Local Authority Finances

Lord Swire Excerpts

Tuesday 6th February 2024 Lords Chamber

[Baroness Penn (Con)]

My Lords, of course I acknowledge that, in 2010, difficult decisions had to be made about public finances both centrally and in local government. However, in recent years, we have seen real-terms increases in the finances going towards local authorities. I also recognise the pressure that they face on issues such as adult and children’s social care and special educational needs provision. We have seen real increases in demand. Alongside additional funding, we need to look carefully at the right reforms to put in place to help manage that demand, without just putting in more and more funding.

[Lord Swire (Con)]

Is there any appetite within the Government to look at the existing structures of local government? It seems increasingly difficult to justify having parish councils, town councils, district councils, county councils and unitary authorities. Is it not time to review the value for money we get from these different tiers and possibly to rationalise them?

[Baroness Penn (Con)]

My Lords, the levelling-up White Paper set out our ambition for every part of the country that wanted a devolution deal in place to have one. As I referred to earlier, we are seeing trail-blazers of greater devolution in mayoral combined authorities, where we can put power back into the hands of local communities.

Building Repairs: VAT

Lord Swire Excerpts

Thursday 14th December 2023 Lords Chamber

[Lord Swire (Con)]

My Lords—

[Lord Cormack (Con)]

My Lords, I declare an interest as a vice-president of the National Churches Trust and of the Lincolnshire Churches Trust, and one who has been a churchwarden for 36 years. It really is crucial that the Government recognise that the most important group of historic buildings in our country are our parish churches and give them some assistance. The Listed Places of Worship Grant Scheme is coming to an end, as my friend the right reverend Prelate said, and we do not wish to see the parish churches of England crumbling into decay.

[Baroness Penn (Con)]

I absolutely recognise the points that my noble friend is making, but the Listed Places of Worship Grant Scheme is making a real difference to churches, as recognised by the right reverend Prelate. It gives grants covering the VAT on repairs of over £1,000 to listed buildings used as places of worship. It is not coming to an end; it runs until the end of March 2025. Of course, any decisions for the spending review period after that will come in due course.

[Lord Swire (Con)]

My Lords—

[Baroness Finlay of Llandaff (CB)]

My Lords, have the Government undertaken a cost assessment of the number of schools that have asbestos in them and that are also affected by RAAC? They need replacing, because the children in these schools are currently at risk of exposure to asbestos fibres, and the same applies to many hospital buildings. Has there been a comparison of the costs of renovation versus replacement for these public buildings?

--- Later in debate ---

[Baroness Penn (Con)]

I acknowledge the point that the noble Baroness has made. We are doing two things in this area. We have updated the National Planning Policy Framework so that, in determining planning applications, local planning authorities should give significant weight to the need to support energy efficiency and low-carbon heating improvements to existing buildings. Specifically on the practical planning barriers that households can face when they are in conservation areas or listed buildings, in our energy security strategy, published last year, we committed to reviewing the barriers that people in such buildings face. That review is under way and I believe that the outcome will be published shortly.

[Lord Swire (Con)]

My Lords—

[Baroness Pinnock (LD)]

My Lords—

--- Later in debate ---

[Baroness Penn (Con)]

I do not have a figure for the overall cost, but the noble Baroness is absolutely right that it will be important for social housing to help make the transition. A lot of our early support has focused on this housing stock—for example, through the social housing decarbonisation fund—because local authorities will need support to take these measures and because the benefits of greater energy efficiency and lower bills need to be targeted at lower income households first.

[Lord Swire (Con)]

My Lords—

[Noble Lords]

Hear, hear!

--- Later in debate ---

[Lord Swire (Con)]

They tried to silence me.

The right reverend Prelate is absolutely right to raise this issue again, and we should continue to raise it. The Government hid for years behind the fig leaf of the EU, saying they were unable to vary the rate of VAT. We are now out of the EU and this is the time to look at that. If the Government are serious about reusing and refurbishing our stock of older properties, they should look again. We are not asking for any kind of VAT reduction; we are looking for parity. I do not understand the intellectual argument for two rates of VAT—one which clearly discriminates against the built heritage sector. On that subject, I just say to my noble friend that, if she talks to anybody in the heritage sector, as I am sure she does, she will find that the backlog of repairs because of this pernicious rate of VAT is now extremely concerning.

