is therefore really important when we consider legislation to look to make improvements, to ensure that public transport is accessible and inclusive for everyone. By incorporating comprehensive disability guidance into staff training, we transform the whole passenger experience.

Years ago, I attended bus driver training at one of the bus garages in Camberwell in London. I have to say, to describe it as not fit for purpose would be an understatement. I know significant changes have taken place since then, but we need quality training across the country. For example, training will increase understanding and equip staff with the knowledge and skills to understand the diverse needs of passengers with disabilities, ensuring the right support and assistance. It will also help staff identify and address barriers to accessibility, ensuring that buses and related services are designed and operated in a way that supports all passengers, including those with physical, sensory and cognitive disabilities. When staff are well trained in disability awareness, it leads to a much more positive experience for all passengers, so I will be interested to hear the Minister’s response to that amendment.

We have already heard some powerful case studies as we have discussed these amendments, in particular the detailed one of the noble Baroness, Lady Grey-Thompson. I saw an interesting story in my press cuttings this morning concerning a freedom of information request Transport for All had published in London. It showed that wheelchair users were denied access to London buses 441 times in the last year due to inaccessibility. In some 56 instances, the bus ramp failed, and in 385 the user was refused admission for other reasons. That is why this discussion today is so important: people are being denied access to public transport when they are in a wheelchair or have other disabilities.

Many other amendments in this group have been clearly detailed and powerfully set out by my noble friend Lady Brinton and the noble Lord, Lord Holmes. All of them would strengthen the Bill considerably. All are aimed at tackling accessibility issues, whether that is training, bus stops or bus services, but there is a serious issue we are discussing today, and that is bus stop bypasses. In designing something to keep cyclists safer on our roads, so they are not at the point where buses pull out, and to keep them away from motorised transport, a barrier for blind and visually impaired passengers has been created. While keeping cyclists safe is very important, it is also important that we keep blind and visually impaired bus passengers safe. Design has to be inclusive, as we have heard. I will be really interested to hear how the Government plan to address this serious concern, because consistency of design and design standards is essential.

We must look to create a truly accessible transport network that is for everyone. I look forward to hearing the detailed response from the Minister to the many points raised in this important group of amendments.

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, before I commence my response, I would like to update your Lordships on progress since day one of the Grand Committee. I have met with several noble Lords to discuss the Bill, including exploring matters that were the subject of amendments debated in your Lordships’ House. I am also considering the role of guidance, such as bus franchising guidance, in providing clarity on the department’s expectations. I thank noble Lords for offering their thoughts on these issues and look forward to continuing our discussion. As the noble Baroness, Lady Brinton, did, I welcome the presence of representatives of the National Federation of the Blind UK, to whom I spoke at the end of the last Committee meeting.

I begin by taking government Amendments 44 and 45 together. Amendment 44 makes a minor change to Clause 22 to clarify that where it refers to a public service vehicle, it means a public service vehicle as defined in the Public Passenger Vehicles Act 1981. In practical terms, this is the standard definition of a public service vehicle, referenced in the Transport Act 1985 and used in other legislation, whether relating to accessibility or otherwise. This amendment seeks to ensure consistency of understanding between this and other clauses and existing legislation. It does not change the intention or function of this measure.

Amendment 45 is intended to future-proof Clause 22 by anticipating the use of autonomous vehicles in local bus services. Clause 22 currently requires specified authorities to have regard to guidance on the safety and accessibility of stopping places. Facilities in this context include those that assist a driver of a public service vehicle to enable passengers to board or alight from the vehicle. The feature most commonly used to do this is the painted cage on the roadway, which keeps an area free of obstructions to enable the driver to position their vehicle flush with the kerb, but it is conceivable that, in future, there may be facilities that support the autonomous alignment of the vehicle without the involvement of a driver. As such, this amendment seeks to remove the reference to a driver in the relevant definition of facilities. It is clearly important that we make legislation for not just the services of today but those of tomorrow and, where possible, avoid the need for future amendments to primary legislation.

I thank the noble Lord, Lord Moylan, and the noble Earl, Lord Effingham, for Amendment 11. The intention behind the option directly to award contracts is to support the transition to a franchising model. As part of the direct-award contract, the franchising authority can stipulate the accessibility requirements that it expects the operator to deliver. There is existing guidance in place that supports this. This amendment would be likely to delay the transition to bus franchising and increase the burden and cost on the franchising authority, and for these reasons I believe that it is unnecessary.

I turn now to the amendments that the noble Lord, Lord Holmes of Richmond, has tabled to Clause 22. He is one of the many champions in this House for inclusivity and accessibility in transport, and, of course, I absolutely respect his views, as I do those of the noble Baronesses, Lady Brinton and Lady Grey-Thompson, given the experiences that they have talked about today and elsewhere, and those of the noble Lord, Lord Hampton. I will respond to each of the amendments tabled by the noble Lord, Lord Holmes, in turn.

Amendment 35 seeks to amend Clause 22 by including a power to make guidance to ensure that inclusive design principles are complied with in full. I know that the noble Lord supports the premise of this clause, including our intention to ensure that new and upgraded bus stations and stops are inclusive by design. I am concerned, however, that the amendment as drafted would place unnecessary constraints on how the guidance can be drafted and might make it more challenging for local authorities to implement it effectively. Instead of providing authorities with choice, the guidance would need to encourage the adoption of a single set of principles that might not be relevant in every circumstance. It would also constrain the collaborative development approach that we intend to take. I assure the noble Lord that we have included Clause 22 because we know that stopping-place infrastructure must be more inclusive. However, I am concerned that his amendment would frustrate our ability to achieve this rather than support it.

Amendment 36 seeks to emphasise the importance of independent travel for disabled people. Clause 22 currently allows the Secretary of State to provide guidance for the purpose of facilitating travel by persons with disabilities. This amendment would clarify that it is for the specific purpose of facilitating independent travel. As currently drafted, the clause allows the Secretary of State to provide guidance to facilitate travel by all disabled people, whether travelling independently or otherwise. The amendment could have the undesirable effect of requiring guidance to focus principally on those not travelling with companions. I am sure that the noble Lord would agree that bus stations and stops should be safe and accessible for everyone, and I believe that the current clause draft is more appropriate for achieving this.

