Bus Funding
Mark Harper Excerpts(1 year, 9 months ago)
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The Secretary of State for Transport (Mr Mark Harper)
The Government recognise the importance of local bus networks to ensuring communities can stay connected, and in enabling people to access work, education and vital local services such as healthcare. We also know that the bus sector faces challenges following the covid-19 pandemic, including lower levels of bus patronage compared with pre-pandemic levels.
The Government to date have taken action to help address some of the challenges faced by the sector and passengers following on from the pandemic, to protect vital local bus services by providing £2 billion in additional funding, including investing £60 million to help operators cap single tickets at £2 in England outside London from 1 January to 31 March. We have also announced our intention to invest up to £75 million to extend the £2 bus fare cap for a further 3 months until 30 June 2023.
Over 140 operators covering more than 4,600 routes are currently signed up to participate in the scheme, which is designed to help passengers to save on their regular travel costs and boost patronage on buses. The scheme is showing early signs of increased bus use, with an independent survey of 1,000 people from passenger watchdog Transport Focus showing 7% of people saying they are using the bus more. Participation in the scheme from operators is voluntary, and as such the Department for Transport will now work with the operators to reconfirm their participation for this extended period.
It has also become clear that without further support for the bus sector once the bus recovery grant ends—a temporary grant provided to help adjust services to new travel patterns following on from the covid-19 pandemic —there would be a risk of reductions to bus services throughout England, outside of London. The Government have therefore announced on 17 February that we will be extending the bus recovery grant for a further three months at a cost of up to £80 million to continue supporting bus services until 30 June 2023.
The £155 million additional funding to extend the bus recovery grant and the £2 bus fare cap we have announced demonstrates this Government continued commitment to supporting local bus services, and working closely with bus operators and local transport authorities to deliver on the ambition set out in the national bus strategy for everyone, everywhere to have access to affordable and reliable bus services.
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Oral Answers to Questions
Mark Harper Excerpts(1 year, 10 months ago)
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Marco Longhi (Dudley North) (Con)
The Secretary of State for Transport (Mr Mark Harper)
Irresponsible action last year by a number of protesters put the lives of police, motorists and National Highways staff at risk and caused travel disruption for thousands. That is completely unacceptable, which is why my Department worked with National Highways to secure injunctions allowing a prompt and effective response. The police and National Highways continue to look at lessons that can be learned to deter similar protests. As my hon. Friend will know, on Monday the Prime Minister announced an amendment to the Public Order Bill giving the police more flexibility and clarity in respect of when to intervene to stop the disruptive minority who use tactics such as blocking roads and slow marching to inflict misery on the public.
Marco Longhi
When hypocritical wealthy lefties cut off motorways, they are not just damaging people’s jobs and damaging the economy; they are potentially killing people by not allowing ambulances and other blue-light services to pass. Does the Minister agree that we may be able to help them save the environment by locking them up, perhaps with the gas and electricity switched off?
Mr Harper
I thank my hon. Friend for putting his question in his own direct, inimitable way. He will, I hope, be pleased to know that we are working closely with council and Home Office officials to ensure that we can follow all legal avenues to pursue those who are arrested for protest activity. The injunctions mean that we can take swifter action. The courts obviously have to hand down the penalties; 13 Insulate Britain protesters received immediate custodial sentences ranging from 24 days to six months, and evidence from the gantry protests is being reviewed to support committal proceedings against more than 50 additional protesters.
Fiona Bruce (Congleton) (Con)
James Sunderland (Bracknell) (Con)
The Secretary of State for Transport (Mr Mark Harper)
I agree with my hon. Friend that the railway is in urgent need of modernisation of both its working practices and the way in which it is structured. The lasting consequences of covid-19, industrial action and the financial challenges facing the railway have made the case for reform stronger, and I will shortly set out the next steps for that reform process.
James Sunderland
The South Western Railway line between Bracknell and London Waterloo is a really important link between Berkshire and London. Even though passenger numbers are now increasing back to pre-pandemic levels, South Western Railway’s own figures for November and December last year are that more than 90% of trains ran up to 15 minutes late. It is not acceptable. Will my right hon. Friend the Secretary of State please outline to the House what he is doing alongside South Western Railway to improve the service?
Mr Harper
The level of services remains constantly under review. As passenger numbers increase, both the Department and the operator can look at that to see whether more needs to be done. On performance, the operator is contracted to deliver our operational performance benchmarks, and it is penalised financially if it delivers below those benchmarks. The Department has a right to request a mitigation plan if it fails to meet those benchmarks consistently. Now that my hon. Friend has raised that with us, we will keep an even closer eye on the performance of that railway.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
I understand the Secretary of State will be in my constituency later today to announce the successful £50 million bid, which I backed alongside Cardiff Council, for improvements to the links between Cardiff Central and Cardiff Bay—a crucial missing link in our rail infrastructure. It is obviously very welcome, notwithstanding the wider criticisms of the levelling-up scheme. One of the positive things about the bid is that it involves close working between the UK Government, the Welsh Government, the council and Transport for Wales. Will he assure me that he will work co-operatively with them to get that scheme up and running as quickly as possible, for the benefit of our local community?
Mr Harper
I am grateful for the positive tone in which the hon. Gentleman has welcomed that announcement. Wales will receive the highest amount of funding per capita from the levelling-up fund under the announcement that has been made today. I am indeed visiting that scheme later today and I will meet officials from the council. I will of course continue to work closely with them to turn the money into effective transport connectivity as soon as we can.
Mr Philip Hollobone (Kettering) (Con)
On average, how much do train drivers get paid and how many contracted hours are they required to do each week?
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
TransPennine Express has been habitually using P-codes, which are for pre-cancelled trains. This means that trains are cancelled at 10 o’clock the previous night. In conjunction with on-day cancellations, this means that up to a quarter of all services, including for my constituents travelling from Greenfield, are cancelled; and on some days it is nearly half. Will the document that the Secretary of State just mentioned address these long-term issues, which we have had not just for the past year but for many years?
Mr Harper
It is very much to do with it. The fact that the rest day working agreement is not being delivered means there is a real problem, which fundamentally argues the case for reform to working practices.
On the hon. Lady’s narrower question about transparency in P-coding, the rail Minister, my hon. Friend the Member for Bexhill and Battle (Huw Merriman), will be meeting the Office of Rail and Road to discuss exactly that issue, to ensure that passengers have a transparent understanding of rail performance.
Elliot Colburn (Carshalton and Wallington) (Con)
Patricia Gibson (North Ayrshire and Arran) (SNP)
The Secretary of State for Transport (Mr Mark Harper)
In November 2020 the Government published the national infrastructure strategy that set out our long-term plans for addressing Britain’s infrastructure needs and challenges. Those plans include continued developments of our road and rail networks across the UK, including in Scotland. The levelling-up fund will play a key role in helping to reduce geographical disparities. To that end, the second round of the fund, announced today, will see £177 million awarded to Scotland, including three transport schemes.
Patricia Gibson
The specific point raised by my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands) a moment ago was not addressed. For years, Scotland has paid the highest track access charges of any single train operator: £354 million per year—over £200 million more than northern rail, with broadly similar services by distance travelled. Scotland is making huge strides in decarbonisation and sustainability, as well as bringing ScotRail back under public control, but this is a huge cost and reduces capacity to increase infrastructure investment. Why are Scottish taxpayers quite literally being taken for a ride by the Department for Transport compared with their counterparts across the border?
Mr Harper
I am disappointed; I missed the hon. Lady’s thanks for the £177 million awarded to Scotland from the levelling-up fund today. It would have been nice if she had managed to recognise the fact that that money is being distributed fairly across the whole United Kingdom. Some of the issues about connectivity between England and Scotland and across the United Kingdom were addressed at length in previous questions. We are working very hard to make sure there is a successful rail network, to reduce the impacts of industrial action. On the question that the hon. Member for Paisley and Renfrewshire North raised about what happens on strike days, it is very important that we have minimum service levels, and I hope the hon. Lady will support that legislation.
Dame Diana Johnson (Kingston upon Hull North) (Lab)
Mrs Natalie Elphicke (Dover) (Con)
The Secretary of State for Transport (Mr Mark Harper)
Following today’s £2.1-billion levelling-up fund announcement, I would like to briefly update the House about its transport aspect. Through your decision making, Mr Speaker, you have allowed Members the opportunity to range more widely. I am sure that Ministers at the Department for Levelling Up, Housing and Communities are grateful to you for the opportunity they will have to be at the Dispatch Box later today.
