Improving Public Transport

Gareth Bacon Excerpts

Thursday 5th December 2024 Commons Chamber

[Ms Polly Billington (East Thanet) (Lab)]

I thank the hon. Member for Glastonbury and Somerton (Sarah Dyke) for securing the debate. I am grateful in particular to my hon. Friend the Member for Dunstable and Leighton Buzzard (Alex Mayer), who showed the depth of her knowledge and understanding of this important matter. I have an observation about the Opposition Benches, however, Madam Deputy Speaker. It appears that you wait all day for a Tory MP to turn up to a debate on public transport—and none do.

[Gareth Bacon (Orpington) (Con)]

indicated dissent.

[Ms Billington]

With the exception, of course, of the shadow Minister—who is obliged to be here.

I am also grateful that the scope of the debate was widened beyond the west country, as I represent the second easternmost constituency in the country: the far eastern corner of the Isle of Thanet. Hundreds of years ago, up to Tudor times, we were cut off from the rest of the country by the River Wantsum. I fear that the legacy of the Conservative party is that they tried their best to effectively reinstate our island status by gutting our public transport and cutting us off from the rest of the country.

Fortunately, however, when it comes to trains, there is a Labour Government legacy, thanks in particular to the support and involvement of my Labour predecessor, Stephen Ladyman—a former MP for South Thanet and Transport Minister—and, of course, of the late, great John Prescott. They made enormous progress on connectivity and public transport, salvaging the high-speed rail project from which my constituency benefits so much as it links us to London and the rest of the UK, with all the economic benefits that follow. I and others, including my constituents and colleagues from across Kent, strongly advocate for the return of international services to Ashford on the high-speed rail line, because of all the economic benefits that would deliver.

It is already on the record that Kent saw a massive reduction in bus services under the previous Government, with 20% fewer bus miles than under the previous Labour Government. The Government’s announcement on bus funding is extremely welcome, especially as Kent has received the highest proportion of funding in the whole of the south-east, at £23 million. That funding, combined with the new powers for local authorities, means that Tory-run Kent county council has the ability to reverse the cut in bus miles, and I implore it to use the powers and money to do so.

There may be Members on the other side of the Chamber—it is difficult to see any—who are entirely unfamiliar with bus timetables as they all stick to their cars. However, in Broadstairs, where huge swathes of the town have no access to bus services at all, an older person would be left to walk, cycle or—much more likely—rely on lifts from friends, family or taxis. The sheer expense of relying on taxis as a primary mode of transport is enormous, unsustainable and fundamentally unfair. This has created a situation where, if someone becomes ill and is in need of NHS services, they are forced to pay for a taxi when they may not be able to afford one, or—as often happens—simply go without medical treatment.

This is particularly challenging, as a lot of NHS services in East Thanet have been moved inland. That is an all-too-common issue in coastal communities such as mine; for example, in east Kent, our orthopaedic centre is located in Canterbury. There is now no direct bus from Broadstairs or Ramsgate to Canterbury, so people with mobility issues face barriers to treatment. For some, making that extended journey means taking time off work. That has ramifications for our economy, as people who need treatment have to take time off work when they otherwise would not. That often forces people to simply go without treatment in the early stages of their illness, which can only make them sicker and place more costs on the NHS further down the line. Not only is this damaging to the sick people themselves, it stunts the economy and puts excess strain on public services.

This is not the only way in which a lack of public transport options hurts our economy; it also impacts the regeneration of our local high streets. I have many constituents who would much prefer to do their shopping in person on our local high streets, contributing to our local economy, but who now feel that they have no option but to switch to online shopping because of the lack of transport options, since they do not drive. Let me tell you, Madam Deputy Speaker, that when I have suggested it might be possible to have a bus connecting Ramsgate train station to Ramsgate high street, you would have thought from some people’s faces that I was asking to bend the laws of physics. We have been so used to the idea that this is simply impossible. Reliable, affordable, accessible and safe transport is a matter of social and economic justice. I applaud all the actions that the Government are taking to regenerate our high streets, which is a major issue in East Thanet that the Ramsgate empty shops campaign is seeking to work with the Government on, but if people cannot get to those high streets, I fear we will not make the progress that we rightly want.

Although we have a significant new Secretary of State with responsibility for this area, we also need to think about the legacy of previous Secretaries of State—in particular, Barbara Castle. When she was first appointed by Harold Wilson, she turned around to the Prime Minister and said, “You do know, Harold, that I can’t drive?” In the late ‘60s, this was seen as hampering her ability to be a suitable Transport Secretary, but in his wisdom, Harold Wilson said, “Yes, Barbara—exactly.” That is the point. Think of the changes that she was able to make, not only to public transport but to road safety, giving us a strong legacy that has lasted all my lifetime and, I hope, much further beyond. Good public transport is fundamental to achieving the Government’s missions, in the same way that it is fundamental to us being able to live our own lives and achieve our own ambitions: simply to get up, go to work, access the services we need, get home safely and see the people we love.

--- Later in debate ---

[Gareth Bacon (Orpington) (Con)]

I congratulate the hon. Member for Glastonbury and Somerton (Sarah Dyke) on successfully applying for the debate, and I thank the Backbench Business Committee for granting it. Public transport is an indispensable part of our national life, playing a vital role in our commercial, social and economic existence.

