Bus Funding

Helen Morgan Excerpts

Monday 18th November 2024 Commons Chamber

[Louise Haigh]

My hon. Friend is right that the 30% cut to his bus services is absolutely shocking. Behind every one of those cuts is a human story of opportunity and ambition curtailed. I have been working closely with Kim McGuinness on speeding up the franchising process. Under the current legislation, Andy Burnham took six years to bring a single bus service under public control, despite having been elected twice in that period on a mandate to do so. We want to ensure that we drastically speed up the process and reduce the cost to local transport authorities and mayoral authorities of getting to franchising, so that the money can be spent effectively on local bus services.

[Helen Morgan (North Shropshire) (LD)]

Shropshire is one of the worst-served counties in England for public transport, having lost 63% of its bus miles since 2015, compared with a national average of about 19%. A person in Market Drayton who wants to get to the closest hospital in Telford, which is a 20-minute car journey, is looking at a five-hour round trip on the bus. We have only one service operating between Oswestry and Chester on Sundays. I am afraid that I was therefore quite disappointed by Shropshire’s £2.5 million revenue allocation in this round of funding. Will the Secretary of State meet me to learn about the huge transport challenges we face in Shropshire, and to see if we can do better?

[Louise Haigh]

I am delighted to confirm that Shropshire’s resource departmental expenditure limit allocation is £3.1 million, so the hon. Lady has already had a further £600,000 out of today’s statement.

Oswestry to Gobowen Railway Line

Helen Morgan Excerpts

Wednesday 11th September 2024 Westminster Hall

[Valerie Vaz (in the Chair)]

I will call Helen Morgan to move the motion and then the Minister to respond. There will not be an opportunity for the Member in charge to wind up, as is the convention for 30-minute debates.

[Helen Morgan (North Shropshire) (LD)]

I beg to move,

That this House has considered the Oswestry to Gobowen railway line.

It is a pleasure to serve with you in the Chair, Ms Vaz. This is an important subject for my constituents in the lovely town of Oswestry and the nearby village of Gobowen. Oswestry has a population of approximately 17,000 people. It is the second largest town in Shropshire and is of huge importance to the border region, but economic potential there is being stunted by poor public transport, which plagues the whole of Shropshire.

People who live in Oswestry are forced to rely on a bus or car to get to Gobowen railway station just up the road to access connections to larger economic centres, such as Shrewsbury, Liverpool or Manchester. What about someone who does not have a car and works in Chester? They will need to leave home by 7 am to get to the office for 9 o’clock—a journey that takes about 45 minutes in a car. Someone travelling further afield and returning late would need to get a taxi back from the station because the buses do not run outside regular hours, and that is if they can track down a taxi, which is another problem for another debate.

Oswestry was once a proud railway town. The railway station was on the main line of the Cambrian railway and, at one stage, it housed the headquarters of the Cambrian Railways Company. Unfortunately, it was a victim of the Beeching cuts, and there has been no connection to the main line from Oswestry since 1966. That is why the news that the restoring your railway fund would be used to reopen the line between Gobowen and Oswestry was so well received locally; and why the news that the Government wanted to scrap the funding, without even examining the new business case, has been such a huge disappointment. From healthcare and high streets to the environment and the economy, I cannot overstate what a transformational impact reopening the line would have on our area.

Poor public transport removes opportunity. It hinders young people, limiting their options for further and higher education and restricting their access to culture and leisure. In short, barriers to mobility are barriers to social mobility. During a recent visit to the jobcentre in Oswestry, the brilliant staff there told me that the No. 1 barrier to people accessing work is poor public transport. Meanwhile, I have spoken to businesses in Oswestry that have reported real difficulties in recruiting. They need to be able to attract people to work from a much wider area than Oswestry and not just those who have access to a private car. That means we are in the ridiculous situation where employers cannot recruit and jobseekers cannot find jobs to match their skills because of the same problem of poor public transport.

Let us take the outstanding Robert Jones and Agnes Hunt orthopaedic hospital near Gobowen: it has such a fine reputation that it has no trouble attracting high-quality staff, but the problem is that it cannot get people to and from their shifts early and late because there is no public transport, so if they do not have a car, the job will not work for them. Reopening the line would include a halt at the hospital. That would help to swell staff numbers and ease access for patients, many of whom are elderly, do not have access to a car and have to rely on the good will of friends to get to appointments on time. The hospital is a national resource: people come from across the country to access the excellent care there, including from the veterans’ centre, and railway access for them would be a huge bonus.