Nearly £650 million will be spent across 26 projects to help to create a transport system that is modern, efficient, and accessible to everyone across four nations. As we touched on in earlier questions, that includes more than 15 new electric buses in the north-east and the new metro line in the heart of Cardiff which, as Members know from our earlier exchanges, I will visit later today. Today’s announcement is a vote of confidence in the entire United Kingdom. As the hon. Member for Cardiff South and Penarth (Stephen Doughty) said, I hope that it is rightly welcomed by both sides of the House.
Mrs Elphicke
When there are delays at the port of Dover, whether due to weather, strikes or the French, the impact on local jobs, businesses and residents is absolutely enormous. I welcome the £45-million levelling-up fund investment in our local campaign to keep Dover clear. I thank my right hon. Friend for that. Will he join me in thanking the Conservative leaders of Kent County Council and Dover District Council, and the excellent leadership at the port of Dover?
Mr Speaker
Order. This is topical questions. Other colleagues want to get in. Tell me who you do not want to get in, because that is who you are depriving.
Mr Harper
I will give a pithy answer. I am grateful to my hon. Friend for all her campaigning work. Dover is a strategic port for the United Kingdom. This project will ensure that we can meet our requirements and keep that flow of trade and traffic going. I am pleased that we have been able to get that money to help the port of Dover.
Martyn Day (Linlithgow and East Falkirk) (SNP)
Sir Robert Buckland (South Swindon) (Con)
Mr Harper
I am grateful to my right hon. and learned Friend for his question, particularly his reference to our important plan for rail and the necessary reform. As I said, I will set out those plans in more detail shortly, but he should be reassured that we want to simplify the current complicated ticketing strategy while protecting more affordable tickets. I hope he will be pleased about that.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Anthony Browne (South Cambridgeshire) (Con)
Mr Harper
I am happy to confirm that bus funding has never been linked to road charging. A disagreeable pattern seems to be emerging where Labour politicians, backed by the Liberal Democrats, are not being entirely straightforward with the people they represent about road pricing schemes. I am pleased that my hon. Friend is holding them to account, even on his birthday.
Stephanie Peacock (Barnsley East) (Lab)
Sir Chris Bryant (Rhondda) (Lab)
When will the Secretary of State sort out the Rhondda tunnel, in particular the money for it? When is he going to come to the Rhondda—it is not very far from the Forest of Dean—so that I can dangle him down my hole?
Mr Harper
This is my first opportunity to congratulate the hon. Gentleman on his recently announced honour in the new year’s honours list for his long service in this House. He has raised this specific question on the tunnel with me before; either I or the rail Minister, my hon. Friend the Member for Bexhill and Battle (Huw Merriman), will meet him to look at what we can do to bring that forward.
Seafarers’ Wages Bill [Lords]
Mark Harper Excerpts(1 year, 11 months ago)
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The Secretary of State for Transport (Mr Mark Harper)
I beg to move, That the Bill be now read a Second time.
Britain’s maritime industry is respected around the world for its professionalism and high standards. From shipping safety and financial services to seafarer training and welfare, our flag is acknowledged globally as a symbol of excellence, but maintaining that position in a competitive market requires constant progress. In particular, we must continue to invest in people, the men and women who are our maritime industry’s greatest resource, and on whom we rely to uphold Britain’s proud maritime tradition. When that hard-earned reputation for quality and expertise was threatened by unscrupulous employers, as it was earlier this year when P&O Ferries shamefully sacked almost 800 seafarers and staff to replace them with cheaper agency labour, we did not hesitate to take action. That is why, following the sackings in spring, the then Transport Secretary, my right hon. Friend the Member for Welwyn Hatfield (Grant Shapps), set out a nine-point plan to prevent other companies from benefiting further from such underhand and unacceptable moves.
Chris Stephens (Glasgow South West) (SNP)
There is nothing in the Bill currently on changing sections 193 and 194 of the Trade Union and Labour Relations (Consolidation) Act 1992 to prevent anyone doing what P&O did earlier this year. Is that something the Government are considering?
Mr Harper
The solution we have decided to set out is to ensure that, for operations taking place with a close connection to the United Kingdom, operators have to pay an equivalent to the national minimum wage, so that what they cannot do is replace their staff for cheaper agency labour. That is our judgment on how we think the situation can best be prevented in the future. I accept that other people will propose different solutions, but this is the one we have settled on, and we think it will deal with the issue highlighted earlier this year.
Dr Matthew Offord (Hendon) (Con)
It is undeniable that P&O has acted appallingly, but I do not understand why there is a need for this proposed legislation. The maritime labour convention came into force on 7 August 2014. That international convention, which we signed up to, applies to vessels engaging in trade, or where a vessel is operating under the flag of a country that has ratified the MLC, or is operating in the waters of a country that is ratifying the MLC. Surely that legislation from the International Labour Organisation takes precedence for all vessels across the world?
Mr Harper
Clearly, given what happened earlier this year, we do not think the existing position is satisfactory. That is why we are bringing forward the Bill. If my hon. Friend wants to set out his argument in more detail during the debate, we will obviously listen with great care, but we think legislation is necessary. The Bill is a major step forward and it will deliver on point one of the nine-point plan, changing the law so that seafarers with close ties to the UK working on frequent services to UK ports are paid at least an equivalent to the UK national minimum wage while they are in our waters.
Jim Shannon (Strangford) (DUP)
The concern I have, and I believe other Members in the Chamber have, is that I understand the chief executive officer of P&O said that the average hourly wage for his new crewing model would be £5.50 per hour, yet the minimum wage is much more than that even for under-18s. Can the Secretary of State provide clarification? I want the Bill to be firm, hard and strong—I think we all do—so will he address that issue?
Mr Harper
The legislation will ensure that seafarers with close ties to the UK who are working on frequent services to UK ports have to be paid at least an equivalent to the UK national minimum wage while they are in our waters. As the hon. Gentleman points out, for those aged 23 and over, the current rate is £9.50 an hour. From April 2023, it will be £10.42 an hour. That is clearly significantly higher than the amount the hon. Gentleman just set out. That is the point of the Bill: to discourage the sort of behaviour we saw from P&O earlier this year.
Grahame Morris (Easington) (Lab)
Just to amplify the point from the hon. Member for Strangford (Jim Shannon), the chief exec of P&O gave evidence to the Transport Committee indicating that it was common practice to pay below minimum wage level. On the Dover-Calais route, P&O staff used to work—this is the UK-based ratings—one week off, one week on rotas. It is not just about wages. Currently, agency staff, including Indian able seafarers, are working at least 12 hours a day, seven days a week, for up to 17 weeks with no shore leave. That must be a risk to health and safety. Does the Secretary of State remember the Herald of Free Enterprise and the impact of stress and tiredness? Surely, it is about more than just wages?
Mr Harper
It is about more than just wages. That was one of the things covered in the nine-point plan, but we are working on other things, including various seafarers’ protections and measures with our international partners. This specific Bill is to deal with the specific issue of what seafarers are paid. The hon. Gentleman is quite right that the issue is wider than that, but the Bill deals with what they are paid. It is focused on that, and I hope it gets the support of the House.
Richard Burgon (Leeds East) (Lab)
Can the Secretary of State explain to the House clearly why, in the Bill’s original draft, frequent visits to UK ports was defined as 52 times a year and now it is 120 times a year? That surely makes it far easier for unscrupulous companies to drive through loopholes here and evade paying people the national minimum wage?
Mr Harper
We think the definition in the Bill at the moment will capture the vast majority of the services we wish to capture. We think that defining that in the way that we have makes it more difficult for people to avoid than it would be if we were very specific about types of vessels, for example. I am conscious that a number of people wish to speak in this debate, so I will make a bit of progress before taking any further interventions.
We said from the start that where new laws were needed, we would create them, that where legal loopholes—which the hon. Gentleman referred to—were cynically exploited, we would close them, and that we would strengthen employment rights. That is why the Bill is important. Operators of regular services to the UK will be required to pay their crew a decent wage if they want to access our ports, and it will remove the incentive for other, unprincipled firms to drag down pay for seafarers with close ties to the UK.
Under the existing national minimum wage legislation, not all seafarers who regularly call at UK ports are currently entitled to the UK national minimum wage. It cannot be right that seafarers who frequently work in the UK and in our territorial waters are not entitled to the same as other workers simply because they work on an international, rather than a domestic, service. The Bill will fix that particular issue. I recognise that there are other issues that people wish to deal with, but the Bill deals with that. It does not amend the National Minimum Wage Act 1998, but it makes provision for seafarers on services in scope of the Bill to be paid at least a rate equivalent to the national minimum wage.