[Baroness Penn (Con)]

I say to my noble friend that we are taking advantage of the flexibilities we have since leaving the EU in reducing rates of VAT. We have announced that the installation of qualifying energy-saving materials in residential accommodation has a zero rate of VAT until March 2027. This support is worth over £1 billion and will help households and charities improve their energy efficiency in buildings and reduce carbon emissions. As I said earlier, we get requests to reduce the rate of VAT across a number of different areas, and we consider them very carefully, but they have to be considered in the context of how much revenue VAT raises. As I said, the total cost of requests across different areas has totalled some £50 billion since we have left the EU.

General Elections: Party-political Spending

Lord Swire Excerpts

Wednesday 29th November 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, this is not an unusual exercise. In fact, uprating has been done under successive Administrations of all political colours and is done regularly for other matters too. It is provided for in the original legislation passed by this Parliament. By using those powers, we are simply restoring the levels of spending limits that were provided for by Parliament.

[Lord Swire (Con)]

What is the view of the Government about the allegations that some political parties or political operatives are seeking to lure away existing elected Members of the other place with promises of money? Is that something that the Government will be looking at?

[Baroness Penn (Con)]

I am not sure of exactly what my noble friend refers to. None the less, it sounds like a serious matter that I would want to speak to him about after this Question.

Small and Medium-sized Housebuilders

Lord Swire Excerpts

Wednesday 12th July 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

I have explained how we are supporting them financially, but we are aware that the planning system, for example, is not as user-friendly as it should be to SME builders. That is why we are making changes in the LUR Bill, but we are also trying to ensure that the planning system is now better funded, so any time now we will see an increase in planning fees, for example, by 35% for major applications and 25% for other applications. All this investment should make sure that SMEs find the system simpler and easier to use, and that therefore they can access it and build more houses for us.

[Lord Swire (Con)]

My Lords, the letter to the Prime Minister refers not to an anti-development policy but to an anti-development environment. I submit that the anti-development environment is in part caused by the fact that people are fed up with the large-volume housebuilders building identikit housing estates up and down the country, and that the people more likely to reflect the desires and wishes of local communities are the smaller, SME housebuilders.

The problem is also in design. We have had the Royal Fine Art Commission, which gave way to the Commission for Architecture and the Built Environment, which in turn has given way to the Design Council, but none of these bodies has really had teeth. What more can we do to ensure that there is greater control over the sort of properties we are building in the country, to give more training to local planning officers and to increase not only their quantity but their quality?

[Baroness Scott of Bybrook (Con)]

I think we need both types. We need the large developers building large numbers of houses; we also need to support our SMEs across this country. My noble friend is absolutely right. That is why we see quite a lot in the LUR Bill about beautiful homes for people in this country. Therefore, local authorities will in future have to produce design codes for their areas.

Bird Nesting Sites: Protection

Lord Swire Excerpts

Monday 13th May 2019 Westminster Hall

[Mike Hill]

Again, I agree with my hon. Friend. I will come on to the way forward, as the industry describes it, but she is absolutely correct.

Although it is an offence to destroy an active nest, there are currently no laws to prevent the installation of netting. The RSPB and other charities, such as the Woodland Trust, propose changes to current practice and the introduction of laws that commit the Government to ensuring the recovery and protection of nature and wildlife, which would cause practices such as netting to come under much closer scrutiny.

The RSPB went on to say:

“We all need nature in our lives–which means giving birds and other wildlife, more, not less room to breed, feed and sing.”

[Sir Hugo Swire (East Devon) (Con)]

There may be some good, practical reasons why the banning of netting in all circumstances would not be either desirable or enforceable, but should we not, at the very least, ban netting during the breeding season?

[Mike Hill]

The right hon. Gentleman makes an important point. At the heart of this debate is the fact that the netting typically goes on before the nesting season. That is the whole point of the netting, as far as I can derive, so that proposition is timely and important.