It is not just me who thinks that this is a great project. Feedback from the Department for Transport on the strategic outline business case acknowledged the importance of all of this:

“Oswestry is the second largest employment area in Shropshire, and unemployment in Oswestry is higher than the average in Shropshire. Productivity—the ability to match jobs with labour across North Shropshire—is a particularly pertinent issue. The growth in vacancies has been significant in Oswestry and Gobowen in recent years, which is exacerbated by the low population density and ageing populations of these areas.”

[Olly Glover (Didcot and Wantage) (LD)]

Does my hon. Friend agree that many railway reopenings in the last 20 years have seen significantly higher use than expected? They include the Ebbw Vale line, which achieved year four ridership by the end of year one, Larkhall in Scotland, where demand was 26% higher than forecast, and the Borders railway, which saw a doubling of demand in the first month, compared with plan, and extra coaches and car parking needed.

[Helen Morgan]

I thank my hon. Friend for his really good intervention. It is true that we tend to underestimate the passenger numbers on the newly reopened lines, and the benefits are probably in excess of the business cases that have supported them. I will come to further developments on this line later, so I am grateful to him for making that point.

Public transport is critical to the issue of productivity, growth and matching jobs with people who want to do them, so this line will be really important for job creation, education opportunities and economic growth in a rural area that has huge potential but is currently not meeting that potential. It will also be a huge boost to the regeneration of Oswestry’s beautiful and historic town centre. Oswestry already boasts a large number of independent shops and a relatively low number of vacant units. On the border between England and Wales, the town has a rich cultural history, a large number of native Welsh speakers and the potential to really thrive in the future.

The area surrounding the station is planned to become a transport hub for the town, and the listed station building is undergoing works to ensure that it is structurally sound and fit for the future, but it will need tenants inside it. A fully operating station has the potential to unlock private investment in the area, to regenerate this important transport gateway to Oswestry, only a few minutes’ walk from the centre of town, and to provide crucial facilities, such as public toilets and a café, that would make connecting bus services into the rural area beyond much more viable. One of the big issues that local bus providers have with providing services in the area is that there is not a public toilet for their drivers to use when they stop over. That really hinders the ability for them to provide a decent bus service.

People who live in Oswestry are largely dependent on their car. Linking local bus and rail services will reduce congestion and emissions and open a world of opportunity for those who, for whatever reason, are unable to access a car or drive one. As I said, it is not just me who thinks the reopening is a good idea. The DFT’s feedback on the strategic outline business case was extremely positive, saying that it was a “strong strategic case”, that the

“proposal aligns to various local plans over the past decade”,

and that the

“appraisal outputs presented in the economic case show that all options yield ‘Very High and Financially Positive’ value for money”.

Crucially, the project is expected to bring in more cash than it would cost to set up. That clear value for money is in stark contrast to the three other restoring your railway schemes approved by the previous Government last October, which were judged to offer poor value for money at best. It was the strong business case that persuaded the DFT to commit to funding the project through to delivery. To come to my hon. Friend’s point, when the business case was put together, it did not factor in the likelihood of the new Wrexham, Shropshire & Midlands Railway Company to provide a direct service on the line from Gobowen to London. If that service goes ahead—I very much hope that it will—the benefits for Oswestry will be even greater.

There has been some local opposition. Some people have argued that we could just run a shuttle bus, seemingly unaware that there already is one. But the shuttle bus has not worked: it does not run in the evening or early morning; it is frequently delayed by congestion on the A5, which has to be crossed to get to the station; and sometimes it just does not turn up at all. It certainly will not unlock the economic regeneration of the transport hub in the centre of Oswestry that the rail reopening promises. It is also really expensive to travel by bus and train, because people need two different tickets. Perhaps most importantly, whether it is for an urgent appointment at the orthopaedic hospital or an overnight shift at nearby Derwen college, people cannot trust a bus that will not get them there on time.