Since March, we have consulted extensively with the industry to make sure the measures we are discussing are workable. Those discussions have been productive and are continuing. As was just alluded to, the legislation will apply to international passenger or freight services that call at UK ports on at least 120 occasions in a year, which equates to 72 hours on average. Harbour authorities will be empowered to request declarations from operators of services to confirm that they pay their seafarers no less a rate than that equivalent to the national minimum wage. If they do not provide that declaration when requested, harbour authorities will have the power to impose a surcharge, or may be directed by the Secretary of State to do so. It will not be a profit-making exercise for harbour authorities. They may only use the money raised from the surcharge for the discharge of their functions or for provision of shore-based seafarer welfare facilities.
We hope the surcharge is never required. The point of it is to be a disincentive to operators paying low wages. It will be set at such a rate that it does not make financial sense for operators to underpay staff. If they do not pay the surcharge when it is levied, harbour authorities will be empowered to deny access to the port. That will not be an onerous responsibility for harbour authorities; beyond accepting the declarations, they will not be responsible for checking the details of seafarers’ pay. The enforcement role will be carried out by the Maritime and Coastguard Agency, which will undertake inspections and investigations and, if necessary, prosecute offending operators.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
I am curious about denying access to ports. What consideration has the Secretary of State given to granting powers to detain a ship in port? Denying an operator access to a port may simply mean that it moves to a different port of the United Kingdom; detaining a ship would mean much greater risk for the operator, which will surely mean greater compliance.
Mr Harper
We judge that the risk of operators moving to or operating out of a different port is relatively small. The routes on which they operate are the profitable ones, so ceasing to operate on them would not make business sense. We think that denying access to a port is a proportionate response to the problem, so we have settled on that measure as the appropriate solution.
We will draw up regulations and guidance setting out further details of how the legislation will work. They will be subject to consultation to ensure that our measures are practical and effective and that people cannot avoid them. Feedback from the industry has been crucial throughout the process. Ferry operators told us that inclusions or exclusions based on type of service would create market distortion and ambiguity, so the only specific exclusion in the Bill is for
“a service that is for the purpose of leisure or recreation, or…a service provided by a fishing vessel.”
Jim Shannon
I thank the Secretary of State for his graciousness in giving way. Will resources be made available for the extra work that harbour authorities and marine services will have to carry out? If they are already rushed and under pressure, surely it makes sense to employ more people and make more resources available.
Mr Harper
We do not think that the responsibility on harbour authorities will be particularly onerous. Their job will be to receive declarations, not to investigate or do compliance work; those responsibilities will fall to the Maritime and Coastguard Agency. As with all our agencies, it will be a question of setting priorities. As the hon. Gentleman can see from the fact that we are introducing primary legislation on the matter, improving services for seafarers is indeed one of our priorities.
Grahame Morris
The Secretary of State is being generous in giving way. On the point about harbour authorities being charged with collecting the surcharge, is there a conceivable conflict of interest where a shipping company owns a port or has an interest in a harbour authority?
Mr Harper
The hon. Gentleman makes a very good point that illustrates why I will have legal powers to enforce whether a port levies the surcharge: to deal with any issues where there is a conflict. He makes a perfectly fair point, and we have thought about how to deal with it.
Our analysis shows that the arrangement that we have set out will capture the vast majority of ferries to the UK, but without including services such as deep-sea container services or cruises. Those services will remain out of the Bill’s scope, because they do not call at UK ports frequently enough that the seafarers working on board could be said to have sufficiently close ties to the UK.
We will continue to engage with industry throughout the passage of the Bill. We intend to consult on regulations and supporting guidance, which will include setting the framework within which harbour authorities will set their tariffs for surcharges and the method of calculating the national minimum wage equivalent rate.
It is important to remember that the Bill is just one part of a wider plan to protect seafarers’ welfare. It will not solve all the issues brought to light by P&O Ferries’ actions, but it is an important step. That is why we continue to discuss seafarer protections and welfare with a range of close European partners, including discussions about the creation of minimum wage equivalent corridors to encourage the payment of fair wages on entire routes. To continue to improve the protection of working conditions for seafarers, we are developing the voluntary seafarers’ charter.
Luke Pollard
There has been a race to the bottom, with P&O Ferries creating a toxic culture, but not all ferry companies are doing the same. Brittany Ferries operates out of Plymouth; it provides a significant lifeline route between Plymouth, Roscoff and Santander that is vital for our exports of agriculture and fisheries products. Does the Secretary of State agree that it is not about P&O Ferries alone? There are examples of good practice among UK ferry operators; it could well be improved, but it is good practice. The race to the bottom that P&O Ferries started is not one in which all UK and French ferry operators want to participate.
Mr Harper
The hon. Gentleman raises a very good point. The point of the Bill and the nine-point plan is to ensure that ferry operators that want to operate in a responsible way are not forced out of business or forced to drop their standards by unscrupulous operators. He also makes the point that services to Plymouth are incredibly important; speaking as a south-west Member of Parliament myself, I want to make sure that they can continue.
Mrs Natalie Elphicke (Dover) (Con)
May I draw attention to the much better behaviour that we have seen from DFDS, which operates out of the port of Dover? On port-to-port agreements, will my right hon. Friend confirm that some of the issues that have been raised—including rosters, the Maritime and Coastguard Agency’s overview of the intensity of the Dover-Calais route, and matters outside the simple question of wages—can be better addressed within that framework between our two nations?
Mr Harper
My hon. Friend has put an enormous amount of work into the matter, following P&O’s behaviour. She is focused at all times on solving the issues on behalf of her constituents; I know that her conversations with my predecessors focused on fixing the problem in the long term and on supporting operators that want to raise standards in the sector. I thank her for all her work.
The charter that we are developing, in conjunction with the maritime industry and various social partners, will enhance the core employment protections available to seafarers. As part of that plan, the Department for Business, Energy and Industrial Strategy will introduce a new statutory code of practice to address fire and rehire, which it will publish for consultation in due course. My Department is also taking steps to encourage more ships to operate under our flag and to improve the long-term working conditions of seafarers beyond pay protection, as my hon. Friend has just set out.
The measures in the Bill will help to ensure that employees working on vessels that make regular visits to UK ports can no longer be exploited by unscrupulous operators. Following the mass sacking earlier this year of P&O Ferries staff, some of whom had worked for the company for four decades, we promised to act. The Bill demonstrates that we are doing so. We are sending a message to every operator: if you want to serve UK ports on a regular basis, and if you want to carry passengers to and from our country, you must meet our high standards. I commend the Bill to the House.
Rail Services: North of England
Mark Harper Excerpts(1 year, 11 months ago)
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The Secretary of State for Transport (Mr Mark Harper)
Members will be aware that, in July 2022, Avanti West Coast experienced an immediate and near total cessation of drivers volunteering to work on passenger trains on rest days. In response, it has had to reduce its timetable to provide greater certainty for passengers.
Similarly, TransPennine Express services continue to be impacted by the loss of rest day working, higher than average staff sickness levels, and historically high levels of drivers leaving the business.
The current rail services in the north have therefore been unacceptable, and on November 30 I met with the northern Mayors in Manchester. In that meeting, we agreed that the rail industry is not set up to deliver a modern, reliable service, and that we need both short-term and long-term measures to address this.
As a short-term measure, Avanti West Coast and TransPennine Express have both been rapidly increasing the number of drivers they employ. This is helping Avanti restore the services that it was forced to withdraw. Services increased in September, and have now increased to 7 trains per hour, restoring the full Manchester-London service. It is therefore disappointing that passengers will not see the full benefit of these changes until the current wave of industrial action is over. I was pleased to see the RMT call off the strike action scheduled for Avanti West Coast on 11 and 12 December, as sustaining this level of service will require the support of the trade unions.
I have also given TransPennine Express and Northern the scope they need to put a meaningful and generous rest day working offer to ASLEF. However, giving operators a mandate is only the first step. ASLEF needs to enter negotiations, and put any new deal to its members and, if accepted, do all it can to make that deal work. TransPennine has made a generous revised offer to ASLEF and it was almost immediately rejected without being put to members. It is up to the unions to decide if they want to improve services, for the good of passengers and the wider economy in the north.
Today, the RMT is on strike across the country again, disrupting services and driving passengers away from the railway. In my meeting with the Mayors, we all agreed on the need for a reliable railway seven days a week. That means not having fragile rest day working agreements and breaking the railway’s dependence on rest day working altogether. No modern and successful business relies on the good will of its staff to deliver for its customers in the evening and at the weekend. I want a railway with rewarding jobs, contracted to deliver every service promised to the public. I want to encourage passengers back to a financially sustainable railway.
