HS2 Update

Lord Grayling Excerpts

Tuesday 15th November 2016 Commons Chamber

[The Secretary of State for Transport (Chris Grayling)]

With permission, Mr Speaker, I will make a statement about HS2.

One of my first steps as the new Secretary of State for Transport was to reiterate the Government’s backing for HS2. I did so from the conviction that it is essential to delivering a modern, vibrant economy for the United Kingdom.

This is a Government who deliver the infrastructure projects that the economy needs, which is core to delivering a country that works for everyone, wherever in the country they live. Last month, we announced support for a new runway at Heathrow, showing that Britain is a dynamic country that is open to the world.

Today I am announcing the Government’s preferred route for HS2 lines from Crewe to Manchester and from the west midlands to Leeds, known as phase 2b, which will help to rebalance our economy beyond London and the south-east, ensuring that economic prosperity and opportunities are shared throughout the country. That means that following on from the 2013 consultation and work that we have done since, I am today confirming the majority of the route. There are a number of cases, including the proposed route through south Yorkshire recommended by Sir David Higgins in a report earlier this year, where I am proposing substantial refinements. I am launching a consultation to seek the views of communities and other interested parties before reaching a decision on those sections next year.

The first phase of HS2 from London to the west midlands is just over 100 miles long, but phase 2 is significantly longer at 174 miles. The route that I am confirming today represents a huge commitment to the midlands and to the north. HS2 is not just about a faster connection between the south-east, the midlands and the north. It represents a bold vision for connecting up the great cities of the north of England and of the midlands, both east and west. Connectivity is central to HS2. Poor connectivity between the cities and regions of the midlands and the north has restrained their economic growth. High-quality transport allows businesses to grow, work together and access a wide range of customers, suppliers and skilled labour markets. By improving connections between our great cities, HS2 will generate jobs, skills and economic growth and help us to build an economy that works for all.

Today, only 4% of people who travel between Birmingham and Manchester do so by train—hardly surprising, when the journey takes around 90 minutes. But on HS2, it will take less than half that time—just 41 minutes—so at a stroke, those two regional capitals are much more closely linked and can deliver increased economic prosperity. The flow of people, ideas and opportunity will follow those new connections.

Work is also progressing to see how HS2 could help to deliver parts of a fast, frequent northern powerhouse rail network for Liverpool, Manchester, Sheffield, Leeds, Hull and Newcastle. Where necessary, we will include passive provision for these services in the phase 2b hybrid Bill, subject to agreement of funding and the supporting business case. Just as important as connectivity is the uplift that HS2 will deliver to our transport system. It will not be a separate, stand-alone railway, but an integral part of our nation’s future rail network and overall transport infrastructure. It will add to the overall capacity of our congested railways. Even those who never travel on HS2 stand to feel its benefits.

By providing new routes for intercity services, HS2 will free up space on our existing railways for new commuter, regional and freight services, while also taking lorries off our roads. It will provide new options for services to towns which currently do not have a direct connection to London. Tomorrow’s HS2 and east and west coast main lines could have 48 trains per hour to Birmingham, Manchester and Leeds. That compares with 29 today.

Even those who never travel by rail at all stand to benefit from the thousands of local jobs and apprenticeships created by the better connections that HS2 will bring and by the project itself. It will generate around 25,000 jobs during construction, as well as 2,000 apprenticeships. It will support growth in the wider economy, worth an additional 100,000 jobs. I recently visited the site of the new National College for High Speed Rail in Birmingham. Together with its sister college in Doncaster, it will open its doors next year to provide Britain’s workforce with the specialist training, skills and qualifications to build HS2 and future rail projects. It will deliver highly skilled, highly motivated people who will have the opportunity of a great career in a vital industry.

Today’s announcement represents an important step forward in delivering HS2, and with it the transport infrastructure essential to the economy of 21st-century Britain. However, I am well aware that there are those with the firmly held view that HS2 should not go ahead, and those who doubt whether the case has been made satisfactorily. Indeed, I know that many Members of this House have strong convictions on this issue. I am under no illusions; this is not an easy undertaking, but I believe that it is the right thing to do. The easy thing to do would have been to keep patching the existing railways, making do and mending a railway that the Victorian pioneers themselves would still recognise, and hoping to fit ever-increasing passenger and freight growth in the same pint pot. That is not what the people of this country deserve, nor is it what our economy requires.

In addition to publishing today a Command Paper and accompanying maps, setting out the full detail of my preferred route for the HS2 phase 2b route, I have written to those Members whose constituencies are affected, and the Under-Secretary of State for Transport, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), will make himself available to Members who wish to meet him later today.

In order to ensure that our case is robust and in line with the requirements of the Treasury’s Green Book, we have of course considered alternatives to the phase 2b scheme. We found no alternative that could deliver the same level of benefit for the country, stand the test of time and provide the same level of capacity, connectivity and service as phase 2b does. Over the past few months I have personally visited most places along the HS2 route. I have seen and heard for myself all the issues, and I remain convinced that through this project we are delivering the right solution to the country’s transport needs.

It is important to say that I recognise that building major infrastructure will always be disruptive and disturbing for those living nearby, and I am mindful of the concerns of the constituents of very many Members of this House. In proposing this route, I have listened to the views expressed in the consultation of 2013, as well as those of HS2 Ltd’s engineering and environmental specialists.

I am issuing safeguarding directions for the whole of the preferred phase 2b route today. That protects it from conflicting development, but it also means—this is extremely important—that the people who are most affected by these plans will be able to access statutory compensation straight away. In addition, I will be consulting on discretionary property schemes that will go over and above what is required by law and give assistance to those who will be adversely affected by the railway. These schemes are the same as those currently in operation for people living along the phase 1 route. I aim to be able to confirm next year the schemes on which I am consulting today.

Two of these schemes will come into operation from today. They are the express purchase scheme and the need to sell scheme. Express purchase allows owner-occupiers to apply to the Government to buy their home sooner than would be possible under statutory schemes. The Government will buy properties at their unblighted open market value, as if HS2 were not going to be being built, will provide a home loss payment of 10% of the property’s open market value up to £58,000, and will pay reasonable moving costs.

Need to sell is a purchase scheme for people who have a compelling reason to sell their property but cannot do so, other than at a significantly reduced price, because of HS2. There is no geographical boundary to this scheme. The Government will agree to buy property for 100% of the open market value if an application is successful.

As I say, I am mindful of the impacts that HS2 has on communities. I can assure every Member of this House that my Department and HS2 Ltd will continue to work with affected communities and local authorities up and down the line of route, and in that process I expect people to be treated with fairness, compassion and respect.

Today marks the end of a long period of uncertainty for communities, councils and businesses along the route of phase 2b. These have been complex and difficult decisions to take, but I make no apology for taking the time to get them right and making sure that the route we are proposing offers the best possible outcomes for passengers, communities, the environment and the economy.

I need to touch briefly on phase 1. I can report to the House that phase 1 from Birmingham to London is progressing well. Construction work is due to start early next year, subject to Royal Assent. Phase 1 will open in 2026. In a clear signal of how work is progressing, this morning I have announced the companies that have been awarded the phase 1 enabling works contracts. These works include archaeology, site clearance and the setting up of construction compounds ahead of the start of the main civil engineering work. These contracts are worth up to £900 million and cover the whole of phase 1 from London to Birmingham and the connection to the west coast main line at Handsacre. Work is due to begin in the spring.

Another aspect of the preparatory work on phase 1 is the considerable engagement with those on the line of route, some of whom have taken up our express purchase compensation scheme. We are continuing this offer of support and will be writing to those people whose homes or business may be directly affected by construction. We have a general obligation to continue to seek further reductions to adverse impacts during the design, construction and operation of the scheme. This is something that I will be watching very closely. In keeping with that obligation, HS2 Ltd has continued to look at possible mitigation measures around Euston station where existing rail lines converge. This could significantly reduce impacts on rail passengers and the local community. Any decision on the adoption of these possible mitigations would be taken closer to the letting of main contracts next year, and I will update the House at that time.

This is part of a wider design process, which will continue to add detail to our proposals for phase 1 well into next year and beyond. I would expect similar mitigations to come forward elsewhere along the route as the detailed design stage starts in earnest after Royal Assent.

HS2 is an ambitious and exciting project, and we must seize the opportunity it offers to transform our country for future generations. Local authorities and local enterprise partnerships are gearing up for HS2 and developing growth strategies, supported by UK Government growth strategy funding, to maximise the benefits of HS2 in their area. I am pleased to announce further funding today for Manchester, the northern gateway partnership, Leeds and the east Midlands, and the first tranche of funding for Sheffield, to support this important work.

This Government are planning for the future. We are taking the big decisions and investing in world-class transport infrastructure. We are ensuring that the UK can seize opportunities and compete on the global stage. But we are also aiming to deliver more capacity on our overcrowded railway, which could see a 65% increase in the number of trains on this part of the network.

The route decision I published today takes us an important step closer to realising the full potential of HS2. It means better transport connections and capacity, more jobs and more training opportunities. Just as importantly, it links centres of innovation and opportunity in the cities and regions of the midlands, the north and our knowledge economy. I commend this statement to the House.

[Andy McDonald (Middlesbrough) (Lab)]

I thank the Secretary of State for his statement and for advance sight of it, for which I am most grateful.

Labour Members are pleased to finally have a partial announcement of the HS2 route, and it is to be very much welcomed, as the delay in getting to this announcement has been immensely stressful for the communities concerned. Labour supports HS2 because we recognise the need for not only faster journey times and improved connectivity but, most importantly, extra capacity—not just for the benefit of passengers, but to transfer freight from road to rail, as the Secretary of State mentioned in his statement.

The employment, and in many cases the lifelong career opportunities, that HS2 will bring will be immense, and we very much welcome all of that, but that does not mean that our support is without qualification, as considerable concerns still remain. There are significant details of the route that have not been confirmed in today’ s announcement—most notably a decision on whether to site a station in or around Sheffield, which has been dodged, along with three decisions on the western leg and three on the eastern leg. This is not the first time we have experienced this Government dithering on key infrastructure decisions. While we welcome the consultation that is to follow, there is clearly a risk that it may cause the Government to overly delay decisions, as we have seen recently on a number of nationally important pieces of infrastructure. I ask for an assurance from the Secretary of State that that will not be the case in this instance.

During the consultation, it is imperative that the voices of local communities be heard—especially those communities that will be particularly disrupted by the route as we now know it. Among other things, we have seen the pain and anguish caused to many villages and communities in the south Yorkshire region and elsewhere, and while we need to study the detail of the proposals we must ensure that proper mitigations and comprehensive compensation schemes are in place. There will be strong arguments made to modify the alignment of the route in many cases, and those arguments will have to be given proper consideration.

Earlier this year, the National Audit Office reported that HS2 had an “unrealistic timetable” and faced major cost pressures, and that too ambitious a timetable meant that not all the intended benefits would be delivered. We have seen similar problems beset other rail projects, with the Government recently reneging on their manifesto commitment regarding electrification works on the Great Western route and refusing to commit to the already delayed timetable of electrification works on the midland main line. The Department for Transport has a track record of being unable to complete works on time or on budget, so there is understandable concern that HS2 will not be delivered to budget or on time, and I ask the Secretary of State to confirm unequivocally that the planned start dates will be met and the project delivered on the planned timescale and costings.

This is not solely about HS2. So-called HS3 has to be progressed, as do the paused and unpaused enhancement works that are essential to bring greater connectivities to communities that are not directly connected to HS2. They cannot be forgotten, and they cannot be left behind. The benefits that HS2 can bring to the country are significant, but the Government must get a grip to keep the project on track and to avoid the concerns expressed in the National Audit Office report being realised.

The Government announced that a new rail franchise, the west coast partnership, which is scheduled to start on 1 April 2019, will combine the current inter-city west coast services with HS2, meaning that HS2 will be run in the private sector from 2026 and that Virgin looks set to be granted a further uncontested 12-month contract to run inter-city west coast trains. The Government seem determined to hand over vast swathes of our public services, and what should be our public services, to Richard Branson en masse. Billions of pounds of taxpayers’ money is being invested in HS2, so it is right that the revenues go back to the Exchequer and not into the hands of train operating companies. HS2 should be run in the public sector, as a public service.

Given the concerns about the cost of HS2, the Government should be looking to get the best deal for the UK rather than the shareholders of private train companies or the taxpayers of Germany, France or Holland. It is time to take back control of our railways. Labour is committed to the public ownership and running of our railways, and that includes HS2. A future Labour Government would bring any such franchise back within public operation at the earliest possible opportunity. We support HS2, but it has to deliver for taxpayers and passengers alike, and that will be the consistent challenge for Parliament in the years ahead.

[Chris Grayling]

First, let me welcome the hon. Gentleman’s support for the principle of the project, although we obviously have one or two areas of difference.

Let me start with the issue of the route through Sheffield. The hon. Gentleman accuses us of dithering. I would simply remind him that we have a statutory duty to consult. We are bringing forward a new set of proposals. He will not, I am sure, argue that I should break the law when it comes to the consultation process that we need to go through. I clearly want to give people as much certainty as possible, as quickly as possible, but I have a statutory duty, and I intend to fulfil it.

I recognise the issue that local communities face, and part of what we will need to do through that consultation process is listen to those local communities about the things we can do, large and small, to mitigate the impacts on them. That is a very important part of the consultation process.

The hon. Gentleman talks about an unrealistic timetable. I think many people in this country would share my frustration that, actually, it will take 17 years from today to complete the whole of HS2. If that is an unrealistic timetable—if it should take much longer—heaven help us. This project has taken a long time to get to this point and will take more years than I would wish to complete—and we need it to be completed—so the idea that it is an unrealistic timetable to complete this project by 2033 seems to me a strange one.

The hon. Gentleman raised the question of electrification. I would simply remind him that, through 13 years in government, Labour electrified 10 miles of railway line. It is small wonder, when we actually started to electrify key main lines, that the expertise was no longer there. It is all very well Labour calling on us to do this, but we are the ones who are undertaking the modernisation of our railways. Through all those years when Labour was in power, the investments in our railways were pitiful by comparison with what we are doing today.

The hon. Gentleman also raised the question of HS3. He will be aware that Transport for the North is working on proposals for what is now being called northern powerhouse rail. That will be much more than a single railway line, and it will build the connectivity we need from east to west. I am waiting with interest to see Transport for the North’s proposals for the future.

The hon. Gentleman asked about the west coast partnership. He will understand that, on the day before this line opens, there will be Pendolinos running up the west coast main line, and, on the day after, there will be express trains running up HS2 to Birmingham, Manchester and Liverpool. I want that to be a smooth transition. We have to make sure the train drivers are trained. We have to make sure the staff are ready for the change. I do not envisage a situation where we sack all the staff one day and hire a new group the next. It makes sense to have a smooth transition, and that is what we are planning.

On the hon. Gentleman’s point about the private sector, let the Labour party hark back to the days of British Rail; we want a railway that is modern and progressive. Since the railways were privatised, after decades of decline, the number of passengers has doubled and new stations and railway lines have opened. This is a railway that is moving forwards, not backwards, as it would under Labour.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

I welcome today’s announcement by the Secretary of State, not least because it gives a degree of certainty to all the poor people and businesses that are going to be affected by this project. Perhaps he will forgive me if I do not share his overexcitement about its potential, as no benefit accrues to the Chilterns. He is well aware of my criticism of how HS2 has conducted its operations. Will he therefore give me, and people beyond this Chamber, a personal undertaking that there will be generous, fair and rapid compensation, the highest environmental protection, and timely and thoughtful community engagement? I hope that there will also be a revision of the totally archaic hybrid Bill process, which has in itself added pain to the suffering that people along the line have had to experience so far. It is crucial that lessons are learned from phase 1 before we embark on phase 2a.

[Chris Grayling]

I absolutely echo the need to make sure that we do the right thing by people affected on the route. I slightly disagree with my right hon. Friend about the benefits in the Chilterns, although it is true that in her constituency, which is on a different line, the benefits are different from those a little further away on the other side of the Chilterns on the line that runs up through towns such as Tring, where there will be a benefit in extra capacity on commuter services—it is estimated that there will be twice as many seats on trains going to Euston station in the morning peak, and I think that will be very welcome to the people who use that line. Of course, I absolutely understand that we have to take great care. I share her concern about the hybrid Bill process. It is clear from the discussions we have had on this in the past that there is a widespread view in this House that we want a simplified and modernised process, and work is being done right now on how that might be achieved. However, I also believe very strongly that we need to invest in our future, and that is what this is about.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I thank the Secretary of State for early sight of his statement. I have studied all seven pages of it. He starts by stating that in making his decision he “did so from the conviction that it is essential to delivering a modern, vibrant economy for the United Kingdom”, and ends by saying that he is “ensuring that the UK can seize opportunities and compete on the global stage.” Yet in seven pages mentioning 34 places, including the future beneficiaries, not once does Scotland get a mention. There is nothing about connecting Scotland and there are no options for Edinburgh, Glasgow or any other Scottish city—no passing comment even. We support high-speed rail, but not just to Birmingham, Leeds or Manchester. This announcement, unless followed by a commitment to speed up links to Scotland, means, in effect, our getting further away from London, in relative terms. When did he discuss this announcement with the Scottish Government, and what guarantee did he give for high-speed rail to be connected to Scotland?