I welcome this week’s announcement that local authorities will be given the powers to franchise their own bus services. If that happens in Shropshire, we will see huge benefits across the whole of my constituency—for the many villages that have no service at all, and towns such as Market Drayton and Ellesmere, for which reconnection to the railway is desirable but not realistically possible. But we cannot pin our hopes on that. Given that the funding for all this brilliant new public transport remains unclear and uncommitted, it seems highly unlikely that Shropshire’s Conservative-run council will take on the revenue strain of start-up bus services. The council forecasts that it will balance its books this year by using up all its reserves, unless it can find a further £38 million of cuts, which would be on top of £58 million last year and £30 million already delivered this year.

The ambition should also be to link rail and bus services, so that people can genuinely consider leaving their car at home because the alternative is reliable, convenient and affordable. The Oswestry to Gobowen line uses a railway line that is already there. It obviously needs to be upgraded if it is to be usable once more, but because it has not been built over, there is space for a footpath or cycle path to go alongside. The benefits of active travel are well documented, and they could be exploited here if the scheme goes ahead.

The project has a capital cost of between £5 million and £15 million, and ongoing operating costs of £196,000 per annum. Critically, it is forecast to be cash-positive over the appraisal period. Local critics have highlighted the potential disruption caused by it crossing the A5, but it is important to emphasise that nobody is proposing to run a slow, steam heritage train over a major level crossing. The proposal involves very little disruption and many benefits. Indeed, it is difficult to see any justification for axing the project.

The Government have said that they want to grow the economy, improve education, clear NHS backlogs and clean up the environment, but they are potentially blocking a scheme that would help to achieve all those objectives. Shropshire is one of the worst-served counties in England for public transport, with only one bus route running on a Sunday in the whole county, and the loss of more bus miles since 2015 than any other county in England. There are huge barriers in place to realising Shropshire’s potential, and the project would help to remove one of them. It would enable local businesses to find quality candidates for the vacancies that they cannot fill, it would remove a huge barrier for those without a car who are seeking work beyond the boundaries of their immediate area,and it would enable young people and those wanting to develop new skills to access a far greater range of educational provision.

It would also unlock investment and regeneration in an important regional town centre. We cannot regenerate growth, jobs, skills and investment if a town is isolated from the rest of its region. That is why the previous Government promised to fund the project, and why the new Government should, too. I urge the Minister to come to Oswestry to see the wonderful potential of this historic market town and the additional value that the railway would bring to it. She should urgently reconsider the decision to remove funding from this fantastic project.

[The Parliamentary Under-Secretary of State for Transport (Lilian Greenwood)]

It is a real pleasure to serve under your chairmanship, Ms Vaz. I congratulate the hon. Member for North Shropshire (Helen Morgan) on securing today’s debate on the Oswestry to Gobowen project, and I thank her for the thoughtful and important points that she made both today and in her previous campaigning work on the issue. I have read her correspondence with my noble Friend the Minister for Rail and with previous Ministers in the Department.

I understand the hon. Lady’s argument about the problems with connectivity between Oswestry and Gobowen, particularly for those who have no access to private vehicles or do not wish to drive. I appreciate the importance of good public transport connections in the area, including for patients, staff and visitors travelling to the Robert Jones and Agnes Hunt orthopaedic hospital, whether from the local area or from further afield. We want to ensure that people can access the public services they need, and they should not need private transport to do so.

My Department is committed to putting transport at the heart of mission-driven government. We aim to support economic growth by transforming infrastructure so that it works for the whole country, and we aim to improve connectivity to promote social mobility, as the hon. Lady said, and tackle regional inequality, particularly in terms of access to healthcare, jobs and homes. She described the difficulties that her constituents face in reaching the places where they can obtain opportunities for work, wider opportunities for study and education, and, indeed, enjoy leisure and culture activities. That is why transport is so important—because of the opportunities that it opens up for people, including to improve their wellbeing.

However, as my right hon. Friend the Chancellor set out in her speech to the House on 29 July, the Government have been forced to address the economic inheritance that we have been left by the last Government, which includes that £22 billion black hole in the country’s finances this year alone. That includes £2.9 billion of transport projects that were committed to despite the last Government knowing, full well, that they were unaffordable. I completely understand that the announcement of the difficult decision to close the restoring your railway programme has caused disappointment. I assure the hon. Member that that decision was not taken lightly.