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Railway Infrastructure: England and Wales.
Mark Harper Excerpts(1 year, 11 months ago)
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The Secretary of State for Transport (Mr Mark Harper)
I should like to make a statement on the settlement for the next five-year funding period for railway infrastructure in England and Wales.
Maintaining and renewing our country’s rail infrastructure is critical to delivering the railway that passengers and freight companies expect, and for supporting economic growth. Every five years the Government are required to set out what we wish to achieve from the operations, maintenance and renewal of the railway. This is done through a document known as a high-level output specification, and the funding available is set out through a statement of funds available.
I am today, 1 December, publishing the objectives and funds available for operational railway infrastructure in England and Wales for the next control period, control period 7. This covers the period April 2024 to March 2029.
The Government fully recognise the critical role that rail services played for business, key workers and our society during the covid-19 pandemic, and the vital role that they play in connecting communities and supporting economic growth.
The high-level output specification makes it clear that the Government will press ahead with rail reform, addressing the challenges facing the sector, such as fragmentation and outdated working practices, with a strong continued focus on operations, maintenance and renewal. This strong continued focus is important in supporting a safe, efficient and reliable railway for passengers and freight customers.
Achieving these objectives will be facilitated by significant Government investment as set out in the statement of funds available, with Network Rail spending around £44 billion over the period April 2024 to March 2029. The Government now expect Network Rail to develop detailed plans to deliver on these objectives, working closely with its customers. These will then be subject to strong and effective scrutiny by the Office of Rail and Road, as independent regulator, to develop robust, credible, value-for-money plans for the next control period.
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Oral Answers to Questions
Mark Harper Excerpts(2 years ago)
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Gareth Johnson (Dartford) (Con)
The Secretary of State for Transport (Mr Mark Harper)
The protesters’ actions at Dartford in October put drivers, police and highways agency staff in danger and caused misery to thousands of ordinary people. National Highways works closely with the police to respond robustly to these incidents and to prosecute those responsible. In my first few days in this job, I instructed National Highways to seek a further injunction to cover the M25, to deal with those protesters, and I am pleased that the Court has granted it, to defend ordinary people going about their daily business.
Gareth Johnson
I am grateful to the Secretary of State for his answer, and I welcome him to his position. He will know that the lack of crossings east of the Thames makes the Dartford crossing particularly vulnerable to not just protesters but all other kinds of incident. Does he agree that this makes it all the more imperative that we have the lower Thames crossing built as soon as possible, to provide some resilience to the existing system?
Mr Harper
My hon. Friend is a doughty campaigner for the lower Thames crossing. He will know that National Highways has submitted a new application for a development consent order for that crossing to the Planning Inspectorate. A decision on whether to accept the application for examination is due next Monday. As it is a live planning application, I hope he will appreciate that it would be inappropriate for me to comment on the substance of it at this time.
The Secretary of State for Transport (Mr Mark Harper)
Local transport services are crucial to the growth and levelling-up agendas, which is why the Government are investing in our local transport services by providing more than £2 billion to support bus and light rail services throughout England, as well as investing unprecedented sums to enable cycling and walking. We continue to work with local transport authorities and public transport providers to ensure that these vital services reflect the needs of those who rely on them every day.
James Grundy
Can my right hon. Friend update me on the progress towards reopening Golborne and Kenyon Junction stations to reconnect the great constituency of Leigh with the national rail network?
Mr Harper
My hon. Friend is a doughty champion for his constituents. My officials continue to work closely with the Greater Manchester Combined Authority on the proposal to open a new rail station at Golborne as part of the £1 billion city region sustainable transport settlement announced earlier this year. Local partners are currently producing an outline business case to support the proposal, which we expect to receive and consider in due course. Bids to open Kenyon Junction station were submitted in the second and third rounds of the ideas fund, but were sadly unsuccessful.
Mr Mohindra
I welcome the Secretary of State to his place. Unfortunately, I have had countless pieces of correspondence from my constituents about buses in my local area of South West Hertfordshire. Services are typically infrequent and consistently late. Can he update the House as to what he is doing to ensure that those services are more reliable so that we can continue to encourage people to use public transport?
Mr Harper
I am grateful to my hon. Friend for raising that issue and I am sorry to hear about the difficulties that his constituents are facing in accessing bus services. I know from my constituency how vital bus services are for individuals to get to work and to access education and healthcare. We are engaging with bus operators and local authorities to help to resolve the challenges that they face. The national bus strategy sets out our vision for bus services across England to deliver better bus services. To that end, we are investing more than £1 billion to support local authorities to deliver their bus service improvement plans, including £30 million for Hertfordshire County Council, which will support improvements to bus services in his constituency.
Antony Higginbotham
Bus routes across Burnley and Padiham are vital to local connectivity and give residents a link to jobs, leisure and essential public services. Too often, however, they are late or cancelled, which has a particular impact on those in rural parts of Burnley, such as Worsthorne and Cliviger. Does the Secretary of State agree that buses are not nice-to-haves but an essential service for local residents? Will he ensure that they are given the priority that they need to continue to improve that service?
Mr Harper
I agree with my hon. Friend about the importance of local bus services. We know that the bus sector continues to face a number of challenges, including driver shortages, which are resulting in some services being reduced or cancelled. We are working with the industry to resolve that. As I said in my previous answer, we are investing substantially to improve bus services; he will be pleased to know that £30 million of the funding that we have supplied has been allocated to support improvements to bus services in Lancashire, including in his Burnley constituency.
Daniel Zeichner (Cambridge) (Lab)
The taxi and private hire sector provides vital services in many parts of the country, but it now faces the prospect of VAT on fares, which could have a damaging effect. I raised the issue at the last Transport questions and sought a meeting with a Minister, but the industry was offered a 10-minute surgery appointment. Can the Secretary of State ask his diary secretary to look at that again? This is an important issue that deserves proper investigation.
Mr Harper
I certainly agree with the hon. Gentleman about the importance of taxi services for constituents. I will speak to the Under-Secretary of State for Transport, my hon. Friend the Member for North West Durham (Mr Holden), to secure the hon. Gentleman a longer meeting so that he can discuss it in more detail.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Secretary of State talked about £2 billion of investment in buses, and we know that 4,000 new buses have been promised, but will those new buses all have mandatory provision of audiovisual information? I have long supported the Guide Dogs’ “Talking Buses” campaign to help the blind to navigate their way on public transport. The Government have still not introduced secondary regulations for mandatory provision of audiovisual information on new buses. When will that happen and would he be willing to meet?
Mr Harper
I am very familiar with the issues that the hon. Gentleman raises, having served for a period in this House as the Minister for disabled people. I do not have the specific information to hand, so I will write to him and then, if appropriate, a meeting can be secured with the relevant Minister.
Mr Clive Betts (Sheffield South East) (Lab)
The last Prime Minister but two—I think I have got the number right—promised we would have London-style bus services in constituencies such as mine. He said people would be able to go to the bus stop and they would not need a timetable as the buses would be that frequent. We do not need a timetable on many routes in Sheffield now because the buses have been scrapped altogether and routes cut, so instead of a bus improvement plan, we now have a disintegration of bus services. Will the Secretary of State confirm that the covid grant, which has been extended to early next year, will be extended for the whole of the next financial year, because that is the only thing now keeping some bus services running in my constituency? Will he also arrange the meeting I asked for during the last Transport questions with Ministers for myself, local MPs and the Mayor?
Mr Harper
I am glad the hon. Gentleman mentioned the covid pandemic, because that has caused a number of issues for a range of transport providers. We are still seeing that bus users have not returned to using buses since the covid pandemic, and that puts those bus services under tremendous financial pressure, which is exactly why we put the support in place to deal with the pandemic. We have extended it through to the end of March, as he knows, and we will keep that under review, depending on what the situation requires. I know how important buses are, but the impact of the pandemic on buses and rail services is a challenge, and the important thing is to encourage people back to using buses to grow revenue and make sure the sector is financially sustainable.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
There is no point in making promises to level up communities through transport if Ministers announce yet another punishing rail fare rise next month. A 3.8% rise, like this year, would mean £129 more for an annual season ticket between Chester and Manchester, and 8% would mean Swindon to Bristol commuters paying £312 extra. The retail price index figure—the usual figure used for rail fare rises—of 12.3% would burden Dover to London passengers by an additional £909 every year. Given that the rail recovery is fragile and given the Conservative cost of living crisis, does the Secretary of State agree with me that now would be the worst possible time for yet another brutal rail fare rise?
