Open Access Rail Services

Martin Vickers Excerpts

Tuesday 10th July 2018 Westminster Hall

[Martin Vickers (Cleethorpes) (Con)]

I beg to move,

That this House has considered open access rail services.

It is a pleasure to serve under your chairmanship, as always, Mr Hollobone. It is noticeable that the audience is fleeing just as the highlight of the day is coming on.

I secured this debate for two reasons: first, because I think the present system of rail franchising needs a certain amount of reform; and, secondly, because I am conscious that an open access operator will shortly put in an application to the regulator to deliver direct rail services to my constituency. I hope the application will be for four trains a day each way serving Scunthorpe, Grimsby and Cleethorpes, because that would be a great boost to the local economy.

Just last week, the Government acknowledged the important part that northern Lincolnshire and the Grimsby-Cleethorpes area have to play in the northern powerhouse, when the Northern Powerhouse Minister and Lord Henley from the Department for Business, Energy and Industrial Strategy visited north-east Lincolnshire to sign the pilot town deal, which promises considerable investment in the area. It also recognises the importance of the Humber estuary and northern Lincolnshire in particular to the national and regional economy.

The reality is that the south bank of the Humber is badly served by rail at the moment. The hourly service to Manchester airport is very welcome. It provides connections to Doncaster and Sheffield, which link to many parts of the country, but businesses and many Members of Parliament would greatly benefit from a direct train service.

I note that the former Rail Minister, my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard), has joined us. I think I am right that he once described himself as an apostle of open access. Hopefully, he will continue to argue that case in the higher reaches of Government, to which he has succeeded in climbing. I hope the new Minister—I welcome him to the debate—has similar views. In recent appearances before the Transport Committee, the Secretary of State seems to have been more sympathetic and warmer to the concept of open access.

In my part of the country, Hull Trains has given a considerable boost to the economy of the north bank of the Humber. Grand Central, which I think is about to submit an application, will hopefully do the same for the south bank.

[Mike Hill (Hartlepool) (Lab)]

My constituency also benefits from open access services run by Grand Central, which covers Yorkshire and the north-east to London. It is a vital service, but this year it has been struggling and not performing very well. Does the hon. Gentleman agree that the recent frequent cancellations, the failure of air conditioning units and the overcrowding are worrying signs that require investigation?

[Martin Vickers]

I acknowledge what the hon. Gentleman says, and I have to say that I have experienced similar problems on some of my own journeys. Hull Trains, in particular, has recently gone through a rather bad spell, from which it has now hopefully recovered. That does not take anything away from the concept of open access which, as the hon. Gentleman acknowledges, has provided services to towns off the main east coast and west coast lines. That is essential if we are to develop the north-east and Humberside economies.

[Stephen Hammond (Wimbledon) (Con)]

Will my hon. Friend give way?

[Martin Vickers]

I give way to yet another former Transport Minister.

[Stephen Hammond]

Does my hon. Friend agree that the concept of open access could drive efficiency back into the railway system, where it is needed? He mentioned the failure of the franchising system. Network Rail’s inability to link to the requirements of the operator is one fundamental problem with the rail system. A slot auction system for access could give Network Rail an incentive to align itself with the operators’ objectives.

[Martin Vickers]

I thoroughly agree. My hon. Friend’s experience as a former Minister makes that a particularly relevant point.

We are currently experiencing record private investment in UK rail. In 2016-17, that investment totalled £925 million—the highest since records began. The vast majority—£767 million—was spent on rolling stock. Some of that went to Hull Trains.

Given the other demands on the Budget, the idea that more taxpayer investment would go towards the railways was a myth. I know the Opposition’s policy is to renationalise the railways, but those of us who remember the nationalised system know that, in fact, it spiralled down because of a lack of investment. The reality is that there are so many calls on Government investment that transport does not get what it deserves. If the Government have a choice between investing in the health service and improving the rail services to Cleethorpes, I rather suspect that the rail services to Cleethorpes would suffer.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

On that point, I am a Labour and Co-operative Member of Parliament, and there are proposals for the co-operatisation of the railways. An open access operator—Go-Op—is developing a route in the south-west. Diversifying rail ownership is a big priority for the Co-operative party and for me as a Member of Parliament. Does the hon. Gentleman agree that we need diversity of ownership in the system?