I have spoken to people in the construction industry, who state that the practice of netting is done before the nesting season, always on an ecologically sound footing and in accordance with the law. They claim that netting is applied in a manner that is sensitive to the environment and to wildlife, and under the supervision of specialists. They have raised concerns with me that where wildlife has come under threat or been trapped behind the netting, it is often as a result of the netting being tampered with or shredded after its application.

Current restrictions lead to developers using nets to cover hedgerows and trees in and around their sites before any nesting activity begins, as that could stop or restrict building during the summer months. Legislation protecting nesting birds is pretty much exclusive to section 1 of the Wildlife and Countryside Act 1981, which makes it an offence to destroy, damage or harm wild birds and nests that are in use or being built; to kill, injure or take any wild bird; to take, damage or destroy the nest of a wild bird; and to destroy an egg of any wild bird. To back that up, Natural England guidance states:

“You must not do any work which might harm nesting birds or destroy their nests. You’ll usually find nesting birds during the main nesting and breeding season from 1 March to 31 August.”

There is also legislation protecting hedgerows, which are described by the Woodland Trust as

“the most widespread semi-natural habitat in the UK”

that support

“a large diversity of flora and fauna.”

Many hedgerows are protected under the Hedgerows Regulations 1997, based on their age, length, location or importance. The regulations make it illegal to remove protected hedgerows without permission from the local planning authority. However, not all hedgerows are protected, and legal obligations on planning authorities are either complex or insufficient.

There is clearly strong opinion on this matter, and a mark of that is the fact that the petition calls for netting to become a criminal offence. There is no doubt that pressure has been put on developers, with some of them reviewing their practices; Bovis Homes and Bellway, for example, intend to change their policies to stop the use of netting at any of their sites. The industry’s union, the Home Builders Federation, says:

“As we build the homes the country needs, the industry is committed to supporting and enhancing biodiversity, proactively protecting wildlife and providing an overall increase in the number of trees.”

Is that enough to strike a balance between the need of people to have homes to live in and the need to protect our wildlife and green spaces?

There is no doubt that this petition has raised plenty of interest in the national press and media, as well as strong feelings. Perhaps it is time to make the law stronger, in an effort to protect our indigenous species and the environment.

--- Later in debate ---

[Sir Hugo Swire (East Devon) (Con)]

I congratulate the hon. Member for Hartlepool (Mike Hill) on obtaining this debate in response to the public e-petition, which has rightly engendered a lot of support and interest up and down the country.

The petition comes virtually at the same time as the publication of the United Nations report that shows the extinction rates accelerating and “nature’s dangerous decline”. That report, from the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services, raises some interesting points. It ascribes some of the loss of those natural species and habitats to

“changes in land and sea use; direct exploitation of organisms; climate change; pollution; and invasion of alien species”.

I instigated a debate here on the latter subject not long ago, regarding the importing of plants, trees and so forth from overseas.

It seems to me that the RSPB strikes a chord when it states:

“We cannot keep trying to squeeze nature into smaller and smaller spaces or demanding it fits in with our plans.”

The problem is that since 1970 the global human population has more than doubled, from 3.7 billion to 7.6 billion. Since 1900, the average abundance of native species in most major land-based habitats has fallen by at least 20%. There has also been a 100% growth of urban areas since 1992. All those things conspire to squeeze out nature or, if not to squeeze it out, to squeeze it into a tighter spot.

That is why I believe that, with the exception of some eminent hon. Members sitting around this Chamber, we have woken up very late to all this. There must be a trade-off between economic growth and the need to provide houses for people, which no one debates, and the requirement to ensure that the built environment is sustainable for the natural environment. We cannot have one without the other. Where would the world be without birdsong? A very sad place. Where would the world be without swallows? I have not spotted a swallow in my part of the world, Devon, at all this year.

Doing nothing is simply not an option. For too long we have put up with some of the behaviour of the volume house builders. It is perhaps unfair to paint them all with the same brush. It is an easy thing to castigate, but somebody has to build those houses. I lament that there are not more local house builders. I think this Government can do a lot more, as they have said they will, in encouraging smaller local house builders—those same house builders who were squeezed out by the last recession—to play their role, because they are from the communities in which they will be building, so they are likely to build in a more sustainable and environmentally friendly way.