Mr Harper
I am glad the hon. Gentleman raises that question because he flags up a very important issue. There are only two places that revenue can come from in the rail sector—the passenger, through the fare box, or the taxpayer. I am very well aware of the challenges facing people with the cost of living and inflation, but we also have to make sure that the cost does not fall on taxpayers, many of whom never use rail services. One of the things we will do as we are making this decision is to weigh up exactly those two things—the pressure on the passenger through the fare box but also the burden that falls on the taxpayer. We will balance those, and when we have made a decision, we will announce it in the usual way.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
I welcome the Secretary of State and, indeed, his whole team to their places, particularly the new Rail Minister—the Minister of State, Department for Transport, the hon. Member for Bexhill and Battle (Huw Merriman) —who has gone from a colleague and a friend to an adversary in just a few weeks.
Last week’s Budget slashed funding for the Department for Transport by 30% in cash terms over the next three years. At a time when investment in net zero transport and boosting regional connectivity is more important than ever, to abandon a key part of national investment is reckless and irresponsible, and it will cause further damage to the economy. What representations will he make to his Cabinet colleagues in the Treasury about reversing these cuts and putting transport funding on a proper footing?
Mr Harper
I simply do not recognise what the hon. Gentleman is talking about. I thank him for welcoming me to my position, but I was actually very pleased with the settlement in the autumn statement. The Chancellor confirmed that our capital spending remains as it was in the spending review. Yes, I do have to manage inflation pressures, but the Chancellor did not do what Chancellors sometimes in the past have been tempted to do, which is to cut capital funding in the short term. We have sustained that capital funding, and we are going to be spending £600 billion over the next five years on infrastructure spending to make sure we have long-term economic growth. I am very pleased that the Chancellor demonstrated that transport is part of our growth agenda in driving the economy forward.
Gavin Newlands
There was certainly a massive slash in resource funding for the Department for Transport.
Many fear that HS2 is in the firing line for departmental savings. We have already seen the Golborne link ditched, with no replacement in sight, hitting journey times from Scotland and the north-west of England. Rowing back on HS2 again would be another hammer blow for regional connectivity, so what assurances can the Secretary of State give that HS2 will go ahead in its current form and that those of us outside the M25 may see some benefit?
Mr Harper
Again, I do not recognise what the hon. Gentleman is saying. Our resource funding was confirmed in cash terms as well, so I do not know what autumn statement he was listening to, but it was not the one that the Chancellor of the Exchequer set out at the Dispatch Box. On his general point, as the Chancellor said, we are committed to the HS2 plans set out in the £96 billion integrated rail plan. We will set out our response to the autumn statement to manage inflation pressure in due course.
Mrs Emma Lewell-Buck (South Shields) (Lab)
David Duguid (Banff and Buchan) (Con)
The Secretary of State for Transport (Mr Mark Harper)
I am grateful to my hon. Friend for asking this question. I have granted consent to the Civil Aviation Authority to issue a licence to Britain’s first ever spaceport, paving the way for the first ever orbital space launch from the UK, or indeed from anywhere in Europe. The launch from Spaceport Cornwall remains on track for later this year. I pay tribute to my hon. Friend the Member for St Austell and Newquay (Steve Double), who is in his place, for his tireless campaigning on this issue.
David Duguid
I welcome all the new Ministers to their place and join the Secretary of State in congratulating my hon. Friend the Member for St Austell and Newquay (Steve Double) on the work being done in Cornwall. That is another example, along with the SaxaVord spaceport in Shetland, of the UK Government covering the whole country in glory. SaxaVord spaceport has just completed the construction of the first launchpad to be built in Europe to support the orbital launch of four small satellites for a major European client. Does my right hon. Friend or any of his Ministers have plans to visit the site where construction is going on of the other two pads?
Mr Harper
I am grateful to my hon. Friend for reminding us of the work that the UK Government do across the whole United Kingdom. The work at SaxaVord is very exciting and I hope to have the opportunity to visit it in due course. UK spaceports will launch highly skilled jobs across the United Kingdom while providing greater resilience for our critical national infrastructure capabilities.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The news that the Secretary of State will visit Shetland, I think for a second time, will be welcomed by all in the county and particularly in Unst. SaxaVord has three European companies testing their facilities for a launch, and it is an exciting development. When he visits, however, he will see the difficulties in developing something such as that on an island that requires the service of two ferries. When he leaves, he might therefore be prepared to support our campaign to have fixed links to replace the ferries in the future.
Mr Harper
I would be very pleased to visit Shetland again, which my right hon. Friend—I will call him that, as we worked together in government a number of years ago—represents so ably. On his specific point, those issues are devolved to the Scottish Government. However, as has been said from this Dispatch Box, I look forward to working in partnership with colleagues in the Scottish Government to focus on the priorities of people across the United Kingdom, including his constituents in Shetland.
Geraint Davies (Swansea West) (Lab/Co-op)
Peter Grant (Glenrothes) (SNP)
The Secretary of State for Transport (Mr Mark Harper)
The Chancellor announced a plan in last week’s autumn statement to tackle the cost of living crisis and rebuild our economy. As I said earlier, the Government will invest more than £600 billion in infrastructure over the next five years to connect our country and grow the economy. Transport investment will play a huge part in delivering that, and I will work to deliver a stable, long-term plan to run, maintain and expand our transport network across the United Kingdom.
Peter Grant
The Republic of Ireland is facing exactly the same global economic impacts as the United Kingdom, but the recent Irish Budget was able to increase support for transport across the southern part of that island. In contrast, the real-terms cuts we will see in the coming years will have a direct impact on transport spending in England and, significantly, in the devolved nations through the Barnett formula. Will the Secretary of State undertake to ensure that the transport needs of other parts of the United Kingdom are not sacrificed for those in London? Does he agree that all public transport infrastructure spending in Scotland should be according to the priorities of the Scottish Government, who were elected for that purpose?
Mr Harper
The hon. Gentleman is right that we will have to deal with the pressures of inflation, and the Government’s No. 1 economic priority is to reduce inflation as quickly as possible. Inflation is a global phenomenon, driven by the recovery from the covid pandemic and Russia’s war in Ukraine, but it is important that we deal with it.
The hon. Gentleman will know that I represent a constituency quite some distance from London. I am well aware that we need to spread transport investment across the United Kingdom, and I will make sure that I work closely with the Scottish Government on shared priorities, as set out in Peter Hendy’s Union connectivity review.
Alicia Kearns (Rutland and Melton) (Con)
I welcome my very good friend, the Secretary of State, to his place. Will he make spending in rural areas a priority? If we are to level up transport, we must not forget rural areas. On that point, will he look at the urgent need for Leicestershire County Council to build the Melton bypass, which is crucial to levelling up our transport? In addition, will he recognise that rurality matters when reviewing accident hotspots, because rurality can hide just how dangerous an accident hotspot is?
Mr Harper
I thank my hon. Friend, the Chairman of the Foreign Affairs Committee, for her kind words. On the priority for spending on transport in rural areas, I represent a rural constituency myself, of course, and am well aware of the extra challenges in rural areas. We will take those matters into account as we develop our plans, following our settlement in the autumn statement.
Louise Haigh (Sheffield, Heeley) (Lab)
As we have heard in concerns raised by Members on both sides of the House, a crisis facing millions of people across the country right now is the total absence of reliable and affordable bus services. How much of the promised bus service improvement funding has actually been handed to local authorities? When will the Secretary of State reopen applications to cover the 60% of the country that did not get a single penny in the initial round?
Mr Harper
Local authorities put in bids for significantly more than the £1 billion that was allocated. We selected a total of 34 counties, city regions and unitary authorities to benefit from that funding. We wrote to offer further practical support to all areas to which we cannot offer new funding. We will look at a further round of funding in due course.
Dr Luke Evans (Bosworth) (Con)
Peter Dowd (Bootle) (Lab)
The Secretary of State for Transport (Mr Mark Harper)
Last week, the Chancellor delivered his autumn statement, which confirmed that the Department for Transport’s budget for the next two financial years remains unchanged. That means we will invest about £20 billion in transport infrastructure in each of the next two years and spend about £6 billion a year to maintain existing infrastructure and operate vital transport services. In the coming weeks, I will work with my ministerial team and officials to assess our portfolio of projects.
Let me say a word or two on rail strikes, which I know are of interest to many Members. I want a sustainable, thriving rail network, but with 20% of passengers not having returned following the covid pandemic, reform is vital. I urge all trade union leaders to get back around the table with employers to hammer out the detail of that reform. The Government will work to facilitate this, and to that end I will be meeting trade union leaders in the coming days.
Peter Dowd
I welcome the team to their places.