[Martin Vickers]

I am perfectly happy to have diversity of ownership—that is what the free market would most likely deliver. Sadly, the history of British Rail did nothing to encourage my enthusiasm for a nationalised system. Indeed, British Rail ended the direct service to Cleethorpes in 1992.

There has been record investment and record numbers of journeys in recent years. Passenger numbers fell under British Rail but, since privatisation in 1994, the numbers swelled to 1.65 billion in 2015—almost triple the low point of 1982. Although there have been clear failings by Virgin Trains, it is vital to look beyond the headlines. Thanks to the Transport Secretary’s efforts, rail efficiency has been improved, ensuring that passengers and taxpayers get maximum value. On average, 97% of every pound of passengers’ fares goes back into the railway, which is very welcome.

Since Virgin took over its franchise in 2015, it has contributed more to the taxpayer than when the service was publicly run. Refurbished trains, additional services and improved ticketed access are just a few of the benefits that passengers have experienced. Of course, Virgin is not blameless in the debacle, but it is not alone. Network Rail, the publicly owned element of the railways, failed to deliver the promised improvements on which Virgin based its final projections.

I have been reassured by the Transport Secretary’s commitment to a new approach from 2020, with the first regional public-private partnership on the route. The partnership will have one brand, one management team and one leader, which will ensure that it is transparent and accountable to both Parliament and passengers.

A privatised franchise system on the east coast is preferable to the publicly owned system that preceded it. It has also been improved dramatically by the advent of open access operators, which provide constant competition to drive up standards and outcomes for passengers. The main problem is that the rail industry has been reformed to an unsatisfactory halfway house between nationalisation and privatisation. The solution, contrary to what many in the Opposition would argue, is not to nationalise the whole system—the experience of British Rail shows where that will take us—but to push ahead with privatisation and extend the market by allowing open access on other lines which could benefit so greatly from it. The hard left so often tell us that true communism has not been tried, but in actual fact true competition has not been tried on our rail network.

Open access could be a logical component of the Prime Minister’s mission, which she set out at the party conference last year, saying of free markets that she was

“prepared to reform them when they don’t work.”

The rail service is a prime example of a market underperforming. The solution, rather than to take the market out of the picture altogether and reverse all the progress made over the past few decades, is to reform the market, taking on the monopolies so as to expand it and allow it to flourish.

Competition must extend beyond the bidding stage to avoid the winner being granted a complete monopoly. The message to existing franchise operators and bidders should be clear: expect competition in future.

[Luke Graham (Ochil and South Perthshire) (Con)]

My hon. Friend is making strong points about competition and bidding. Is it not also incumbent on the Government to refine their bidding process, ensuring better information for potential rail service providers so that contracts may be structured to work for the long term?

[Martin Vickers]

That is an important point. It is essential that we move in that direction.

What has been the impact of competition to date? As I said, passenger journeys have increased by 42% on competitive lines, compared with 27% on those that have no competition; revenue has increased by 57%, compared with 48%; and average fares have increased by only 11%, compared with 17%. The east coast main line has open access operators such as Grand Central Trains and Hull Trains. Other rail lines around the country would do well to replicate that model.

Open access operators take no support from the taxpayer. The open access model creates competition on the line, which has led to fantastic results. In fact, since that has been the case on the east coast, the main line has had the highest satisfaction ratings in the country. The east coast open access operators deliver the very highest rates: in 2015 First Hull Trains and Grand Central each had a 94% passenger satisfaction rate, which was the joint highest score of all operators. That was confirmed in 2016 and 2017 in the passenger satisfaction surveys conducted by the Competition and Markets Authority.

In 2016, the CMA recommended more on-track competition generally, either with much more open access to compete with franchises on the same lines or with multiple operators to provide services in a fully commercial environment. Unlike the CMA, however, the Government are yet formally to declare their support for the principle of extended open access. Perhaps the Minister will take up the offer to do so this afternoon.

Open access competition has led to new routes being opened or reopened. Without open access on the east coast main line, would places such as Sunderland, Hartlepool, Halifax and Bradford have the frequent, direct and high-speed long-distance services from which they now benefit? Something similar desperately needs to be replicated in northern Lincolnshire.