We have had an interesting debate this afternoon, with noteworthy contributions from the hon. Members for Glastonbury and Somerton, for Horsham (John Milne), for Guildford (Zöe Franklin), for Thornbury and Yate (Claire Young) and for Taunton and Wellington (Gideon Amos) as well as just now from the hon. Member for Wimbledon (Mr Kohler) from the Liberal Democrats. From the Government Benches, the first speech was the maiden speech of the hon. Member for Dunstable and Leighton Buzzard (Alex Mayer). It was a thoughtful speech about bus use. I am sure that she will serve her constituents diligently in her time in this place, and I wish her well. She was followed by some capable contributions from the hon. Members for Swindon North (Will Stone), for Stroud (Dr Opher), for Leeds South West and Morley (Mr Sewards), for Edinburgh South West (Dr Arthur), for Rossendale and Darwen (Andy MacNae), for Croydon East (Natasha Irons) and for East Thanet (Ms Billington).

I will begin by commenting on the previous Conservative Government’s time in office. It may have escaped the attention of hon. Members that between 2010 and 2024, the Conservative Government spent more than £100 billion operating and enhancing our railways. This allowed the completion of major projects including Crossrail, Thameslink and major upgrades to the east coast main line, the greater Anglia main line, the midland main line and the great western main line. We committed £36 billion to the Network North programme, which, unless the Labour Government stop it, will deliver long-term transformative transport projects that will benefit a great many people in the north of England. The programme is under review by the Government, with no guarantee that any of it will be taken forward. Obviously, we call on the Government to honour the programme in full.

We electrified over 1,200 miles of track, compared with the mere 63 miles electrified in the 13 years of the previous Labour Government. Some 75% of rail journeys are now taken on electrified tracks. We sought schemes that would reconnect communities to our railways, providing new stations for passengers to use, such as the proposed new station at Edginswell in Torbay, which would complement the delivery of a new station at Marsh Barton near Exeter, and would particularly serve the needs of Torbay hospital. I know that Torbay council is a keen advocate for that, and I hope that the Labour Government will offer the same commitment to it that we did.

To support our bus networks, we invested an unprecedented amount of over £3.5 billion in the bus sector from March 2020 to support its recovery from the pandemic. We provided £525 million of funding to deliver 4,000 new British-built electric or hydrogen buses, and we extended the “get around for £2” scheme until the end of 2024, capping hundreds of single bus fares and helping passengers reliant on buses with the cost of travel—a scheme that we pledged to maintain for the entirety of this Parliament.

I also remind the House of some facts that were curiously missing from the speeches of some hon. Members, particularly those sitting on the Government Benches. Let us turn our gaze to Wales, where Labour has been in power for a quarter of a century. The number of journeys taken on local buses has declined by almost a quarter in the past decade, with a severe impact on those in the most rural areas. The Welsh Labour Administration have spent £40 million on rolling out 20 mph speed limits to try to force motorists on to public transport that the Labour Administration themselves have made less reliable, less regular and less affordable.

Let us look at London, which has been blighted by the leadership of Sadiq Khan for the past eight and a half years. London’s mayor recently spent £6.3 million of public money on yet more virtue signalling, renaming London overground lines—something that I am sure commuters thanked him for last week when the Elizabeth line was suspended and five underground lines faced severe delays. From a man who promised to roll up his sleeves and ensure no more transport strikes, we have seen more than 130 days of strikes during his term of office.

We know what the Labour party promised the voters of this country. In its manifesto, it pledged new infrastructure, an overhaul of Britain’s railways and certainty for car manufacturers. It promised a utopian system of public transport. But the methods by which the Government have set out to achieve that have been depressingly predictable. One of the Labour Government’s first acts was to provide train drivers with inflation-busting pay rises, without securing any productivity improvements for passengers at all. That bribe to the unions has, entirely predictably, failed to prevent repeated threats of further strike action.

Then, as part of the Welsh Government’s ongoing war against rural communities, they cut £1.3 billion-worth of road improvement schemes. The Government then increased the previous Conservative Government’s £2 bus fare cap to £3, increasing fares on hundreds of bus routes across the country. [Interruption.] Totally predictably, I get heckled about it not being paid for. As hon. Members will be aware once they have been in this place for a little longer, Government schemes are funded for particular periods of time, and then the funding is reviewed. The new £3 bus far cap, costing bus users 50% more than the previous cap, is guaranteed only until the end of next year, whereas the Conservative party’s manifesto commitment was to retain the cap at £2 for the whole of the Parliament.

Finally, and perhaps most notably, the Government have introduced and passed the Passenger Railway Services (Public Ownership) Act 2024. Instead of implementing the measured and sensible reforms set out in the Williams-Shapps review, the Government have passed an Act that will neither improve passenger experience nor make significant savings. Indeed, it may prove to cost the taxpayer significantly more. The Government insist that savings to the taxpayer will amount to £150 million because of the removal of fees paid to train operating companies. Even if that is correct, it will amount to a saving of a mere 0.6% of what is currently spent on the railways, and even that tiny figure is in doubt. Analysis conducted by rail partners suggested that removing the incentive to control costs could lead to annual subsidies being at least £1 billion higher by the end of this Parliament.

