HS2: Revised Timetable and Budget

Iain Stewart Excerpts

Tuesday 14th March 2023 Commons Chamber

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

(Urgent Question): To ask the Secretary of State for Transport if he will make a statement on the revised timetable and budget for completion of HS2.

[The Minister of State, Department for Transport (Huw Merriman)]

Although we notified the House first about Thursday’s announcement, I start by apologising for the timing of the written ministerial statement, which I accept was discourteous to Members and to you, Mr Speaker.

As part of the largest capital programme ever committed, the Transport Secretary last week confirmed more than £40 billion in transport investment over the next two financial years. This will enable the opening stage of HS2 to be delivered on schedule. By 2033, passengers and communities will benefit from high-speed rail services between new stations at Old Oak Common in London and Curzon Street in Birmingham, but the House will also be aware that we face significant economic headwinds. Record inflation caused by Putin’s illegal war and ongoing global supply chain issues have ramped up construction costs, making capital projects more difficult to deliver. It means we must make responsible decisions on which parts of our capital programme we can deliver within current budgets and timeframes.

While we remain committed fully to HS2, we will need to rephase the delivery options as part of the project due to inflationary pressures and the need to spread costs. Between Birmingham and Crewe, we expect to push back construction by two years, with an aim to deliver high-speed services as soon as possible after accounting for the delay in construction. We also remain committed to delivering HS2 services to Euston, but will take time to ensure an affordable and deliverable station design, which means delivering Euston alongside the high-speed infrastructure to Manchester. While HS2 Ltd and Network Rail continue work on developing HS2 east, we are also considering the most effective way to run HS2 trains to Leeds.

The Prime Minister promised to place trust and accountability at the heart of this Government. That means strengthening connectivity across the country while managing public finances effectively. It means never shirking the tough, but necessary decisions as we deliver on the people’s priorities to halve inflation, grow the economy and reduce debt.

[Iain Stewart]

I am grateful to you, Mr Speaker, for granting this urgent question. As Chair of the Select Committee, we feel that there was not enough detail on a number of areas in Thursday’s statement, so I would be grateful if my hon. Friend gave further detail.

First, my hon. Friend rightly references inflationary cost pressures in construction, which are affecting all sorts of projects up and down the country, but the written ministerial statement also referenced other “increased project costs”. What are they? Is he satisfied that HS2 Ltd has a grip on its finances? Secondly, the statement said that Old Oak Common to Birmingham will be finished “as soon as possible”. What does that mean? Is there a delay to the planned opening date?

Thirdly, what is the reason for the delay to the Euston to Old Oak Common section? Is it purely down to costs or are there other reasons for a redesign? A lot of construction work is happening at Euston now, so should the redesign not have been identified earlier? Finally, when can we expect to see further detail on HS2 east, the integrated rail plan and the Leeds route options? The industry and the public require—nay, demand—certainty on this. Can we be assured that this is the last delay to the project?

[Huw Merriman]

I thank my hon. Friend the Chair of the Transport Committee for his questions. I will provide some answers, but there will no doubt be further detail to discuss as we go through the session.

On my hon. Friend’s question about the increased project costs, they chiefly relate to the opening section of the line in phase 1, which is the part that is under construction at the moment. We are spending about £600 million a month on phase 1 construction, which is at its peak. He rightly talks about inflation; the Office for National Statistics shows that construction inflation is running at about 15%, which is why we have an issue with costs. He is right to say, however, that we need to bear down on costs. Yesterday, I met the chief executive of HS2 Ltd. I am delighted with the appointment of the chairman, Sir Jon Thompson, who has a background in finance. Certainly, it is within HS2’s requirements to ensure that, where we have inflationary pressures, it fills the gap by bearing down on costs.

My hon. Friend asked what finishing Old Oak Common to Curzon Street “as soon as possible” means. As I stated in my opening remarks, we expect that, by 2033, passengers and communities will benefit from high-speed rail services between those two stations. He asked about the reason for the Euston delay. Euston was always scheduled for delivery after the opening of phase 1, which is why we are prioritising Old Oak Common. We will not proceed with construction at Euston in the next two years, due to affordability and profiling issues, but we will use that time to work with partners to ensure an affordable and deliverable design.

My hon. Friend asks for detail on HS2 east, the integrated rail plan and the Leeds route study. I will be writing to him on the back of the integrated rail plan report this month and further information will be tabled in the six-monthly HS2 report, which is due in May. On the Leeds route strategy, it has been cleared by the Department and we expect it to be published soon.

My hon. Friend is right to say that the industry needs certainty, and I believe he asked whether we can be certain that this is the last change to the project. Although the pandemic and Putin’s illegal invasion of Russia were not anticipated, we expect these HS2 plans to be the plans that deliver it from London to Manchester.

Oral Answers to Questions

Iain Stewart Excerpts

Thursday 2nd March 2023 Commons Chamber

[Mr Speaker]

I call the Chair of the Select Committee.

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

May I draw my right hon. Friend’s attention to the Transport Committee’s report published today on alternative fuels? One of our recommendations is to build on the work the Government have already done on SAF by introducing a contracts for difference model, which would help to make the UK a world leader in this technology.

[Jesse Norman]

I am grateful to my hon. Friend for his report and the work he is doing as the new Chair of the Transport Committee. We are aware of the calls for CfDs. He may have seen the report published by Philip New on this issue. We are already working on not merely the mandate but a clearing house to support testing and certification. Of course, we will continue to look at the question of CfDs, but the mandate and the work we are doing towards that remains the Government policy, and rightly so.