[Chris Grayling]

Let me start by reminding the hon. Gentleman that I have made two very significant transport announcements in this House in the past month, the last of which was very specifically focused on ensuring that we had better aviation links both to London and internationally via our expansion of Heathrow airport. I was particularly keen to stress the importance of protecting connectivity particularly to Scotland and Northern Ireland, because the air links are so crucial to the economies of those nations. Let nobody suggest that I am not interested in connectivity to Scotland; it is a priority for us.

Let us be clear about what this project delivers for passengers travelling down the east coast and west coast routes, who will benefit as much as anybody else from the increased speeds at which they are able to travel over most of the route to Scotland. There is therefore a benefit to Scottish passengers as well. Let us also remember that this is much more than simply a transport project: it will generate a whole set of new skills and business opportunities for this country—for this United Kingdom. Indeed, the Under-Secretary, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), recently spoke at a suppliers’ conference in Aberdeen. I fully expect to see jobs created in Scotland and opportunities for business in Scotland. That is all part of how we seek to represent and support this entire United Kingdom.

[Mr Speaker]

The Parliamentary Under-Secretary of State is clearly a very lucky fellow indeed; I am sure that he much enjoyed orating to the said conference.

[Mrs Theresa Villiers (Chipping Barnet) (Con)]

Does the Secretary of State agree that the massive improvement programme for our railways—not just HS2 but the existing network—is a fundamental part of the Government’s programme to deliver economic success and economic rebalancing?

[Chris Grayling]

My right hon. Friend is absolutely right. It is very important to see today’s announcement in a broader context, because while we are investing in the long term we are also investing in the short term. To give just one example, £350 million is being spent on improvements to the rail network around Liverpool. There are many other examples around the country—indeed, there are improvements in Scotland and in Wales. Our Government strategy is about much more than this railway line; it is about delivering transport improvements across the whole United Kingdom.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

Those of my constituents who are affected by this will be appalled that none of their proposals on the route has been taken into account, either on the route itself or on mitigation, and will, frankly, wonder why they bothered. There is a concern that the Government and HS2 are taking seriously the concerns and interests of cities but not those of towns and smaller communities, and that there is a willingness to invest in mitigation or tunnelling for the south but not for the north. What can the Secretary of State say to my constituents to give them any good reason to carry on engaging with this process at all?

[Chris Grayling]

I would say to the right hon. Lady’s constituents that we fully intend to go through a process of detailed engagement. I am happy, as is my hon. Friend the Under-Secretary, to meet her to talk about these issues. I have travelled the route and seen for myself some of the issues and challenges. I have in mind some things that we might do to help improve the design of the route and reduce its visual impact. I will listen to her and to other Members. Fundamentally, though, she will understand, as a Yorkshire MP, the importance of this kind of connectivity to the economy of her region and the jobs it will create. We have to do this in the best possible way.

[Maggie Throup (Erewash) (Con)]

As my right hon. Friend is aware, many of my constituents have been living under a great deal of stress for three years now. I am sure that residents and businesses alike will welcome the compensation package that he outlined, especially those directly on the route through Long Eaton, but will he reassure the whole of Long Eaton that it will not be cut in half by the track that will go through it?

[Chris Grayling]

I have been particularly concerned about Long Eaton, for which we have tabled two options for consideration: a high-level viaduct and a low-level viaduct. I am well aware of the issue that the town faces; this is a complicated piece of engineering. Of course, the jobs created by the new development around Toton will be of benefit to Long Eaton. We will do our best to get this right, and that is why we have tabled more than one option for consideration by the local community.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

I welcome this statement, with its promise of much-needed increased rail capacity, together with the jobs that go with that. Will the Secretary of State tell us more about how this investment will benefit the whole network, and how the economic benefits will actually be achieved? In particular, how much is he working with Rail North in bringing maximum benefit to the cities of the north, including Liverpool?

[Chris Grayling]

We awaiting the proposals of Rail North and Transport for the North on the connectivity that runs east to west, which I regard as very important. For a city such as Liverpool, there are two particular benefits. One of those will come through the part that this development has to play in that east-west connectivity, particularly with the routes around south Manchester. In addition—as the hon. Lady knows, I have been a regular user of the route to Liverpool over the years—there will be more trains to Liverpool and they will run faster from Liverpool to London than they do now. That will knock a significant amount off the journey time, making a real difference to her and her constituents when they travel not only to London but to Birmingham.

[Martin Vickers (Cleethorpes) (Con)]

Network Rail purchases much of its rail track from the Scunthorpe steelworks in the neighbouring constituency to mine. What efforts will my right hon. Friend make to ensure that British manufacturers are used in the production of most of the HS2 infrastructure?

[Chris Grayling]

I am pleased to say that the contracts announced today will involve very substantial British participation in the early works. The vast majority of steel used on our railways today comes from British plants. I do not expect that to change, nor do I want it to change. I am also very clear that the businesses that take part in this programme have to leave a skills footprint behind them. I am not interested in firms that just turn up and do not expect to invest in the next generation of skills that this country needs. We need to be very robust on that throughout the procurement process. Moreover, this will allow us to provide extra connectivity to towns that do not currently have direct services to London.

[Derek Twigg (Halton) (Lab)]

The Secretary of State should not airbrush history and the massive £8 billion upgrade to the west coast under the last Labour Government. There was a huge improvement in services and a huge increase in the number of passengers using them.

I want to ask a specific question about my constituency. The Command Paper states that there will be an additional train to Liverpool, so there will be two trains per hour. Will the Secretary of State confirm that they will also stop at Runcorn, as is currently the case?

[Chris Grayling]

I do not expect any changes to the service to Runcorn. It would be a big step in the wrong direction if that service changed. The Liverpool trains have always stopped at Runcorn and Liverpool, and I would not want that to change.

[Antoinette Sandbach (Eddisbury) (Con)]

Whole new areas in my constituency will be blighted as a result of today’s announcement, although other parts of it will benefit from the hub at Crewe. Given the blight on my constituency, will the Secretary of State agree to visit Eddisbury to speak to my local residents and hear their concerns about how it will impact on them?

[Chris Grayling]

As my hon. Friend knows, I lived very close to the route some years ago, so I had advance knowledge of how difficult it will be for many of her constituents. Of course, we are very happy to engage with her and her constituents on the issue. As I have said, there is no easy way of delivering such a big infrastructure project without consequences for some people, but we will do everything we can to mitigate its impact wherever possible.

[Sir Kevin Barron (Rother Valley) (Lab)]

HS2’s rejection of the Sheffield Meadowhall option—it said that there was a lack of consensus—is a stab in the back for the south Yorkshire economy. The reroute through the three villages of Wales, Aston and Bramley in my constituency will knock down homes and businesses. There is no consensus for that, either. Can we just have some common sense, instead of moving around all the time? If the decision was made about Meadowhall and compensation paid to householders as a result, why should there be a reroute?

[Chris Grayling]

As the right hon. Gentleman knows, Sir David Higgins did a lot of detailed work on that issue. Strong views were expressed in Sheffield about what worked best for the city. I have been to Aston and seen the potential impact. I will work to try to ensure that we get the maximum possible mitigation in such areas, but the right hon. Gentleman will understand that, if we are to deliver opportunities and prosperity for the northern part of the country, we need to make sure that it has the connectivity it needs.

[Iain Stewart (Milton Keynes South) (Con)]

Will my right hon. Friend set out in a little more detail the additional inter-city and commuter services from which places such as Milton Keynes will benefit once HS2 is operational?

[Chris Grayling]

One of the benefits that will be experienced by towns on the existing west coast main line will be the potential for a significant increase in the number of services. For example, for those who commute from Milton Keynes to London, we expect twice as many seats to be available on suburban routes to Hertfordshire and beyond to Milton Keynes, and greater opportunities for semi-fast services. The route from the town of Coventry to Birmingham is two tracks wide and constantly congested, as freight, express and passenger trains jockey for position. The proposal will create a huge additional amount of much-needed capacity for commuters to Birmingham on that very busy route.

[Andy Burnham (Leigh) (Lab)]

I welcome the fact that HS2 has listened to residents in the Lowton and Golborne area and moved the depot off a site of special scientific interest to a more appropriate location. Is it not the truth, however, that the investment in HS2 will make sense to the majority of people in the north only when it is combined with investment in new east-west, high-speed lines linking the great cities? Our roads are full and cannot take any more, so will the Secretary of State press the Chancellor to use the autumn statement to set out a clear timetable for northern powerhouse rail, including a completion date to tie in with HS2? Will the Government make that investment a higher priority for transport investment than spending billions more pounds on London with Crossrail 2?

[Chris Grayling]

The right hon. Gentleman is, of course, a powerful advocate of the city that he hopes to represent as mayor. He is also a Liverpudlian, so he will be aware of the substantial amounts of money that we are spending on improvements in both Liverpool and Manchester. One of the benefits of the arrival of HS2 in Manchester will be to create much more connectivity on the suburban routes to Manchester Piccadilly, which is much needed. We are also poised to open links between Piccadilly and Victoria, so improvements are happening today and the right hon. Gentleman is right to say that more are needed for the future.

[Jeremy Lefroy (Stafford) (Con)]

I welcome the fact that the Secretary of State is prepared to listen to pleas for mitigation. In my constituency, three or four communities are bisected by the rail. There are alternatives, such as tunnelling, and we need to continue to look at them.

[Chris Grayling]

I give my hon. Friend an assurance that that will happen. It happens, of course, as part of the consultation process for such proposals, and the hybrid Bill process that lies ahead will give his constituents every opportunity to seek change from this House, in the same way as they previously sought change from this Government.

[Helen Jones (Warrington North) (Lab)]

The original justification for the spur that goes through my constituency was the stock depot at Golborne. It has now been announced that that depot will move to north of Crewe, so why is the Secretary of State continuing with a spur that will devastate the village of Hollins Green in my constituency, have a huge environmental impact on Culcheth, even though the line has moved slightly, and does not even give Warrington a station so that it can profit from all that disruption? There are other places in the north-west besides Liverpool and Manchester, but the Secretary of State seems to have forgotten that, if we are going to have the HS2 line, they need to profit from it, to compensate for all the disruption.

[Chris Grayling]

The hon. Lady of all people should know that the last thing I would do is forget that places such as Warrington exist. The issue on the west coast main line north of Crewe is that much of the route through Warrington and up to Wigan is two-track. To try to fit the HS2 trains while meeting existing demand for freight and for passenger services from Liverpool and Manchester is almost impossible to engineer. We have, therefore, chosen the route that maximises rail capacity through Warrington. There will be HS2 services that serve Warrington and that, in addition, create the speed, connectivity and extra capacity that we need.

[Stuart Andrew (Pudsey) (Con)]

This is, indeed, good news for the city of Leeds, which is already starting to experience the economic benefits, with companies such as Burberry investing in it because of HS2. I welcome in particular the integrated approach to Leeds station. Does the Secretary of State agree that all the towns and villages across west Yorkshire have an opportunity to benefit from HS2 through a properly integrated station, and that what we really need now is a properly integrated transport system in the city of Leeds, to cope with the number of people who want to invest there?

[Chris Grayling]

My hon. Friend makes an important point. Such investment builds economic strength in cities such as Leeds, and that ripples out across the whole region by creating not only jobs in Leeds, but opportunities for businesses in west Yorkshire. This will be of huge benefit to the economy of the whole area around Leeds, permeating into the rural areas, and it will deliver real improvements to the economy of the north as a whole.

[Kelvin Hopkins (Luton North) (Lab)]

The Secretary of State will no doubt have seen last Thursday’s ITV programme supporting the powerful case against HS2. I am not alone in considering HS2 to be wholly unnecessary, and it will, indeed, be horrendously expensive. For much less than its likely eventual cost, essential modernisations, electrifications, additions and upgrades on our railways could all be funded. Would not that be a much more sensible investment?

[Chris Grayling]

The hon. Gentleman misses the central point, which is that this is a project about capacity. Whenever we have Transport questions, we hear about the pressures and congestion on, and the challenges for, our rail network. The west coast and east coast main lines, which are principal routes, are mixing together express long-distance trains, intermediate semi-fast trains, local community trains and freight trains. When things go wrong, they become congested and the trains are mixed and matched. We have to create extra capacity if we are going to be able to deliver solutions to the demands of the next generation. That is what this project is all about.

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

May I start by thanking my right hon. Friend the Member for Derbyshire Dales (Sir Patrick McLoughlin), my hon. Friend the Member for Scarborough and Whitby (Mr Goodwill), the Under-Secretary of State for Transport, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones) and my right hon. Friend the Secretary of State? As one of my constituents put it to me, what has happened today, with the actioning of my proposed reroute of the branch line to Leeds at Woodlesford, shows that the political system does work. However, the main line past Swillington and Garforth in my constituency remains unchanged, so will my right hon. Friend meet me at the earliest opportunity to discuss mitigation and landscaping that will limit the impact on my constituents?

[Chris Grayling]

I am pleased that my hon. Friend’s constituents are happy with the change in his area. My hon. Friend the Minister will be happy to meet Members from across the House later today if they wish to raise specific issues, and of course we will have those discussions.

I want to mention something that I should have said in my earlier remarks. I cannot remember which Opposition Member’s constituency includes Crofton, where one of the depots is planned. I have been to the site and I am looking actively at whether we can find an alternative location for the depot. I hope to be able to bring forward an alternative, but I cannot provide guarantees today.

[Callum McCaig (Aberdeen South) (SNP)]

The Secretary of State mentioned Aberdeen. In 2013, KPMG found that the annual impact of HS2 on the economy of the north-east of Scotland would be £220 million a year. Can he update that figure, and will he tell the House what he is doing to mitigate the possible economic loss?

[Chris Grayling]

I do not have an updated figure for the hon. Gentleman, but to ensure that Aberdeen prospers, we are making sure: first, that we have a growing economy; secondly, that we continue to provide financial support to the Scottish economy from across the rest of the United Kingdom; and, thirdly, that we continue to look to create job opportunities and business opportunities in this programme for people in Aberdeen. That was why my hon. Friend the Minister went there.

[Nigel Mills (Amber Valley) (Con)]

Does the Secretary of State agree that to get the full benefit of HS2 in the east midlands, the midland mainline needs to be electrified right through to Nottingham, Derby and Sheffield? Will he therefore confirm that there will be no further delays in that project?

[Chris Grayling]

We are moving ahead now and work is being done on the next stage of electrification. I am very keen to ensure that, by 2020, we will be able to deliver improved capacity and the improved speed on trains, but we will make sure that all the benefits are delivered as quickly as possible.

[Christian Matheson (City of Chester) (Lab)]

HS2 can be justified only if its full benefits are spread across the country and it is not simply a link between major city centres. For Cheshire, that means that we must proceed with the Crewe hub to spread those benefits around. The Secretary of State has not made his decision yet, so will he tell us when we can expect to hear about the Crewe hub? Will he also confirm that investment in HS2 will not detract from further electrification along the Chester and north Wales line?

[Chris Grayling]

The improvements that we are making to the rest of the network are separate from HS2. The hon. Gentleman will be aware that we are doing a vast amount of work around the rail network—we will continue to do so. With regard to Crewe, we will have to put forward new proposals for consultation, but it is clear to me that Crewe station will have improved connectivity and will play a central part in our plans.

[Anna Soubry (Broxtowe) (Con)]

We would like a tunnel, please, at Strelley village, but HS2 enjoys widespread cross-party support in Broxtowe and beyond, because we get the east midlands hub at Toton sidings, Stapleford. HS2 delivers capacity and growth. To that end, does my right hon. Friend agree that it is important that at Toton we get a world-class business park, not just hundreds of homes and houses?

[Chris Grayling]

I have been to Toton. The site was once one of Britain’s great railway centres, so it is sad to see it overgrown, as it is at present. I fully expect that we will engender a real process of regeneration, with both residential and commercial development around the site. It will, of course, be for the local authority and Members of Parliament such as my right hon. Friend to shape exactly what that development should be. We want her region to be a major centre of economic regeneration, and the Toton site, large as it is, provides a real opportunity for that.

[Greg Mulholland (Leeds North West) (LD)]

I have long campaigned for high-speed rail for Leeds, but the HS2, HS3, and phases 2a and 2b proposals are clearly flawed. Not to have a station in Sheffield is simply ludicrous. Why will the Government still not look properly at the alternative High Speed UK proposals, which are £20 billion cheaper and far more environmentally friendly? The scheme would also provide better connectivity and would not plough through the Chilterns. Why will the Government not consider that?

[Chris Grayling]

With all respect, I think that turning the clock back and starting the process all over again—going through the process of another hybrid Bill to get this project off the ground—would delay the project further and further into the future. We have taken a project that originated from the previous Labour Government and developed it further. We have put in place a clear plan, and next spring we start construction. I, for one, am not in favour of turning the clock back.

[Amanda Solloway (Derby North) (Con)]

I welcome the Secretary of State’s statement. Does he agree that the project will have a significant impact for the midlands engine for growth, and particularly for Derby, which is known as a rail city?

[Chris Grayling]

Derby is one of the places that will benefit from the proposals. Having the new east midlands hub between Nottingham and Derby will give both cities the opportunity to benefit enormously from it. I will be surprised if the great rail industries of Derby do not play a pretty active part in the programme.

[Yasmin Qureshi (Bolton South East) (Lab)]

I extend an invitation to the Secretary of State to come to Bolton and travel with me on the trains during rush hour. He would see how my constituents are squashed like sardines, how short the trains are, and how many of my constituents miss their trains and are late for work. Why can the Government not find some investment—proper money—for Bolton and the surrounding areas?