From whatever angle one looks at it, it is hard to see this Act as anything other than an ideological move—one that has more to do with attempting to appease the radical elements of the Labour party, hungry for old-fashioned, hard-left policies, than the good of the passenger and the taxpayer.

[Ms Billington]

I just wanted to give the hon. Gentleman the opportunity to confirm that the Tory Government were perfectly comfortable with public ownership of train operating companies as long as they belonged to Governments of other countries in Europe.

[Gareth Bacon]

The previous Government were prepared to do what works, rather than follow ideology in spite of evidence to the contrary.

I have been the shadow Transport Secretary for 31 days and I am already on my second Secretary of State. I have known the new Secretary of State for almost two decades, since our time as councillors representing our respective London boroughs on the London Councils transport and environment committee. She is not in her place today—Secretaries of State cannot be everywhere; that is why they have junior Ministers. I am sure that the Under-Secretary of State for Transport, the hon. Member for Wakefield and Rothwell (Simon Lightwood), will ably deputise for her this afternoon.

I crossed paths with the new Secretary of State when I was Conservative leader on the London Assembly and she was appointed the deputy Mayor for Transport. Unfortunately, during her time at City Hall, London witnessed 28 strikes on Transport for London services, a 77% increase in complaints about TfL over three years, an extension of the hated ultra low emission zone, and, perhaps most concerning of all, a £4 billion overspend and three-year delay in the opening of the Elizabeth line. In defence of the right hon. Lady, though, the buck for all those failings does not stop with her—it stops with the Mayor of London. The right hon. Lady is, in fact, somebody for whom I have a high personal regard, and I look forward to welcoming her to her place.

It is fair to say that the Conservatives have doubts about the start made by this Government. However, having said all that, I emphasise that His Majesty’s Opposition will not oppose the Government just for the sake of it. I do not believe that a single Member of this House wants a public transport system that fails. As I said at the outset, public transport is an indispensable part of our national life, and a successful transport system is vital to both our present and our future. If the Government get things right, we will acknowledge that. Where they get them wrong, we will continue to hold them to account.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Minister.

Transport

Gareth Bacon Excerpts

Tuesday 26th November 2024 Written Corrections

The following extract is from Transport Questions on 21 November 2024.

[Gareth Bacon]

… On Monday, in her statement on bus funding, the Secretary of State said that a formula was being used to allocate funding. She said that the formula will allocate funding

“based on local need, population, the distance that buses travel, and levels of deprivation…This formula and the funding allocated is a fair arrangement, ensuring that every area of the country gets the service levels it needs”.—[Official Report, 18 November 2024; Vol. 757, c. 43-45.]

The formula, including the weighting given to the various factors by the right hon. Lady, has not been published. When will it be?

[Lilian Greenwood]

I thank the shadow Secretary of State for his question. We are proud of the work that we have done to ensure that every part of the country benefits from additional funding for their buses, and we will publish that later today.

[Official Report, 21 November 2024; Vol. 757, c. 352.]

Written correction submitted by the Under-Secretary of State for Transport, the hon. Member for Nottingham South (Lilian Greenwood):

Oral Answers to Questions

Gareth Bacon Excerpts

Thursday 21st November 2024 Commons Chamber

[Mr Speaker]

I call the shadow Secretary of State.

[Gareth Bacon (Orpington) (Con)]

On behalf of the Opposition Front Bench, I too offer my sincere sympathies to the family of the late Lord Prescott on his passing.

On Monday, in her statement on bus funding, the Secretary of State said that a formula was being used to allocate funding. She said that the formula will allocate funding

“based on local need, population, the distance that buses travel, and levels of deprivation…This formula and the funding allocated is a fair arrangement, ensuring that every area of the country gets the service levels it needs”.—[Official Report, 18 November 2024; Vol. 757, c. 43-45.]

The formula, including the weighting given to the various factors by the right hon. Lady, has not been published. When will it be?

[Lilian Greenwood]

I thank the shadow Secretary of State for his question. We are proud of the work that we have done to ensure that every part of the country benefits from additional funding for their buses, and we will publish that later today.

[Gareth Bacon]

The Secretary of State also said in her statement:

“Councils such as Leicester, the Isle of Wight, Torbay and Cambridgeshire will see unprecedented levels of funding for services.”—[Official Report, 18 November 2024; Vol. 757, c. 42.]

What levels of subsidy does she believe that bus services in those areas will require?

[Lilian Greenwood]

It is incredibly important that decisions about local services are taken by those who are operating them. That is why not only have we provided substantial levels of funding—£1 billion announced in the Budget and the allocations set out on Monday—but we are providing local transport authorities with the powers they need to provide the services that local communities want and deserve.

--- Later in debate ---

[Mr Speaker]

I call the shadow Secretary of State.

[Gareth Bacon (Orpington) (Con)]

Greater London is the most heavily populated and most economically active area in the whole country. It also has the highest level of bus use. In the last financial year, the level of bus subsidy in London amounted to £646 million. In the Secretary of State’s statement on Monday, of the £1 billion of funding that she indicated, £700 million will be spent on producing bus planning documents, and only £243 million is going to bus services. That will not touch the sides, will it? Is the truth not that, far from it being generational reform, it is publicly funded window dressing?