Time and time again we have seen, up and down the country, the major volume house builders riding roughshod over local planning officers—because there are not enough of them and many of them are not qualified enough—changing the terms on which they develop and, too often, squeezing out the natural environment. I am not against profit; I am a Conservative, and I believe in profit and that a rising tide lifts all ships. However, I am a believer in responsible capitalism, and it is about time that this Government, or any Government of any hue, were a little tougher with some of those volume house builders. Perhaps then we, as Members of Parliament, would not have to put up with so many constituents complaining to us about shoddy finishes and the like.

[Melanie Onn (Great Grimsby) (Lab)]

The point the right hon. Gentleman is making about the volume house builders and their complete disregard, it seems to me, for some of the planning regulations in place has been reflected in my local authority area. In Humberston, Persimmon Homes has cut down about 200 perfectly healthy trees to build its properties without having the proper permissions in place. It will now have to replant all those trees, but they should not have been removed in the first place. Does he agree that there should be much more enforceable action on these big build companies to ensure that they adhere to the rules that are laid down in the first place?

[Sir Hugo Swire]

I do and I do not agree; I agree that that sort of behaviour is wholly unacceptable, but I do not agree that they should replace like for like, if it is the case that they have done this where there were tree preservation orders or the like. If they have cut down a number of trees, they should be obliged to plant many, many times the amount of trees they have cut down, to encourage a change in the pattern of their behaviour.

I am afraid that it often comes down to the lack of local planning officers or their inability to challenge those large companies. Local councils are terrified of being taken to appeal, because then they have to fund it, so it becomes a vicious circle and a win-win for the volume house builders, as we have seen—although I say again to the volume house builders, or their representatives watching this debate, that I do not view them all in the same light.

That is one of the points on which I wish to conclude. The Government have been quite clear, but they need to be a little bit clearer what they are going to do about this. Why do we not have a register run by the Department, naming and shaming the worst offenders, so we can see on a regular basis which house builders and developers are behaving responsibly and which are not? There are also such things as shareholder action groups, and they and others can vote at annual general meetings and so forth and can bring the matter to the board’s attention. Naming and shaming, in this instance, is an extraordinarily good way to proceed.

I believe it is time to stand up to that sort of abuse. We are in the slight conundrum—or I am—of castigating some of these volume house builders while at the same time recognising that we need to build more houses, and quickly, if we are to avert what is becoming a national crisis in getting younger people on to the housing ladder. However, with the current scrutiny of developers, I would have thought it would make eminent good sense from the point of view of their own public relations. Indeed, if I were advising them—I am not available to advise them, incidentally—on public relations, I would say, “This is precisely the sort of headline that we don’t want to read about ourselves.”

[Liz Twist (Blaydon) (Lab)]

In my constituency, there are a couple of developments on greenfield sites. I was pleased to hear my hon. Friend the Member for Hartlepool (Mike Hill) report that Bellway has now decided not to use netting, because until a few weeks ago it had netted an area in my constituency where it was about to develop, which, as he said, caused great uproar and consternation among people who were opposed to the development in the first place.

[Sir Hugo Swire]

That is very good and shows that some of these companies are more concerned about the environment than gross profit—or, indeed, net profit. They should concentrate on having no netting, not net profit, in some instances.

To conclude, a list of offenders would be a good thing. However, I do not think that we should use a hammer to crack a nut. Parliamentarians should insist only on proportionate, enforceable legislation. As I said, I am not convinced that it is either desirable or practical to ban netting of hedgerows, bushes and trees throughout the year—because I am not really an environmentalist in this sense, I do not know whether it is. However, as a start, we should ban netting during the breeding season, which the Minister will hopefully say something about when she concludes the debate. If we can achieve that this afternoon, it seems to me that we will not have wasted our time.

Economic Growth: South-west

Lord Swire Excerpts

Tuesday 5th February 2019 Westminster Hall

[Sir Hugo Swire (East Devon) (Con)]

I warmly congratulate my hon. Friend the Member for South West Devon (Sir Gary Streeter) on securing the debate and publicly congratulate him—I think this is the first time I have been able to do so—on his well deserved knighthood.