[Chris Grayling]

I hope that the hon. Lady welcomes the new northern franchise, which includes longer and newer trains, more services and the electrification of key routes around Greater Manchester. It should deliver a much better travelling experience for the public of the north, because that experience has not been good enough for a very long time. We are taking the action that is needed to make it much better for the future.

[Jason McCartney (Colne Valley) (Con)]

May I give the Secretary of State one more opportunity to confirm the huge investment in the great north railway? That is not instead of, but as well as, investment in our local and regional services. Does he agree that to win hearts and minds, we must emphasise quality jobs and apprenticeships, connectivity between towns as well as cities, and a supercharged HS3 between Liverpool and the city of culture, Hull?

[Chris Grayling]

I agree with my hon. Friend. Part of the job of delivering the northern powerhouse is delivering connectivity that goes from east to west—or west to east, depending on which way we look at it. This is about not just rail but road improvements. In my work on how we shape the next generation of investments, I am mindful of the need to ensure that that east-west connectivity for the north is delivered.

[Mr Clive Betts (Sheffield South East) (Lab)]

I have been open-minded about the right location for the Sheffield station, but may we have a clear indication from the Secretary of State of when a decision will be made? Many of my constituents have had their homes and lives blighted for many years. Will he give us some clarification about the possible Sheffield city centre station? Is it true that the trains that run there will be shorter and narrower than the full HS2 trains? In other words, is it true that they will not be full HS2 trains? Given that it does not look as though the midland mainline electrification will happen, will HS2 now have to pick up the full bill for electrification from the HS2 line into Sheffield station?

[Chris Grayling]

The hon. Gentleman makes some assumptions on the latter point. The trains that operate off the HS2 network will be a different design from those that operate exclusively on the HS2 network—that is to do with platform widths and gauges. That does not mean that they are slower trains or that they are less good trains; they are simply trains that can operate both on HS2 and on a conventional network. Clearly, if those trains go through Sheffield midland station, which is on the conventional network, we will be using them.

[Craig Tracey (North Warwickshire) (Con)]

North Warwickshire has consistently suffered due to a lack of engagement from HS2, so I was alarmed to learn this morning that despite assurances given by HS2 to my local council just three weeks ago, there would be no changes to the line locally. The line will, in fact, move around 150 metres nearer to the village of Austrey, although that significant change was not even mentioned in the route refinement document. That the very first paper published on phase 2b directly contradicts information offered by HS2 so recently is cause for great concern. What assurances can my right hon. Friend give me that communication will actually improve? Will he meet me to discuss the impacts of the most recent changes on my constituents?

[Chris Grayling]

I absolutely give my hon. Friend that assurance. I was not aware of the situation that he describes, and the Minister and I will talk to him about how we address it.

[Phil Wilson (Sedgefield) (Lab)]

Hitachi Rail Europe in Newton Aycliffe in my constituency is well placed to manufacture the rolling stock for HS2. It has a long track record of more than 50 years of building high-speed trains, such as the bullet train in the 1960s in Tokyo. Will the Secretary of State outline the procurement timeline in the coming years, and will he tell us when the rolling stock will start to be produced?

[Chris Grayling]

I can start by letting the hon. Gentleman know in advance that I will be visiting the plant in Newton Aycliffe next month. It is a great addition to our manufacturing base, and I look forward to seeing the first trains from that plant operating on our network. The team at Hitachi is doing a great job for us.

I obviously cannot prejudge the outcome of the tender process—it will take place towards the end of this decade—but I am clear that the company that builds the trains for HS2 must leave a skills footprint in this country. We will not simply bring trains in on a ship, with no benefit for engineering skills or apprenticeships in this country. I want a genuine process that will leave behind a skills footprint with regard to not just rolling stock contracts, but the whole contract.

[Julian Sturdy (York Outer) (Con)]

Like many, I very much welcome the statement, including the link into the existing network at York. However, what assurances can my right hon. Friend give that York will not be bypassed in any future development further north beyond the second phase of HS2?

[Chris Grayling]

I cannot judge future developments, but York will be one of the places that benefits from HS2 connectivity: trains will run up the HS2 line and on through York. The extra capacity and extra speeds—the extra capacity on the east coast main line, and the extra speed and connectivity to London—will very much benefit my hon. Friend’s constituents.

[Toby Perkins (Chesterfield) (Lab)]

Having regularly buttonholed the Secretary of State’s predecessor, the right hon. Member for Derbyshire Dales (Sir Patrick McLoughlin), to ensure that Chesterfield was included in HS2, I am highly delighted with the Secretary of State’s proposal. Will he, however, confirm that passengers boarding HS2 at Chesterfield will have single-train access to Birmingham and London, as well as north to Sheffield and Leeds?

[Chris Grayling]

It is certainly our intention that people who board at Chesterfield and Sheffield will have good connections to London. I expect that there will be through trains. I cannot give the hon. Gentleman a number at the moment, but I am expecting that to happen.

[John Stevenson (Carlisle) (Con)]

I congratulate the Government on their joined-up thinking on the west coast franchise and HS2, and welcome today’s announcement. Will the Secretary of State confirm that there will, in due course, be a third stage to take the route further north—arguably to the true north—and will he take Carlisle into account as a possible station?

[Chris Grayling]

I hear my hon. Friend’s representation. I am not in a position to give him such a guarantee today, but Carlisle will benefit from faster services, and specifically from the HS2 rolling stock that will come up the west coast main line to Carlisle, which will improve connectivity for his area from north to south. I am looking forward to talking to him about the A69 connectivity from east to west.

[Ian C. Lucas (Wrexham) (Lab)]

If HS2 is indeed to benefit the whole of the UK, it is important that areas such as north Wales, with its important routes to Ireland, receive investment and connectivity. May I therefore press the Secretary of State on the point made by my hon. Friend the Member for City of Chester (Christian Matheson) about Crewe? Will the Secretary of State ensure that connectivity to north Wales, and beyond it to Ireland, is an essential part of any plans relating to Crewe station?

[Chris Grayling]

I am well aware of the issues about the north Wales line and its importance to the economy of north Wales. I recently discussed that with the Secretary of State for Wales and, indeed, the Welsh Assembly Government. This is very much on my to-do list as we look to the future.

[David Rutley (Macclesfield) (Con)]

I welcome my right hon. Friend’s statement. I was interested to read that high-speed rail services are being considered for rail passengers in Macclesfield and, indeed, in Stoke-on-Trent. Will he tell the House the time within which these decisions are likely to be made, and will he confirm that, whatever the outcome, passengers from Macclesfield will continue to enjoy the same speed and frequency of rail services as they do today?

[Chris Grayling]

It is certainly our intention that HS2 services should not reach Manchester exclusively by the existing route. We have talked about Stoke-on-Trent, and Macclesfield is one of the places on the same line. The other benefits to my hon. Friend’s constituents, many of whom work in Manchester, is that this will provide far more opportunity for commuter services, and far more space on those commuter services, for them and people living further north on the way into Manchester, which in my view they very much need.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

As the Secretary of State is an avid Manchester United fan, may I ask him what first attracted him to extending the high-speed line from his home in the south-east to his beloved Old Trafford? Secondly, what discussions has he had with Transport for Greater Manchester about extending the light rail network out to the HS2 station at Manchester airport in my constituency?

[Chris Grayling]

On the latter point, there is an obvious logic in continuing to develop the Metrolink network. We have just announced additional routes to the west of the centre—indeed, passing pretty close to Old Trafford—so I am very open to discussing with the new mayor, when he or she is elected in the summer, the ways in which we can continue to develop the transport system in Manchester.

As for the direct route between Surrey and Old Trafford, although they say that most Manchester United supporters live in Surrey, I suspect that we might struggle to get the passenger numbers to justify a high-speed route all that way.

[Mr Speaker]

I hope I am a lot happier just after 2.30 this Saturday afternoon than the Secretary of State, who knows my allegiance in this matter.

[Mr Philip Hollobone (Kettering) (Con)]

Midland main line electrification has a better benefit-cost ratio than any other electrification scheme and a better benefit-cost ratio than HS2. For a fraction of HS2’s cost, it would deliver momentous line speed and capacity improvements for towns across the east midlands, including Kettering. Will the Secretary of State use this opportunity to commit to fulfilling the Government’s pledge to complete the electrification of the midland main line by 2023?

[Chris Grayling]

My hon. Friend will be aware that work has already started on the electrification process that will, in the next stage, go as far as Corby, as well as—this tends to be seen rather as the poor relation—on track improvements and extra tracks passing up through his constituency to Corby, which will enable us to have much faster trains and much more capacity. My goal is to deliver faster journey times and extra capacity by 2020—long before the date he mentioned.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

In the statement of funding policy that accompanied the comprehensive spending review, Wales was allocated a 0% Barnett rating, whereas Scotland and Northern Ireland both got a 100% rating. This means that Wales will lose out on a full Barnett allocation from HS2. As expenditure increases during the construction phase, so will the impact on the Welsh Government’s budget compared with those of Scotland and Northern Ireland. Will the Secretary of State look at this issue once again and ensure that this injustice is rectified?

[Chris Grayling]

My view is that this is about transport improvements around the country. I, of course, regard improvements in Wales as extremely important. I met the Minister responsible for transport in Wales last week, and we will work together to deliver the improvements that Wales needs.

[James Heappey (Wells) (Con)]

Thank you, Mr Speaker, for indulging a west country interloper on these proceedings. I very much welcome the improved connectivity to the midlands and the north that HS2 will bring, but an awful lot of the country lies to the west, so it is regrettable that key parts of the electrification programme on the Great Western railway have been deferred. As we build an economy that works for all parts of the UK, will the Secretary of State look again at the benefits of running fully electric trains all the way from Paddington to Bristol Temple Meads, which for so many rail users is the entry point to Somerset and the whole of the south-west of England?

[Chris Grayling]

I am as frustrated as anybody by the challenges we have had on the Great Western railway route. One of the great ironies is that while the Labour party attacks us on rail issues and talks about the need for renationalisation, one of its targets is the one bit of the rail industry that is in the public sector. The fact is that Network Rail has not been involved in electrification for many years. It did virtually nothing in Labour’s years in power. This first project has developed more problems and challenges than expected, but I still want it to be completed as quickly as possible.

[Tom Pursglove (Corby) (Con)]

I very much welcome what my right hon. Friend said in response to my hon. Friend the Member for Kettering (Mr Hollobone), but I will unashamedly ask for more. I want more services, both northbound and southbound, running to Corby. Our town is growing hugely and at a rapid rate, and we need more capacity to meet growing demand and to utilise the existing lines. How will phase 2b of HS2 help to unlock opportunities through the midland main line?

[Chris Grayling]

The more that we take express trains off the existing main lines and the more we move passengers on to the new capacity, the more capacity will be created for intermediate journeys. The big difference for my hon. Friend’s constituency is the unheralded one of just building an extra track to Corby. That will make more difference to his town than almost anything else. By 2020, we need to have delivered much more capacity on the routes used by people represented by him and my hon. Friend the Member for Kettering (Mr Hollobone). That will be essential to deliver a proper, effective commuter rail network, alongside what needs to continue to be a good express system to the midlands and the north.

High Speed 2

Lord Grayling Excerpts

Tuesday 15th November 2016 Written Statements

[The Secretary of State for Transport (Chris Grayling)]

I would like to update the House on the progress of High Speed 2.

This Government are planning for the future and investing in world-class transport infrastructure to ensure that the UK can seize opportunities and compete on the global stage.

In a clear signal of how work is progressing on HS2 phase 1, this morning I am announcing that the following companies have been awarded the phase 1 enabling works contracts:

Area South—CS JV (Costain Group Pic, Skanska Construction UK Limited)

Area Central—Fusion JV (Morgan Sindall pic, BAM Nuttall Limited, Ferrovial Agroman (UK) Limited)

Area North-LM JV (Laing O’Rourke Construction Limited, J. Murphy & Sons Limited).

These contracts are worth up to £900 million in total and cover the whole of phase 1. The works include archaeological investigations, site clearance and the setting up of construction compounds ahead of the start of the main civil engineering work.

Today I have published a command paper, “High Speed Two: From Crewe to Manchester, the West Midlands to Leeds and beyond”, and accompanying maps setting out the detail of my preferred route for HS2 from Crewe to Manchester, and from the West Midlands to Leeds, with junctions onto the existing network. This is known as HS2 phase 2b.

This means that following on from the 2013 consultation and work we have done since, I am pleased today to be confirming the majority of the route. There are also a number of cases, including the proposed route through South Yorkshire recommended by Sir David Higgins in a report earlier this year, where I am proposing substantial refinements. I am launching a consultation to seek the views of communities and other interested parties before reaching a decision on those sections next year.

In all, there are seven refinements on which we are consulting, these are:

On the western leg:

To move the previously proposed rolling stock depot at Golborne to a site north of Crewe;

To move the approach to Manchester Piccadilly 370 metres eastwards with the northern tunnel portal in Ardwick, to avoid direct impacts on residential properties and a school at West Gorton; and,

To move the route in the Middlewich—Northwich area in Cheshire up to 800 metres westwards.

On the eastern leg:

To move the route to the east of Measham in Leicestershire, avoiding the most significant impacts on local manufacturing businesses and development sites;

To go around instead of tunnel under East Midlands airport;

To amend the alignment of the preferred route as it passes through Long Eaton to reduce severance in the local community and reduce impacts on the highway network and existing rail infrastructure; and,

To move the alignment of the route from Derbyshire to West Yorkshire to reflect a change in the proposals for serving the Sheffield city region, as recommended by Sir David Higgins in his report “Sheffield and South Yorkshire” published in July 2016.

In order to ensure our case is robust we have of course considered alternatives to the phase 2b scheme, but we have found no alternative that could deliver the same level of benefit for the country.

I am also issuing safeguarding directions for the whole of the preferred phase 2b route today. This protects the preferred route from conflicting development. But it also means that those people who are most affected by the plans to build phase 2b will now be able to access statutory compensation.

In addition, I will be consulting on discretionary property schemes. These will go over and above what is required by law and give assistance to those who will be adversely affected by the railway. These schemes are the same as those currently in operation for people living along the phase 1 route and I aim to be able to confirm the schemes on which I am consulting for phase 2b next year.

Two of these schemes will enter into operation on an interim basis, from today; these are Express Purchase and Need to Sell. Further information on property schemes can be found at: www.gov.uk/hs2.

I am placing copies of the documents in the Libraries of both Houses. Following consultation I plan to make a decision on these route refinements next year and to bring forward a hybrid Bill on phase 2b to lay before Parliament in 2019.

HS2 is an ambitious and exciting project and we must seize the opportunity it offers to transform our country for future generations. The route decision I have published today takes us an important step closer to realising the full potential of HS2.

[HCWS253]

Airport Capacity

Lord Grayling Excerpts

Tuesday 25th October 2016 Commons Chamber

[The Secretary of State for Transport (Chris Grayling)]

With permission, Mr Speaker, I would like to make a statement about airport policy.

Last year, the independent Airports Commission delivered its final report under the chairmanship of Sir Howard Davies. I would like to pay tribute to the quality and professionalism of the commission’s work and express my thanks to all its members. The commission concluded that we need more capacity in the south-east and put forward three viable options for expansion. It unanimously agreed that the proposed north-west runway at Heathrow presented the strongest case. In December, my predecessor came to the House to announce that the Government accepted the commission’s assessment of the need for additional capacity, but made clear that further work was required before a decision could be made on the location of a new runway. That work is now complete.

This is a momentous step for our country. The decisions taken earlier today, which I shall outline in a moment, are long overdue, but they will serve our country for generations to come. I know that some Members have strong convictions on this issue and that everyone in this House will understand the significance of this announcement for jobs; an economy that works for everyone; passengers; the global importance of our country; the environment; and people affected by expansion. It also sends a very clear message that this country is open for business.

It is not an easy issue or a simple process. I make no apologies for the fact that we have taken time to get it right, but today also shows that this is a Government who are unafraid to take difficult decisions and get on with the job. Before I outline the decision that the Government have reached, I want to explain how today’s announcement fits within the planning process and the opportunities that Members will have to contribute.

In the new year, we will bring forward a draft national policy statement, which will include the details of the proposed scheme. As required under legislation, it will be subject to a full and extensive public consultation, followed by a period of parliamentary scrutiny. Only once Members have voted on the final national policy statement and it has been designated will the airport be able to make a detailed planning application.

Strong connections with global partners and the ability to trade with new and growing markets are vital to securing Britain’s place in the world. The UK currently has the third largest aviation network in the world—second only to the United States and China—contributing more than £22 billion to UK GDP. We have the second largest aerospace manufacturing sector, which generates annual exports of £26 billion. Our aviation industry supports almost 1 million jobs and invests £1.7 billion every year in research and development. Last year, UK airports handled more than 250 million passengers—up 5% on 2014—and 2.3 million tonnes of freight.

Heathrow is the busiest two-runway airport in the world, and Gatwick the busiest single-runway airport. Indeed, the London system will be almost entirely full by 2030, with the exception of a small amount of capacity at Luton, and that will be taken up soon afterwards. If we do nothing, the cost to our nation will be significant, amounting to more than £20 billion over 60 years through delays, fewer flights and passengers having to fly from airports elsewhere. In addition, the wider impacts on our economy will be in the region of £30 billion to £45 billion. That is why the decision we have reached today is so important to the future of our country, not just to tackle the immediate shortage of airport capacity, but to set our country on a course to even greater prosperity for future generations.