Oral Answers to Questions

Iain Stewart Excerpts

Thursday 19th January 2023 Commons Chamber

[Mr Speaker]

I call the Chair of the Select Committee.

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

My hon. Friend the rail Minister will be aware that services on the Marston Vale line serving my constituency are currently suspended because Vivarail, which maintains the rolling stock, has gone into administration. The replacement bus service is far from ideal, which is causing significant difficulties for my constituents, especially young people going to school and college. Will my hon. Friend assure me that he is doing everything he can to ensure the earliest possible reinstatement of that rail service?

[Huw Merriman]

The Chair of the Select Committee has raised this point on a number of occasions, and he is right to do so. It is incredibly sad to see Vivarail, which is pursuing good, innovative technology, have to go into administration. I am keen to work with him to ensure that West Midlands Railway puts on a service as soon as possible. Together we will look into whether contractors can contract into West Midlands Railway and whether those contractors have the essential skills that are needed. I will work with him in partnership to ensure that his constituents have that service back up and running.

Seafarers’ Wages Bill [Lords]

Iain Stewart Excerpts

Monday 19th December 2022 Commons Chamber

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

It is a great pleasure to make a short contribution to the debate on this important Bill, as Chair of the Transport Committee. I welcome the Bill, although I appreciate that it is not the full solution to the issues that were uncovered by the disgraceful behaviour of P&O earlier this year. Following that incident, the Transport Committee and the Business, Energy and Industrial Strategy Committee held a joint evidence session, and produced a number of recommendations.

One of those key recommendations was that the omission of seafarers from the extension of the national minimum wage, which happened in 2019-20, should be removed, so that the national minimum wage applies to seafarers on journeys to and from the UK. I am pleased that this Bill delivers on that recommendation, but it is not the whole solution to the problems. I welcome further progress on the nine-point plan that the Secretary of State has outlined today.

I have a number of questions on the practicalities of implementing this Bill, which perhaps the Minister could address in his response. I appreciate that some are quite technical, so if he would prefer to write or address them in the Bill Committee, that would be helpful. The first is to pick up the point raised by my hon. Friend the Member for Hendon (Dr Offord). International maritime law is very complex. I would like to probe to ensure that nothing in the Bill will inadvertently cut across provisions in international legislation. I am not a lawyer—I freely admit that. I have done a quick scan of the relevant law and I do not think that the Bill has unintended consequences, but one of the duties of Parliament is to prevent that. If the Minister could give me some reassurance, that would be welcome.

The second point picks up on what the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) raised on port hopping. Are harbour authorities the best body to enforce breaches of the law? I am reassured by what the Secretary of State said in response to the hon. Gentleman, but I would like to probe a little further. Would the Maritime and Coastguard Agency be a better body to enforce breaches of the provisions of the Bill to prevent the port hopping risk? I do not think it is a serious risk but it is worth exploring further to have a comprehensive settlement.

[Luke Pollard]

I thank the hon. Gentleman for mentioning my intervention. The concern of Opposition colleagues is in relation to when the ferry operator has a commercial stake in the harbour authority. I wonder whether there should be an automatic pass-through where there is a commercial link, so that powers automatically go to the Government and there can be no suggestion of any conflict of interest in the regulation of those fines and surcharges?

[Iain Stewart]

That is a fair question. I was reassured by the Secretary of State’s answer that the Government have thought about that. That is why the Secretary of State has the power to intervene when he thinks that the harbour authority has a conflict of interest. I am sure that it will be explored further in Committee. I was satisfied on that point; my concern was with regard to a vessel that might skip around different ports or adjust the timetable, as was mentioned, to get around that. I am not saying that the MCA is the most appropriate body, but I would like to check that.

The third point I want to raise is on the minimum wage corridor that the Secretary of State mentioned. The joint Select Committee session flagged this up. Work is ongoing with a number of European countries to try to establish those, but an update on how those discussions are going would be welcome. This is a good Bill and I welcome it. It is not the full solution but is a very welcome step forward.

Finally, if you would indulge me a minute, Madam Deputy Speaker, this is probably the last time I will speak in the Chamber this year. May I add my good wishes to all the staff of the House for Christmas and the new year? I particularly thank the Clerk of the Transport Committee and her staff who have made me so welcome as the new Chair and have been very helpful steering me in the right direction.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Scottish National party spokesperson.

Oral Answers to Questions

Iain Stewart Excerpts

Thursday 24th November 2022 Commons Chamber

[Mr Speaker]

I welcome the new Chair of the Select Committee on Transport, Iain Stewart.

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

Thank you very much, Mr Speaker.

I welcome the Chancellor’s announcement last week that capital transport investment will be a central pillar of the Government’s growth agenda. May I ask my right hon. Friend the Secretary of State when he will be able to set out a little more detail on which projects he will be prioritising, and make a bid for the next stages of East West Rail to be among the early ones?

[Mr Harper]

First, I am very pleased to welcome my hon. Friend to his place as Chair of the Transport Committee. I look forward to working with him and with all members of the Select Committee, whichever party they come from, to focus on these important transport issues.

Over the coming weeks my colleagues and I will be looking at our priorities across the whole portfolio of capital projects, and we will set those out in the House in due course. I have noted his bid; he will know that the Chancellor committed to East West Rail in the autumn statement, and I hope that gives him some comfort.