[Louise Haigh]

The way that the previous Government approached bus service improvement plans was to force local authorities to waste money on developing those plans. This money is going directly to authorities to make sure they are delivering public services. Public transport is a public service and it should always be funded.

Passenger Railway Services (Public Ownership) Bill

Gareth Bacon Excerpts

Consideration of Lords amendments
Tuesday 19th November 2024 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State.

[Gareth Bacon (Orpington) (Con)]

I thank the other place for providing these amendments. Although the measures in this Bill are not a surprise—and we have stated our opposition to its fundamentals from the outset—we have made the case that, in effectively nationalising the operation of our passenger railways, we risk going backwards. Its core provisions will mean that the progress made on passenger services since privatisation will not be carried on.

That said, we do agree that there is a need for reform, and we support the reform laid out in the Williams-Shapps review. But the reforms proposed by this Government go too far and will undermine any potential progress. That is why the Lords amendments we are discussing are of central importance. Neither of the two amendments passed in the upper House descend from the Government’s intention to bring the franchises into public ownership, and they are clearly reasonable and measured. As the noble Lord Moylan pointed out, a

“glaring omission from the Bill is, of course, the passenger.”—[Official Report, House of Lords, 6 November 2024; Vol. 840, c. 1510.]

This is the Passenger Railway Services (Public Ownership) Bill, yet it says nothing about the passenger.

Lords amendment 1 attempts to put that right and put the passenger back at the head of the Bill as the driving force in what the Government are trying to do, and to require Ministers to test their actions under the Bill against the standard of whether it will improve matters for the passenger. It clarifies that the Secretary of State

“must, in taking any actions under the provisions of this Act, have regard to this purpose”,

which is the

“improvement of passenger railway services”.

It is a simple but deeply important amendment that will ensure that the Bill, which is little more than an ideological undertaking if it lacks the proposed amendments, would be required to act unambiguously in the service of passenger railway improvement. How could anyone oppose that? There is little public appetite for ideological measures that are not based on the improvement of the passenger experience, and to reject this amendment would be a tacit admission that the Government are rejecting the principle that legislation directed at the passenger services should be in line with service improvements. In doing so, they would reject the general public consensus. I urge the Government to support the amendment on those grounds. If they choose to reject it, it is incumbent on them to explain why they have decided to make a significant legislative change to our passengers’ railways that could risk worsening services.

Lords amendment 2 contains a simple measure: to ensure that the Government, when terminating existing franchise agreements, consider operational performance and terminate the worst-performing franchises first, enabling franchises that are currently working well to continue. That would clearly be in the best interests of passengers.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

Can the shadow Minister tell me how much that proposal would cost taxpayers? Given that he supports the amendment, I presume he has a detailed financial breakdown of exactly how much money he is asking the state to commit.

[Gareth Bacon]

The point of the amendment is to put passengers at the heart of the decision making we are asking for. [Hon. Members: “How much?”] The point of the amendment is to put passengers at the heart of the decision making, and the proposed amendment would ensure that this legislation is in the service of improving passenger experience, not purely in the service of fulfilling an ideological undertaking.

Lords amendment 2 would also ensure that the Government, alongside stakeholders, consider carefully what performance data is most relevant to passenger experience, and would ensure that that data is taken into consideration when undertaking the actions facilitated by the legislation. I fail to understand why the Government would be opposed to such a clearly reasonable protective measure, but I can guess. In justifying this ideological legislation, the Government have made clear their intention to utilise selective performance data. Rather than clarifying the relevant performance information for its own administrative use or for passenger understanding, they are obscuring it, allowing the Government to fulfil an ideological project untethered from the public’s wish to see their experiences on the railways improved.

Of course, the Government could choose to put politics aside and support the amendment, and we call on them to do so. If they did, that would signal that while they are undertaking this ideological rail project, they are also seriously considering the need for the legislation to make an actual improvement to passenger experience. This amendment will help the Government’s actions, and it is not founded on selective principles. A failure to accept the proposed amendments will also fail to ensure that the ideological measures being undertaken by this Government take into account the needs and experiences of passengers.

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

Will the shadow Minister give way?

[Gareth Bacon]

I am just winding up.

Such a failure will only further the approach—already taken by this Government—of prioritising political convenience over substantive action. We urge the Government to support these amendments and, in doing so, mitigate the negative impacts of their legislation and work to protect and support passengers.

[Andy McDonald]

Madam Deputy Speaker, you will perhaps be relieved to know that I will not detain the House particularly long. I rise to support the Government, but also to say something in favour of the motion in the Secretary of State’s name relating to Lords amendment 2.

I read the Lords debate on their amendments 1 and 2, and I sympathise with the notion that passengers receiving the poorest service from a train operating company may wish its franchise to be terminated early. However, the point of this Bill is not simply to take over the worst franchises, but to recognise that the private operation of the passenger rail service has delivered a poorer service for passengers in general, and that the remedy is to return all passenger franchises to public ownership and closer control.