I have spent a considerable amount of time this summer visiting the different schemes, talking to their promoters, and assessing their strengths and weaknesses. I have been genuinely impressed by the quality of choice available to us and the detailed work that has been put into the three plans. Any one of them would bring benefits to our country. At the end of its work, however, the Airports Commission made a clear and unanimous recommendation to the Government—that we should accept the proposal to build a new north-west runway at Heathrow, subject to a package of measures to make expansion more acceptable to the airport’s local community. Since the publication of that recommendation, my Department has studied in detail not only the report, but new and supplementary information that has emerged about the different options since.

The commission’s report and the subsequent information formed the basis of the discussion that took place this morning at the Cabinet Sub-Committee. As a result of that discussion, the Government have decided to accept the recommendation. We believe that the expansion of Heathrow airport and the north-west runway scheme, in combination with a significant package of supporting measures on the scale recommended by the Airports Commission, offers the greatest benefit to passengers and business, and will help us to deliver the broadest possible benefit to the whole United Kingdom. That approach will deliver the greatest economic and strategic benefits for our economy. It will strengthen connectivity for passengers right across the United Kingdom. It offers a major boost to freight operators. It can be delivered within carbon and air quality limits and, crucially, it comes with world-leading measures to limit the impacts on those living nearby.

In addition to the benefits identified by the commission, the scheme will deliver the connectivity and hub capacity that the UK needs to compete with fast-growing European and middle eastern hubs. The airport’s location means it is more accessible to business and the rest of the United Kingdom by both road and rail. Access to Heathrow is more resilient, and it is better placed as the national freight hub. Ultimately, the proposal will bring the largest benefit to passengers and the wider economy: up to £61 billion over 60 years. But we are not alone in this view. UK airlines and businesses are also clear that Heathrow is the right place to expand.

Before I continue, I would like to pay genuine tribute to the promoters of the other two schemes considered by the Sub-Committee. As I have said, both presented well-developed and compelling cases for new capacity. In particular, I would like to place on record the fact that Gatwick, despite not being selected today, remains a key part of our national transport picture and will continue to do so in the future.

I want to be clear that expansion will not be at any cost to local people, to passengers or to industry. We have to make three assurances. The first is about making Heathrow a better neighbour. We must tackle air quality and noise, and meet our obligations on carbon both during and after construction. Air quality is a significant national health issue that the Government take immensely seriously. That was why we undertook further work, which confirms the commission’s original conclusion that a new runway at Heathrow is deliverable within air quality limits. We remain committed to ensuring that that remains the case. The airport has already committed to industry-leading measures to mitigate air quality impacts. Furthermore, the Government will grant development consent only if we remain satisfied that a new runway will not impact on the UK’s compliance with its air quality obligations.

The broader issue of air quality is something that the Government take very seriously, and the updated evidence base shows clearly that the biggest challenge we face is not the expansion of an airport, but the levels of emissions in urban areas more generally. That is the very reason for our national air quality plan. As part of our ongoing work on air quality, my Department has embarked on a joint project with the Department for Environment, Food and Rural Affairs and the Treasury to identify further ways in which we can tackle the issue. By the time a new runway opens in the next decade, we intend to have made substantial progress on tackling such air quality challenges across our nation as a whole.

On the issue of noise, no airport can be silent, but technology is making aircraft quieter. The new generation of aircraft coming into service have a noise footprint that is typically 50% smaller on departure, and at least 30% smaller on arrival, than that of the aircraft they are replacing. Although planes are getting quieter, however, they still have an impact, which is why we will expect a six-and-a-half hour ban on scheduled flights each night to be a requirement for development consent. That would also see the airport held to clear and legally enforceable noise performance targets. Even with expansion, therefore, fewer people will be affected by aircraft noise than is the case today. We also recognise the importance of providing local residents with a clear, predictable timetable of respite from aircraft noise. That is something local communities value, and we will ensure that it continues once a new runway is built.

I recognise that the decision will have a big impact on people who live close to Heathrow, which is why we have insisted on a world-class package of supporting measures. Communities affected by the decision will be supported by up to £2.6 billion towards compensation, noise insulation for homes and schools, improvements to public facilities and other measures. For those whose homes need to be bought to make way for the new runway, Heathrow plans to pay 25% above the full market value of those homes and to cover all costs, including stamp duty, moving and legal fees. That offer is significantly above the statutory requirement. In addition, I can announce the creation of a community compensation fund. Local authorities will benefit from our policy of local retention of business rates.

The second assurance is on costs for airlines and passengers. A new runway will bring in new capacity to meet demand and allow for greater levels of competition, which will lower fares relative to no expansion, even after the costs of construction are taken into account. This is an investment in our country’s future. It will deliver major economic and strategic benefits to the UK, but they must be delivered without hitting passengers in the pocket. The Airports Commission has made it clear that that is achievable, as has the Civil Aviation Authority. It is important to send the message that this is not expansion at any cost, but the right scheme at the right price. I expect the industry to work together to drive down costs for the benefit of passengers. As the regulator, the CAA will have a vital part to play in achieving that and ensuring that new capacity fosters competition. Its aim should be to deliver a plan for expansion that keeps landing charges close to current levels, and I have full confidence in its ability to do so.

The third assurance is about how the expanded airport will benefit the whole of the UK, not just by creating jobs across the airport’s UK-wide supply chain, but by giving even more of the UK access to important international markets by strengthening existing domestic links and developing new connections to regions that are not currently served. The airport expects to add six more domestic routes across the UK by 2030, bringing the total to 14. That will strengthen existing links to nations and regions such as Northern Ireland, Scotland and the north of England, and allow the development of new connections to regions such as the south-west.

I am determined that Heathrow will meet those pledges and that the Government will hold the airport to account on them. Furthermore, the Government will take all necessary steps, including, where appropriate, ring-fencing a suitable proportion of new slots for domestic routes through public service obligations to enhance connectivity within the United Kingdom. It is important to stress that this is a decision in the national interest; it is not just about the south-east of England.

A new runway will strengthen the aviation sector across the whole nation, but we need to do even more. Our airspace is out of date. Modernising it will boost the sector and help to further reduce noise and carbon emissions. We will soon introduce proposals to support improvements to the airspace and to manage noise, which will include a consideration of the way in which affected communities can be engaged and whether there is a role for a new independent aviation noise body such as the commission recommended.

Let me turn to what happens next. There have been recent suggestions in the media that the process has been slowed down or somehow delayed. In fact, the opposite is true. Members will remember the saga of the planning process behind terminal 5, which took years to resolve. Following that, the national policy statement process, which was created by the previous Labour Government in the Planning Act 2008 and improved through the Localism Act 2011, was designed to speed up major projects, but in an open and fair manner. By setting out now why we believe that there is a need for new runway capacity, along with the supporting evidence, we will fulfil our legal obligations to consult the public and allow Members to vote on the proposal before it becomes national policy. That is what the law requires. That means that Heathrow will be able to submit a planning application safe in the knowledge that the high-level arguments have been settled and will not be reopened.

Today, the Government have reached a view on their preferred scheme, and the national policy statement that we will publish in the new year will set out in more detail why we believe it is the right one for the UK. It will also set out in more detail the conditions we wish to place on the development, including the supporting measures I outlined. We want to make sure that we have considered all the evidence and heard the voices of all those who might be affected and, of course, of those who will benefit. The consultation will start in the new year, and I can announce today that I have appointed Sir Jeremy Sullivan, the former Senior President of Tribunals, to oversee the consultation process. This is an independent role, and Sir Jeremy will be responsible for holding the Government to account and for ensuring that best practice is upheld.

The issue of runway capacity in the south-east has challenged successive Administrations for decades. There are strong feelings both for and against a third runway at Heathrow. This is not the scheme that was previously promoted in 2009. It does much more to mitigate environmental impacts, to compensate communities and to distribute benefits across the nation. This is an issue of vital national interest that touches every part of our United Kingdom. It is vital to the economic prosperity and global status of our nation, and I commend this statement to the House.

[Andy McDonald (Middlesbrough) (Lab)]

Although I thank the Secretary of State for giving me advance sight of his statement, it cannot pass without comment that this decision has been widely leaked throughout the media during the past number of hours in advance of it being sent to me and of being announced to the House. It is simply unacceptable for such a decision to be announced in this manner; it is totally disrespectful to Members and the House. Be that as it may, aviation is crucial to our nation’s economy and our future as an outward-looking trading nation. That will be even more the case in the light of the vote to leave the European Union, so we welcome the fact that a decision on the preferred location has now been made. I hope we can put the years of procrastination and delay behind us.

Despite the Secretary of State’s proclamation that the work is now complete, today’s announcement is not the end of the process, but merely the start of it. It beggars belief that it has taken Ministers more than a year since the publication of the Davies report even to make a start. Just what have they been doing for all these months, apart from worrying about splits in the Cabinet, or about the Foreign Secretary throwing himself in front of the bulldozers and former mayoral candidates triggering by-elections? There is no justification for dithering on this scale. The Secretary of State has failed to provide the shorter timescale for getting to the national policy statement that was set out by the Transport Committee.

We cannot bring back the time that Ministers have already wasted, so over the coming months it will be vital that there is proper engagement, and full and fair consultation with all the interested parties, so that we secure an outcome that stands the test of time. It is essential that there is proper forensic examination and scrutiny. Labour has consistently said that support for any such decision will be conditional: first, on sufficient capacity being delivered; secondly, on meeting the UK’s legal climate change obligations; thirdly, on local noise and environmental impacts being managed and minimised; and, fourthly, on the benefits not being confined to London and the south-east.

Labour fully recognises the need for runway expansion in the south-east of England, but following today’s announcement, it could be a decade before an additional runway is operational. We face capacity challenges here and now, but we heard nothing in the Secretary of State’s statement about how the Government intend to tackle the immediate shortage of airport capacity. What are his plans to utilise existing capacity in the south-east at Stansted and Luton—and, indeed, elsewhere?

There was also no mention of more utilisation of our international gateways. What message does that send to Stansted, Manchester, Birmingham and East Midlands, and what message does it send about the Government’s commitment to the so-called northern powerhouse and the midlands engine? Surface access to many of our international gateways around the UK needs improving, yet it is unclear what action the Government are taking. That is why Labour is calling for the new National Infrastructure Commission to examine the road and rail needs of airports outside the south-east. I urge the Secretary of State to support that proposal as well as Labour’s call to update the West Anglia line to improve rail services to Stansted, and to have better connectivity to Luton airport.

The Government must ensure that we do not fall short of our legal climate change obligations. We have but one planet, and it is essential that the UK plays a leading role in ensuring that agreed reductions in carbon emissions are met. Sustainable Aviation believes that UK aviation could reduce its carbon dioxide emissions by up to 24% by 2050 through the deployment of sustainable alternative fuels. Other countries have made considerable progress but, sadly, the lack of commitment and clarity from our Government caused the collapse of the British Airways green sky project. May we hear more from the Government about what steps will be taken to meet our climate change targets, particularly on developing sustainable fuels and progressing the consultation on the inclusion of aviation in the renewable transport fuels obligation?

After the Davies commission, the Government announced that they wanted to look further at environmental matters and, in particular, at air quality. As was revealed in The Guardian last week, David Cameron’s former policy adviser at No. 10 warned the then Prime Minister a year ago that he was “exposed on Heathrow”, because the Government did not have an answer about the effect on air quality. Indeed, the need for further work on air quality was the reason given for the delay, yet there was not a single reference in the Secretary of State’s statement to explain what work on that has been completed or how such work has informed his position. Will he publish—I hope he will—the additional work that he tells us the Government have done post-Davies so that those inside and outside the House can scrutinise it properly?

It is essential that the unacceptable levels of nitrogen dioxide and particulates from diesel engines are reduced because their direct impact on the health and wellbeing of tens of thousands of citizens simply cannot be ignored or tolerated. Direct measures are needed to lower emissions across the nation, especially in areas with a high concentration of emissions. I urge the Secretary of State to be unrelenting in his pursuit of improved air quality.

The commission recommended establishing an independent aviation noise authority, so will the Secretary of State immediately advise us about the Government’s intentions in that respect? Our air traffic management infrastructure is ancient, and modernisation would secure great dividends not only in terms of carbon emissions, but through considerable mitigations on noise and air quality. What steps is he taking to ensure that the modernisation that is so urgently needed is prioritised and progressed?

On our fourth test that the benefits of expansion are not confined to London and the south-east, it is essential that landing slots affording better connectivity and trading links for our nations and regions are maintained in the longer term. Any assurances that the Secretary of State can give in that respect would be most welcome. Will he also assure the House that the entire UK will be afforded a proper opportunity to engage in the construction process? Perhaps some of the HS2 Ltd protocols can be adopted. You never know, but we might be using UK steel.

The location of an additional runway cannot be the sum total of aviation strategy, so I urge the Secretary of State to press ahead with the full range of measures that are necessary to sustain our successful aviation industry. We must also ensure that the best interests of all the United Kingdom are served, and that the legitimate environmental concerns that have been raised, and that will continue to be raised, are fully addressed. We must do all that we can to protect our precious planet for the generations to come.

[Chris Grayling]

I will start with the point about the announcement. You know, Mr Speaker, how seriously I, as a former Leader of the House, take such issues. You will also be aware that this matter is highly price sensitive. Indeed, when the Airports Commission published its initial reports, they were launched in a way—they were announced at the start of the morning—that was consistent with a market announcement. That is the approach we have taken with this announcement. I have come to the House at the earliest opportunity to make a statement, and I will take all the questions that Members have for me.

On the timeframe, the hon. Gentleman asked me what we have been doing for the past year. We have been doing precisely what he asked about: working on the issue of air quality. Today and over the coming days, we will publish additional material so that Members, the public and others who are interested will be able to scrutinise in detail the work we have done and the route we have followed to reach this conclusion. Given the particular importance of air quality, he would expect us to make sure that we had done the additional work to satisfy ourselves that this can be done in line with what we all accept are our necessary priorities for reducing emissions levels.

The hon. Gentleman talked about what will happen during the coming months. As I said earlier, yes, there will be a full and proper consultation. That consultation is set out clearly in statute—[Interruption.] Despite the murmurings of Opposition Members, the consultation is set out in an Act that Labour rightly passed to improve the process of going ahead with such a national project. That is the process we will follow. We will do so in as timely a way as we can, but we cannot short-change a process set out in primary legislation.

On the capacity challenges here and now, there is absolutely nothing to stop new routes being set up tomorrow. We have capacity at Stansted, and new routes have come into Heathrow and Gatwick in the past 12 months. We are not preventing the airports around London that still have capacity—

[Richard Burden (Birmingham, Northfield) (Lab)]

You’re not doing anything!

[Chris Grayling]

The hon. Gentleman talks about not doing anything. With respect, the Opposition do not appear to understand that the airports themselves go out to sell opportunities around the world and bring in new routes. The leaderships of those airports sell Britain as a great destination to fly to and do business in. They will carry on doing that.

There are clearly some big surface access issues to address in connection with this new scheme. However, I remind the hon. Member for Middlesbrough (Andy McDonald) that we are close to completion of Crossrail, which will make a major difference to connectivity to Heathrow, we will shortly be starting improvements to the M25 between Heathrow and Gatwick, and the new Thameslink routes are due to open in about 18 months’ time, which will significantly improve links to Luton airport. Things are already happening to improve surface access links to our airports.

Climate change is a very important issue that we take very seriously. I was delighted by the agreement reached at the International Civil Aviation Organisation summit in Montreal recently, which sets a way forward for the aviation industry with international agreement. That is a significant step forward. We agree that a significant challenge remains that we must monitor very carefully, but the Airports Commission said very clearly that the expansion could take place and we could meet our objectives. That is what we intend to do.

The hon. Gentleman mentioned sustainable fuels, and good work is being done on those, by Virgin in this country, for example, and by airlines around the world. The technology will improve as the years go by.

The hon. Gentleman asked what we are doing on air quality. I agree with him that it is a bigger issue for our country, affecting very many of our urban areas. It requires a broad-ranging response to deal with it through clean air zones, as set out in our national air quality strategy, and other measures that we are working on that go beyond that strategy and continue a process of improvement over the coming decade.

I said in my remarks that I would consult on a noise authority and that we would bring forward plans for airspace modernisation. On regional connectivity, I am happy to restate our commitment to hon. Members from Scotland, Wales, Northern Ireland, northern England and the south-west. We are very clear that this expansion must include binding provision for links to those parts of the country. This has to be a benefit to the entire United Kingdom and it will be. On the hon. Gentleman’s last point, Heathrow airport is committed to ensuring that the project will be built using UK steel.

[Sir Alan Haselhurst (Saffron Walden) (Con)]

Will my right hon. Friend acknowledge, in the light of the very courageous decision he has announced to the House, that in the 10 years before the extra runway at Heathrow is available great pressure will descend upon Stansted, to which he has referred? Does he understand that my constituents will expect the same level of compensation and care for them against noise disturbance, and wish the recommendations of the West Anglia task force to be implemented as soon as possible, as life will otherwise become intolerable for everyone on that railway line, whether passengers, employees at the airport or regular commuters?

[Chris Grayling]

My right hon. Friend has been a passionate advocate for the communities around Stansted for a very long time; I remember visiting the airport with him when I shadowed this brief a decade ago. This is something we must be immensely sensitive to, and I give him a commitment that we will be. We are now looking very carefully at the proposals he was involved in shaping and the set of recommendations that he published recently. I want everything done as soon as is practical to make sure that the links to Stansted are as good as those to London’s other airports.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I welcome the Secretary of State to his place and thank him for early sight of his statement. After what has been world-leading prevarication from his Government, we welcome this decision, which finally almost ends what the Scottish Chambers of Commerce has called the “economic illiteracy” of failing to make a decision. True to form, however, the Government’s indecisiveness could not resist one last piece of bad taste fudge to stick in people’s throats. The lack of a vote in this House for more than a year will not allow people and companies a true end, and the soap opera will therefore continue.