Amendment 37 seeks to specify in greater detail what stopping-place features can be covered in statutory guidance. It does this by providing a list of specific stopping-place features that the noble Lord considers to be important to cover. However, Clause 22 already specifies that guidance can cover the location, design, construction and maintenance of stopping places and related facilities. That list is intended to be permissive and overarching. It is important for the decision on what facilities to cover and what advice to provide to be informed by specialist input and stakeholder engagement. We will work closely with the Disabled Persons Transport Advisory Committee, or DPTAC, as we develop the guidance. We will also engage with other organisations representing disabled people and others to ensure that the guidance covers the right subjects and can be effective in supporting provision of safe and accessible infrastructure. It seems likely that the features that the noble Lord identifies, as well as others he has not, would be highlighted to us as important for inclusion, regardless of whether his proposed amendment is accepted.

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[Baroness Pidgeon (LD)]

If I can continue without being heckled, I am assured that they are probing and that the noble Lord does not want to see these clauses completely removed. He has raised an interesting point about commercially sensitive data. As we know, in running a transport network, data and information are absolutely crucial and transparency is key. All this helps us improve services, so I will be interested to hear the Minister’s response, particularly around commercial sensitivity.

[Lord Hendy of Richmond Hill (Lab)]

My Lords, I will respond to the noble Lord, Lord Moylan, and the noble Baroness, Lady Pidgeon, on Clauses 18 and 19.

On Clause 18, there is currently no one single source of information for passengers about bus service registrations or similar information about services that operate outside traffic commissioner-administered areas. Information on local bus services is fragmented, and this clause seeks to improve this state of affairs. As such, it enables the Secretary of State to make regulations requiring franchising authorities to submit information about services operating in their areas. This information will be similar to that provided on the registration of a service with the traffic commissioner, and it will be provided to the Secretary of State.

Together with Clause 17, Clause 18 lays the groundwork for a new central database of registration information, bus open data and information about services operating outside traffic commissioner-administered areas. This will provide passengers with a single source of information about local services. It is important to clarify that this provision does not reinstate the requirement for franchised services to be registered with a traffic commissioner. Rather, it provides the power to require franchising authorities to provide information to the Secretary of State, thereby enabling its inclusion in the new central database.

In addition, Clause 18 broadens the categories of data that the Secretary of State may collect regarding local services and the vehicles used to operate them. This power extends to gathering information from franchising authorities concerning franchised services and allows the department to collect additional data aimed at improving transparency within the sector. It might be said that the clause would answer the earlier intervention from the noble Baroness, Lady Brinton, about whether all buses actually conform to the PSVAR regulations and, therefore, it would be useful in that respect, too.

Crucially, Clause 18 also empowers the Secretary of State to collect data that will support the monitoring of local service operator performance and assist in the effective exercise of ministerial functions. That might include, for example, information relating to the costs associated with operating a service and the number of staff involved in its operation. I hope that explanation is sufficient to allow the noble Lord, Lord Moylan, to withdraw his opposition to the inclusion of the clause.

On the noble Lord’s opposition to the inclusion of Clause 19, the clause works in tandem with Clause 18 to support greater public transparency, and thus accountability, over local bus services. While Clause 18, in part, provides for greater information collection going forward, Clause 19 ensures that equivalent historical information already held by the department can be published. The clause achieves this by amending the Statistics of Trade Act 1947 to insert two new sections to enable the publication of existing operator-level bus data. It also provides for the Secretary of State to give notice to industry prior to the publication of such data.

Section 9 of the Statistics of Trade Act requires the consent of individual undertakings before information identifying them can be published. The newly inserted Section 9B disapplies Section 9 of the 1947 Act in relation to information about relevant local services that has been collected under Section 1 of that Act from PSV operators’ licence holders, or their representatives. This disapplication applies during a qualifying period, beginning on 1 May 2015 and lasting until the day when this clause of the Bill comes into force. Disapplying the requirements in Section 9 will allow the department to publish operator-level information collected during the qualifying period, even in cases where consent cannot reasonably be obtained from the large number of individual operators concerned. That point is crucial. The requirement to obtain consent from each individual operator would result in inconsistent data provision. This, in turn, would mean some communities not having access to the same level of information about local bus services as others, or indeed equivalent information for all services within a single community.

The newly inserted Section 9C requires the Secretary of State to publish a notice specifying the information intended for publication at least 30 days in advance, and further details the locations where such notices must be published. These provisions will enable the timely and transparent publication of operator-level bus data, improving access to information while maintaining appropriate safeguards.

Although the noble Lord, Lord Moylan, is of course right that in a commercial undertaking, this information might be considered commercially confidential, it is also essential for the local transport authority representing the users of these services to be able to access such information in order correctly to plan bus services in their areas, for the benefit of all the people who live there. That is the justification for this clause, so I hope he will accept it and withdraw his opposition to it.

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[Baroness Pidgeon (LD)]

Amendment 48 is a small but important amendment picking up on a potential anomaly within the Bill. It is something that Baroness Randerson flagged with us before Christmas. The Bill is clear that it wants to see cleaner zero-emission buses providing bus services across the country, and that is something that I would have thought the majority of noble Lords would support. However, this requirement does not seem to cover mayoral combined authorities. This amendment, therefore, seeks clarification from the Government on whether the provisions of new Section 151A on zero-emissions vehicles also apply to mayoral combined authorities. If not, this amendment should be agreed to ensure that every authority is covered.

Transport is a significant contributor to pollution in the UK. In 2021, transport was responsible for producing 26% of the UK’s total greenhouse gas emissions, and the majority of those emissions come from road vehicles, which account for 91% of domestic transport emissions. Getting more cars off the road and more people using quality bus services is essential, as is ensuring that those bus services are as environmentally friendly and zero-emission as possible. I hope that the Minister can provide clarity in this area and put on record today clarification about the subsection at the bottom of page 29, which states:

“The date specified under subsection (2)(b) may not be before 1 January 2030”.


Those I have been talking to in the bus industry are concerned and I think are misunderstanding what is meant by this. Some clarity on the record would be helpful for all concerned.