The business community has made its support for open access clear. On services to northern Lincolnshire, the Hull and Humber chamber of commerce stated:

“Hull Trains have done an outstanding job for the city in improving our rail service from a one a day return with the main franchise holder (GNER) some years ago to seven a day now.”

In the north-east, the chambers of commerce have been equally supportive.

Some argue that more open access will reduce the franchise premium. I acknowledge that protection should be offered to the franchise holders given that they pay such a large amount for the privilege of operating services, but I ask the Minister what is more important: the Treasury getting additional resources or the passenger getting better services? Without doubt, we should focus on the passenger.

To conclude, I restate the importance of services into northern Lincolnshire, which have the support of business and of the local community who want the services for leisure travel. As I said, the Government gave northern Lincolnshire the title “energy estuary”. It is an important part of the northern powerhouse, which has focused too much on the north-west and the Leeds-Manchester-Liverpool triangle. An opportunity now exists to provide a boost to the local economy in many of our regions and provincial towns, and coastal communities in particular. I urge the Minister to do all he can to support the requirement for services into northern Lincolnshire. I very much hope that the application to the regulator in the not-too-distant future will be successful.

[The Minister of State, Department for Transport (Joseph Johnson)]

It is a pleasure, Mr Hollobone, to serve under your chairmanship, which I am sure has played its part in attracting not one but two illustrious former Rail Ministers to the debate.

I congratulate my hon. Friend the Member for Cleethorpes (Martin Vickers) on securing the debate and on the landmark town deal for Greater Grimsby that was agreed last week. More than 8,800 new jobs and nearly 10,000 new homes will be delivered in Greater Grimsby, including his proud constituency of Cleethorpes, thanks to a deal worth £67 million. The deal encompasses improvements to key roads and the establishment of enterprise zones to attract and support businesses in the area, further increasing investment and employment.

Competition through open access on the rail system has delivered benefits to parts of the network, as my hon. Friend highlighted and as the Competition and Markets Authority noted in its 2016 report on rail competition. For a number of years we have had successful open access operators on the network, such as Hull Trains and Grand Central, delivering important services to the communities that they serve.

In the right circumstances, therefore, the Government have supported open access applications—for example, Hull Trains’ successful application to run innovative services in 2017 in support of Hull’s year as the city of culture. Those services gave many more people the opportunity to enjoy the city’s excellent showcase, and they still operate today.

Ultimately, the independent Office of Rail and Road determines applications to run open access services based on industry consultation and its own analysis, balancing the range of statutory duties, which include benefits for passengers; the financial impact on the Government and, critically, existing passengers; and the performance impacts on the network. Grand Central’s 2016 application to run services to Cleethorpes was not granted by the ORR, but as a Department we want future applications that offer genuine benefits for passengers, serve new markets such as Cleethorpes and deliver innovative services that complement the existing franchising system. We made that position clear in “A Strategic Vision for Rail”, published last November, and in the guidance we issued to the Office of Rail and Road last July.

It is important to pick up on the point made by my hon. Friend about open access operators not receiving any Government subsidy. It is true that we do not directly subsidise open access operators, but they do not pay towards the fixed costs of the network on which they operate, nor do they contribute towards the vital social services that the franchised operators that they compete with deliver. That creates something of an uneven playing field, which distorts the incentives of operators and means that we cannot realise the full benefits of competition for passengers.

The CMA recommended that, with robust reforms in place, open access could deliver benefits for passengers. The Department for Transport and the Government agree with that assessment. That is why we are working closely with the ORR on its proposals for reforming track access charges in the next rail control period CP6 from 2019 to 2024. Under those reforms, open access operators will pay an appropriate amount towards the fixed costs of the network where they can. We support that as a vital step in creating a level playing field between franchised and open access operators.

We have also consulted on a possible public service obligation levy. The levy would complement track access charging reform so that open access operators would also pay towards the social services that franchises deliver to many stations—those stations would not have the levels of service they do today if the free market was left entirely to itself. The Government offer greater passenger choice through the franchising system to deliver social as well as economic benefits. A greater contribution from open access operators towards the costs of the railways and a more level playing field should lead to more opportunities for open access services, but it is critical that we get the reforms in place first so we can start on the right footing.