I say to Conservative Members that the British public spoke on this issue at the last election. If we look at any of the research and analysis on the passenger rail service, it is abundantly clear that not only do the vast majority of the British public want to take our railways back into public ownership and control, but the majority of Conservative supporters want the same thing. Perhaps that tells us a great deal about why the party opposite is the party opposite—why Conservative Members no longer sit on the Government Benches.

The hon. Member for Orpington (Gareth Bacon) made many references to ideology. I do not know how many times he mentioned the word, but I ask him to cast his mind back to the Railways Act 1993: if ever there was an act of ideology, that was it. John Major took a step that even she whose portrait must be removed was not prepared to take—she recognised that it was a ridiculous step to take. I suspect that the mover of the motion in the other place was seeking a device to disrupt the orderly transfer of passenger rail back into public ownership, which is best achieved with the least cost to the taxpayer by doing so as each franchise contract expires.

I am heartened to hear Conservative Members be so evangelical about the issues of performance and punctuality. Where were they for the past 14 years? Why were they not doing anything about those issues?

Bus Funding

Gareth Bacon Excerpts

Monday 18th November 2024 Commons Chamber

[Gareth Bacon (Orpington) (Con)]

I thank the Secretary of State for delivering her statement to the House, and for advance sight of it.

It was, of course, the last Government who provided £4.5 billion of funding to the bus sector since 2020 alone. Some £2 billion of that was allocated to support every single local transport authority in England to deliver their local bus service improvement plans, helping to support buses following the pandemic and ensuring more frequent, more reliable and cheaper bus transport across the country. Conservative Members are familiar with the need to properly fund bus services, but simply spending a bit more money will not necessarily improve outcomes. As such, we would welcome details on whether and how the Secretary of State can assure the House and the taxpayer that the money allocated today will actually go towards the improvement of bus services in the long term. How will she ensure that the money allocated today, and the bus service improvement plans that go with this investment, will remain aligned with any possible future franchising?

If the Secretary of State cannot give assurances on these points, there is a danger that the Government are taking short-term action that avoids facing complex long-term problems. Unfortunately, in the four months that this Government have been in office, that has been their approach to every single major issue they have faced so far. Whether it is the winter fuel allowance, the family farm tax or the increase to the bus fare cap, the Government seem at a loss as to why their policies are so unpopular, and why—only a few months into this Government—they are so deeply distrusted by the British public.

Governing is tough, and it requires taking real responsibility and considering the consequences of decisions before they are taken. For example, the decision to increase the bus fare cap from £2 to £3 will cost users more—[Interruption.] Wait for it. It will cost users more and—perversely—put at risk passenger services on certain routes, because it could counter-productively drive bus ridership down. Between 2022 and 2023, the £2 bus cap cut fares outside London by 7.4%, and the rate was 10.8% in rural and non-metropolitan areas in England. That is an example of a policy that worked, which is why the Government’s decision to increase the cap by 50% is such a disappointment.

The right hon. Lady, in defending her decision to hike bus fares, has been making the argument—she has done so again this afternoon—that the fare cap was to run only until end of the year. But as she knows full well—her Back Benchers can be excused for not knowing this—it is standard Government practice to set funding arrangements until a given date. She has guaranteed the £3 cap only until the end of 2025 and has made no commitment to extend it beyond that. She is also well aware that it was a Conservative party manifesto commitment to extend the cap and maintain it at £2 for the lifetime of this Parliament.

Not extending the £2 cap was not inevitable; it was a decision that the Government chose to make. Why do the right hon. Lady’s Government claim that they cannot afford to retain the £2 bus fare cap, which is making a real difference to the lives of passengers and the viability of public services across the country, and yet she can give hundreds of millions of pounds in additional funding here without any guarantee of success in improving service or delivery?

While I await the right hon. Lady’s answer, I have a theory. She is set on an undertaking—the ideological drive for bus franchising—and, make no mistake, it is ideological. Bus franchising does work in some places, but by no means will it work everywhere. The Government claim that they will not impose franchises everywhere, but there is a danger that her push for bus franchising will force local authorities into feeling that they are expected to undertake this ideological venture—one that they say they may well be unprepared and unequipped for—which would lead to a worse outcome for passengers. I call on the Secretary of State to make clear her answers to those questions and assure the House and the taxpayer that all the money allocated will be held to account in delivering real and lasting service improvement for passengers, whose interests should, of course, be at the centre of all decisions made by the Government.

[Louise Haigh]

I am grateful to the shadow Secretary of State for his questions, but I have to say that I will take no lessons from those on the Conservative Benches on good government. The approach to funding allocation is based on need, on deprivation, on population and on bus mileage, whereas his Government wasted millions of pounds in forcing areas to compete against each other, picking winners and losers, raising expectations and leaving some Tory-controlled areas such as Essex, where I was this morning, with absolutely nothing from the bus service improvement plan process. This formula and the funding allocated is a fair arrangement, ensuring that every area of the country gets the service levels it needs and can build the improvement plans that it wants.

I have to say that I will also take no lessons on ideology. For four decades, England outside London has experienced the failed deregulation of bus services, leading to a steady decline in passenger numbers. This funding is backed up by a once-in-a-generation reform to our bus policy, ensuring that we can deliver better bus services in every corner of the country, with public control backed up by funding and a Government who believe in buses.