[Lord Hendy of Richmond Hill (Lab)]

My Lords, these amendments cover zero-emission buses, as the noble Lord, Lord Moylan, and the noble Baroness, Lady Pidgeon, have rightly said. The restriction on the use of new non-zero emission buses will not take effect any earlier than 1 January 2030, but the clause places a restriction on the use only of new buses. The noble Baroness is right to raise this issue; I myself have heard some misapprehension about what this actually means. It is about new vehicles, and the flexibility to determine when to replace diesel buses with new electric buses will remain, because if the date were to be 1 January 2030, all vehicles in service on 31 December 2029 would be able to carry on in service.

I will shorten the speech I have been given because it replicates some arguments about the use of electric vehicles, but it is common ground between all those who have spoken on this issue today that the operation of zero-emission buses is a really good thing. I do not think we need a complete assessment from local transport authorities. The important point that the noble Lord, Lord Moylan, made is that there are circumstances in which there can be some further exemptions. In fact, the Bill already provides for the Secretary of State exempting certain vehicle types or routes from the restriction. That is the proposed amendment to the Transport Act 2000, new Section 151A (3)(c), which states:

“The Secretary of State may by regulations … specify local services or descriptions of local service in relation to which subsection (1) does not apply”.


There is a considerable flexibility here, in particular the recognition that there may still be services where zero-emission buses at the date at which the Secretary of State sets may not for some reason be capable of operation. However, I hope the noble Lord recognises, as I think the noble Baroness, Lady Pidgeon, does, that this is generally seeking to do the right thing in respect of air quality and local bus services.

Amendment 48, tabled by the noble Baroness, Lady Pidgeon, probes the scope of Clause 27. I understand and am sympathetic to the concerns she raises. The clause will apply to mayoral combined authorities but as drafted, it will not apply to franchised bus services within such areas. I offer assurance that the Government are actively looking into potential options to address this. I hope to return on Report with an update and, were I to need to speak to the noble Baroness, I hope she would be happy if I did so.

Passenger Standards Authority

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Tuesday 11th February 2025 Lords Chamber

[Baroness Pidgeon]

To ask His Majesty’s Government what progress they have made in establishing the Passenger Standards Authority.

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

As part of the Government’s plan for change, the creation of Great British Railways will unify track and train to deliver better services for passengers, increase revenue and reduce the cost of the railway. While GBR will lead in delivering a customer-focused experience for passengers, we are committed to establishing a powerful passenger watchdog alongside it to champion their interests. My department will publish a consultation on the railways Bill imminently, which will provide detail on our plans to establish a passenger standards authority.

[Baroness Pidgeon (LD)]

My Lords, passengers have faced fewer, shorter and overcrowded trains and increased fares for too long. Will the new passenger standards authority have enforcement powers and oversee a new charter for passengers confirming the minimum level of service that all new publicly owned lines will guarantee?

[Lord Hendy of Richmond Hill (Lab)]

We have been working hard to ensure that the new PSA will be a powerful watchdog, making sure that passengers have an independent voice in the industry which stands up for them. It will have increased powers, enabling it to become a strong advocate through holding GBR to account for improving the passenger experience, and particularly for disabled people, as discussed during the passage of the public ownership Bill. The public consultation I referred to will seek the views of the public and industry on the proposed scope and functions of the PSA. After the consultation is published, I will be happy to meet the noble Baroness and other interested noble Lords to discuss it.

Airport Expansion

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Monday 3rd February 2025 Lords Chamber

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

The noble Lord, Lord Moylan, is completely correct about the ownership of Heathrow Airport Ltd, which of course is likely to be a promoter—but possibly not the only one—of a third runway at Heathrow Airport. It certainly is government policy that a third runway should be paid for by a third party, but the detail of what it is and what other work is necessary to allow it to happen is not clear. The Government have invited proposals to be brought forward by the summer and promoters will hopefully make them, at which point it will then become clear how much they entail, how much other work is needed and how much they are proposing to pay for.

[Baroness Pidgeon (LD)]

My Lords, the U-turn announced by the Chancellor in support of airport expansion across the south-east is astonishing. Can the Minister explain how a third runway at Heathrow will meet Labour’s four tests—on growth across our regions, climate, air pollution and noise pollution? Does he agree that far more investment in regional transport infrastructure would be a more sustainable way to secure economic growth across the country?

[Lord Hendy of Richmond Hill (Lab)]

I assure the noble Baroness that the criteria that she has set out for airport expansion proposals are indeed those that the Government would use to look at any application for a development control order. We do not have that application yet because this is in the early stages. However, the proposition that connectivity drives growth, jobs and housing in line with the Government’s missions and the plan for change is no different in respect of air connectivity, which also drives economic growth.

Bus Services (No. 2) Bill [HL]

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Committee stage
Tuesday 28th January 2025 Grand Committee

[Baroness Pidgeon (LD)]

My Lords, first, I want to speak to Amendment 33. It is one that Jenny Randerson had marked up in her paperwork for this Bill, so we felt that it was really important to table it for her.

Although there are many bus operators across the country—as of last October, there were some 367 in England—the reality is that around three-quarters of bus services are run by a handful of large companies. This amendment would enable local transport authorities to prioritise small transport operators when allocating grants, thereby helping to promote diversity in the sector. Some local, smaller operators may know the area and community far better than a large company; we felt that it was important to acknowledge this when looking at the grants that a transport authority may choose to award.

Such operators are also more likely to provide services in rural and less connected areas, including those that will be deemed socially necessary routes. For example, bus routes in Bishop’s Waltham in Hampshire are particularly poor. Despite it being a sizeable town, it lacks adequate bus connections to Winchester and the surrounding area. A small operator may be able to provide this service in a way in which the larger operators are clearly choosing not to do currently. Additionally, such grants may enable small operators to invest in cleaner, more modern vehicles, contributing to environmental goals and improving the overall quality of service. This amendment is designed to support a competitive and dynamic transport market that ultimately benefits passengers.