It is important to state that franchised operators will still deliver the vast majority of services. We need public accountability to ensure everyone can benefit.

[Martin Vickers]

I welcome the Minister’s comments, particularly on creating a level playing field. Does he acknowledge that it would be beneficial for perhaps two franchise operators to operate on some of our main lines, such as the east coast? That would provide competition between them.

[Joseph Johnson]

Indeed, in 2016 the Competition and Markets Authority said that there could be a greater role for open access of up to 30% of train paths on some routes. It suggested that it would like two to three open access operators on each inter-city route—east and west coast—and also on the Great Western main line. That recommendation was subject to important reforms to ensure that the open access operators make that appropriate contribution towards the cost of the railway. Those reforms were the ones I mentioned: to track access charging and the introduction of a public service obligation. Both would therefore see open access operators pay a sufficient contribution towards the overall cost of the railway.

It is right that government retains sufficient control over services and fares as well as operator profits through franchising contracts. Those contracts allow government to ensure the provision of socially and economically beneficial services that the market would not otherwise provide and protect passengers by regulating certain fares. It is also right to recognise the role that franchising plays in rebalancing the economy—franchise payments from the most heavily utilised parts of the network fund services in other regions, thereby maintaining the national network and providing a range of economic and social opportunities that would not otherwise materialise.

Open access has an important role to play in delivering new, innovative and commercially viable services for passengers, but it must fulfil that role as part of a railway that serves as a national asset and not just a business. That means operating alongside and complementing a franchising system that allows the railway to shape and support people, businesses and the economy all over the country.

Question put and agreed to.

Govia Thameslink/Rail Electrification

Martin Vickers Excerpts

Tuesday 3rd July 2018 Commons Chamber

[Joseph Johnson]

Yes, we are working very carefully with GTR and the rest of the industry to ensure that proper compensation is made available to everybody who has suffered on the most severely affected routes. We have already done so for passengers on Northern and other bits of the north of England. We will make an announcement about compensation for passengers on severely affected GTR routes, Thameslink and Great Northern shortly.

[Martin Vickers (Cleethorpes) (Con)]

I attended an event last week at which many senior members of the railway industry were present. Clearly, it was well known that these problems would exist if the new timetable were introduced. What is the Minister doing to ensure that the industry advises him and his colleagues of any problems that may exist in the future?

[Joseph Johnson]

The Secretary of State has set up an independent review chaired by Professor Stephen Glaister, who is the chair of the Office of Rail and Road. He is looking at all the lessons that need to be learnt from the May timetable changes to ensure that we do not repeat the same mistakes in December 2018 and with subsequent timetable changes of that scale.

Oral Answers to Questions

Martin Vickers Excerpts

Monday 30th April 2018 Commons Chamber

[Jake Berry]

I am a bit more optimistic for the north-east than the hon. Lady, because we are now entering a new golden era for the north-east, which can be seen in the Government’s commitment of more than £300 million—[Interruption.] Does the hon. Lady want to hear about what we are doing for the north-east? That new golden era can be seen in the Government’s commitment of more than £300 million to the Tyne and Wear metro, which the hon. Lady campaigned for, and in the historic devolution deal north of the Tyne. On top of that, this summer the first great exhibition in this country for 160 years will take place in Newcastle-Gateshead, showing that the north-east is at the heart of our northern powerhouse.

[Martin Vickers (Cleethorpes) (Con)]

17. Although the people of northern Lincolnshire want nothing to do with the recreation of County Humberside or being linked into Yorkshire, they are very happy to be part of the northern powerhouse initiative. What specific proposals does the Minister have that would benefit my constituency?

[Jake Berry]

We are already investing some £67 million in the Humber and the Greater Lincolnshire local enterprise partnership, and I note that £20 million of that is going into my hon. Friend’s constituency. He will be aware that we committed in the industrial strategy to work on a business case for a Grimsby and Cleethorpes town deal. I hope that, in demonstrating that success, we can put our northern power towns at the heart of the northern powerhouse.