As the Chancellor set out, individual restoring your railway projects will be considered as part of preparations for the spending review and wider spending decisions for the Department. But as the hon. Member will know from her correspondence with my noble Friend the Minister for Rail, it will not be possible for all transport projects, particularly those not yet in delivery, to continue. I am afraid that that is the difficult reality of the position that we find ourselves in, and I wish that it was not so.

The restoring your railway programme attracted considerable interest when it was launched by the last Government in January 2020, and the Department for Transport received more than 140 individual applications for funding to help to support the development of early-stage business cases. I recognise the point made by the hon. Member for Didcot and Wantage (Olly Glover) that new services can be very popular and successful; there is a real appetite in communities up and down the country for new public transport services, in order to better connect people to the places that they want and need to go to. At the close of the final funding round in September 2021, the programme was heavily oversubscribed.

In the case of the Oswestry to Gobowen project, the previous Government announced, under their Network North initiative, that the project would proceed to delivery, subject to successful business cases. However, as my right hon. Friend the Secretary of State has previously set out, there was a clear gap between promised projects and the money available to deliver them. The previous Government should have been up-front and frank about this, and they absolutely were not.

I want, of course, to thank all hon. Members who sponsored and campaigned for individual former restoring your railway projects for their patience and efforts over the years. I completely appreciate the frustration expressed about the lack of news on next steps—and that is reflected in the hon. Member for North Shropshire’s previous correspondence with the Department under the previous Government—because, undoubtedly, it felt incredibly slow at times. That is why my right hon. Friend the Secretary of State has ordered a review of the Department’s capital spend portfolio. That will move quickly to produce recommendations about current and future schemes and end the uncertainty that the previous Government created.

We also need to be clear that this Government’s approach to how transport projects can be funded is based on local leaders and local transport authorities knowing best what projects to pursue in order to further the needs of their constituents. It is absolutely crucial that local stakeholders work together to provide affordable and reliable services for the communities they serve, and that should include better integration between different modes of transport. The hon. Member highlighted the potential of an integrated transport hub and the desire for better walking and cycling provision, which of course would provide not only transport benefits but health and wellbeing benefits. I hope that her local authority can explore those options further.

The hon. Member made strong points about the quality—or rather, the lack of quality—of bus service provision in her area. As we both know, under the last Government thousands of bus services saw reduced frequency or were cut altogether, leaving many towns and villages without adequate, reliable and affordable public transport. We recognise that situation and are determined to do something about it.

I was really pleased to hear the hon. Member’s welcome for the Government’s pledge to deliver better bus services for passengers, which includes making franchising easier and quicker, removing the ideological ban on new municipal bus companies, and reforming funding for bus services to give more control and flexibility to local leaders to deliver their local priorities. I understand what she said about the Conservative-led county council and its appetite for such change, but I am sure that she and her constituents will make their point very clearly to those who seek to represent them at that level.

[Helen Morgan]

Bearing in mind that local councils are a hair’s breadth away from issuing section 114 notices and are only likely to deliver statutory services in their area, what kind of additional funding will be available from the Government for them to be able to franchise their own bus services? I ask that because it seems to me that it is all very well councils having the power to deliver such services, but unless they have the funding to do so, it will not bring about the results that we would like to see.

[Lilian Greenwood]

I thank the hon. Member for her question and of course she is absolutely right to highlight the very difficult position that many local authorities find themselves in after 14 years of Conservative Governments. That is precisely why growing the economy and the ability to improve our public services is one of this Government’s key missions. To achieve that, we need to make sure that the foundations are strong, and setting our economy on the right track is the first part of that process.

However, we will of course say more about support for transport as part of the spending review and we will work with local authorities to understand what is needed to improve and grow their bus networks, learning from their experiences and building on their successes to ensure that local networks can meet the needs of the communities who rely on them.

As we undertake vital reforms to the sector, including through the introduction of the Buses Bill, we will ensure that stakeholders are properly engaged with the proposals, and I look forward to the hon. Member participating in the debates about how we can do that as we go forward.

I thank the hon. Member again for securing this debate and offer her my support and that of my ministerial colleagues to work with her to improve the transport network in her constituency, and right across the country. As she recognised, transport is a vital enabler of jobs, opportunities and growth, and I am sure that we share the desire to see that for North Shropshire and indeed the whole country.

Question put and agreed to.