Rail Performance

Gareth Bacon Excerpts

Monday 11th November 2024 Commons Chamber

[The Secretary of State for Transport (Louise Haigh)]

With permission, Mr Speaker, I shall make a statement about rail performance. I welcome the shadow Secretary of State for Transport, the hon. Member for Orpington (Gareth Bacon), to his place. I am sure the Opposition will be interested in what we have to update the House about this afternoon.

After 14 years of neglect, our inheritance was a railway that was failing its passengers, with cancellations at a 10-year high and punctuality that is consistently inconsistent across the network. Back in 2015, cancellations represented around 2% of all services, but thanks to our inheritance of extraordinary failure, that doubled to 4% when the last Government left office. The situation is holding back our economy, stifling our businesses and making life miserable for passengers. That is why, as part of this Government’s public service reform agenda, we are pushing ahead with the biggest overhaul of our railways in more than 30 years. I am grateful to you, Mr Speaker, for this opportunity to update the House on the progress we are making.

As Members will be aware, the Passenger Railway Services (Public Ownership) Bill is making its way through the other place. It will allow the Government to give three months’ notice to the first private train operating company to be taken into public ownership, which we will announce as soon as Royal Assent has been achieved. No one has ever pretended that public ownership alone is a silver bullet. The people impacted by delays and cancellations, who can no longer rely on the train to get where they need to, do not care who owns the trains—they care whether they are working or not. Under the model we inherited, no one could argue that they were working, so we will soon launch our consultation setting out plans for unification across the railway.

As part of that, Great British Railways, as the single directing mind, will plan services on a whole-system basis, to better deliver for passengers and freight customers, unlock growth and provide the services a modern, efficient railway should. That will lay the groundwork for the introduction of the railways Bill, later this Session, which will establish Great British Railways and end the fragmentation that has hampered our railways for over 30 years of privatisation.

But we do not want to wait for legislation. The Government are already making improvements and taking steps to deliver reform across the railways. I have appointed Laura Shoaf as chair of shadow Great British Railways, bringing together Network Rail, the publicly owned train operating companies and my Department to drive better integration now. Working with operators already in public ownership, we are seeking to drive savings by eliminating duplication and deliver the improvements that passengers want, such as allowing tickets to be accepted across those TOCs in public ownership during disruption.

Shadow GBR gives us the tools to assess the structure of the timetable, question resource plans and review performance measures and targets. We are using those tools to unlock the punctuality and reliability that passengers deserve across the country. For example, Southeastern is now performing much better. Its cancellations are low, with its punctuality ranking among the top five operators contracted to my Department, and that level of service will increase by 44 additional trains per day when the timetable is updated in December. That is what shadow Great British Railways is delivering now.

We are demonstrating what integration between track and train can deliver for passengers. Take those who rely on Euston station, for example. Indecision on HS2 left passengers with fewer platforms and greater overcrowding, victims of the so-called “Euston dash”. Convening Network Rail and train operators at Euston in the interest of passengers is an excellent example of the benefits that our reform agenda can achieve. Euston now not only has an integrated station management team, but a 100-day plan of rapid improvements that puts the interests of passengers first and individual organisations second. Platform announcements are made earlier, crowding has been reduced and, yes, the advertising screen has been temporarily switched off.

Delays and cancellations were not the only inheritance. For two years, strike followed strike, and disruption followed disruption, in the longest industrial dispute on our railways. I have made it my priority to get around the table, reversing the previous Government’s antagonistic approach by resetting industrial relations and settling the pay disputes that saw the country grinding to a halt. I am working with the sector to speed up training and accelerate the driver recruitment pipeline, which will reduce the railway’s reliance on rest day working agreements and lower the burden on taxpayers. Settling this saga allows us to move forward with long-overdue negotiations on workforce reform, bringing our railways into the 21st century. That is what moving fast and fixing things looks like.

We are putting passengers first and, today, I can inform the House that since the resolution of the LNER driver dispute, we have seen green shoots emerging, with the number of LNER cancellations falling. Not only have cancellations due to a lack of driver resource dropped to near zero as a direct consequence of getting around the table with unions, but revenue is £15 million higher for the recent rail periods this year versus the same periods last year. Overall cancellations are down from 7% to 5%, and LNER has run 100 more train services in the last four weeks than in the comparable period last year.

Elsewhere, passengers will see a tangible impact on reliability on Northern Rail trains. Thanks to our agreement on rest day working, hundreds more driver shifts have been covered this weekend, cutting cancellations now and in the long run. At TransPennine Express, operator-caused, on-the-day cancellations averaged around 2% in the last year, compared to 5% in the year before it was taken into public ownership. On CrossCountry, we took immediate steps to implement a remedial plan to reduce its cancellations and get services back on track. Its reduced timetable has brought greater stability, and I expect even greater reliability in the long term as the full timetable returns today.