Amendment 52 would provide a duty on relevant local authorities to promote bus services in their area. With this new focus on improving bus services, it is right that they are properly supported and that their benefits to the local environment, as well as their wider social and economic benefits, are promoted locally. Promoting bus services will help reduce the number of private vehicles on the road, leading to lower greenhouse gas emissions and improved air quality. Reducing congestion can help improve the local economy and ensure a more reliable bus service, thereby facilitating access to jobs, education and other services. Although this is a probing amendment, its aim is to ensure that there is wider thinking about what happens beyond this legislation if we are to have the step change in bus services across the country that all sides of the Committee, I am sure, would support.

With Amendment 4, my noble friend Lady Pinnock has raised the elephant in the room: the adequacy of central government funding to support local bus services. Although this legislation gives local transport authorities a choice of options in providing services, money is needed for that, and this is not just coming from local and regional government. One of the large operators, Stagecoach, has flagged with me that bus services can be successful only if they are properly funded, irrespective of the delivery model. Securing long-term clarity and certainty around funding for this sector will help enhance the benefits delivered to local communities—exactly the point that my noble friend Lord Bradshaw has just made. The noble Lord, Lord Moylan, also touches on funding allocation in his Amendment 31, on which he spoke in great detail.

The Bill also talks about net cost for contracts that are direct awards, which implies that the revenue risk sits with the operators. It is not clear how that sits with control of fares being within the remit of the local transport authorities. Perhaps the Minister can explain the thinking regarding these contracts and funding from government going forward. My noble friend Lady Pinnock has also touched on the enforceability of by-laws, the need for model by-laws and staff training if by-laws are going to work in practice. Operators are concerned about the requirements for training and whether additional funding will be provided to cover this new requirement. Again, we are back to the elephant in the room: funding.

My noble friend Lord Bradshaw has spoken with his extensive experience and knowledge about the need to improve the reliability of bus services and ways to incentivise this through conditions in any financial support.

A wide range of other amendments in this group pick up improving the passenger experience with what we would expect from a modern bus service, whether that is wifi, charging or accessibility improvements. We do not know what we will need in the future. Things will move along. At the moment, we think about plugging things in to charge them up. Technology moves at such pace. I am not sure whether these are needed in the legislation, but perhaps they should be in the guidance. I look forward to hearing from the Minister on that point.

I would like clarity from the Minister, on the record, about demand-responsive bus services. I raised this at Second Reading, and it was made clear in the Minister’s letter in response that this legislation enables demand-responsive bus services. They may well be the solution in some parts of the country, but I want assurance that this legislation enables that rather than prevents it. I look forward to hearing detailed responses from the Minister to these important points.

[Lord Hendy of Richmond Hill (Lab)]

I will now address the amendments relating to local authorities, specifically the Bill’s grant-making powers, functions and duties. Before I address the amendments tabled by your Lordships, I will talk to the government amendment in my name, Amendment 81. This makes a minor change to Clause 30, providing for the provisions under Clause 21, on local transport authority by-laws, to come into force by regulations. Clause 30 sets out the commencement details for each clause of the Bill. The majority of clauses will come into force on days appointed by the Secretary of State by regulations. The current exceptions are Clause 21, “Local transport authority byelaws”, which is due to come into force two months after Royal Assent, and Clause 23, “Safeguarding duty: drivers of school services”, which comes into force six months after Royal Assent.

Clause 21 empowers local transport authorities to make by-laws addressing anti-social behaviour on their bus networks. It also allows the Secretary of State to issue statutory guidance about the exercise of enforcement functions in relation to local authority by-laws. Bringing Clause 21 into force by regulations, rather than two months after Royal Assent, is imperative to ensure that officials in my department have time to develop meaningful guidance to aid local transport authorities and their officers in undertaking enforcement functions. If the change cannot be made, local transport authorities may make by-laws before the guidance can be issued, or there may be insufficient time to develop comprehensive guidance that will be of the most use to local transport authorities and their enforcement officers. It is therefore an important change to make.

I move next to Amendment 4, tabled by the noble Baroness, Lady Pinnock. I thank her for her recognition that the Government’s recent settlements for local transport authorities are comprehensive for the moment. Her amendment seeks to include further consideration of funding requirements in the scheme assessment that authorities must undertake when developing a franchising scheme. I reassure her that consideration of the affordability of proposed franchising schemes, and therefore funding, is already a central part of the assessment. The existing legislation states that the assessment must include consideration of whether the proposed scheme would be affordable to set up and operate. As for a requirement for a specific analysis of the funding required to maintain or improve services for all communities, I stress that the legislation already requires the proposed franchising scheme to be properly costed and compared to another course of action, such as an enhanced partnership.

Finally, I note that both the franchising assessment and the independent assurance report must be published alongside the consultation. This ensures transparency around the local transport authority’s decision.

The Government have set out their ambitions to consolidate and simplify bus funding streams and to provide the long-term certainty that local transport authorities and bus operators have been calling for. The forthcoming multi-year spending review provides a real opportunity for the department to assess the sector’s funding needs so that bus services are adequately funded to support economic growth and, in particular, to overcome the barriers to the Government’s missions. Of course, any future spending decisions must be subject to the outcome of the spending review process. For all those reasons, and with that statement, I hope that the noble Baroness will feel able to withdraw her amendment.

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[Baroness Pidgeon (LD)]

The amendments from the noble Lords, Lord Woodley and Lord Moylan, show both ends of the spectrum in this area—one wanting to make it easier for a local authority bus company to be directly awarded a service, and the other wanting the Secretary of State to be involved and lots of bureaucracy to make it even harder. But I absolutely agree that these amendments throw up some real questions around direct awards, and I hope the Minister can provide some clarity.

Direct awards can be made to existing operators where the post award services are deemed “substantially similar” in the context of direct awards. What criteria will be used to determine that? What is the precise definition of “substantially similar” services? How will the requirement for operators to take on real operational risk be defined and enforced under a direct award? As the noble Lord, Lord Moylan, has just rightly stated, in situations where multiple operators currently run services, what are the criteria for selecting an operator to receive a direct award? Will all existing operators be awarded a direct award? What guidance is going to be provided to local authorities regarding the structure of direct award contracts? What flexibility will they have in negotiating terms?

The bus industry welcomes this legislation but it will want some certainty. I hope the Minister can provide that in his response to this group of amendments.