Oral Answers to Questions

Martin Vickers Excerpts

Monday 12th March 2018 Commons Chamber

[Dominic Raab]

I welcome that scrutiny. It is very difficult to establish a negative in the way the hon. Gentleman suggests, but I can reassure him, first, that we have the housing delivery test in the NPPF, which will focus local authorities and developers on the delivery of new homes, and, secondly, that there is the review by my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) of build-out rates, which will squarely address the point he is concerned about.

[Martin Vickers (Cleethorpes) (Con)]

18. What steps his Department is taking to devolve power to towns and cities.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Jake Berry)]

For areas that have not agreed deals so far, we aim to be able to provide clarity on how best to take forward their ambitions for devolution and local growth over the coming months.

[Martin Vickers]

The Minister will be aware that the Greater Lincolnshire deal collapsed last year, despite its having the support of an overwhelming number of the local authorities. Will the Minister look favourably on a revised scheme from a smaller number of authorities in the county?

[Jake Berry]

Devolution could almost be regarded as the golden thread of Brexit. If we want to take back control, we should bring powers not just from Brussels to London but from London back to our regions. Last Friday, I met borough and county councils in both Gainsborough and the city of Lincoln, and I was struck by the pent-up demand for devolution in Lincolnshire. I suggest that my hon. Friend use his considerable leadership role to drive forward devolution in his area.

National Planning Policy Framework

Martin Vickers Excerpts

Monday 5th March 2018 Commons Chamber

[Sajid Javid]

What the hon. Gentleman highlights, I think, is the need for more competition in the market: having more people involved and not just some large developers who tend to dominate the market in some areas. I therefore hope he will welcome the measures in the draft planning code to encourage smaller builders and the support we provide through the home building fund.

[Martin Vickers (Cleethorpes) (Con)]

The housing demand in northern Lincolnshire is very different from that in London and the south-east. May I urge the Secretary of State to always be mindful of that and not to put local planning authorities in a straitjacket of guidelines? Will he also ensure that the guidance is sufficient, so that local authorities do not grant planning permission without the necessary infrastructure and access to essential services that new housing developments need?

[Sajid Javid]

My hon. Friend makes a very good point. There are regional housing markets—the London market is very different from housing markets in other parts of the country—so he is right to highlight that point. On infrastructure, it is very important that the local authority plans for the right infrastructure. That means help from developer contributions, but also from the Government. That is why I hope he welcomes the housing infrastructure fund.

Public Transport: Boxing Day 2018

Martin Vickers Excerpts

Wednesday 24th January 2018 Westminster Hall

[Martin Vickers (Cleethorpes) (Con)]

Will the hon. Gentleman give way?

[John Grogan]

It gives me great pleasure to give way to the chair of the all-party rail group, no less.

[Martin Vickers]

It is in that capacity that I wanted to say that the hon. Gentleman is very welcome to come along to the group next time we have a meeting of the train operating companies to put the question directly to them. At the moment, unless it is in their franchise, very few of them provide a service. They ought to be more enterprising—we need more competition in the rail network.

[John Grogan]

I accept that the spirit of enterprise should be there, and I have some good news for the hon. Gentleman before I sit down. I will certainly take up his invitation—it will be one of the highlights of my parliamentary year to come to such an august body.

I do not want to adopt a particularly party political approach, but I would make a gentle reflection to both Front Benchers—it is a great pleasure to see the shadow Minister for Rail, my fellow Yorkshire MP and hon. Friend the Member for York Central (Rachael Maskell) in the debate, and I am glad she is taking an interest. There has been a tendency, as we might expect, that when parties are in opposition, they draw attention to this problem. I spoke to the office of the hon. Member for Wimbledon (Stephen Hammond) earlier today and pointed out that I would gently draw attention to his quote from 2008, where he said:

“Thousands of families travel the length and breadth of the country to visit relatives and loved ones on Boxing Day. But yet again this year the railways will grind to a halt, forcing people onto gridlocked motorways… Labour just do not get how important the railway is to people at Christmas-time.”

My hon. Friend the Member for Middlesbrough (Andy McDonald) has rightly mentioned that quote every Boxing day since he has been in office, and rightly asks for progress. However, I have not yet seen either Front-Bench team say that we definitely will make progress. However the railways are owned, and whether or not the major franchises come back into public ownership under a Labour Government, I hope a commitment can be made to Boxing day transport. I hope both parties can commit themselves to that.