I know that several organisations in the south-west are watching our debate with keen interest. My hon. Friend the Minister for Agriculture, Fisheries and Food, the Member for Camborne and Redruth (George Eustice), who is also a south-west MP, is also with us. I think that he is one of the longest-serving farming Ministers ever, and we are grateful to have him sitting in on these deliberations. I am sure that my hon. Friends will have enjoyed reading the briefings from the National Farmers Union, the Devon chamber of commerce, the Federation of Small Businesses and the Heart of the South West local enterprise partnership, which conveyed a passion for expanding the region’s potential.

The key question is how we can attract high-value, non-seasonally dependent jobs, enhance our productivity and secure clean economic growth for the region. Admittedly, we have perhaps grown too accustomed to using terms such as “productivity”, “growth” and “connectivity”. A notable example is the Government’s flagship industrial strategy. Its four grand challenges put the UK at the forefront of the industries of the future: artificial intelligence and data, ageing society, clean growth, and the future of mobility. As many hon. Members would no doubt agree, its comprehensive scope marks out the Conservatives as the party with the long-term plan for our country. No Government or multinational corporation is free from the risk of descending into obfuscation when talking about economic growth, but let us step out of Whitehall-speak and the lexicon of glossy masterplans. When we talk to our constituents in our email bulletins, meeting halls, surgeries and correspondence, we must tell them how investment will increase the number of jobs and improve living standards.

I recently had the pleasure of another visit to the Exeter science park in my constituency. The science park helps innovative science, technology, engineering, mathematics and medicine companies in a campus-style setting. It covers sectors such as cyber-security and renewable energy. The site is on track to grow, so that 200 to 700 jobs in 2020 will rise to 2,100 by 2027. The wider region is well connected, with immediate access to the M5, the nearby Exeter international airport and Exeter itself. I represent two wards in Exeter—St Loyes and Topsham—and I am pleased to say it will be one of the UK’s fastest growing cities over the next three years. A practical example of that outstanding growth is Luminous, a start-up that is designing, developing and exporting state-of-the-art special effects hardware for the global entertainment industry. Its rate of jobs growth—from one person to eight people in a mere 12 months—is a trademark of the technology industry. Yet it is not in tech-savvy Shoreditch but in the heart of our region. That is what economic growth looks like on the ground: it is new consumers, new careers, and a better quality of life.

The case for Exeter science park is strong, as it seeks to add more buildings and expand its capacity. I speak not purely as the Member for East Devon but, I am sure, on behalf of my colleagues in the south-west, who would like it to expand and thrive. That is why I urge the Minister and other interested parties who are watching today to get behind Exeter science park so that it can fulfil its potential.

The main impediment to the business growth of Exeter science park is the fact that it has to repay loans on its science park centre. The science park had to take out loans of £6.5 million—mainly from the local enterprise partnership, at a commercial rate—because grants were unavailable during its start-up phase in 2013. Private sector loans were not available because Exeter science park had no assets; they were held in trust by a local authority. Given the vast resources going to the part of the world with which the Minister—he is responsible for the northern powerhouse—deals, he might find that extraordinary set of circumstances difficult to recognise, but it is yet another example of how we in the south-west feel slightly discriminated against.

My first request—this is the Minister’s road to rehabilitation—is to consider how we can use Government capital infrastructure spending to reduce, or ideally erase, those debts. Secondly, how can the Government assist in encouraging Government-backed technology and projects to locate to the science park? If the Minister were able to assist with both those matters, it would provide a huge endorsement for our often-overlooked region. Why, for instance, would an engineering giant such as Rolls-Royce, or a defence contractor such as Babcock—it is already strong in Plymouth, as we have heard—not expand alongside the innovative tech start-ups that are already located there?

Members often lament how our neglected south-west gets limited airtime compared with other UK regions. Local authorities, LEPs and businesses up and down the land compete vociferously for a pool of Government investment. However, we should talk up areas where our regional economy is doing well, and talk practically about how we can do even better. That is surely the way to sell the benefits of economic growth to the public, and attract new jobs and companies to our south-west.

[Peter Heaton-Jones (North Devon) (Con)]

rose—

Oral Answers to Questions

Lord Swire Excerpts

Monday 5th November 2018 Commons Chamber

[James Brokenshire]

Fire control now resides within the responsibilities of the Home Office, but I will certainly look into the hon. Gentleman’s points in relation to ensuring good value for money.