[Lord Hendy of Richmond Hill (Lab)]

I will first address Amendments 9 and 10 from my noble friend Lord Woodley. The option of a direct award is designed to support the transition to bus franchising, bringing forward some of the benefits of franchising while delivering service continuity to passengers. Expanding the scope of direct awards to include local authority bus companies under all circumstances would not meet these objectives, which are limited and designed to deliver continuity and would, in the case of his amendments, prevent fair competition with private operators. With respect to my noble friend, these amendments are unnecessary and I would ask him to withdraw Amendment 9 and not press Amendment 10.

I thank the noble Lord, Lord Moylan, and the noble Earl, Lord Effingham, for tabling Amendment 13. It is up to local leaders to determine how to run their bus services best and to assess the effectiveness of the delivery of their franchising contracts. Franchising authorities using direct awards are subject to comprehensive reporting requirements and the Bill does not change this. The additional requirement would create unnecessary additional burdens.

Noble Lords asked whether the clause complies with the Procurement Act 2023. As I said in my letter to all noble Lords, Clause 11 is limited to the direct award of net cost contracts, also called concession contracts, where the operator provides franchise services in return for the fare revenues. These contracts are exempt from the Procurement Act 2023—see paragraphs 21 and 37 of Schedule 2 to that legislation—and instead fall under the Public Service Obligations in Transport Regulations 2023, which the Bill is amending. Therefore, this clause does not impact on the Procurement Act 2023.

On the questions raised about there being more than one operator, this is a transition arrangement in order that the passengers involved, the customers of bus routes, and the operators get more certainty in the transition than might otherwise be the case. Clearly, the provision of direct award can be useful to authorities seeking to move to a franchising model both now and in the future. It also provides flexibility to stagger the full implementation of franchising, for example, tendering competitive franchise contracts at different times. It can be used only for the first franchise contract in an area to support the transition. Direct award contracts will have a maximum duration of five years, and in many cases a shorter duration will be appropriate. Long-term franchising contracts will be competitively tendered in the usual way. For clarity, in areas where there is more than one operator, only the incumbent operator can receive a direct award contract for the same or substantially similar services. It is uniquely placed to provide service continuity to passengers during this transition.

The amendment tabled by the noble Lord, Lord Moylan, and the noble Earl, Lord Effingham, would create unnecessary additional burdens on local and central government to complete the assessment. I therefore ask them not to press their amendment.

Railway Electrification

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Wednesday 22nd January 2025 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

I will continue to claim that the Network North plan was unfunded, because it depended on money that had never been properly allocated in the future to HS2 phase 2. When this Government took office, there was no evidence of any financial plans to deliver virtually any part of that agenda. In respect of the cost of electricity, of course, it is dependent on the relative price of electricity compared with other forms of propulsion for rail, but in terms of electrification of the railway and its use for freight, other considerations are far stronger than the cost of electricity and where it is generated. I shall concentrate in answering this Question on the electrification of the railway, because that is the Question that was asked.

[Baroness Pidgeon (LD)]

My Lords, rail services in the south-west are just not fit for purpose. A report last week recommended battery power for parts of the route on existing trains, recharging at new electric islands, to help transform the Exeter line for both passengers and freight. As the Government are about to take ownership of South Western Railway, will the Minister consider those proposals?

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Baroness for her question. The future of the service from Salisbury to Exeter on South Western Railway, which she refers to, is dependent on the fairly imminent life expiry of the existing rolling stock. We will consider, as part of the future of the publicly owned railway, what we do to replace it, bearing in mind that what is now available to replace that rolling stock is far more amenable to discontinuous electrification and battery or other forms of recharging.

Driving Tests: Secondary Market

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Monday 13th January 2025 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Lord for his research. He is right that there are some people making money out of this and they should not do it. My Answer was not just no; one of the considerations in working through what needs to be done is that we do not inadvertently make it more difficult for legitimate people looking for tests to book them. Less than one-quarter of total test bookings in September last year had been swapped from one licence to another, which means that swapping affects only a minority of tests.

The real answer is to reduce the length of time it takes to get a test. Currently in England, it is nearly 21 weeks. The Government have a target to reduce that to seven weeks by the end of December this year. For this purpose, we are recruiting 450 extra driving examiners on top of the 1,456 full-time equivalents there already are. That will make a very substantial difference, with the aim of obviating any activity as he describes and getting people tests when they can take them.

[Baroness Pidgeon (LD)]

My Lords, given the disparities in driving test availability that the Minister has just mentioned, will he consider incentivising local authorities to help address these shortages by supporting additional mobile driving-test centres in areas with high demand or limited access?

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Baroness for her question. The issue with the availability of tests is very substantially related to the availability of driving examiners, rather than the locations in which they are conducted. As I said, the additional 33% increase on top of the current number of full-time equivalent driving examiners is the thing that will make a real difference.

Old Oak Common: Train Disruption

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Wednesday 8th January 2025 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

I was pleased to discuss this matter with the noble Baroness personally recently. Of course, there will be some benefits to travellers on the Great Western main lines and, particularly, the Elizabeth line east of Reading. On the wider interchange at Old Oak Common, which she referred to, there are other railway lines in the vicinity and providing platforms on those would enhance the interchange experience and improve the effectiveness of the site for the development of jobs and housing, but they are not part of the initial proposals, at least. I will not deal in detail with the times that she mentioned, but I do not recognise them. In fact, we are working very hard—I was on the site with all the industry partners in November—and my estimation is that if we carry out this work properly the actual delay for trains that do not stop on the Great Western main lines will be in the region of 60 to 90 seconds.

[Baroness Pidgeon (LD)]

My Lords, what discussions has the Minister had with the new chief executive of High Speed 2 to ensure that all platforms at the new Old Oak Common station will provide level boarding for all passengers?

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Baroness for her question. I was at Old Oak Common with the new chief executive of HS2 on the day of his appointment and I raised the question about platform heights, particularly on the Elizabeth line platforms at Old Oak Common, because I know this is a matter of great interest to everybody who needs level boarding and, indeed, for the safety of the railway. The discussion has not concluded, but her point is very clear and I intend to pursue it.

