Bus Funding

Debate between Lord Hendy of Richmond Hill and Baroness Pidgeon

Tuesday 19th November 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

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

[Baroness Pidgeon (LD)]

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

[Lord Hendy of Richmond Hill (Lab)]

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

Carbon Emissions: Bus Fleets

Debate between Lord Hendy of Richmond Hill and Baroness Pidgeon

Tuesday 12th November 2024 Lords Chamber

[Baroness Pidgeon]

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

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

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

[Baroness Pidgeon (LD)]

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

[Lord Hendy of Richmond Hill (Lab)]

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

Newly Qualified Young Drivers

Debate between Lord Hendy of Richmond Hill and Baroness Pidgeon

Monday 11th November 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

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

[Baroness Pidgeon (LD)]

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

Passenger Railway Services (Public Ownership) Bill

Debate between Lord Hendy of Richmond Hill and Baroness Pidgeon

Report stage
Wednesday 6th November 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

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

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

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

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

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

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

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

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

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

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

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

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

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

[Baroness Pidgeon (LD)]

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

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

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