I said there was potential good news for Boxing day 2018. That is largely concentrated in the north of England. For the past three years, Merseyrail has run a service. That shows the power of devolution. Merseyrail has a particularly close relationship with the Mayor of Liverpool and the councils on Merseyside, which have a greater consultative role in relation to the terms of the franchise and so on.

--- Later in debate ---

[John Grogan]

I agree with the hon. Member for Moray (Douglas Ross). We have to provide a quality service such that people know when the trains are running and that they will be of good quality. We cannot run a ramshackle service, because people will not use it. My worry would be that someone would say, “Why are we running these services at all?” as happened south of the border in 1980.

As I said, Merseyrail has been running services. This year, it was very enterprising, to use the word of the chair of the all-party rail group. It contacted Liverpool football club, which had an evening kick-off at 5.30 pm, and provided trains well into the evening so that supporters could not only get to the game, but get back afterwards. Northern Rail, for some reason—I am not sure how this came to be the case and whether it was down to an enlightened Minister or an enlightened civil servant—has to provide under the terms of its franchise 60 services in the north of England on Boxing day 2018. I am very hopeful that some of those may even go to Keighley, because I have had a very helpful letter from the chair of the West Yorkshire combined authority, Councillor Keith Wakefield. He says that it is working with the Department for Transport and Transport for the North, perhaps to enhance the 60 services and have more. The letter states:

“The consultation response submitted by WYCA noted that the Leeds North-West network (the Airedale and Wharfedale lines) were identified as a likely priority for Boxing Day services in the Leeds City region, not least reflecting the high levels of demand they attract at weekends/holidays and reflecting the extent to which the signalling is automated (which could reduce costs).”

If Bradford City are at home this year, I will look forward, possibly, to getting on to my local train service, on the Airedale or Wharfedale line, to get to the match.

In this more optimistic picture, TransPennine rail has an obligation in its franchise to make proposals to Ministers and to Transport for the North to run services across the Pennines. I understand that it has emphasised making proposals for the aforementioned Manchester airport, and that that is with Ministers and Transport for the North. I very much hope Ministers take an enlightened approach. I well remember a meeting about this in 2009 with Lord Adonis, marvellous man that he is, but I think that he rather humoured me and his mind was on High Speed 2 and very important projects such as that. These are little details, but I feel confident that this Minister is a man of such detail.

[Martin Vickers]

On the subject of TransPennine, which provides the main services via the south trans-Pennine route between Manchester airport and Cleethorpes, when the Minister has those discussions, will he make special mention of the fact not only that my constituents want to get to Manchester airport, but that of course people will flock in their thousands to Cleethorpes, where Grimsby Town will probably be playing at home next Boxing day?

Oral Answers to Questions

Martin Vickers Excerpts

Monday 22nd January 2018 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

Regeneration in Cleethorpes will be greatly assisted if the Government can conclude discussions with the local authority about a town growth deal under proposals by the Greater Grimsby project board. When do Ministers expect to reach a conclusion?

[Jake Berry]

I met members of the board of the Grimsby town growth deal on a recent visit to Cleethorpes and the town of Grimsby. I am sure that my hon. Friend will be as pleased as I am that the growth deal was specifically referenced in the industrial strategy, and I encourage him to contact the Secretary of State for Business, Energy and Industrial Strategy to talk about how it can be taken forward.

Vagrancy and Homelessness: Cleethorpes

Martin Vickers Excerpts

Wednesday 17th January 2018 Westminster Hall

[Martin Vickers (Cleethorpes) (Con)]

I beg to move,

That this House has considered vagrancy and homelessness in Cleethorpes.

It is a pleasure to serve under your chairmanship, Ms Ryan. I welcome the new Minister to her place, as this is the first debate to which she has responded. We expect great things from her.