That said, we welcome the announcement of Heathrow as a preference. Although airport expansion of this type disproportionately benefits the south-east of England, it has strategic consequences for Scottish air routes. In preparation for this announcement, and after more than 18 months of meetings with, among others, airports, campaign groups, business bodies and the UK Government, the Scottish National party Scottish Government have agreed a memorandum of understanding with Heathrow that will bring, among many other things, jobs, an engineering hub and route support to Scotland.

It is now time for the UK Government to ensure a full and fair deal for Scotland. We must see a commitment to addressing those needs. A lot is required. Will the Secretary of State commit to meeting the following wider challenges? First, as he has intimated, will he work with me and the Scottish Government to develop genuine route support and public service obligations, and address Scotland’s needs in relation to this development? Secondly, will he make a proper commitment to supporting aircraft biofuels and giving genuine encouragement to carbon-reducing technology in aircraft? Thirdly, will he go further than he did in his statement and commit to starting immediate work to replace the airspace strategy for the UK, which is more than 50 years old?

[Chris Grayling]

I am grateful to the SNP for its support for today’s announcement. The hon. Gentleman talked about the lack of a vote. I remind him that this is the law. We are following a process that is set out in statute—he is surely not suggesting that we should not follow that process. We will do so in as timely a way as possible, but we have a duty to follow primary legislation.

The hon. Gentleman talked about the benefits the expansion can bring to Scotland. I absolutely agree and will be delighted to work with his party and my counterparts in other parties in Scotland to ensure that Scotland gets a good deal out of all of this. It is not just about Scotland, however, but about the whole United Kingdom. It is about Northern Ireland. It is about making sure that skills development happens in Wales. It is about ensuring better links to the south-west of England, and good links to the north-east—I am going to Newcastle tomorrow, and the north-east is one region that I hope will benefit from today’s announcement. This is about the whole United Kingdom and so I have every intention of ensuring that our work is about the whole UK.

The hon. Gentleman raised the airspace modernisation programme. The CAA has already started preparatory work on that, and we need to press ahead with it, not simply because of today’s announcement but because we need to change many of the things that unnecessarily use up fuel and cause additional carbon emissions, such as the stacking structures. That work is beginning. We will consult on it extensively over the next two years. That modernisation has to happen alongside the development of the runway plan.

[Zac Goldsmith (Richmond Park) (Con)]

The Government have chosen a course that is not only wrong but doomed. It is wrong because of the million people who will suffer directly on the back of the environmental harm this project unavoidably produces. It is doomed because the complexities, cost and legal complications mean that the project is almost certainly not going to be delivered. I believe it will be a millstone around the Government’s neck for many years to come—a constant source of delay, and of anger and betrayal among those people who will be directly affected. There are so many questions one could ask at a statement of this sort that I would not know where to begin, so I simply use this opportunity to put my absolute opposition on the record.

[Chris Grayling]

I very much respect the sincerity of the views that my hon. Friend holds and the commitment he has made to his constituents on this issue. I know how strongly he will disagree with the decision we have taken today. I hope that he will at least respect the fact that all of us in politics have to do what we believe is right. I am doing today what I believe is right. His views are very much what he believes is right. Not all of us can get it right all of the time, but we have to do what we believe is best for our country, and that is what I am doing now.

[Lilian Greenwood (Nottingham South) (Lab)]

The decision to build a new runway at Heathrow is the right one, but it is absolutely vital that the Secretary of State delivers on his pledge to ensure that the benefits of expansion are felt in every nation and region of the UK. The Davies commission noted the difficulties in reserving slots for domestic flights from regional airports posed by the EU slot regulations. Now that the UK has voted to leave the EU what assessment has he made of the decision for potential measures to protect and enhance domestic connectivity?

[Chris Grayling]

The slot issue is one avenue for us to follow. We want to have a detailed discussion with regional airports, airlines and Heathrow itself about the best mechanism. I am absolutely clear that the planning consents, which I hope and believe will eventually be granted, and the national policy statements we prepare must contain provisions that protect connectivity. We need to work out the best way of doing it. It is not just about having a handful of slots at 11 o’clock at night; it is also about connectivity with international flights. We have to get this right for the whole United Kingdom and I give a commitment that that is what our agenda will be.

[Stephen Hammond (Wimbledon) (Con)]

Respected outside experts have estimated the need for £11.5 billion of taxpayer support for the third runway and even the Airports Commission suggests up to £5 billion, yet post the Cabinet meeting this morning, the Government website says that the expansion costs will be paid for by the private sector. I listened carefully to the Secretary of State’s statement, but he did not reiterate that commitment. Will he tell the House how much the taxpayer will have to put in for runway 3 and the associated surface works?

[Chris Grayling]

The most fundamental point is that Heathrow has committed, and will be held, to a plan that: first, does not increase the current level of road transport to the airport; and, secondly, increases public transport access to the airport to 55% of those using it. Those will be obligations that it will have to fund. The Government’s financial advisers have said that that is viable and investible. There are question marks about what schemes are actually part of the surface access. Some of them we have to do anyway. For example, we are about to start improvements to the M4, which will benefit Heathrow and improve access, but they are not solely about Heathrow. There are, however, some very clear obligations in terms of actual deliverables that the airport will have to meet and pay for.

[Mr Nigel Dodds (Belfast North) (DUP)]

I welcome the fact that the new Government have made this important decision and I welcome the fact that they have made the right decision. In Northern Ireland, there is a wide consensus that Heathrow is the right decision. It will lead to thousands more jobs, and major investment in tourism and business. I therefore warmly welcome what the Secretary of State has said. I also welcome what he said about slots and domestic connectivity, but may I press him on whether there will be any Barnett consequentials through investment and infrastructure?

[Chris Grayling]

First, I am very grateful to the right hon. Gentleman for his support, and for the support of his party and colleagues in Northern Ireland. It is very much my belief that Northern Ireland will benefit enormously from this decision, and so it should. I hope it benefits not simply in terms of connectivity: I hope to see some of the work being done in Northern Ireland as we aim for a UK-wide supply chain and encourage the airport to achieve that. On other aspects, we will work hard to ensure that we deliver the best possible outcome for all parts of the United Kingdom, that we listen and consult, discuss issues such as the one he raised and try to make sure it is as beneficial as possible to the people he represents.

[Crispin Blunt (Reigate) (Con)]

As the chair of the Gatwick co-ordination group, I congratulate my right hon. Friend on this announcement and make clear to him the relief with which this somewhat overdue statement will be received by all the people represented by colleagues in the group. It will have been clear that keeping Gatwick in the game has delivered welcome improvements in the Heathrow proposition, but, as everyone who uses the Brighton main line will know, the Gatwick proposition, frankly, was not practical. Local authorities would have had to have found housing for the workforce to support the Gatwick option. Before this process began, Gatwick management ran the best single runway airport in the country and had a very good set of relationships with local communities. Will he now invite Gatwick management to go back to those priorities now that the scheme is over?

[Chris Grayling]

My hon. Friend has strong feelings about Gatwick expansion, as did many of those in his constituency and in his neighbouring constituencies. What I would like to say about Gatwick is that we need to understand the important role it plays in the economy of the southern part of the country—the Surrey-Sussex economy—and in the economic development of that area and the south coast. I recognise the very real amount of work that Gatwick airport put into its proposal, which, as I said, was very impressive and carefully crafted. I know it will be immensely disappointed with today’s decision. As I said earlier, I believe Gatwick will continue to be a really important part of our transport infrastructure and I send it all my best wishes.

[Several hon. Members rose—]

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

The Secretary of State said in his statement that he plans to bring forward proposals to support improvements to airspace and how to manage noise, including the way affected communities, such as mine in Hounslow, can be best engaged. He stated that that would include consideration on whether there is a role for a new independent aviation noise body, but he also said that the commission had recommended one. Why has that been downgraded?

[Chris Grayling]

I have not downgraded it. I want to make sure there is proper independent noise monitoring. It is just a question of working out the best way to do that. The commission did not set out detailed plans. I will be discussing with interested parties how best to secure that.

[Mr Graham Brady (Altrincham and Sale West) (Con)]

A global trading nation clearly needs world-class infrastructure and I think this is the right judgment in the national interest. Will my right hon. Friend reflect on the damage done to our international competitiveness by this country maintaining the highest level of taxation on aviation?

[Chris Grayling]

Air passenger duty creates a lot of debate in this country. I am absolutely certain that none of us on the Conservative Benches would wish to maintain any tax higher than we needed to. We are, by instinct, a low-tax party, but we are also dealing with some quite challenging financial and public finance circumstances and therefore cannot always do the things we wish to do. Nevertheless, I am sure the Chancellor will have heard my hon. Friend’s wise words, ahead of planning for the next two financial moments.

[Caroline Lucas (Brighton, Pavilion) (Green)]

In 2009, the Committee on Energy and Climate Change suggested that a maximum 60% air passenger growth to 2050 could be compatible with UK climate change goals, provided various fantasy conditions are met. However, the Government’s own analysis shows that even without a new runway there will be 93% growth by 2050. That implies that aviation will take up to two thirds of the UK’s entire carbon budget in 2050, a scenario that is quite simply incredible. Given that the Committee advised against taking international offsetting as a substitute for domestic action, will the Secretary of State explain how this decision can possibly be compatible with our climate change objectives?

[Chris Grayling]

We listened to the Airports Commission, which did detailed work on this. It recommended that this was an approach we could take and meet our obligations. We have validated that work since and we still believe that to be the case. I was encouraged, as I said earlier, by the ICAO agreement, which I hope will make it easier for the aviation sector to meet those obligations.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

The business opportunities arising from the expansion are substantial for Buckinghamshire. Bucks Business First and the Buckinghamshire Thames Valley local enterprise partnership have both welcomed today’s announcement. It will continue to reinforce Buckinghamshire as a prime location for businesses to locate to. However, will the Secretary of State undertake to do an assessment of the impact on the local economy of the potential disruption and cumulative effect of having two major projects, namely Heathrow expansion and HS2, being constructed within the same timeframe and in close proximity?

[Chris Grayling]

Clearly, we have to work to ensure that the impact of two major projects on surrounding communities is minimised to the maximum possible extent. I know everyone involved in both projects will seek to do that. Undertaking two ambitious, modern future-looking projects is a sign of the direction that defines the approach we are taking to governing the country. We want to prepare for a stronger and better future for Britain.

[Andy Burnham (Leigh) (Lab)]

Is not the biggest loser from the Tory civil war over Heathrow neither the Foreign Secretary nor the hon. Member for Richmond Park (Zac Goldsmith) but transport everywhere else? For over five years, there has been an obsessive focus on London and the south-east. While welcoming this decision, may I ask the home counties-based Cabinet to listen to what William Hague has said today, and set out in the autumn statement a clear timetable for HS3, linking Manchester Airport to the great cities of the north?

[Chris Grayling]

I am not sure that Manchester Airport needs to be linked to the great cities of the north, since it is in one of the great cities of the north. Let us be clear first about what we are doing in the north. Across the north of England, a wide range of essential transport projects are happening: £350 million is being spent on improving the rail network in the right hon. Gentleman’s home city of Liverpool, and the construction of the link road between the M56 and the M6. Those are two long overdue projects. He knows that support for the next generation of the Manchester Metrolink is also happening. This is a Government who are doing things for the north of England. I have to say that if I look back on the Labour party’s years in government, I see that these projects were always on the drawing board but never actually happened.

[Dr Tania Mathias (Twickenham) (Con)]

I believe that this decision is misguided and not ultimately in the nation’s interests. Will the Secretary of State assure me that in the consultation and scrutiny to come there will be good and adequate scientific data, because the evidence will show that Heathrow expansion is neither possible nor deliverable? In the Minister’s words, we do not want expansion “at any cost”; this is the wrong scheme and the price is too high.

[Chris Grayling]

I know how strongly my hon. Friend feels about this issue. I give her an assurance that we will do this job properly. The appointment of Sir Jeremy Sullivan—an exemplary former judge who led an important part of our judicial system, as those who know him will acknowledge—will, I hope, give people comfort that we intend to take the consultation process properly and seriously.

[Hannah Bardell (Livingston) (SNP)]

The Secretary of State will know of my campaigning on the establishment of an independent aviation noise authority. About 70% of Edinburgh airport’s traffic goes over my constituency, and a recent flight path trial—the first in 40 years—caused havoc. This noise authority is for everyone in the UK; it should not be dependent on this decision. Will the Secretary of State include me in the discussions as an interested party and bring them forward as soon as possible?

[Chris Grayling]

Absolutely. Every Member will be included in the discussions as part of the consultation process. I will happily do what the hon. Lady asks.

[Sir Roger Gale (North Thanet) (Con)]

I congratulate my right hon. Friend on taking the right decision in the interest of the United Kingdom. Will he remind us of how much passenger traffic, and particularly freight traffic, is currently being lost to mainland European airports as a result of lack of capacity in our south-east? Does he agree that in order to bridge the gap, we need to use all the currently available capacity?

[Chris Grayling]

My hon. Friend is absolutely right. It is important for people to understand this issue. It is sometimes argued that connecting traffic does not add value to the United Kingdom. However, connecting traffic combined with our own domestic traffic can often make viable a new route to an important trading centre. Winning back some of those transfer passengers in order to ensure that routes to developing markets can be opened up from this country is therefore an important part of securing our trading future.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

With news of the replacement of the route to Chengdu with a new route serving New Orleans, why are the Government putting the commercial interests of an expensive airport whose primary passengers are tourists ahead of the health and quality of life of 300,000 people, the costs to passengers and the costs to the taxpayer?

[Chris Grayling]

I have talked to the boss of IAG, the parent company of British Airways, about the Chengdu decision. It has a number of routes to China and other parts of Asia. It has simply taken a commercial decision that the Chengdu situation has not proved viable. The issue is not about an individual route, but about connectivity for the future and the opportunity to open up new possibilities. It will not always be British Airways that opens up those routes; other airlines might choose to fly from developing markets to the United Kingdom. Those are the opportunities that we will need for the future. That is why we believe that expansion is necessary. If we are to open up new trading opportunities around the world, we must have the capacity to offer those new links. If we look at the price at which a slot trades at Heathrow airport, we realise that demand far exceeds supply.

[Jeremy Quin (Horsham) (Con)]

I, too, congratulate my right hon. Friend on taking a decision that is absolutely rooted in the national interest. Will he confirm that Heathrow has the support of all three of the devolved Administrations?

[Chris Grayling]

My hon. Friend is absolutely right. It does have that support, as well as support from business and the trade unions. That is not to say that the Gatwick proposals were not strong or attractive, but the Heathrow option was undoubtedly the one that gained the most support.

[Mr Ben Bradshaw (Exeter) (Lab)]

Heathrow has clear advantages over Gatwick for the south-west of England, both in respect of access to Heathrow and the hoped-for slots for our regional airports such as those at Exeter and Newquay to connect internationally. The Secretary of State must say much more about what he is going to do about air quality. He is quite right to say that road transport contributes by far the bulk of our emissions and our pollution, but he has not today said a single thing or produced a practical policy to tackle road transport and diesel in particular.

--- Later in debate ---

[Chris Grayling]

If the right hon. Gentleman wants a specific example, I can tell him that this morning we published the consultation document that will pave the way for significant expansion of the availability of electric charging points around the country. My view is that we all need greater diversity of our car fleet for the future, and we are already moving ahead with plans for low-emission zones in our cities. This is not an airports issue but a national one, and active measures are already in place to encourage diversification of the car fleet. Electric vehicles are being built in this country—for example, the Nissan Leaf is being built in Sunderland, which is the main centre in Europe for the production of that vehicle. We are seeing more and more of these cars on our streets, and I think that will continue into the future.

[Kwasi Kwarteng (Spelthorne) (Con)]

I commend my right hon. Friend for his strong statement. It is great to see the Government making some forward progress on this issue. Will he assure my constituents and many people in the local area that full consideration will be given to the environmental impact and noise control?

[Chris Grayling]

It is really important to find the right balance. Around Heathrow, a large number of people, particularly those who work there or whose family members work there or whose businesses depend on the airport, support the expansion. There is a significant amount of support for what I have announced today, but those people will rightly expect that we ensure we look after the environment in which they live, that appropriate compensation will be in place where necessary and that appropriate measures are in place to support local communities. I give my hon. Friend an absolute assurance that that will be the case.

[Caroline Flint (Don Valley) (Lab)]

Hallelujah—a decision has been made. The right hon. Gentleman should be in line for a “Minister of the Year” award. This is good news for Doncaster, good news for the north and good news for the UK. However, when we look at investment in infrastructure, we find that Crossrail costs £15 billion—nine times the combined expenditure for the rail projects planned for Yorkshire and the Humber, the north-east and the north-west. We see this as an opportunity for our regional airports, including my own, so will the right hon. Gentleman meet me and other MPs with regional airport interests to discuss how we get people to our airports to take advantage of the new slots?

[Chris Grayling]

We would be happy to meet Members who have regional airports in their constituencies. As I said earlier, this process needs to involve Members of all parties—and it will do.