[Sir Hugo Swire (East Devon) (Con)]

I warmly congratulate my right hon. Friend on the establishment of the Building Better, Building Beautiful Commission and the inspired choice of Sir Roger Scruton as the chairman, but, first, does my right hon. Friend not agree that this will only have any teeth if we can get the volume house builders to buy into it? Secondly, I think that the commission should be extended to look at the quality and the variable advice often given by local planning officers and at a full accreditation scheme for those planning officers on an annual basis to refresh them.

[James Brokenshire]

I certainly want the new commission to drive quality in the built environment, which is at the heart of what my right hon. Friend said. If we do that, we can speed up this process and get greater support and consent from the public in building the homes that our country needs. I therefore think that the house builders should very much embrace this.

Oral Answers to Questions

Lord Swire Excerpts

Monday 23rd July 2018 Commons Chamber

[Sir Hugo Swire (East Devon) (Con)]

Earlier this year I met the Charity Commissioners to discuss the issue of ground rents and the National Trust on the Killerton estate, a National Trust property in my constituency. I am very pleased that the National Trust has agreed not to increase the ground rent of long-standing tenants, but I hear what my hon. Friend says about it. I am a member of the trust, which is, as it has just been described, a much-loved body. Does my hon. Friend—another much-loved body—agree that he should meet its representatives and encourage them to meet Members with National Trust properties in their constituencies to discuss how the trust can be a better neighbour and companion and conform with the Government’s housing agenda in the future?

[Kit Malthouse]

I have absolutely no doubt that the National Trust’s shifting its position on modern ground rent was due to the pressure exerted and the highlighting of the issue by many Members, not least my right hon. Friend himself, on behalf of his constituents. As I have said, I should be more than happy to meet representatives of that august body and discuss its property policies generally.

Oral Answers to Questions

Lord Swire Excerpts

Monday 18th June 2018 Commons Chamber

[James Brokenshire]

I, too, have visited St Mungo’s and seen the excellent work it does to provide first-night-out support to people on the streets. I will continue to work with it and other charities as we look towards our strategy for dealing with rough sleeping and at how that will need to reflect on all these important issues.

[Sir Hugo Swire (East Devon) (Con)]

T8. My right hon. Friend the Secretary of State will be aware of my view—as he and I have discussed it—that most objections to large planning developments are based on the fact that the developments themselves add nothing to the local vernacular, do not acknowledge it and are often poorly built. That is partly owing to a lack of local planning officers and the fact that planning officers are poorly trained. Could the Government consider affiliating some of them to the Royal Institute of British Architects or the Commission for Architecture and the Built Environment, and empowering them so that they can stand against the volume house builders?

[James Brokenshire]

My right hon. Friend has made a powerful point about design. We have tried to bring people together on round tables to consider such issues, and to think about what the national planning policy framework can do to advance the agenda that he has highlighted.

Draft Welsh Ministers (Transfer Of Functions) (Railways) Order 2018

Lord Swire Excerpts

Monday 23rd April 2018 General Committees

[Rachael Maskell]

The hon. Gentleman is right to be sceptical about the process. Not only has it been limited to the private sector to bid for these franchises, but, as he has highlighted, only two companies are in place. This Government have directly awarded so many contracts of late, and we are concerned about the way the market is continuing to fail the people who use the service.

[Sir Hugo Swire (East Devon) (Con)]

What is to say that the Labour party in Wales will not run the railways as badly as it currently runs the NHS?

[Rachael Maskell]

The point is irrelevant; not only is the NHS performing incredibly well in Wales—of course, it was founded by Bevan, who was from Wales, and we are incredibly proud of that—but the Welsh Government want to realise the ambition of the people of Wales and to have the opportunity to move the railway system forward as an integrated form of transport. We really look forward to the progress that a Labour Government will make—if this Government do not provide the powers necessary to do so.

I will return to the main issue. Labour would ensure that Transport for Wales is at the heart of rail operations, not just to lead in Wales but to secure its voice at the table when it comes to integration of the rest of the rail network across the UK.