There is a growing problem of vagrancy in Grimsby and Cleethorpes. In my constituency, the main hotspot is Cleethorpes town centre, particularly around St Peter’s Avenue, the High Street and in the marketplace. Its shops and vibrant night time economy make it a natural attraction for people who, unfortunately, have to go begging. That continues through the day and into the evening. Although I seek to address both sides of this complex matter, on this occasion my focus is on vagrancy and begging, as it is clear from what residents and traders have expressed to me and to the local media that they are extremely concerned.

Whatever reason people have for resorting to begging, in almost every case it is extremely complex. Their circumstances are often driven by drug and alcohol addiction. As a compassionate society, we want to do all we can, but we also owe it to business people to address the issue—on many occasions, traders in Cleethorpes have put their life savings and many years’ work into establishing and maintaining their businesses. Last Saturday morning, I spent some time speaking to several traders on St Peter’s Avenue where the worst of the problem manifests itself. They made it clear that they consider the presence of beggars on the street bad for business.

Begging is a complex issue that is not unique to north-east Lincolnshire—it is a national issue. Caring and unsuspecting members of the public can often be lured into unwittingly giving money with the best of intentions, but without knowledge of the consequences.

At a recent community meeting in Cleethorpes, chaired by the ward councillor, residents and traders complained about vagrancy and expressed a range of concerns to representatives from the local council, Humberside police and Harbour Place, which is a local outreach charity. Dave Carlisle from Harbour Place began the meeting by highlighting that 50 people are sleeping on the streets of north-east Lincolnshire. Sadly, that is roughly double the number of only a year ago. It is clearly something that needs attention and we must do all we can to tackle the underlying problems.

Though linked, the issue of homelessness is separate to that of vagrancy. I have been reassured by the steps that the Government have taken to eliminate homelessness. Last year, the Government supported the introduction of the Homelessness Reduction Act 2017 by my hon. Friend the Member for Harrow East (Bob Blackman), which will provide vital support and is backed up by additional funding for local authorities to cover the costs of their new responsibilities.

The Government have committed to halve rough sleeping over the course of this Parliament and to eliminate it by 2027. The new homelessness reduction taskforce will do vital work to realise that ambition. In the autumn Budget, the Chancellor announced £28 million for three Housing First pilots in Manchester, Liverpool and the west midlands to support rough sleepers and turn their lives around. I hope that that can be rolled out across the country soon. Although the problem is at its worst in our major cities, I appeal to the Government to recognise that the local economies of smaller towns could be badly affected if the issue is not addressed.

In the areas I have mentioned, there is a serious problem of what the local council refers to as “active beggars”—people who are not homeless but who use begging as a way of making money. One of the main concerns expressed at the recent community meeting in Cleethorpes was that residents simply do not know who is homeless and who is not. A report by North East Lincolnshire Council to its communities scrutiny panel in December stated:

“There are approximately 16 active beggars currently known to agencies in North East Lincolnshire. The local beggars who frequent our public spaces do have complex needs which are predominantly around drug addiction. The vast majority have access to accommodation and are not deemed to be homeless. They have refused to engage with the services and it is evident that they continue to beg in order to obtain money which in most cases will be used to fund their drug addiction.”

According to Thames Reach, in 80% of cases, money given pays for a drug or alcohol addiction and the person begging is not actually homeless. Humberside police advised my constituents,

“to not give them anything directly, and if you want to donate to those less fortunate please do so through reputable sources like Harbour Place and other charities… We understand that the issue needs to be addressed, and our officers have been out and about everyday, with plans to further increase patrols.”

The beggars identified would not engage with the support agencies, so enforcement has been difficult. In the first instance, support is offered to individuals. If enforcement is necessary, it takes the form of community protection warnings and community protection notices, which are issued for unreasonable behaviour and the detrimental effect it has on the area. So far 15 warnings have been used by the council, of which seven have progressed to notices.

The “Think Before You Give” campaign has been launched. Careful joint communications have been developed due to the sensitive nature of the subject and the perception of the general public and the media that the beggars are homeless, vulnerable and in need of financial help. As the authorities continue to curb begging on our streets, the council will keep pushing the campaign and urges local businesses to get behind it.

Both residents and businesses feel intimidated, on some occasions, by the presence of beggars. Local traders feel that their businesses are being affected, particularly when beggars camp outside their premises and ask for money from potential customers. Local traders want the police to move them on more quickly.