[Sir Paul Beresford (Mole Valley) (Con)]

My right hon. Friend will not be surprised to find out that I, too, support everything in his statement. This United Kingdom is open for business, and Heathrow is the doorway. He said he wanted to make Heathrow a better neighbour. The neighbourhood for Heathrow is considerable, and it includes the effect of stacking over areas that affect Gatwick—with a detrimental effect on people in my constituency. Will my right hon. Friend ensure that when the Civil Aviation Authority looks at airspace, it reflects on the opportunities to make Gatwick a better neighbour as well?

[Chris Grayling]

The modernisation of UK airspace will hopefully make all airports better neighbours. This is a system that has barely changed for decades, and it is certainly not designed for the current patterns of usage. We very much believe that we need to modernise the use of airspace in a way that reduces stacking, for example. I know, because my constituency adjoins that of my hon. Friend, that stacking certainly affects our area. This modernisation is better for passengers and better for people on the ground; and it will also save fuel and thus reduce carbon emissions.

[Mr Gavin Shuker (Luton South) (Lab/Co-op)]

A majority of Labour MPs and a majority of Conservative MPs support the expansion at Heathrow. Given that this project is likely to span multiple Parliaments, will the right hon. Gentleman take the opportunity to set a good example for both parties and ensure that collective responsibility will apply to any votes in this House?

[Chris Grayling]

The Prime Minister has been very clear that she does not want to force—indeed, I do not think the public would expect us to force—MPs who have long-standing principles of disagreement over this issue to go against their own views. There are different views on both sides. There are senior figures on the Opposition Front Bench and on the Government Front Bench who disagree with this decision. The hon. Gentleman is right that the majority of Members believe that Heathrow is the right place for expansion. Of course, the whole House will, as part of this statutorily defined process, have to vote and approve the decision. I think we should respect people’s long-standing views and not ask them to go against what they have argued in the past.

[Adam Afriyie (Windsor) (Con)]

This is a devastating decision—for the national economic interest as well as for my constituents, hundreds of whose homes will be bulldozed, and for the millions of people affected by the very loud noise from Heathrow airport. Notwithstanding that—we could rehearse the arguments for ever—if during the consultation period the facts, the economics and the timescale on which the decision has been based, or Heathrow’s commitment to invest in the project, are called into question, will the Government have an open mind about changing their decision?

[Chris Grayling]

The Government decided very clearly today on their recommendation, which will have to be validated in the statutory process. It must be voted on and confirmed by the House, and that is what will happen. However, we are not entering the process with a view to changing our minds

[Sammy Wilson (East Antrim) (DUP)]

If the vote took place tomorrow, the Democratic Unionist party would give the Government their support, because we believe that this is good for Northern Ireland. We welcome the Secretary of State’s assurances about extra slots, extra routes, and a place in the procurement process for firms from Northern Ireland. In the meantime, however, will he tell us whether slots that are currently available for airports in Northern Ireland will be safeguarded at Heathrow, and also whether there are any Barnett consequentials for the Northern Ireland Executive?

[Chris Grayling]

I hope that the right hon. Member for Belfast North (Mr Dodds) will forgive me: I forgot to answer his earlier question about Barnett consequentials.

This project is funded by the private sector, and there are no Barnett consequentials in a private project. There are Barnett consequentials when we invest in our infrastructure in the public sector, but I fear that there will not be any as a result of spending by Heathrow airport shareholders. As for the question of slots in the meantime, we always want to protect connectivity with Northern Ireland—indeed, we have just done so in the case of the route from Londonderry to Stansted—and we would be extremely concerned if routes to Belfast were in any jeopardy.

[Sir Gerald Howarth (Aldershot) (Con)]

I congratulate the Government on grasping this nettle, although I personally believe that the Heathrow hub was a cheaper and less disruptive option, and I am sorry that it was ruled out.

I feel that an opportunity has been lost here. As a party, we believe in competition. Surely it would have been better to agree on extra runway capacity at both Gatwick and Heathrow, which would have settled the matter for a long time henceforth. What is Gatwick’s future following today’s announcement?

[Chris Grayling]

I pay tribute to the promoters of the Heathrow hub scheme, having already paid tribute to the other promoters generally. The scheme was very innovative and very different, but for two prime reasons we felt unable to endorse it. First, it did not allow respite for the surrounding communities, because the same two corridors would be used for taking off and landing all the time. Secondly, the scheme’s promoters could not ultimately provide the certainty that it would be built and adopted by Heathrow airport, if we opted for it rather than for the main route. Those, to my mind, are two strong reasons. However, I pay tribute again to the promoters. It was a very innovative concept, and we gave it very serious thought. After visiting and listening to the promoters, I considered very carefully whether it was the best option. In the end, however, my judgment was that the north-west runway was the better one for Britain.

[Tom Brake (Carshalton and Wallington) (LD)]

Mr Speaker,

“I hope…the Government will recognise…widespread hostility to Heathrow expansion and say no to a third runway.”

Those are not my words, but the words of our present Prime Minister. Why are the Government disregarding “widespread hostility”, and bulldozing through a third runway which will inflict crippling noise, significant climate change effects, health-damaging pollution and catastrophic congestion on 1 million Londoners?

[Chris Grayling]

Because we do not believe that it is going to do those things; because we do not believe that it will create the air pollution to which the right hon. Gentleman refers; because we do not believe that it will impose catastrophic congestion—I have already explained the position relating to public transport access and improved infrastructure around the airport—and, most fundamentally, because we believe that it is in the interests of the United Kingdom.

[Sir Oliver Letwin (West Dorset) (Con)]

As my right hon. Friend knows, a decade ago I was among those who were most sceptical about this proposal, but there are times, are there not, when the House must look beyond the immediate issues, on which he touched today, and out to the next 30, 40 or 50 years. In view of the decision that the country has made on Brexit, now is surely the time when we must grab that future and build at Heathrow in order to create a link with the east.

[Chris Grayling]

I think the message that Britain is open for business is one of the most important messages that we can send to the world. When are we ever going to create this gateway to the future if not now, at a time when we are changing our role in the world? I think we all regret the fact that, notwithstanding our ambitions, it still takes time to do, but we really must get on with it now.

[Clive Efford (Eltham) (Lab)]

The Department’s answers to questions that I tabled asking what protections there were from noise pollution at City airport for constituents such as mine were woefully inadequate. It is clear that once expansion has taken place there will be scant regard for protections for the public, whether from industry or the Government. It is hardly surprising that people roll their eyes when the Secretary of State comes here and tells us that there will be all these environmental protections. In order to convince people that he is in earnest, would he be prepared to make those requirements legally binding, with penalties in place, before any permission is granted for this expansion, so that people can be confident that there will indeed be environmental protections?

[Chris Grayling]

My view is straightforward. The commitments that are made in relation to compensation for the public and amelioration must form a binding part of the eventual agreements.

[Several hon. Members rose—]

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I am glad to say that I have not lost my wallet, Mr Speaker.

I warmly welcome the Secretary of State’s announcement, but if Heathrow is to meet its emissions targets a large number of people will have to be persuaded to travel by rail rather than car, so will he say something about the western rail link proposals? Will he also consider providing fast rail links between all London’s airports?

[Chris Grayling]

Both the western and the southern rail links are part of the schedule for Network Rail’s future projects. Heathrow airport is due to pay part of the cost of those links, since they involve broader issues than this project alone, but as a result of today’s decision their construction will need to be accelerated. Links between airports are not currently being considered, but if the economy of the south-east continues to grow and develop, they may well be considered in the future.

[Rob Marris (Wolverhampton South West) (Lab)]

I do not share this cosy consensus on airport expansion. Half the population each year does not fly; for environmental reasons, I have not flown for several years. The Secretary of State said today that this expansion would “further reduce…carbon emissions.” What a joke! Because of climate change, the Government should not be in the business of encouraging people to fly and encouraging more air freight, let alone subsidising increased airport capacity and higher total emissions. I urge the Secretary of State and the Government to think again.

[Chris Grayling]

We take the issue of climate change very seriously, and the Government have introduced a raft of measures to address it, but we must also ensure that we have the prosperity that enables us, for instance, to fund our national health service and our old age pensioners. Having a thriving, modern economy with strong links around the world is an important part of that.

[Mr Mark Harper (Forest of Dean) (Con)]

I was pleased to hear the Scottish National party’s spokesman, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), confirm that we are “better together”. I was also pleased to hear the support from the right hon. Member for Belfast North (Mr Dodds) for bringing the four nations of the United Kingdom together.

I strongly welcome my right hon. Friend’s announcement, which is very important to the south-west of England. Will he redouble his efforts to ensure that he holds the promoters to their commitments about regional connectivity, which he said he would do in his statement? Will he also ensure—my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) referred to this—that people in my constituency and elsewhere in the south-west can travel easily to the expanded Heathrow airport, and thence to the world?

[Chris Grayling]

My hon. Friend is right about the need for a commitment to the south-west of England in particular. I was in the south-west last week. We talk a great deal in the House about transport in the north and transport in the midlands, but I think that we also need to talk about transport in the south-west. There are many projects that are necessary to secure the economic future of the south-west. This project is part of ensuring that there is connectivity with places such as Newquay, and easy access for people such as my right hon. Friend’s constituents. That is why the western rail link must be a good priority for the future.

[Andy Slaughter (Hammersmith) (Lab)]

The Prime Minister was right when she said that the third runway was a bad idea. She may have caved in to the Heathrow lobby, but will the Secretary of State accept that the level of opposition from councils, mainly Tory-controlled, from local communities, and from Members of Parliament—most notably my right hon. Friend the Member for Hayes and Harlington (John McDonnell)— means that the chances of the toxic third runway being built are vanishingly small? Will he be sure to keep the Gatwick option open? We are going to need it sooner than he thinks.

[Chris Grayling]

I know how strongly Members in London feel about this decision, but, having listened to Members today, I have a sense that the balance of view around the country is that we need this connectivity because it is in the interests of the whole United Kingdom. As a Government who believe in delivering an economy that works for everyone, we must operate in the interests of the whole United Kingdom, and that is what we are doing today.

[Paul Scully (Sutton and Cheam) (Con)]

I welcome the quick decision by the Secretary of State since taking up his position over the summer, but I regret the decision not to include Gatwick at least as one of the options. Will he agree to look again at the Gatwick option as the one that is deliverable in the short term and that is more open for competition, for the benefit of passengers long term?

[Chris Grayling]

I know that a number of people have said, “Can’t we do both?” I am clear that today we are looking at the Airports Commission report, which set a clear path and said that a new runway would be needed by 2030 and that potentially there would be a need for further capacity by 2050, but only if that could be achieved alongside carbon limits. Therefore, today is about taking the long overdue decision as to how we take that path to 2030, and that is where our focus is.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

As the MP representing Newcastle airport, I know that the airport and the wider north-east business community welcome this decision. It enables both the safeguarding and growth of our connectivity to the UK and the rest of the world. However, given the time it has taken to arrive at this point, may I urge the Secretary of State to have some urgency in getting spades in the ground? When will we see the increased capacity and trading opportunities we vitally need in the wake of Brexit uncertainty?

[Chris Grayling]

I can save myself and my office a phone call today by telling the hon. Lady I will be visiting her constituency and her airport tomorrow to make precisely the point about the importance of regional connectivity. [Interruption.] No, I probably will not have a spade with me; I do not think Newcastle airport wants me digging it up.

I want this to move ahead as quickly as possible. There is a statutory process we have to follow. There is then a detailed period of design. This has always been something that will be ready for the middle of the next decade. I would love to wave a wand and have it quicker than that, but these things take a long time to design and construct, quite apart from the regulatory process. I know, however, that everybody involved will want to move as quickly as possible.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

This is the right decision for Wales, as it is for the whole of the UK. Will my right hon. Friend say a bit more about what specific powers are available to him and whether he needs to seek further powers to ensure this becomes an outstanding example of British procurement, so that we maximise opportunities for our labour pool, supply chain and, not least, the steel industry?

[Chris Grayling]

I have been very clear, and this drives to the heart of the debate about costs. I understand the point made by some of the airlines about wanting to ensure that the best possible value is delivered in this project, because ultimately the cost is borne by their passengers. I want to see the maximum possible benefit across the UK. I have extended to the Civil Aviation Authority the power to have a strong supervisory role over this process, not to dictate how the project is designed in detail, but to make sure that there is value at the heart of both the supply chain and the contracting. I want to make sure that this is a value-for-money proposition and that it delivers what we need at a price that is right for passengers.

[Wes Streeting (Ilford North) (Lab)]

The advent of Crossrail means my constituency on the London-Essex border has enormous potential to capitalise on the benefits for Heathrow, both for passengers and for business and jobs. I therefore welcome the Transport Secretary’s statement. When does he anticipate the third runway being open for business?

[Chris Grayling]

On the current timetable, in around nine years’ time. I wish it were quicker than that, but it is not. That is the length of time it takes to go through a process such as this—not just the regulatory process, which has been greatly simplified since 2008, but the sheer complexity of design, the acquisition of land, the preparation of sites and the construction not just of a runway, but of the terminal buildings. So this is not a short-term project. I know the decision on the issue has been kicked around for years, but the new Prime Minister and I have wanted to move as quickly as we could. We wanted to take the time over the summer to ensure we really understood the three projects before we decided today. We have done that; we now want to get on with it.

[Henry Smith (Crawley) (Con)]

In the national interest, I welcome the Government’s confirming what the Airports Commission has said is right for this country, and I also welcome my right hon. Friend’s warm words about Gatwick. Can he give assurances that surface access to Gatwick will continue to be enhanced, particularly the rail route, as we go forward?

[Chris Grayling]

I do not think that any of us could think that the Brighton main line was the priority, for a whole variety of different reasons. We have to deal with the short-term issues and challenges, but we also need to think about how we can best deliver the necessary improvements for the medium and longer term. There is no doubt we need a modernisation programme, but we also need a programme that causes the minimum possible disruption to passengers.

[Yvonne Fovargue (Makerfield) (Lab)]

Connectivity to Heathrow is essential for areas in Greater Manchester and beyond. However, does the Secretary of State agree that in tandem with expanding Heathrow, new point-to-point routes with emerging economies are essential from other international gateway airports, such as Manchester, and what is he doing to encourage that?

--- Later in debate ---

[Chris Grayling]

To be frank, I am not sure I need to do anything to encourage Manchester airport as it is doing a cracking job already. It had its runway expansion a few years ago and has made good use of it. It is a thriving airport with links around the world. I am hugely impressed by what it has achieved.

[Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)]

I welcome my right hon. Friend’s statement and the benefits it will clearly bring for British business and trade, but he was also right to acknowledge concerns about the environmental impact of the airport expansion and the potential that may have of interfering with our international commitments to reduce carbon emissions. As well as putting in place welcome consultations on electric cars, what other incentives does he envisage to encourage business to comply with these international commitments and reduce carbon emissions?

[Chris Grayling]

There are three elements to what we are doing. The first is the air quality strategy and the desire to put in place an environment which requires lower emission vehicles in terms of both carbon dioxide and diesel. This is about, first, a regulatory environment in our cities; secondly, incentivising the purchase of low-emission vehicles—something the Government now do extensively with incentives to buy electric vehicles, for example; and thirdly, fiscal incentives to change, which we have already introduced through the car tax system, and on which I have no doubt the Chancellor will be doing more in the future.

[Chris Law (Dundee West) (SNP)]

Given today’s announcement that the expansion of Heathrow is in the national interest, not just that of the south-east of England, will the Secretary of State commit today to have route connectivity and public service obligation support between Dundee airport and Heathrow?

[Chris Grayling]

I am not going to pick individual routes today, but I recognise that Dundee is one of the airports that can benefit. The hon. Gentleman will not expect me at this stage to be setting out detailed slot allocation plans, but it is precisely areas like Aberdeen, Inverness and Dundee that can benefit from greater capacity on this route and better connectivity within the United Kingdom.

[Oliver Dowden (Hertsmere) (Con)]

As the Secretary of State has correctly and repeatedly said, this sends a very clear signal that Britain is open for business, but does he agree that if we are to compete with the likes of China and South Korea we must deliver this rapidly, and what reassurance can he give on minimising any administrative and judicial burdens that may be used to slow down this project?

[Chris Grayling]

I am not in any doubt that there will be obstacles on the road towards delivering this project, but that will not stop us seeking to move ahead as quickly as we can, and clearly the scheme promoter will want to do so as well, but we are also subject to due process and in a democracy we have to respect that due process.

[Bill Esterson (Sefton Central) (Lab)]

This is indeed a hugely important project for the whole country, and the Liverpool city region stands to benefit, as other regions do, especially through freight and business travel, so I welcome the Government’s wholehearted support for the expansion of Heathrow. On the nine-year promise that the Secretary of State has now made, that will be challenging and there must be robust planning and consultation processes, so how will he make sure he gets through that and delivers on the nine-year programme?

[Chris Grayling]

Essentially, the way it works is that we have this overall process of the national policy statement over the next 12 months, which we will publish in the new year. Now that the recommendation has been made, my officials will prepare that detailed policy statement. It will be published in the new year, and then there will be a statutory period of consultation both outside and in this House, followed by a vote. That effectively seals the big picture stuff for the Planning Inspectorate. There is then the formal process of its submitting its detailed plans and the debate about the minutiae of the application. The Planning Inspectorate does not look at the big decision of whether we should have the runway in the first place; it looks at matters such as the details of the design for consistency with local planning laws.