Those are early signs of what happens when a Government get a grip and put passengers at the heart of decision making. Resetting industrial relations is already having a direct impact on better services, but it will take time to pass all the benefits on to passengers. We have to be clear-eyed about the problems, but we are committed to full transparency. I can announce today that we will be fully transparent with passengers by displaying performance data at stations to demonstrate how the railway is working and to allow the public to hold us to account as we deliver change. That is important, because the railway is a promise—a promise to passengers from the moment they buy a ticket that the train will arrive on time, as the timetable says.

While there are encouraging signs, I am not naive to the reality that passengers will see only a broken promise so long as the departure board shows trains delayed and services cancelled. That is why I have approached the situation with the urgency it demands, including focusing on performance today; bringing together industry to make it clear that improvements that can be made now must be made now; and using every tool at our disposal to drive improvements as fast as possible.

At the same time, the root of the problem grows deeper. Decades of muddled decision making have left the railway fragmented. We have tolerated an unworkable system of track in one organisation and trains in another for decades too long. This Government will turn the page on that chapter of fragmentation. I have wasted no time in kick-starting the long-term reform that our railway desperately needs. We have wasted no time in bringing train operating companies under public ownership. As today’s figures show, we have wasted no time in getting around the table with unions and making change happen now. That is what moving fast and fixing things looks like, and I commend this statement to the House.

[Gareth Bacon (Orpington) (Con)]

I thank the Secretary of State for her statement and for sharing an advance copy. I agree that rail performance is a key concern to passengers throughout the country, and it is a fair criticism to say that several operators have consistently underperformed. That is why, when we were in government, we took action to improve performance on our railways, investing more than £100 billion to operate and enhance our railways since 2010, and electrifying more than 1,200 miles of track—compared to just 63 miles under the last Labour Government.

I am glad that the Government are taking forward the framework offered in the previous Conservative Government’s Williams-Shapps review. Having a more joined-up rail network should indeed deliver key improvements. However, it is disappointing that the Government have progressed with their plans for the effective nationalisation of the rail operators by ending private rail operator franchising, despite all the evidence pointing to the fact that that will be contrary to the aim of improving rail performance.

We know that while in some cases it has been necessary in the short term to bring rail operators into public control, it has not made the difference in performance that the Government would have us believe. It takes only a cursory glance at passenger rail performance statistics to see that some of the rail operators operating under public control have done little or nothing to improve cancellations or delays in relation to other operators. For example, the Secretary of State mentioned TransPennine Express and a decrease in cancellations since the operator was taken into public ownership, but she made no reference to delays. Data from the Office for Rail and Road show that in the four years prior to the train operator coming under public control, passengers faced an average of 8,130 delay minutes per month. From period 2 of 2023-24, when the operator was brought into public ownership, up to period 4 of 2024-25, average monthly delays have increased by 1,677 minutes, to 9,807 a month. In addition, for the year ’23-24, data shows that train operators run by private companies in England had an average on time rate of 64.36%. For train operators in public control, by contrast, the average was 57.7%—a difference of just under seven percentage points.

Public ownership is not the panacea that the right hon. Lady claims, so it is disingenuous for the Government to argue that wholesale public control of rail operation will do everything to improve performance, particularly for operators that are already performing well. Under the Government’s plans to end private rail operator franchising, the first contracts set to expire and be picked up by the Government are some of the highest performing franchises. The Government risk making the mistake of taking credit for comparatively strong performance, which will occur not as a result of their measures but as a result of the successes of the previous private franchising. That would mean the Government drawing the wrong conclusions from their actions, and it would have implications for future decision making.

It should be appreciated that the role of open access operators has been one of the greatest success stories within our rail network. It is therefore incumbent on the Government to provide greater clarity to the sector on how their plans for the rail network will impact on open access operators. It is also essential that the Secretary of State finally clarifies the long-term plan for rolling stock under the Government’s measures.

I appreciate that in Labour’s brave new world, all decisions are reflected through the ideological prism of “public good, private bad”, but there is a fundamental risk that the Government are taking ideological action to the long-term detriment of rail performance. Among our counterparts in Europe, it is widely acknowledged that rail privatisation has been successful in increasing passenger numbers, encouraging investment and controlling costs. In Italy, for example, prices have reduced by 31%, and Austria has witnessed a 41% increase in service frequency. There is a serious risk that the Government’s plans will take us backwards on those key areas without offering any promise of improvement on performance, or improved journeys or fares for passengers.

We all fully acknowledge the difficulties facing our railways, and nobody should accept poor performance —we have, unfortunately, seen that in some areas of our network—but merely enacting demonstrative but counterintuitive measures designed to communicate action is no substitute for making measured and pragmatic choices. For example, the Government and the Secretary of State have chosen to offer inflation-busting pay rises with no working practice reform in exchange. Without substantial working practice reform, it is deeply unlikely that the cost of the pay deals will be offset by improved performance, and the failure to introduce working practice reform will mean continued performance difficulties on our railways.

Can the Secretary of State offer a guarantee today that ending private rail franchising without implementing working practice reform will lead to demonstrably improved performance? If she cannot offer that guarantee, the Government should shelve the ideology and take a step back to pause and examine whether their package of measures will truly improve rail performance. It surely makes more sense to learn from the performance statistics; to understand from the experience of the continent and our past the improvements that the private sector can bring; and to prioritise the practical over the ideological.