National Highways is planning to plough a road through the much-loved and used Rimrose valley, the only substantial green space in my very urbanised constituency, at a cost of up to £365 million—and that was before the current inflationary crisis kicked in. Perhaps the money could be better used to level up my constituency more constructively, rather than being allocated to a project that is at least 25 years out of date. So will the Department ask Highways England to scrap these plans, which are unwanted and unnecessary, and which will simply exacerbate—
Mr Speaker
Order. You all want to get in. This is topical questions and you have to be sharp and punchy. Come on, Secretary of State, you will give an example.
Mr Harper
Let me try to give a short, punchy reply. National Highways is well aware that there are a range of opinions and views about its proposals for the A5036, and it is committed to working with all stakeholders to try to achieve the right result for all. I am sure that it will have heard the hon. Gentleman’s clear opinions expressed in this House.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
Mr Harper
My hon. Friend raises some important issues. The important thing from the Government’s point of view is that we tackle air quality. He will know better than me that how we do that and which schemes are run is devolved to local government, so it is devolved to the Mayor of London. I know that the Mayor has recently consulted on proposals to extend the ULEZ and is expected to announce the outcome, but those are matters for him. I know my hon. Friend will continue to campaign vigorously on them.
Dan Jarvis (Barnsley Central) (Lab)
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.
Patrick Grady (Glasgow North) (Ind)
Mr Harper
I am grateful to my right hon. Friend for her question and for her work when she was Home Secretary to strengthen the law to enable us to deal with those who cause disruption on our transport network. I would be delighted to meet her and the leader of Essex County Council to talk about those important road projects.
Wera Hobhouse (Bath) (LD)
Research from the Campaign for Better Transport suggests that the Government are so far behind on their electrification plans that rolling stock leasing companies are being forced to destroy electric units that they cannot use. At the same time, the Government continue to introduce new diesel trains—more not zero than net zero. Will the Government ensure that they order no more diesel trains and get on with electrification?
Sam Tarry (Ilford South) (Lab)
Last week the RMT voted overwhelmingly for strike action. Last night the Secretary of State said he would be prepared to meet the leader of the RMT. Some 50% of the public and passengers support those rail strikes. They should not just have been shaking hands last night, but they should be shaking hands today on a deal. The Secretary of State knows full well that he sets the flexibility and parameters for both Network Rail and train operating companies on the financial offer they can put forward. It is in his hands to end those strikes, and to do so today.
Mr Harper
As I set out at the start of topical questions, I very much want the strikes not to take place. I have set out my ambition for the rail sector and I will be meeting trade union leaders in the coming days, including later today. In order to pay for a better offer for rail staff, we need to deliver reform. That is why I want trade union leaders to get back around the table with the employers and hammer out the detail of those reforms. Then a better offer can be put on the table and we can end the need for these strikes, which cause enormous damage to passengers and businesses across the country.
Peter Gibson (Darlington) (Con)
May I thank the Government for all that they are doing to improve connectivity at Darlington, including the £135 million invested in Bank Top station? However, my constituents in places such as Harrowgate Hill and Whinfield still suffer from congestion and emissions on the roads. Can my hon. Friend guide me on what more I can do to ensure that we ease this gridlock by delivering a northern link road?
Richard Burgon (Leeds East) (Lab)
People expect the Government to be trying to help resolve these rail strikes, not block a resolution. How can the Transport Secretary claim that it is not his role to get involved when the Government are handing over tens of millions of pounds a day in indemnity payments to rail companies to back them up during this strike?
Mr Harper
I do not think the hon. Gentleman listened to my earlier answers. It is not my interest to block a settlement at all. I want to resolve this issue. I want to facilitate the trade unions and the employers getting together to hammer out some reform measures to help pay for a better pay offer for the staff. I will do everything I can to end these damaging and unnecessary strikes, and I hope he will do what he can to persuade the trade unions to get back around the table with the employers.
James Morris (Halesowen and Rowley Regis) (Con)
Tomorrow I will be visiting Whitcombe Pipelines in Rowley Regis, which has just won a substantial contract for HS2 infrastructure. Does the Secretary of State agree that this demonstrates how HS2 is already delivering significant benefits to my constituency, through jobs and growth, and that it is important that that is maintained?
Mr Harper
My hon. Friend makes a very good point. The supply chain for HS2 and the spending benefits constituencies and constituents across the whole of the United Kingdom, including his and, indeed, mine.
Clive Efford (Eltham) (Lab)
Before the pandemic, the rail services through my constituency suffered from chronic overcrowding, yet the Government used the pandemic as an excuse to cut peak-time services from my constituency without consultation of those rail users. What is he going to do to monitor the damage that he has done and to ensure that those services are restored when those trains get chronically overcrowded again?
Alison Thewliss (Glasgow Central) (SNP)
Some 73% of guide dog owners have been refused access to taxis, shops and restaurants in the past year. What is the Minister and his Department doing to improve access and ensure that guide dog owners such as my constituent Robert, and his guide dog Winnie, can get out and about with confidence?
Mr Harper
I am very familiar with that issue from my time as Minister for Disabled People. The behaviour that the hon. Lady describes is, of course, already unlawful. She has set out a specific case; if she writes to me with the details, we will look into it and see what further work we can do to make sure that the existing law to ensure fairness for guide dog owners is properly enforced across the United Kingdom.
Dr Neil Hudson (Penrith and The Border) (Con)
I, many constituents and countless people up and down the land struggle each week with the poor and unreliable service provided by Avanti West Coast. People are missing interviews, appointments, family events and social occasions. Can the Minister give the latest Government assessment of Avanti’s performance and confirm that nothing will be ruled out, including stripping it of its contract if it does not lift its game?
High Speed 2 Update
Mark Harper Excerpts(2 years ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Mr Mark Harper)
Review of High Speed 2, including programme update, local community impact and engagement, environment, benefits and programme governance. Forecast costs by phase (2019 prices) Phase Target cost Total estimated costs range 2 1 £40.3 billion £35 billion to £45 billion 2a To be determined £5 billion to £7 billion 2b western leg To be determined £13 billion to £19 billion3 HS2 East (west to east midlands)4 To be determined To be determined 1The numbers set out in the tables have been rounded to aid legibility. Due to this, they do not always tally. 2Rounded to nearest billion. 3Removal of the Golborne Link from the scope of the phase 2b western leg bill scheme reduces the overall estimated cost range of the phase 2b western leg to £13 billion to £19 billion. 4 The Government confirmed in the integrated rail plan (IRP) that a high-speed line between the west and east midlands (known as HS2 East) will be taken forward, with HS2 trains continuing to Nottingham, and to Chesterfield/Sheffield (via Derby) on the upgraded conventional rail network.
Overview
I am reporting continued progress on High Speed 2 in this, the Government’s fifth update to Parliament. Phase 1 (west midlands to London) remains within the budget and schedule range, is hitting construction milestones, has made progress on key procurements, and is supporting more jobs and apprenticeships than ever before. HS2 Ltd is progressing key activities for phase 2a to support the next stage of delivery, and since the last report the phase 2b western leg Bill had its Second Reading, in June 2022, and is progressing through the legislative stages. This report shows how, at this important time, we are continuing to grow the economy and bring communities together across the north of England, the midlands and the south.
Key achievements in this reporting period (February to August 2022 inclusive) are:
HS2 now has over 350 active sites between west midlands and London, since 2017 over 950 apprentices have been recruited and, as of September, over 29,000 jobs are being supported.
Laing O’Rourke Delivery Ltd has been awarded the contract for the construction of the HS2 interchange station at Solihull, worth up to £370 million (in 2022 prices). The contract will involve the finalisation of the detailed design and the subsequent construction of the station.
“Dorothy” became the first tunnel boring machine (TBM) to complete its first bore and is now preparing for the second parallel tunnel. The 1-mile tunnel preserves the ancient woodland above at Long Itchington wood. Four TBMs have now been launched on phase 1 and driven a total distance of approximately 8.4 miles.
In May, the Canterbury Road vent shaft became the first diesel-free work site on the HS2 programme. This is a significant step towards the project’s aim to be net-zero carbon from 2035.
The Phase 2b western leg hybrid Bill secured its Second Reading in the House of Commons, by 205 votes to six, and the first additional provision was deposited in July.
This report uses data provided by HS2 Ltd to the HS2 ministerial taskforce for phases 1 and 2a and covers the period between February 2022 and August 2022 inclusive. Unless stated, all figures are presented in 2019 prices.