[Michael Fabricant (Lichfield) (Con)]

This statement has been long overdue. Some countries will have developed three entire nuclear power stations and five airports in the amount of time this has taken to be kicked into the long grass by two Labour Prime Ministers and I am afraid a Conservative Prime Minister too, and it is a reflection on this Prime Minister that the decision has finally been made. But why can we not still be talking about expansion at Birmingham International airport and indeed at Gatwick, too?

[Chris Grayling]

I have no doubt that others will have views about the further expansion of regional airports, including Birmingham. Right now, though, the focus of the Government is on this process, which was after all set up to identify additional capacity in the south-east following a recommendation by an independent commission. This is about delivering what has been recommended to us.

[Danny Kinahan (South Antrim) (UUP)]

We very much welcome today’s announcement, as have my other colleagues from Northern Ireland, but my party is pushing for expansion at both airports. The chief airlines that fly from Belfast International airport, such as EasyJet and Ryanair, have given a new life to many people in Northern Ireland. Can we not keep the door open to expansion at Gatwick, to ensure that we make the most of that and all the other regional airports, because that will help all of us?

[Chris Grayling]

As I said earlier, Gatwick will remain an extremely important part of our national transport system, but today’s announcement is all about ensuring that we meet a very real need, as identified by the Airports Commission report. I do not think that this is the moment to start getting into a broader discussion about other airports. Let us concentrate on getting this job done; it has taken much too long to get even to this point.

[Kelly Tolhurst (Rochester and Strood) (Con)]

I welcome the Secretary of State’s announcement today. Now that the decision has been made, can my constituents be assured that the blight to their homes that they have suffered for more than a decade because of the threat of a peninsula or estuary airport is at an end and that those proposals are finally dead?

[Chris Grayling]

The Airports Commission looked very carefully at the issue of an airport in the Thames estuary and came to the view that that was not a viable option. I too have looked at the issue and I share that view. The Government have no intention of reopening that discussion.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Transport for London has estimated that the cost of associated transport infrastructure to service a third runway at Heathrow would be about £20 billion. Can the Secretary of State give the House a cast-iron guarantee that any public money used to pay for that work would result in full Barnett consequentials? Or is he saying that the routes identified by TfL would be paid for fully by private sources?

[Chris Grayling]

It is important to look at the committed outputs. Heathrow airport has committed to an expansion without an increase in the number of motor vehicles using the airport, and to an increase in the number of people accessing the airport by public transport to a level of 55%. That is the objective it has to meet, and it has agreed that it has a financial obligation to get to that point. Some projects are already in train. Crossrail is nearly complete, and the western and southern routes already in Network Rail’s plans will also make a contribution. There is clearly an obligation on the airport to meet those objectives.

[Andrew Selous (South West Bedfordshire) (Con)]

My right hon. Friend has not said a great deal about the already horrendous congestion on the M25 north and south of Heathrow. Does his Department monitor the extent of the existing traffic jams, which are already really bad? Will anything be done as part of Heathrow’s expansion to try to improve capacity on the M25 so that people can get to and past the airport?

[Chris Grayling]

As I indicated earlier, the situation around the south-west of the M25 in particular is a matter for concern. Highways England has plans in place to start to address some of those problems. My experience is that the worst jams occur to the south and the north where four lanes go into three, and I have asked Highways England to look at how we can address that issue, starting with the junctions to the south-west.

[Sue Hayman (Workington) (Lab)]

I welcome the Secretary of State’s commitment to developing new connections to the regional airports, but is he aware that it takes at least two and a half hours to get from west Cumbria to our nearest airport? Will he also look at how Carlisle airport could benefit from the expansion at Heathrow?

[Chris Grayling]

If there are more slots available at Heathrow and there is a market to fly there from Carlisle, there will be an opportunity for the air operators to do that. As I have said, I am keen to ensure that we protect the capacity of our regional airports, but exactly where and how that happens, and at which airports, will be a matter for the future.

[Richard Drax (South Dorset) (Con)]

I congratulate my right hon. Friend on his statement. There is no doubt that this will be in the best interests of the nation and of all our constituents in the south-west, where my seat is. Will he kindly confirm how many direct rail links there will be from the south-west to Heathrow, as that will be absolutely key for my constituents and everyone else in the region?

[Chris Grayling]

There are two options, depending on which part of the south-west you are coming from. The plan is to have a southern rail link that will join up with the South West Trains network and a western link that will join up with the Great Western network, so my hon. Friend will have a choice. The train paths will obviously be a matter for the train operators at the time, but he will have a choice of routes to follow.

[Ian Murray (Edinburgh South) (Lab)]

This is indeed the right decision for the UK and for Scotland, but will the Secretary of State confirm that any additional slot capacity for domestic airlines will be guaranteed either in the planning process or in legislation? Furthermore, will he undertake an ongoing assessment of the ability of regional airports such as Edinburgh to attract direct routes following Heathrow’s third runway coming on stream in nine years’ time?

[Chris Grayling]

We will look carefully at what the right mechanism should be. It might not be as simple as guaranteeing a number of slots, because I want there to be the right connectivity. For example, I do not want a regional airport to be given a tail-end slot at 11 o’clock at night that does not allow proper links between that airport and international destinations. We have to think carefully about how this should be done and what the best mechanism is for doing it. However, I have given a guarantee that there will be protections for the regional airports and the connectivity that they need.

[Mr David Nuttall (Bury North) (Con)]

I warmly welcome my right hon. Friend’s statement, but with the best will in the world, it will be several years before the new runway comes into use. Will he therefore urge his Friends in the Treasury to allow zero or reduced passenger duty rates on new routes from regional airports such as Manchester, which already have the capacity to expand?

[Chris Grayling]

All I can say on that is that I have no doubt that my right hon. Friend the Chancellor of the Exchequer will have heard that representation in advance of the autumn statement and the subsequent Budget.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I welcome the fact that the Heathrow proposals include the potential for a logistics hub at Prestwick airport, and I urge the Secretary of State to involve all the relevant parties to ensure that that happens. May I also ask him, in relation to strategic thinking, to consider Prestwick when making the spaceport decision? This would give Prestwick sustainability and a long- term future.

--- Later in debate ---

[Chris Grayling]

I know that the spaceport decision is on its way. I am delighted that the hon. Gentleman thinks the United Kingdom’s choice for the spaceport’s location should be Prestwick. That would cement the bonds that exist between Scotland and the rest of the United Kingdom, showing that we are all part of one United Kingdom.

[James Berry (Kingston and Surbiton) (Con)]

We need more airport capacity but, with respect to the Secretary of State, Heathrow is the worst of the choices available to the Government, particularly for my constituents. Will he confirm that the final decision will be made here in this House and that we will be free to reject Heathrow?

[Chris Grayling]

First, let me say to my hon. Friend, and to my hon. Friend the Member for Twickenham (Dr Mathias) and others, that I know this is a difficult decision for a number of colleagues to accept. I respect their views and have every sympathy for the pressure that we are putting them under by doing this. My hon. Friend the Member for Kingston and Surbiton (James Berry) is my constituency next-door neighbour and I have worked hard for him in his constituency. I was delighted when he won. All the same, he will understand that the Government have to do what is in the interests of the whole United Kingdom, and these decisions are sometimes difficult for colleagues. The matter will have to be approved by the House, which will have the final say on the national policy statement. If that national policy statement does not secure the approval of the House, this cannot happen.

[Jim Shannon (Strangford) (DUP)]

I welcome the Secretary of State’s statement. The Democratic Unionist party was the first political party in the United Kingdom to back Heathrow, and we have always been clear that its expansion would support growth in Northern Ireland and strengthen our Union. More cargo travels from Belfast through Heathrow than from any other UK airport. Will he commit to continuing that vital link in the supply chain between Northern Ireland’s businesses and their clients in every corner of the globe?

[Chris Grayling]

That is an important part of what this announcement is about, although it is not always at the top of the agenda. Heathrow is the United Kingdom’s biggest freight hub and an important point of connectivity that enables businesses around the UK to ship their products around the world. This is absolutely an important part of the way forward.

[Jason McCartney (Colne Valley) (Con)]

This is yet another major transport infrastructure investment in the south of England. Will the Secretary of State show similar decisiveness in supporting new long-haul routes from Manchester airport, a new road link for Leeds Bradford airport, the electrification of the trans-Pennine routes, the Manchester and Leeds legs of HS2 and maybe even a new junction 24A on the M62 near Huddersfield?

[Chris Grayling]

As my hon. Friends who represent seats in the north of the country know, I am very much of the view that we must do a better job for our regions in the north—and, as I said earlier, in the south-west and the midlands. Having shadowed this job 10 years ago, which involved going around the country and seeing schemes that should have happened, but which were sitting on the drawing board year after year, one of the most pleasurable things that I have found after arriving in my current job is finding so many projects that we have actually done or are doing. More are on the way. I look forward to delivering more improvements to help the constituents of more colleagues in this House.

[Tom Pursglove (Corby) (Con)]

In reaching the decision, what weight did Ministers give to the benefit for UK supply chains? People in Corby, for example, will be pleased with Heathrow’s commitment to use British steel because that will be good for jobs in our steel towns.

[Chris Grayling]

I was pleased by that undertaking. Heathrow will inevitably want to use a diverse supply chain within the UK. We will do everything that we can to encourage that, and I hope that Corby will be one of the beneficiaries.

[Sir Desmond Swayne (New Forest West) (Con)]

My hon. Friend the Member for Richmond Park (Zac Goldsmith) warned us that court decisions will prevent a decision taken by this House from being implemented. Has my right hon. Friend considered any legislative remedy to stop that, notwithstanding the fact that he has already told us that this is, after all, a democracy?

[Chris Grayling]

From what I have read in the newspapers, I suspect that there may be attempts to challenge the decision. However, such court cases usually hang on whether we have given a decision careful consideration. We have looked at the matter exhaustively and considered all the issues. We understand the challenges and the hurdles that we have to overcome. This is a rational, measured, thought-out decision about what is in our country’s best interests. Our elected Government are there to take such decisions and I hope that the courts will not seek to challenge that.

[Rehman Chishti (Gillingham and Rainham) (Con)]

I welcome the Secretary of State’s statement. It showed respect for the work of the independent Davies commission, which had already rejected the bizarre, pie-in-the-sky idea of an estuary airport due to delivery, structural and environmental concerns. I thank the Secretary of State for making the right decision on the basis of the evidence and in the national interest.

[Chris Grayling]

I am grateful to my hon. Friend for his comments. The commission did a first-rate job of looking at all possible options, including the concept of an estuary airport. It came out with a clear view in the end. Sir Howard Davies recently emphasised his strong commitment to his commission’s recommendation. When Governments set up independent commissions and ask them to make recommendations, they should listen carefully; that is what we have done.

[Tom Tugendhat (Tonbridge and Malling) (Con)]

I welcome my right hon. Friend’s announcement, but will he assure the people of west Kent, in particular the residents of Edenbridge, Penshurst and Tonbridge, that a decision regarding Gatwick will not come up in the next few years and continue to blight their lives? Will he also say a little more about the six-and-a-half hours’ relief that he is quite rightly offering to people near Heathrow? Could that ban on night flights, from which we suffer all the time, be extended to Gatwick?

[Chris Grayling]

I am very aware of the issues around Gatwick, including the concern about noise, which is very much on my desk. I have talked to the CAA about how best to find the right balance for residents in areas under Gatwick’s take-off and landing routes. Today’s announcement is about the decision to add new runway capacity. The Airports Commission’s view was that we needed one new runway in the south-east by 2030. That is what the Government have sought to implement.

[Kevin Foster (Torbay) (Con)]

I congratulate the Secretary of State on finally making a decision, which will be great news for Torbay businesses that export their seafood via Heathrow. Does he agree that the decision now makes even more urgent the resolution of another long-standing question: the dualling of the A303 and the riddle of Stonehenge?

[Chris Grayling]

Yes. The planning work for the A303 is now well under way.

[Julian Sturdy (York Outer) (Con)]

For a hub airport to benefit the whole country, regional airports such as Leeds Bradford need increased access—more than the status quo. While I welcome the statement, may I push the Secretary of State on how many more slots will be available to regional airports? I also emphasise that landing charges must not work against internal flights.

[Chris Grayling]

I am keen to ensure that we do not see a big uplift in landing charges as a result of the project. I have been clear that the project must be brought through affordably and delivered in a way that represents best value for everyone involved. As for connectivity, I am not in a position to start setting out details about numbers of slots or exact mechanisms. I simply commit to the House that those things will be a binding part of what we eventually conclude.

[Stuart Andrew (Pudsey) (Con)]

I, too, welcome the commitment about regional connectivity, not least because flights between Leeds Bradford and Heathrow have become increasingly popular. It is also important that passengers are able to get to Leeds Bradford airport. Will the Secretary of State meet me to explore how to make progress on the campaign for a rail link up to the airport, which would account for only a teeny-weeny amount of the money being spent on Crossrail?

[Chris Grayling]

I am happy to have that conversation with my hon. Friend.

Oral Answers to Questions

Lord Grayling Excerpts

Thursday 15th September 2016 Commons Chamber

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

7. When he plans to announce his policy on airport expansion in the south-east.

[The Secretary of State for Transport (Chris Grayling)]

The Government are committed to delivering the important infrastructure projects that the country needs, including delivering runway capacity in the south-east on the timetable set out by the Airports Commission. We are currently undertaking further work, including assurance of the Airports Commission’s evidence and on air quality, and the decision will be made shortly.

[Margaret Ferrier]

The new Transport Secretary, a fierce advocate of the UK exiting the EU, has already done more than enough to wreak economic havoc. Perhaps he would care to use his new position to mitigate some of that damage by putting an end to this third runway debacle. If not, will he apologise to businesses and commuters in Scotland for putting their economic interests on the line?

[Chris Grayling]

First, I would simply remind the hon. Lady that some of the things that were said about our economy have not proved to be the case, and that under this Government our economy continues to do well. I would also say to her that this Government retain, and will always retain, a commitment to the economy and the people of Scotland, as part of one United Kingdom. The decision that we seek to take on runway capacity in the south-east, whatever it may be, will be designed to benefit the whole of the United Kingdom by improving our connectivity to the world.

[Dr Huq]

When the previous Prime Minister was reminded of his words “no ifs, no buts” that there would be no third runway at Heathrow, he said that a decision would be made this summer. The current Government position is that the decision will be announced in October, and the current Prime Minister seems to be erasing all evidence of her previous opposition to the proposal. After the Davies debacle and the expenditure of £20 million, it looks as though there is going to be a free vote. Can the Secretary of State confirm or deny that? To my constituents, this looks like a protracted fudge.

[Mr Speaker]

Order. We need shorter questions.

[Chris Grayling]

I am afraid that the hon. Lady is going to have to wait for us to set out our plans. I have said today that we are committed to making our decision shortly. I regard this as an important decision for our nation, and it is one that we need to get on with. We have of course seen a significant change in the Administration across the summer, and it is right and proper that the Prime Minister and I should be sufficiently prepared to make the decision. We will make sure that that is the case.

[Sir Simon Burns (Chelmsford) (Con)]

Does my right hon. Friend agree that, if we want to keep London as the hub airport for western Europe, it is crucial that we deal with the capacity problems that currently affect Heathrow in particular? This saga has been going on for so long, and I want him to ensure that we have no further delays in reaching a conclusion on the Davies recommendations. May I also tell him that there is only one obvious answer, and that it is Heathrow?

[Chris Grayling]

As you know, Mr Speaker, there are differing opinions on this across the House, and it is right and proper that the Government should look in a dispassionate way at all three options recommended to us by the Davies commission, assess the strengths and weaknesses of what is being offered and take the right decision in the interests of our nation. I assure the House that that is what we will do.

[Sir Roger Gale (North Thanet) (Con)]

As Britain leaves the European Union, we are going to have to develop more markets in Asia and the far east. That will mean more passenger traffic and, in particular, more freight traffic. Is it not therefore essential for the national interest that RiverOak’s plans for a freight hub at Manston should be allowed to proceed and to be successful, and that we should preserve Manston as an airport?

[Chris Grayling]

I absolutely understand how strongly people in Thanet feel about the future of Manston. I know how controversial it is, and has been. I can simply say to my hon. Friend that this Government would be perfectly supportive of proposals to develop a freight hub at Manston, but I am afraid that that has to be a matter for the local community, the owners and the local authority, and I hope that they reach the right decision in the interest of the nation.

[Nic Dakin (Scunthorpe) (Lab)]

The expansion will use 370,000 tonnes of steel and Heathrow has committed to using UK steel. Whatever the decision on airport infrastructure, what will the Secretary of State do to ensure that UK steel is used in any expansion?

[Chris Grayling]

I am an unashamed champion of this country’s businesses and of what we do as a nation to give them the best possible opportunities. While we are an outward-facing nation and will always do business with companies from around the world, it is right and proper that we champion organisations that deliver in this country, such as our steelmakers. I am proud that our railways use almost entirely British steel and want British steel to be used in all our major infrastructure projects.

[Dr Tania Mathias (Twickenham) (Con)]

Although residents would agree that there is a need for airport expansion, does the Secretary of State share the concerns of the three quarters of a million people who live under Heathrow’s flight path about the new plan, about the change to the tunnelling of the M25 and about the lifting of a cap on the limit of aircraft movement? Does he agree with residents that Heathrow cannot be trusted not to go for a fourth runway and not to have night flights?