Electric Scooters and Electric Bicycles: Pedestrian Safety

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Tuesday 7th January 2025 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

I certainly have statistics about the number of people injured and killed in connection with cycling in general. I do not believe there are statistics specifically about these things being ridden on pavements, but I am not wholly sure we need to see that, because it is quite clear that riding e-scooters, e-bikes and bicycles on pavements is the wrong thing to do. The original Question is about the effect on the disabled. It is clearly a threat to the mobility of disabled people to find these cycles or scooters being either ridden or just dumped on the pavement. Both things are unsatisfactory for the mobility of our disabled people in Britain.

[Baroness Pidgeon (LD)]

My Lords, given the huge safety concerns, what is the timescale for new legislation to regulate private electric bikes and e-scooters?

[Lord Hendy of Richmond Hill (Lab)]

It is a shame that the previous Government did not carry through their intention to legislate in 2022. Deciding what the overall legislative policy of the Government should be is above my pay grade, but it is clear that this is an issue we need to confront and the department is thinking very clearly. The noble Baroness will recall that I wrote to her to show her the variety of rules and regulations for these things across Europe and other countries. The department is thinking about this in advance, because framing this legislation will be more difficult than it might be because of the range of solutions adopted in other countries.

Cost of Living: Rail Fares

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Monday 6th January 2025 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

I thank my noble friend for his question. The truth of the matter is that, although regulated fares are controlled by the Government, there are many other fares on the railways, some of which produce eye-wateringly expensive charges for what used to be the traditional peak period, while others are extraordinarily cheap, even by continental standards. One of the many jobs that this Government have to do in reforming the railways is to rationalise the 50 million fares, making them affordable and understandable for passengers in order to improve revenue and improve demand on the railway.

[Baroness Pidgeon (LD)]

My Lords, it is with great sadness that I lead for the Lib Dems today on this transport Question, given the tragic passing of our noble friend Lady Randerson. She was such a wise person and we will miss her enormously. I hope that the moving tributes from across the political divide and beyond will provide some comfort to her family and friends at this time.

Given that rail journeys remain below pre-pandemic levels, could the Minister outline specific ongoing measures that the Government are considering to incentivise rail travel?

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Baroness for her warm tribute to Baroness Randerson.

As I said, the Government are to have a rail sale early this year, in which many millions of tickets will be sold at discounted fares. Noble Lords will know that, following Covid, the demand characteristics of the railway have changed: there is still less commuting, despite changes in working practices, and more leisure travel. That gives real opportunities to produce fresh fare scenarios that will incentivise travel. To pre-empt a question that otherwise will be asked, the railway needs to be adequately able to cope with leisure travel for all seven days of the week in order that people can not only travel cheaply but get a seat when they do.

E-scooters and E-bikes

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Thursday 19th December 2024 Lords Chamber

[Baroness Pidgeon]

To ask His Majesty’s Government what plans they have to revise legislation around the use of e-scooters and e-bikes.

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, resolving the long-standing problems and missed opportunities of micromobility, including e-scooters, is a priority for my department, and we will work with colleagues across government to tackle this as soon as possible. We recognise the need to ensure that dockless cycle rental schemes, including for e-cycles, work for the whole community. That is why on Monday we announced plans in the English devolution White Paper to empower local leaders to regulate these schemes.

--- Later in debate ---

[Baroness Pidgeon (LD)]

My Lords, I welcome the White Paper, with the promise to allow local regulation of micromobility schemes. However, the public continue to buy e-scooters, which are illegal on public highways and which may not be built to the highest safety specifications. When will the Government bring forward urgent legislation on the use of personal e-scooters, covering safety issues, including batteries?

[Lord Hendy of Richmond Hill (Lab)]

I absolutely respect the noble Baroness’s view. As of December 2023, circa 1 million people aged 16 or over owned an e-scooter in England. In July 2020, e-scooter rental trials were set up to inform future regulation, and in May 2022, the last Government announced primary legislation to legalise and regulate them. This was not delivered, meaning that e-scooters are, as she implied, still illegal to use outside of the e-scooter trials, which are due to run until May 2026. That is why, as I said, it is a priority for my department. We will move to tackle this as soon as possible.

Hammersmith Bridge

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Wednesday 18th December 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

It is a matter for the London Borough of Hammersmith and Fulham, and indeed for the neighbouring borough on the south side, of which I declare that I am a resident, to decide what they want to do with the bridge. The stabilisation work has stopped it from literally collapsing, but the capacity of the bridge to take traffic as well as pedestrians and cyclists will cost a lot more money, and the boroughs will have to work with Transport for London to decide how the bridge is going to be used. The other really important feature of the bridge is that at least once a year it is absolutely full of pedestrians. Therefore, a job that does not allow it to bear the weight of pedestrians for the boat race and other things will not be very satisfactory. However, it is for the boroughs to decide how to deal with that.

[Baroness Pidgeon (LD)]

My Lords, this is a sorry saga. The impact of the closure is significant for south-west London, particularly the London Borough of Richmond upon Thames. When will a full economic and environmental evaluation be carried out on the effect of the bridge’s closure for this whole area?

[Lord Hendy of Richmond Hill (Lab)]

As I say, it is primarily for the London Borough of Hammersmith and Fulham, which has the good fortune—or bad luck—to own this structure, and for the London Borough of Richmond upon Thames on the south side to decide between them what they want to do with this bridge in the future, bearing in mind the engineering evaluation about what the structure is capable of doing. It was designed and built for horse-drawn traffic; it has never been particularly strong. Therefore, the boroughs need to work with Transport for London to work out to what use it might be put. I agree that there needs to be an economic evaluation of the effects of whatever happens permanently, but first they need to work out what the bridge is capable of doing after it has been stabilised.

Train Crew Shortages

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Thursday 5th December 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

Whether the train is cancelled at a moment’s notice or 28 hours or 48 hours in advance, none of that is good enough. I myself am puzzled by the number of times an apparently competent train company does not seem to have enough staff at short notice. The House may realise that I know how to deal with this. If you have not got enough volunteers to work on Sunday, somebody senior ought to be at the train crew depot on Friday afternoon, putting their arms around the staff and saying, “Would you work on Sunday?” That is what I am expecting from railway managers. We are expecting, in the new world of a joined-up railway, that the management will concentrate on that to the benefit of passengers.