[Louise Haigh]

I am grateful to the shadow Secretary of State for acknowledging that we provided the statement in advance, and I suggest that next time he reads it before he responds. He will have heard me say that public ownership is not a silver bullet, hence why we are setting out a substantial package of reforms. As I also mentioned, that includes substantial workforce reform, including developing training policies—that is one of the ways in which the recruitment of drivers has been really held back—and reducing reliance on rest day working agreements.

The shadow Minister might also want to check the latest statistics on TransPennine Express. It had the largest increase in punctuality of any operator contracted to my Department, including all those in private ownership. We have been clear that open access should continue where it does not abstract revenue from the overall network and where there is capacity. There have been good examples, such as Lumo and Grand Central, and we are very happy to continue working with them. We will publish a long-term rolling stock plan in due course.

Flight Cancellations

Gareth Bacon Excerpts

Tuesday 5th November 2024 Commons Chamber

[Mike Kane]

I thank the Chair of the Transport Committee for the excellent work that she does in this field. Cancellations are bad for business, tourism and passengers. The public service obligation arrangements come up for renewal regularly, and I think that flight prices, connectivity and cancellations should be looked at in the round when we come to renew them.

[Gareth Bacon (Orpington) (Con)]

Flight cancellations are a significant issue that we took seriously in government, and worked across the sector to tackle. I am proud that in government we published the aviation passenger charter, which included clearer advice on how passengers can resolve issues to do with cancelled and delayed flights, as well as missing baggage and the rights of disabled passengers. In 2023, we halved air passenger duty for domestic flights. We also made a commitment to strengthen the powers of the Civil Aviation Authority. Does the Minister intend to take that forward? When in government, we also published “Flight path to the future”, which included a substantial framework for increasing the efficiency of the aviation system and supporting passengers as we move further towards the goal of sustainable aviation. What further steps will the Minister take to ensure that the measures that we set out to improve the aviation sector and the passenger experience are taken forward?

Frankly, this Government have failed the public so far. Last week’s Budget was, in large part, an attack on workers, businesses, farmers and the aviation sector. The Government’s decision to increase air passenger duty has led to a worried response from the passenger aviation sector, and Ryanair has already announced its intention of cutting flights to and from UK airports by 10%. The Government have so far shown themselves to be deeply uninterested in the consequences of their actions for workers, farmers and now air passengers. More in hope than expectation, I ask the Minister: what steps will the Government take to improve the relationship with the passenger aviation sector and ensure that passengers are well served?

[Mike Kane]

I say with all candour to the hon. Gentleman that I remember that during covid—I shadowed this brief at the time—there was no specific package for airlines, airports or airport handlers. That meant that we came out of covid in a much worse position than we would have if the Government had implemented their own Treasury’s proposals. We will take no lectures about our support for aviation. On his question about rights for passengers, we will look at strengthening those going forward. APD went up by less than inflation—it had not been increased in a number of years—but I refer him to the Treasury for more detailed answers on tax matters.

Draft Franchising Schemes (Franchising Authorities) (England) Regulations 2024

Gareth Bacon Excerpts

Tuesday 5th November 2024 General Committees

[Gareth Bacon (Orpington) (Con)]

It is a pleasure to serve under your chairmanship, Mr Rosindell. I thank the Minister for his warm words of welcome at the outset.

We recognise that the expansion of bus franchising was a Labour party manifesto commitment, and we are not going to oppose that mandate. In fact, in principle, we support the idea of local areas having more say over the services they can offer local people. But there are some question marks over these plans—questions that my hon. Friend the Member for Bexhill and Battle (Dr Mullan) raised back in September in relation to the Minister’s statement to the House, and which, I am afraid, we are not yet fully satisfied we have heard answered. Will the Minister therefore answer them today?

First, how much has been budgeted for the increased cost of this plan to the Department for Transport, to support local authorities to prepare these assessments and then to measure them against the criteria, and also to help local authorities plan their franchises when they do not have the experience to do so, which I believe the Minister has said is part of the plan?

Secondly, how much has been budgeted for the increase in costs to local authorities, both in terms of the additional resources they will require to plan and run bus services, and in a business sense? In many rural areas, and even in Greater London, bus services lose money and often require subsidies. Where will that money come from? And, while we are at it, where will the money to buy the buses come from? The Minister suggested that the coming buses Bill would contain regulations about devolving funding—I would like to hear a bit more about that. If the answer is that we have not budgeted for it, or that it is coming from existing budgets, that can only mean council taxes going up, or cuts to local services such as social care or universal services such as waste collection. There would appear to be no third option.

At the end of the day, passengers do not care who is running their bus; they care about the price, performance and reliability of services. We are yet to hear a convincing case for how these reforms will actually make a difference to passengers’ journeys. Are buses more likely to run on time and, if so, by how much more? Will these reforms help to restore the number of rural services? Will they make journeys cheaper for passengers? That seems unlikely, given the 50% hike in fares.

I do not doubt that bus franchising can, does and will work for some areas, but the insinuation of today’s statutory instrument is that it should be happening everywhere. We have yet to hear anything that convinces us that that will be the case, and that is not to mention the fact that the proposal currently appears to be unfunded. I would be grateful if the Minister could assuage our concerns this afternoon.