Programme Update
Schedule
On phase 1 (London to west midlands), delivery continues to accelerate towards peak construction next year. The forecast for initial services from Birmingham to Old Oak Common remains within the range of 2029 to 2033, with HS2 Ltd currently reviewing its detailed construction and systems installation schedules to address some pressures within this range.
Phase 2a (west midlands to Crewe) remains on track to be delivered between 2030 and 2034. Land possessions and enabling works are under way. The next stage is to appoint the design and delivery partner who will oversee the construction phase, award the advanced civil works contracts and begin the early stages of procuring the main works capacity.
On phase 2b western leg (Crewe to Manchester), the delivery into service date range remains 2035 to 2041, as provided in the strategic outline business case.
Affordability
The approximate cost range for the elements of the scheme committed to by the Government for phases 1, 2a, 2b western leg is £53-71 billion in 2019 prices. This range does not include HS2 East, which is at an early stage of development and cost estimates are subject to further work from HS2 Ltd and Network Rail
Phase 1 remains within its overall budget of £44.6 billion, which includes contingency held respectively by HS2 Ltd and by the Government. The previous HS2 Minister noted in his last report to Parliament his concern at the steady increase in cost pressures on phase 1 reported alongside drawdowns in contingency. In accordance with the arrangements in its development agreement with the Department, HS2 Ltd has indicated that, if unmitigated, the final delivery cost is likely to exceed its target cost of £40.3 billion, based upon its forecast of future spending. As a result, in September the Department commissioned HS2 Ltd to develop and implement actions to bring projected costs back in line with the target cost.
To date, out of the phase 1 target cost of £40.3 billion, £18.3 billion has been spent, with an additional £1 billion for land and property provisions, and £10.6 billion has been contracted and has not been spent. The remaining amount is not yet under contract. The target cost does not include Government-held contingency.
HS2 Ltd has drawn £1.5 billion of its £5.6 billion delegated contingency for phase 1—an increase of £0.2 billion since the last update—leaving about £4.0 billion.
HS2 Ltd is projecting around £1.9 billion of net additional cost pressures on phase 1—an increase of about £0.2 billion since March. Of the £1.9 billion, the key pressures are:
An estimated £1.1 billion (increase of £0.3 billion since the last update) for potential additional main works civils costs stemming largely from lower than planned productivity and additional design costs.
A pressure of £0.4 billion on the cost estimate for the HS2 Euston station. The move to a smaller, less complex 10-platform, single-stage delivery strategy at Euston, as confirmed in my predecessor’s report, is now the basis for ongoing design work and other activities. The Department anticipates that this will assist in addressing some of the cost pressure at Euston as the updated station design is developed over the coming months. This work will also consider and address the appropriate level of contingency that should be held to manage risks that are likely to arise during the construction of an asset of this complexity. I will provide further updates as this work progresses over the course of the next 18 months.
A pressure of £0.3 billion (increase of £0.1 billion since the last update) against HS2 Ltd’s budget for changes to Network Rail infrastructure at Euston and Old Oak Common that are required to operate the new HS2 stations.
A further £0.1 billion of net cost pressures presenting on other parts of the programme. This is the aggregate total of smaller potential cost pressures.
A total of £0.8 billion of net savings and efficiencies have been identified within phase 1. These principally consist of savings across the main works civil portfolio and savings in the acquisition and resale of land and property. These have partly offset gross cost pressures resulting in the net figure above.
On covid-19 costs, HS2 Ltd’s assessment of the likely financial impact of the pandemic on delivering phase 1 remains estimated within the range of £0.4 billion to £0.7 billion. Further claims are subject to detailed scrutiny by the Government and will only be allocated against contingency once this assessment has been finalised. Further detailed claims are currently under review by HS2 Ltd and further updates will be provided in future parliamentary reports.
Following confirmation of the move to the more efficient 10-platform station design and single-stage build at Euston station, significant elements of the design work on the original 11-platform station can no longer be used. As the cost of this earlier design work has ceased to be of future benefit to HS2 Ltd, the related costs were reported as an “impairment” in HS2 Ltd’s published annual report and accounts for 2021-22.
The phase 2a budget remains unchanged, with a cost range of £5.2 billion to £7.2 billion. The Government intend to set a target cost alongside publication of the full business case.
On phase 2b western leg, the financial case of the strategic outline business case published in January 2022 presented an estimated cost range of £15 billion to £22 billion. Removal of the Golborne link from the scope of the phase 2b western leg Bill scheme has reduced the overall estimated cost range to £13 billion to £19 billion.
Consistent with the rest of the economy, the HS2 programme is experiencing high levels of inflation. HS2 Ltd is working with its suppliers actively to mitigate inflationary cost increases. The Department for Business. Energy and Industrial Strategy and Office for National Statistics September construction update showed that construction materials across all work in the UK have experienced inflation of 18% from August 2021 to August 2022. While inflation is not affecting the overall affordability of HS2 in real terms, because the total budgets and cost estimates for each phase are set in 2019 prices, it is creating pressures against its existing annual funding settlements, which have been set in cash. I am clear that HS2 Ltd and its supply chain must do all that they can to mitigate inflationary pressures.
Delivery
Work continues at pace on phase 1, with several significant developments to report. Across the programme HS2 Ltd reports that it has moved 24.4 million m3 of earth, the equivalent of over 9,760 Olympic-size swimming pools’ worth. The new launching gantry “Dominique” has installed the first decks of the Colne Valley viaduct, which will be the longest railway bridge in the UK. The viaduct will carry the new high-speed line across a series of lakes and waterways on the north-west outskirts of London. Across the phase 1 route, 8.4 miles of tunnel work has been driven so far. Progress has recovered well following an enforced shutdown to investigate and learn lessons from a small tunnel fire that took place in May this year. TBM Dorothy safely completed the first bore under Long Itchington wood in Warwickshire in July.
At Old Oak Common, station work continues with the Old Oak Common and Park Royal Development Corporation, the London Mayor and the Department for Levelling Up, Housing and Communities to bring forward proposals for the regeneration of the area around the station.
Stage 1 of the two-stage design and build contract for Birmingham Curzon Street station is expected to conclude later this year, subject to agreement of an affordable target price.
In July, HS2 Ltd awarded the contract to design and build the interchange station in Solihull to Laing O’Rourke Delivery Ltd. The contract, worth up to £370 million (in 2022 prices), will see work in two stages to finalise the detailed design and then build the station. HS2 Ltd continues to work collaboratively with private and public sector stakeholders to support the ambitions of the Urban Growth Company and the local authority to realise the economic and social benefits of HS2 and provide up to 30,000 new jobs and 3,000 new homes.
HS2 Ltd continues tendering for phases 1 and 2a rail systems packages (including track, catenary, mechanical and electrical, power, control and communications).
At Euston, HS2 Ltd and its construction partner, Mace Dragados, are continuing to optimise design and construction efficiencies. Work progressing on site includes demolitions, piling of the station box structure, the construction of a relocated London underground traction sub-station, the creation of a new utility corridor and construction of a new six-storey site accommodation block. In parallel, HS2 Ltd and Network Rail, with support from the Euston Partnership, are working together to develop a cost-effective design that provides integration between the HS2 station and the redevelopment of the Network Rail station and delivers value for money. Lendlease, the Government’s master development partner at Euston, hosted the first in a series of public exhibitions and outreach events due to take place over the next year to gather feedback from the community and understand how proposals for a Euston masterplan can support local aspirations.
On phase 2a, early environmental works continue at multiple sites along the route and the design for enabling civils works progresses at pace. Illegal protestors were successfully evicted from two key sites.
The phase 2b western leg Bill had its Second Reading in June 2022. The first additional provision (AP1) was deposited on 6 July, giving effect to Parliament’s instruction to remove the Golborne Link from this Bill while alternatives are considered. HS2 Ltd has held eight in-person events and three webinars ahead of depositing the first AP, attended by over 400 people. 134 petitions against the Bill and 21 against AP1 were received and a Select Committee is being convened to consider these petitions. A supplement to the strategic outline business case was published at Second Reading, setting out the impact of removing the Golborne Link from the Bill on the scheme’s business case. As the Bill progresses, HS2 Ltd is working to develop a robust future delivery strategy for the scheme.
The Government are continuing work to develop plans for HS2 East, a new high-speed line between the west midlands and east midlands, which would enable HS2 to serve Nottingham and Sheffield (via Derby and Chesterfield). Development of plans for HS2 East is being carried out by HS2 Ltd and Network Rail, in conjunction with work to electrify the Midland main line. The output of this work will be used to inform future decisions on how to progress the scheme, including how HS2 East can support economic growth aspirations in the region. The Government have recently provided funding to support the East Midlands Development Company to develop a revised HS2 growth strategy to reflect proposals for HS2 East.