Recently, a court heard about elderly people who took pity on Lisa Bentley after she started begging on St Peter’s Avenue. Her efforts to make money did not go down well with the Cooplands bakery because of fears that trade would suffer. The police were alerted because the assistant manager felt that Bentley would have a detrimental effect on trade by sitting there. A lot of elderly customers were willing to put money in the cup and, therefore, to act in a way that was not necessarily in Lisa’s best interests. She has breached her bail condition not to go on to St Peter’s Avenue and is repeatedly to be seen in the area. There is almost always a beggar sitting next to the cash machine outside the Sainsbury’s Local in the avenue, which many constituents find intimidating.

Action is being taken. A fact-finding exercise was carried out early last year, followed by a multi-agency meeting that aimed to identify the genuinely homeless and those who require support, and to distinguish them from so-called active beggars who are not homeless. The initiative was supported by a range of agencies, including the Department for Work and Pensions, the council’s strategic housing home options team and antisocial behaviour team, the police and Harbour Place. That enabled work to focus on a specified number of known individuals, with the emphasis on initial support and engagement, followed by a scaled approach to enforcement that utilised the community protection warning or notice approach.

There is concern, however, that a recent crackdown in the neighbouring town of Grimsby has pushed the problem on to Cleethorpes. This problem has been particularly prominent since the police’s Operation Hercules, which was aimed at ending the blight of antisocial behaviour and crime. The operation was important work that involved 18 police officers and 12 police community support officers, as well as traffic officers and licensing officials, but it was rather Grimsby-focused. Although Grimsby and Cleethorpes are in effect the same town, such an approach tends to move the problem rather than getting to grips with it. Throughout December, the most prominent locations where vagrants gather in Cleethorpes were patrolled daily by police, with a permanent presence during normal working hours. That presence was welcome, but the strain on resources meant that it could not go on indefinitely.

There is a range of organisations that people in need can reach out to for access to help, including the council’s home options team, which will investigate cases of homelessness. The council has a statutory duty to provide temporary accommodation to anyone who presents as homeless, eligible for services and in priority need. Wider support can also be offered, such as debt advice via specialist money advisers. Harbour Place, the charity I mentioned, has been commissioned by the council to provide an outreach service to offer assistance and provide shower facilities, additional clothing and hot meals. St Peter’s church on St Peter’s Avenue is also actively involved.

The people whom unfortunately we see on the streets obviously have complex needs, but it is important to note that the council, police and local charities are working closely to find solutions. They should be reassured by the support that the Government have offered by implementing measures to provide local authorities with greater powers and resources to eliminate homelessness and vagrancy. My aim in securing this debate was to urge the Government to consider whether further legislation is required for local authorities, police and all the agencies—whether statutory or charitable—to provide a fully co-ordinated approach to the issue.

I acknowledge that, following the 2015 spending review, the Government are spending more than £550 million to tackle homelessness and rough sleeping in England by 2020. The largest proportion of that spending comes in the form of the £315 million homelessness prevention fund, which goes directly to local authorities. Those who have information about someone begging should draw that person’s attention to the proper authorities, which will be able to point them towards the help they need. Ultimately, handing over money is not helpful to the individual in question; it is far better to donate to homelessness charities such as Harbour Place, which are well placed to provide specific assistance.

I recognise that section 3 of the Vagrancy Act 1824 is written in rather Dickensian language, but it enables the police to arrest and charge anyone who is begging. The Highways Act 1980 states:

“If a person…wilfully obstructs the free passage along a highway he is guilty of an offence”.

Section 5 of the Public Order Act 1986 also has provisions that can be useful. I have mentioned community protection warnings and notices, which are more about unreasonable behaviour and its detrimental local effect than about gathering evidence to prove an offence beyond reasonable doubt, resulting in a fine imposed by a court.

This could be an early success for the Minister. Whatever the solution is, I urge her to instruct her officials to speak to North East Lincolnshire Council, Humberside police and others to see whether they are content with the legislative regime, whether it could be made more pro-active and whether further powers may be needed. Quite reasonably, the residents and business community in Cleethorpes are concerned about the matter. People in business have devoted their life’s work to setting up small shops and the like, and we urgently need to do something to help them.