The Welsh Government have already made it clear that those services that can be run directly through a not-for-profit model will be run that way, with many more services, such as ticketing, marketing, station management and car parking, operating in new and innovative ways under that new approach.

Labour has been planning to increase capacity, improve efficiency, upgrade rolling stock and integrate rail with other public transport modes, as well as to change the culture, improve access for disabled people, consider how rail can further the wider economy and invest in the workforce, not least in the area of skills.

In November 2016, bidders for the new franchise submitted their outline solutions, in accordance with criteria set by the Welsh Government. Since January 2017, detailed work has been undertaken with the two bidders to deliver for passengers, and that process continues.

In November 2014, agreement was reached between the Welsh and UK Governments to devolve executive franchising functions to Welsh Ministers, so that they could lead the procurement of the next Wales and Borders franchise, which is due to commence on 14 October 2018. Today’s order will achieve this, and through the affirmative resolution procedure in both Houses, it will result in changes to the Railways Act 1993 and the Railways Act 2005.

While mainly in line with those powers devolved to Scottish Ministers, there are some differences in the scope of cross-border rail operations into England and in the fact that responsibilities in respect of the rail network are not being devolved to Wales. Today’s statutory instrument will enable Welsh Ministers to be the sole designating and franchising authority in respect of Wales-only services, and enable Welsh Ministers to designate and franchise the Welsh component of Welsh services—those parts of cross-border services to and from England within Wales—that are contained within the same franchise as Wales-only services. This scope has been agreed in recognition of the extensive nature of cross-border services, and services wholly within England, provided by the Wales and Borders franchise, and the need for appropriate accountability for rail operators on each side of the border.

Since all the relevant references to the “National Assembly of Wales” are replaced by references to “Welsh Ministers”, on the basis of agency arrangements established under section 83 of the Government of Wales Act 2006, it is possible for Welsh Ministers to act as the agent of the Secretary of State. Thus, they can procure and manage the entirety of the Wales and Borders franchise, which includes services that continue to and from, and that operate within, England.

Given that this order makes it possible for the Welsh Government to lead the procurement and management of cross-border services, in the light of the Great Western, West Coast and Cross Country franchise processes, will the UK Government work with the Welsh Government to consider how they can lead the delivery of more cross-border services, so that they can work for the economy and people of Wales? I look forward to hearing the Minister’s response.

The Welsh Government’s ability to operate additional services to destinations already served by the Wales and Borders franchise, and to additional destinations in England, is being heavily constrained under these arrangements. These restrictions will suppress both the rail service offer and the financial potential of the franchise in Wales, not least by the allocation of rail paths. Will the UK Government work with the Welsh Government to address that issue?

The agency agreement setting out the arrangements under which Welsh Ministers can operate services in England is very restrictive. Scottish Ministers are able to operate services into England without such restrictions. Will the Minister therefore agree to review these arrangements, with a view to relaxing them, so that Welsh Ministers can act more freely as a franchising authority, not least in enabling rail operations to move into public hands?

We have been informed that a co-operation and collaboration agreement with Welsh Ministers is being developed. The agreement will need to set out arrangements for how Welsh Ministers will be actively involved in the procurement and management of the cross-border services that continue to be included in the Secretary of State’s franchise. Will the Minister provide an assurance that Welsh Ministers will be significantly and meaningfully involved?

The Commission on Devolution in Wales recommended devolution of funding for Network Rail, but in the four years that have passed since the publication of the part 2 report, the UK Government have not been prepared to open discussions with the Welsh Government. Will the Minister commit to open discussions, not least in the light of the Government’s ambition to join rail operations with infrastructure, as set out in “Connecting people: a strategic vision for rail”, which was published in November? Not to do so seems contrary to that paper.

Network Rail’s annual reports and accounts illustrate that, since its Wales route was established in 2011, just over 1% of spending on enhancement schemes across England and Wales has been directed to the area, yet the Wales route contains 11% of England and Wales’ rail network. A firm commitment to provide a fair level of investment is urgently needed to improve access to employment opportunities and to enable Wales to compete as a location for inward investment in a post-HS2 era. Will the Minister give a commitment to ensure that the options provided for by a new Crewe hub allow for full and unimpaired access to the north Wales main line?