[Chris Grayling]

I am well aware of how strongly people in west London feel. I am also aware of how strongly people around Gatwick feel, albeit they are smaller in number than those around Heathrow. My hon. Friend is passionate about such issues and I can only assure her that the Government will have in mind the impact on noise and air quality and how that is dealt with as we reach a view on the Davies commission’s recommendations.

[Andy McDonald (Middlesbrough) (Lab)]

As a veteran of almost 12 weeks in post, I congratulate the right hon. Gentleman on his appointment. He is the second Secretary of State I have had the pleasure of shadowing. I welcome him and his new Ministers to their places and look forward to many discussions about transport in the months ahead.

A decision on airport expansion in the south-east is long overdue and has been made only more urgent by the vote to leave the European Union and the consequent need to demonstrate that the UK is open for business. Already twice delayed to avoid party political bickering inside the Tory party, there are now rumours that Ministers will be given a free vote. This is neither a constitutional issue nor a matter of conscience; it is a nationally critical infrastructure project. Will the Secretary of State tell the House the exact date on which he will confirm that the decision, whatever it is, will have the backing of the full Cabinet?

[Chris Grayling]

I am grateful for the hon. Gentleman’s words of welcome. He is underemployed in comparison with my previous shadow, who held two shadow Cabinet roles, so perhaps there will also be an opportunity for him to have additional responsibilities. I look forward to sparring across the Dispatch Box with somebody so much more experienced than I am in this role.

The decision is important for our nation’s strategic interests. I am new to this job, as the hon. Gentleman points out, and the Prime Minister is new to hers, so we want to ensure that we have done the necessary work and are properly informed before we take a decision. I did a lot over the summer to ensure that that was the case, including visiting the sites of all three proposals. I have carefully considered the issues and the Prime Minister is doing the same. We will reach a view shortly and will bring it to the House. It is right and proper that everyone in the House will be able to have a say in this important matter.

[Stephen Kinnock (Aberavon) (Lab)]

8. What assessment he has made of the effect of the result of the EU referendum on the timetable for a decision on Heathrow expansion.

[The Secretary of State for Transport (Chris Grayling)]

The Prime Minister will begin the negotiation for Britain’s future relationship with the EU and will also take the decision about when to trigger article 50 and start the formal process of leaving the EU. As I said a moment ago, as we move into the new world beyond our membership of the European Union, it is important that we are an outward-facing nation with strong business ties around the world. The decision on runway capacity is an important part of that, and it is important that we get it right. We will take that decision and move ahead with our plans, ensuring that we have the right links for the future.

[Mrs Gillan]

I am sure that the Secretary of State shares my enthusiasm about the referendum result giving us vast opportunities to forge new links around the world. The Airports Commission estimated that the economic benefit of expanding Heathrow would be up to £23.6 billion for the south-east, as opposed to £12.4 billion if Gatwick is expanded. Expansion at Heathrow would greatly benefit Buckinghamshire. Will my right hon. Friend think about putting a date on this and letting us know when he will make a decision? Will he commit to an integrated transport strategy that benefits the people of Bucks—unlike HS2?

[Chris Grayling]

I will not give an exact date today, but I assure the House that we intend to take the decision soon. It is important that we move ahead with these plans. I hear what my right hon. Friend says about Heathrow. I have seen three effective, well-crafted proposals for the Government and this House to consider. We will reach a view shortly about what recommendation we will seek to make.

[Stephen Kinnock]

The Prime Minister has claimed that she wishes to govern in the interests of the whole country. The expansion of Heathrow would deliver more than 8,000 jobs for Wales and contribute more than £6 billion to the growth of our economy. Does the Secretary of State agree that the expansion of Heathrow is the only right answer for the economy of Wales?

[Chris Grayling]

I hear what the hon. Gentleman says, and he clearly has a strong view on this matter. As he will have seen, strong views are held on both sides of the House and on all three sides of this argument. I note what he says about the importance of proper air links for Wales. This Government will always focus on the best way we have at our disposal to help Wales, but we have to take a decision about the interests of our collective United Kingdom and which option is better, and that is the decision we will take.

[Steve Double (St Austell and Newquay) (Con)]

Does my right hon. Friend agree that, now that the British people have decided to leave the EU and free our country from the interference and over-regulation it brought, the Government have new opportunities to support regional connectivity? Will he look closely at the opportunities that a decision on Heathrow would bring?

[Chris Grayling]

It is worth saying that whatever decision we take about airport expansion, it is important that we have in mind the need to make sure that we have good connectivity around the UK, and I assure my hon. Friend that that will be a priority in our considerations.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

Will the Secretary of State reassure me that he will not be diverted by claims about the difference Brexit makes to airport expansion and will address the costs to the taxpayer of road and rail infrastructure that would be required for a third runway? Will he also look at the comparative costs for other alternatives, such as Gatwick?

[Chris Grayling]

It is clearly important that we take our decision in the interests of the nation and that we foster ties around the world and within Europe. We are not leaving Europe; we are leaving the European Union. We want to retain good, strong economic ties with our neighbours in Europe. It is important that we take the right decision for the whole of our nation, and that is what we will do.

[Maria Eagle (Garston and Halewood) (Lab)]

6. What his policy is on tolls for roads and bridges.

--- Later in debate ---

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

11. What assessment he has made of the advantages and disadvantages of the proposed High Speed 2 route.

[The Secretary of State for Transport (Chris Grayling)]

To be absolutely clear, the Government are firmly committed to HS2, which will become the backbone of our national rail network and help us to build an economy that works for everyone. I have spent a lot of time this summer looking at the full extent of the route, so I fully understand all the issues around it.

[Luciana Berger]

In Liverpool, there are many concerns that we will not be properly connected to HS2, which will be challenging not only for passengers, but for transporting the freight that comes into the new super-port; that will throw into question the notion of a genuine northern powerhouse. Will the Secretary of State please confirm that the provision of a junction allowing a future line to Liverpool from the Golborne link of HS2 will be announced in the autumn statement?

[Chris Grayling]

I cannot pre-announce the autumn statement, but I can say this: the hon. Lady knows that I am a regular visitor to Liverpool—I was there during the summer—and I am well aware of the transport challenges around the city. I am also proud that we are spending something like £350 million today on rail improvements. We need to make sure that Liverpool is well served in future.

[Martin Vickers (Cleethorpes) (Con)]

Does my right hon. Friend agree that the biggest disadvantage of the HS2 route is that it does not go to Cleethorpes? As he knows, we are urgently in need of a direct service to King’s Cross. Will he continue to work with me to try to deliver a direct service to Cleethorpes?

[Chris Grayling]

I am always delighted to work with my hon. Friend on improving the rail service and transport system in Cleethorpes. I fear that I probably will not be able to deliver on getting HS2 to go there.

[Andy McDonald (Middlesbrough) (Lab)]

HS2 is intended to be a jewel in the crown of British infrastructure, but as was revealed in the Public Accounts Committee’s report, it is losing some of its lustre. To be at this stage and still not know how much HS2 will cost, what the route will be and when it will open is unacceptable. The Government are quite clearly losing their grip on the project. Will the Secretary of State take this opportunity to say why his Department has failed to set a workable, realistic timetable for HS2 Ltd, and will he give a guarantee to deliver an entire high-speed railway?

[Chris Grayling]

I do not want to start my relationship with the hon. Gentleman on a bad note, but I have to say that that is a lot of nonsense. We have a proposal for an innovative railway line that is completing its journey as a hybrid Bill through the Lords, and we will start work next year. We aim to deliver the first stage, as planned, in the middle of the next decade, and later this autumn, we will set out the remaining route in detail. I am proud to do that for this important project for our nation.

[Sir Desmond Swayne (New Forest West) (Con)]

12. Whether he is taking steps to expedite the processing of requests to return driving licences which were withdrawn for medical reasons.

--- Later in debate ---

[Mr Philip Hollobone (Kettering) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Transport (Chris Grayling)]

First, I thank the Scottish National party and others for their kind words of welcome to me and the new team. It is great to be back in the transport brief after a decade. I am very proud that my first actions as Secretary of State were to give the go-ahead for the expansion of London City airport and to visit the Bombardier factory in Derby to announce a £1 billion new train order for a service that is essential to this country. I am grateful to all the people throughout our transport network who are making it a success across most of the country.

[Mr Hollobone]

As they do not know, will the Government count the mileage of residential roads that remain unadopted by local highways authorities, including a large and growing number in Kettering, and ensure that no residential road remains unadopted after 10 years?

[Chris Grayling]

That is an issue that I have experienced in my own constituency. It is not acceptable. I will happily meet my hon. Friend to talk about the situation in Kettering and how we address it.

[Daniel Zeichner (Cambridge) (Lab)]

The Minister will be aware of the calls in national newspapers today, including the Daily Mirror, for action on the increasing number of drivers who put other people’s lives at risk by using mobile phones while driving. In the past couple of years the RAC has found that more people think that is okay. That has happened on this Government’s watch. Will he work with us, the Mirror and others to clamp down on this dangerous practice?

[Chris Grayling]

Let us be clear. Labour was in power for 13 years and did not tackle the issue. I am very clear that this is an unacceptable practice, and we intend to unveil tough action on it shortly.

[Maria Caulfield (Lewes) (Con)]

T2. Do Ministers agree that the Brighton main line 2 rail line, which will reopen the Lewes to Uckfield line and has a feasibility study ongoing at the moment, is the only realistic long-term solution that will increase rail capacity to the Sussex coast?

[Chris Grayling]

I am very interested in this as a proposal, and it is being looked at very carefully. What I would say to my hon. Friend, to every Member on the Southern route and to all the passengers on the Southern route is that I recognise that the issues over the last few months have been unacceptable. I am working hard with all those involved, and I have unveiled a number of changes in recent weeks, which I believe will help to get this situation resolved as quickly as possible. It has not been acceptable; it has to be dealt with, and we are working as hard as we can to ensure that it is.

[Louise Haigh (Sheffield, Heeley) (Lab)]

T5. Clause 21 of the Bus Services Bill bans local authorities from forming their own bus companies. This policy went unmentioned in bus reform workshop documents and in any prior announcements. Will the Minister explain how this clause can possibly be reconciled with the Government’s so-called devolution revolution?

--- Later in debate ---

[Mr Stewart Jackson (Peterborough) (Con)]

T8. The public consultation on the 2018 Great Northern timetable launches today, but I understand that the platform 5 turn-back facility at Stevenage may not be completed on schedule, jeopardising the promise of additional semi-fast trains to Peterborough. Can the Minister intervene and persuade Hertfordshire local enterprise partnership and Network Rail to sort this problem out as a matter of urgency?

[Chris Grayling]

I have recently been made aware of this situation. I do not want to see the timetable held back, and I will be engaging with all those involved to see how we address the issue.

[Mr Stephen Hepburn (Jarrow) (Lab)]

T7. A constituent has complained to me that his Virgin Trains East Coast commuter rail fare back and forward to work has been increased from last week by 35%. Does the Minister agree that that should not be done without consultation and, furthermore, that it should be against the law?

[Dr Tania Mathias (Twickenham) (Con)]

T9. Current noise levels from Heathrow flights are breaching medically safe guidelines for my residents. Will the Secretary of State meet me to discuss how his Department can help us to address this very serious concern?

[Chris Grayling]

I will be delighted to meet my hon. Friend. I am obviously aware of the noise issues. I am pleased to see that the latest generation of aircraft are bringing down noise levels, but I recognise there is still a big challenge for residents close not just to Heathrow but other airports around the United Kingdom. I will be very happy to talk to her.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

T10. Is the Secretary of State able to offer any reassurance to my local residents and businesses on HS2 compensation? We have heard about the Public Accounts Committee report. HS2’s chief executive resigned this week. People’s lives have been blighted and they see the scheme as a white elephant.

[Chris Grayling]

As the hon. Lady knows, there is a substantial compensation scheme in place for those affected by HS2. HS2 will bring greater prosperity across the United Kingdom. I hope that she and her party would recognise that and support it, notwithstanding local challenges.

[Zac Goldsmith (Richmond Park) (Con)]

It is likely that in a few weeks’ time this House will be asked to decide if it wants a new runway at Heathrow or Gatwick. One of the core considerations will be deliverability of those schemes. All the evidence suggests that even if the Government give a green light to Heathrow, it cannot happen. To that end, will my right hon. Friend commit to providing this House, before any vote, with a clear risk assessment looking at environmental risk, planning risk, legal risk and financial risk so that it can take a properly informed decision on the deliverability of those schemes?

[Chris Grayling]

I can assure my hon. Friend that when the time comes to bring these matters to the House, we will place before it the detailed information on which the Government have formed their view. That is right is proper. He will know that there are differing opinions and strong views across this House. There are three strong proposals for us to consider. We will take the best possible decision in the interests of the nation, and I am sure that subsequently this House will do the same.

[Michelle Thomson (Edinburgh West) (Ind)]

A constituent of mine has raised concerns about the number of road accidents involving young people. The most recent research from Swansea University supports his case that young drivers aged between 17 and 21 are five times more likely to crash than drivers over 70. With this in mind, will the Minister agree to look at policies such as a graduated driver licensing scheme?

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

Can my right hon. Friend confirm that the new proposals for the HS2 route to Leeds will still be published this autumn?

[Chris Grayling]

It is definitely my intention to publish details of the proposed northern part of the route—the right-hand side of the Y on the last leg to Manchester—later this autumn.

[Jessica Morden (Newport East) (Lab)]

What is the Minister’s current assessment of when the Severn bridge’s concession will end, given the extra traffic when the Severn tunnel is closed for electrification work? Are the Government on top of this, given that we have not yet had a date for the public consultation?

--- Later in debate ---

[Mark Durkan (Foyle) (SDLP)]

Given his earlier line on regional connectivity, will the Secretary of State ensure that the aviation Minister and officials give positive and prompt consideration to the submission by City of Derry airport for at least PSO—public service obligation—support for a twice daily service to London?

[Chris Grayling]

Yes. This is on my desk right now and I recognise its importance. I am very pleased that over the summer the link to north America was kept in place. Good connectivity in Northern Ireland is, remains, and always will be very important.

[Robert Neill (Bromley and Chislehurst) (Con)]

On 16 July I wrote to the rail Minister requesting a meeting to discuss the daily failings that my constituents have at the hands of Southeastern Trains and Network Rail. Will he say yes to that meeting today?

[Mr John Spellar (Warley) (Lab)]

As we are seeing a bonfire of the vanity projects associated with the former Chancellor and Prime Minister, would it not be sensible not to be seduced by “grands projets” and to add to that list, heeding the sage advice of Rod Eddington in his 2006 study, binning HS2 and focusing on local capacity to benefit, much sooner, passengers and regions?

[Chris Grayling]

The trick is to do both. I can assure the right hon. Gentleman that he, as a Birmingham Member of Parliament, is absolutely not speaking the same language as his city council and many of those involved in the business community in Birmingham, who are looking forward to the improvements that HS2 will bring to that city.

[Antoinette Sandbach (Eddisbury) (Con)]

Will my right hon. Friend commit that if there are any further delays in phase 2b of HS2, which affects my constituency, compensation will be given to my residents whose properties are blighted?

[Chris Grayling]

I will happily talk to my hon. Friend about that, but it is not my desire that we delay announcing routes any further. As I have said, I intend to set out our plans later this autumn.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

What discussions is the Minister having with Vauxhall concerning its Zafira models that have been catching fire—over 300 of them in the UK alone—and will he agree to meet me and affected drivers later in the year?

--- Later in debate ---

[Mr Ben Bradshaw (Exeter) (Lab)]

Further to the Secretary of State’s inadequate reply to my hon. Friend the Member for Cambridge (Daniel Zeichner) on the deadly menace of mobile phone use, may I ask him whether he heard an expert say on the radio this morning that the use of mobile phones impairs drivers’ ability more seriously than drinking? Does he accept that a £50 increase in the already paltry fine is a totally inadequate response to this deadly menace on our roads?

[Chris Grayling]

I am sorry if the right hon. Gentleman thought that. I will be announcing tough plans on this matter shortly, in response to sensible pressure from a wide variety of outside groups. The hon. Member for Cambridge mentioned one national newspaper group. In fact, the campaign is coming from both sides of the spectrum, because the Daily Mail is running the same campaign. Those newspapers are right to do so, and the truth is that, in my view, this requires strong action. It is happening far too often.

[Hannah Bardell (Livingston) (SNP)]

The Secretary of State may be aware that I secured a debate earlier in the year on the establishment of an independent aviation noise authority. Given his warm words today and the concerns of my constituents about noise pollution from aircraft, will he commit to supporting the establishment of an independent aviation noise authority?

[Chris Grayling]

Given the impending decision on runways, I am not going to set out any plans today. All I will say is that I have taken note of what the hon. Lady has said. Noise is of course a major issue for us.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

Will the Secretary of State confirm that he supports his predecessor’s welcome announcement earlier in the year allowing Transport for London to take over Southeastern services when its franchise lapses in 2018?

[Chris Grayling]

My policy and the Government’s policy is that devolution should happen where it will make a difference, not simply for its own sake. I need to see the Mayor’s proposals about how he thinks he can enhance services in London—I am looking forward to seeing them—before I consider any changes.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Given that the Secretary of State has today confirmed his commitments to Scotland and to investment in infrastructure, will he have a word with the Chancellor about reversing the 25% cut that Scotland has suffered in its capital budget to allow further investment in roads and rail in Scotland?

[Chris Grayling]

Scotland benefits enormously from the funding support that is provided to it as part of the United Kingdom. That will continue, unless people seek to change the situation and put Scotland in a position where it would be far worse off and far less able to invest for its future.