[Baroness Pidgeon (LD)]

My Lords, latest statistics show that Northern Trains is the worst-performing train company across all types of cancellations, and 80% of those cancellations are caused specifically by the operator. The Minister has talked about resolving issues, but what specific action will he take to tackle this poor performance from a public sector company to ensure that passengers receive the frequent and reliable service that they deserve?

[Lord Hendy of Richmond Hill (Lab)]

The Northern staffing and industrial relations issues are intractable and, as I said, have been there for a very long time. In the past five months or so, we have at least got to the bottom of how many disputes they have, what they are about and how they might be resolved. The management of Northern is working hard to do that. It is unacceptable—the Government are clear that it is unacceptable—but there is no point in just painting it as a public sector operation. It was brought into public ownership four years ago because the service was dire then. All I can say is that not much effort was made to sort it out in the four years until this Government took office.

Bus Funding

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Tuesday 19th November 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

The raising of the cap from £2 to £3 was entirely necessary because of the fiscal position that this Government inherited. A cap of £3 is actually a pretty good cap in rural areas with long bus journeys compared with the previous fare structures. We know that many fares have gone down by 60%, 70% or 80% for passengers. Of course, there will be some who have to pay more under this system. The subject in question—the distribution of local bus funding for the next year—is designed to make sure that there are services to travel on. It is not just bus fares that matter. What matters equally is that there are buses to travel on. This distribution will ensure that there are buses across the whole of England, in local transport authority areas, to do so.

[Baroness Pidgeon (LD)]

My Lords, I welcome the Statement and the fact that we are talking about buses in the House, but in some parts of our country, including rural areas, bus services have not only been reduced but have vanished completely. What special support will the Government be providing to help rural authorities rebuild their bus services, including an integrated fund to support the switch to zero-emission buses? Can the Minister clarify, following the discussion we have just had, over what period this funding is being provided? As he has already outlined, single-year funding settlements and stop-start pots of funding will not reinvigorate our bus services across the country.

[Lord Hendy of Richmond Hill (Lab)]

The funding provided by what is effectively a £1 billion settlement will allow local transport authorities in all areas to spend this money in the best possible way. I am very sympathetic to rural areas, where services have disappeared in the past, and I have explained some of the reasons why recently that might be the case. There is capital funding in this settlement for zero-emission vehicles, as there should be. It is for one year, but the spending review in the spring will no doubt give direction for future years. The equitable distribution of this through this serviceable formula is much more likely to result in service patterns across both rural and urban areas, which will be sustainable into the future.

Carbon Emissions: Bus Fleets

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Tuesday 12th November 2024 Lords Chamber

[Baroness Pidgeon]

To ask His Majesty’s Government what investment they are planning to reduce carbon emissions from bus fleets.

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

The full transition to zero-emission buses is a vital part of the Government’s plan to make buses better for passengers and to realise the benefits of lower running costs, cleaner air and smoother, quieter journeys. The department’s spending envelope for the financial year 2025-26 was announced at the Budget. Careful consideration is being given to how to maximise the benefits of zero-emission buses funding against our departmental objectives.

[Baroness Pidgeon (LD)]

My Lords, many large bus companies have invested significant capital in new electric and hydrogen buses alongside government zero-emission bus funding, but there are currently no dedicated government funding streams post 2025. When can we expect a new detailed funding round to help transform bus fleets across the country?

[Lord Hendy of Richmond Hill (Lab)]

The noble Baroness will know that bus operations across England are generally managed by operators, and they ensure that depots are configured to accommodate their fleet. It is they who must apply to distribution network operators for grid connections. The Department for Energy Security and Net Zero announced that the newly formed National Energy System Operator has been asked to produce the first strategic spatial plan for energy, and it is also looking at reforming the connection process. Both those actions will help bus operators—it is their investment in their depots that enables electric buses to run.

Newly Qualified Young Drivers

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Monday 11th November 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

The Government and their agency are working extremely hard to reduce the backlog of driving test appointments, but it is also quite clear that people should be ready for the test at the time that they present themselves to take it. The department’s THINK! campaign, which is a road safety campaign, is aimed primarily at young men aged 17 to 24. It focuses on a number of priority issues, all of which would help to reduce death and serious injury both to that category and to other road users.

[Baroness Pidgeon (LD)]

My Lords, given the significant increase in low-powered motorcycles and scooters being ridden on L-plates for food deliveries, what plans do the Government have to strengthen the compulsory basic training for motorcyclists to improve road safety?

Passenger Railway Services (Public Ownership) Bill

Debate between Baroness Pidgeon and Lord Hendy of Richmond Hill

Report stage
Wednesday 6th November 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

My Lords, I would like to clarify a point for the noble Lord, Lord Moylan, on Amendment 13. If I inadvertently implied that the Government would somehow reduce the present freight target of 75% growth by 2050, I did not mean to. We intend that target to remain.

I will speak first to Amendment 7, proposed by the noble Baronesses, Lady Pidgeon and Lady Randerson, and I recognise the passion with which the noble Baroness, Lady Pidgeon, spoke on this. In responding to this group of amendments, let me start by saying very clearly that this Government are absolutely committed to strengthening the role of local leaders and local communities in shaping the provision of rail services in their areas. We are a pro-devolution Government. A stronger local voice is absolutely essential if the railway is to play its full part in this Government’s missions of kick-starting economic growth, breaking down barriers to opportunity and accelerating towards net zero. Our plans for reform in the substantive railways Bill will provide that stronger local voice. I can reaffirm to your Lordships’ House that the railways Bill will include a statutory role for devolved governments and mayoral combined authorities. They will be involved in governing, managing, planning and developing the railways.

Linked to this, we expect GBR to closely collaborate with areas through partnership agreements, which will build on progress made through existing arrangements the department has with the West Midlands Rail Executive and Transport for the North. We are already working with leaders in areas such as Greater Manchester, the West Midlands, the north-east and Liverpool City Region to discuss how these relationships could work, with governance supporting these discussions established. While final agreement of these partnerships will need to wait until GBR is formally established, the Government are committed to working with mayors to explore opportunities for progress ahead of GBR operation.