Local community impact and engagement
Local impacts are unavoidable on a project of the scale of HS2. However, I expect HS2 Ltd to do its utmost to reduce disruption where it is reasonable to do so and to treat communities affected by construction with respect, sensitivity and professionalism. Independent construction inspectors continue to assess the considerate delivery of HS2 works. Following a public recruitment process, the Government announced on 25 April that Stewart Jackson had been appointed for three years as the independent HS2 residents’ commissioner.
The HS2 helpdesk has recorded 181,585 enquiries or complaints since its launch in 2018. I am pleased that 100% of urgent construction enquiries and complaints between April and August 2022 have been responded to within two working days.
The community and business funds (CEF and BLEF) are available to communities and business groups that are disrupted by construction of the railway. Over £12.4 million has so far been granted to 216 projects, helping HS2 to leave a positive legacy in areas near the new railway.
In its 2021 community engagement strategy, “Respecting People, Respecting Places”, HS2 Ltd committed to continue to involve communities in opportunities to benefit and learn from the project. So far, 9,258 engagement activities have taken place along the line of route, with 101,614 people attending. HS2 Ltd has visited 91 primary schools, involving 7,598 children in “playing it safer” sessions.
Protestors have continued to target land required for construction of the railway. HS2 Ltd estimates that illegal protest has cost the project £36.5 million in direct costs and around £110 million in consequential costs, such as delays, to date. HS2 Ltd has successfully enforced several civil injunctions. In September 2022 it was granted a route-wide injunction by the High Court, prohibiting trespass on and obstruction of access to land owned by the Secretary of State that HS2 Ltd is entitled to possess. It is not intended to prevent lawful protest. The injunction is now active along the phase 1 and 2a routes. The injunction order contains provision for the injunction to be discharged or varied at any time and is relisted for renewal each May.
Land and property
In 2020, a comprehensive review of land and property acquisition led to 36 proposals for change, intended to improve the experience of property owners affected by the new railway. I am pleased to report that, two years later, all 36 proposals have been progressed as far as possible, including HS2 Ltd’s online portal that makes it much easier for property owners to track their claims. I continue to seek further improvements in the operation of HS2 land and property schemes and the treatment of people impacted.
Environment
Over 800,000 trees and shrubs have been planted as part of HS2’s green corridor.
HS2 continues to be at the forefront of efforts to decarbonise construction and to leave a positive environmental legacy. Since the last report, the first diesel-free construction site has started in action, including using the UK’s only electric crawler cranes. The programme has successfully trialled hydrogen fuel cells to replace large diesel generators, eliminating noise and air quality impacts for local residents. It has also made use of cutting-edge Formula 1 technology to use fuel more efficiently. New conveyor systems have been introduced, for example in Warwickshire, to reduce impacts to residents by reducing HGV traffic on local roads.
To support the achievement of biodiversity targets, £1.5 million of funding has been provided for six environmental enhancement projects in the Trent Sow parklands and Cannock Chase area of outstanding natural beauty associated with phase 2a.
HS2 Ltd will publish the latest environmental sustainability progress report soon, which will provide up-to-date information on HS2’s environmental impacts and activities. HS2 Ltd will also shortly publish its ancient woodland summary report, with details of how it is mitigating impacts on these irreplaceable habitats.
Benefits
I am delighted that, as of September, HS2 is supporting over 29,000 jobs. To date, 2,580 businesses are already working on the project—over 60% are SMEs and 97% are UK-based. The programme will create 2,000 apprenticeships, with over 950 having been recruited since 2017, and there have been 2,200 jobs starts by people who were previously workless.
The Government will publish an HS2 local growth action plan later this year on how we will continue to support HS2 places to realise their local growth and regeneration ambitions.
On active travel, the Department has asked HS2 Ltd to assess making design changes in five more locations on phase 2a, in addition to the 20 locations HS2 Ltd is already committed to making design changes on phase 1. HS2 Ltd is continuing to assess the feasibility of repurposing haul road and maintenance access tracks for local community benefit, with pilot projects being progressed.
The Government are exploring how we can support inward investment opportunities linked to HS2 and particularly how we can encourage large national and international investors to consider investing in places with HS2 stations and the surrounding areas.
Programme Governance and Controls
An updated HS2 Ltd framework document was published in August. It governs the corporate relationship between the Department and HS2 Ltd, confirming key responsibilities, accountabilities, and expectations. I will provide an update on the recruitment of a permanent chair for HS2 Ltd in my next report. Until the permanent chair is in place, Sir Jonathan Thompson will continue to chair board meetings in his capacity as deputy chair.
Forward Look
On phase 1, preparation continues for a TBM launch at Long Itchington wood to create the second bore, before this TBM is moved to Bromford tunnel in Birmingham. Following the recent successful launch from West Ruislip of the TBM named Sushila by local schoolchildren, preparations are under way for the next TBM to be launched from this site shortly.
In the next six months, HS2 Ltd will further develop its approach to managing the supplier alliance that will be delivering the rail systems packages such as track installation, overhead catenary and signalling systems. This will include developing and testing its internal processes and systems to manage the integration risk between the 14 different suppliers, development of its leadership capability and the evolving governance arrangements as it moves from a civils-led programme to a systems and operability-led programme.
I will continue to engage closely with Parliament and will provide my next update in spring 2023.
Rail Investment and Integrated Rail Plan
Mark Harper Excerpts(2 years, 11 months ago)
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Gavin Newlands
Thank you, Madam Deputy Speaker. I have a Front-Bench role here, but I have only four lines left, so if the right hon. Member for Knowsley (Sir George Howarth) had let me finish, I would have taken up less time.
The UK’s plans, in contrast, leave much of the north of England stuck with those 19th-century services and infrastructure. It is time for the UK to learn from elsewhere, from Scotland, from Denmark—from anywhere, frankly, because anywhere else would have a rail policy that lasts longer than a Downing Street Christmas party. Other countries are joining up and truly are levelling up, but the UK Government continue to ensure that for huge swathes of England, the only way is south.
Mr Mark Harper (Forest of Dean) (Con)
On a point of order, Madam Deputy Speaker. I understand that the Prime Minister’s official spokesman has now confirmed that a Downing Street press conference hosted by the Prime Minister will take place at 6 pm. As of course I am sure the Government will want to ensure that this House hears from a Government Minister no later than the time of that press conference, may I ask whether Mr Speaker has received a request from the Government for a statement to take place in this House no later than 6 pm, to enable the Government to set out any proposals that are coming forward and to allow Members of this House to ask important questions on behalf of those we represent here?
Madam Deputy Speaker
I thank the right hon. Gentleman for that point of order. As I understand it, we have not had notification of a statement as yet, but I will ensure that that is confirmed and, if there is anything further that I need to add, I will do so. I call Andrew Jones to speak, with a four-minute time limit.
International Travel
Mark Harper Excerpts(3 years, 4 months ago)
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Grant Shapps
Of course reciprocity is very important. I have already explained the situation with the United States, and reciprocity would involve it not having Executive Order 212(f) in place, which would immediately relieve some of the issues. They still have 50 different ways to verify tests, because there is no central system—each state has its own version. The European example is better, as the right hon. Gentleman says. I am working very closely with my European counterparts and in regular contact with them. We wanted to have a first phase in place as quickly as possible—easy to verify through the UK vaccine programme—but we will move as quickly as possible to the next phase, to satisfy his concerns, working with other countries, including on the EU digital passport.
Mr Mark Harper (Forest of Dean) (Con) [V]
I very much welcome this statement from the Secretary of State and also his restatement of the significant financial support being given to the sector. Is it his judgment that these changes will allow the sector to stand on its own feet from a business viability perspective, or are we still going to have to put significant sums of public money into it? We need to have this debate, because every bit of caution that people advocate comes with a price tag that must be met by the taxpayer, and that debate is essential as we go forward.
Grant Shapps
It is worth reflecting that this country is leading the way. I was having a look at which other major economies in Europe are going for an unlock as we expect and hope to do on 19 July, subject to confirmation next Monday, and I do not see any other countries that are opening up domestically quite as much. I know my right hon. Friend agrees that it is time to learn to live with the coronavirus. We have many advantages this year that we did not have last year, including easily available testing that is much reduced in price, and vaccination and immunisation that is accessible to all adults. That means that we can move to what will, I think, become the new world of aviation. To answer my right hon. Friend’s question, from my conversations with the aviation sector in particular I know that many of them have downsized but are now ready to start upsizing gradually as we come out of what has been the most horrendous couple of years on record for that sector.