We are clear that together the statutory role and partnerships must allow genuine and meaningful opportunity to influence service levels and standards, and to drive forward the integration of local rail services with other modes as part of a genuinely joined-up local transport offer to passengers. It must allow for things like common branding, integrated timetabling, integration of fares and ticketing in the manner that Londoners, and people who live and work in London, completely understand. By getting this right in the wider railways Bill, we can offer local leaders the much greater level of influence that they are seeking. Existing options for local authorities to directly procure or operate their own services will remain in place, subject to the Secretary of State’s approval, as is currently the case. Alongside our proposed statutory role, our plans for the design of Great British Railways will make it easier for local leaders to engage with and influence what happens on the railway. I am so pleased that the noble Baroness, Lady Randerson, raised her dislike of a one-size-fits-all approach, and I agree with her.

First, I expect GBR will adopt a route and regional structure, with—importantly—a single leader responsible for train operations, rolling stock, staff and infrastructure within a given geographical area. This is material to the reason for public ownership and will create revenue growth and efficiencies and improve performance. A regional and route approach will ensure that GBR is close enough to local communities to understand and respond to their needs, while also being clear that they are part of a national system that needs to work coherently as a whole. It will also mean that local leaders will need to engage with just one organisation—GBR—rather than an infrastructure owner and, potentially, several different train operators.

Secondly, where local leaders wish to promote service improvements, having track and train under unified leadership will mean GBR can take a whole-system approach to identify the most cost-effective solutions. In the past, Network Rail has been much too quick—because it is an infrastructure provider—to opt for the most expensive solution, which is infrastructure change. A whole-system approach would begin by asking whether a service enhancement can be delivered with additional staff, while making better use of the existing train fleet on the existing railway infrastructure. If the answer is no, the next question should be whether the improvement can be delivered solely through changes to the rolling stock fleet. If, and only if, the answer to that question is also no, it might then be sensible to look at infrastructure change, which is usually the most expensive option and certainly takes the longest time.

The crucial point is that one organisation, GBR, on a route or regional basis, will be able to take a view across all those options with local leaders. I would encourage local leaders who think they might want to take over responsibility for operating or procuring services in their areas to keep an open mind until they have seen our full proposals for wider reform. I also reassure noble Lords that, where local leaders conclude that they wish to take over that responsibility, the current Bill does not stand in the way.

Existing legislation in Section 24 of the Railways Act 1993 allows local authorities and others to apply to the Secretary of State for specific services to be exempted from the franchising regime. Where the Secretary of State grants such an exemption, the exempted services are no longer caught in the surrounding provisions of the 1993 Act. So long as adequate alternatives are being made available, this means that the Secretary of State is no longer obliged to secure the operation of these services and they are not subject to the restriction that says they can be provided only by means of a public sector company. The relevant local authority can then operate or procure the services to its own specification, using its existing powers under other legislation, which, in the case of Transport for London, are conferred by Section 173 of the Greater London Authority Act 1999.

This is the mechanism by which services have been devolved in London and in the Liverpool City Region. The current Bill does not make any changes to the way this mechanism works. Following enactment of this Bill, the railways legislation will still provide the same opportunity as today for the Secretary of State to devolve services where she considers it appropriate and where it supports a well-functioning national service, and if we receive any such requests for the devolution of services, we will consider them openly, fairly and carefully, taking proper account of local, regional and national interests. I hope this reassures the noble Baronesses.

On Amendment 12, from the noble Lord, Lord Moylan, I thank the noble Lord for this amendment, which would require the Secretary of State to publish a report on the proposed communications framework between Great British Railways and local transport authorities across the UK. I can reassure the noble Lord that communicating effectively with local authorities is of critical importance to the Government. I have already explained that the Government are keen to ensure that local communities can influence the design and delivery of passenger rail services in their areas. We expect that GBR will engage with local transport authorities regularly on this and on key strategic matters, such as housing and economic growth.

I have also already mentioned the proposed statutory role, which will enable partnership agreements between mayoral combined authorities and GBR. The Government are already engaging with mayoral authorities to develop a framework for these partnership agreements and the intention is that the framework will enable varying degrees of influence, depending on the ambitions and institutional capability of partners. This will include close collaboration on the delivery of rail elements of local transport plans and greater opportunities for local partners to directly invest in the railway and to influence service provision.

Due to devolved infrastructure funding arrangements, my department currently has a memorandum of understanding with the Scottish Government which outlines interactions regarding the governance of Network Rail. The devolved operator, ScotRail, also has an alliance agreement with Network Rail which sees both organisations working closely together to better integrate the railway. For devolved services in Wales, there are a number of supporting devolution agreements between the department and the Welsh Government which set out the existing relationship. Under GBR, these devolved accountabilities will remain in place. We will therefore work with the devolved Governments to update existing arrangements and ensure that the benefits of establishing GBR are felt across Great Britain.

In conclusion, the report proposed by Amendment 12 is not necessary, given that the Government will be setting out their plans in a consultation which will be published shortly. This will provide not only detail on our proposals but also the opportunity for local authorities, mayoral combined authorities and noble Lords to input their views on these proposals. I hope my explanations in response to these amendments will be sufficient to persuade noble Lords not to press their amendments.

[Baroness Pidgeon (LD)]

One thing that has united this House in our discussions is support for further devolution and acknowledgment of the success of devolved lines in London and elsewhere in the country. I thank the Minister for his detailed response and serious consideration of the points we raised in Committee. I was really pleased to hear the words, “This is a pro-devolution Government”, because we have not heard that in the debates to date. I was also pleased to hear that the Minister will ensure that in the next legislation, the role of local authorities will be strengthened, and that he will include that statutory role to ensure their involvement in the governance, management and provision of rail services.

Transport for Greater Manchester, which my noble friend Lady Randerson met with recently, will be reassured to hear that, ahead of Great British Railways being established and on the statute book, there are opportunities for it to develop its ambitious plans for the Bee Network. What was said today about branding and being consistent in these metro areas was really reassuring, given that we want to drive a modal shift and get more people using public transport.

I was really pleased to hear the Minister say that the Secretary of State will still be allowed to exempt lines—that if local leaders want to take over a line, their request will be seriously considered and an exemption granted where appropriate to allow lines to be run across the country, as we have seen in London and Liverpool. On the basis of what the Minister has said, I beg leave to withdraw Amendment 7.