Draft Franchising Schemes (Franchising Authorities) (England) Regulations 2024
Simon Lightwood Excerpts(1 week ago)
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The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
I beg to move,
That the Committee has considered the draft Franchising Schemes (Franchising Authorities) (England) Regulations 2024.
It is a pleasure to serve under your chairmanship, Mr Rosindell, to discuss the draft regulations, which were laid before the House on 9 September. I congratulate the hon. Member for Orpington on his appointment to the shadow Front Bench.
Buses are the most popular form of public transport, with 3.4 billion passenger journeys made on local buses in England in the year ending March 2023. They are an essential part of our national transport system in both urban and rural areas. Many people rely on buses to get them where they need to go, whether that is work, school, the hospital or the shops. Modernising transport infrastructure and delivering better buses is at the heart of the Government’s plan to kick-start economic growth in every part of the country and to get it moving. However, numbers of passengers and bus services have declined, with 2 billion fewer annual bus journeys in 2023 than in 1985, and almost 300 million fewer miles driven by buses in 2023 than in 2010. Enough is enough.
The Department for Transport is embarking on a reform programme to deliver its commitment to empower local leaders to take control of their bus services, and to support more integrated and effective bus networks. The better buses Bill, announced in the King’s Speech on 17 July 2024, is a major part of that plan, but the Department is taking more immediate action to support local leaders to deliver better buses.
The first step was taken on 9 September 2024, when the Department announced a package of bus franchising measures, comprising two elements, to support the plan. The first is the publication of a consultation to gather views on the proposed updates to streamline bus franchising, which will speed up and lower the cost of pursuing franchising for local transport authorities. The Department is considering the views it has received and will publish its response shortly. Secondly, this statutory instrument was laid to open up bus franchising to all local transport authorities.
Both measures support the Government’s aim of ensuring that local authorities have the tools they need to plan and deliver services in a way that suits their needs. Bus franchising is one of those tools. Under this model for providing bus services, local authorities grant private companies the exclusive right to operate in a specific area or on a specific route. The authorities retain control over key aspects of the service, such as routes, timetables and fares. Where bus franchising is in place—in London and now in Greater Manchester—buses have thrived. Greater Manchester has already improved reliability and significantly grown passenger numbers, less than a year after moving to franchising.
Bus franchising powers were created for local transport authorities in England outside London in the Bus Services Act 2017. The powers to begin a franchising assessment—essentially a business case—were automatically provided to mayoral combined authorities and mayoral combined county authorities. Currently, all other types of local transport authority wishing to prepare a franchising scheme assessment face a two-stage pre-assessment process. First, regulations must be made to switch on access to franchising powers. Secondly, the Secretary of State must give her consent to any individual authority to prepare an assessment of its proposed franchising scheme. This statutory instrument implements the initial stage of that process for all local transport authorities, ensuring that they will need only to obtain the Secretary of State’s consent to prepare a franchising scheme assessment. That will reduce the barriers facing those local transport authorities in pursuing bus franchising.
This statutory instrument, and the updated bus franchising guidance, is focused on what can be achieved quickly to bring much-needed reform to bus services. The Government are not mandating changes within this statutory instrument. Bus franchising remains optional, and local transport authorities are best placed to decide which approach is right for their areas. Our plan is about ensuring that local leaders have as many tools and options at their disposal as possible to deliver better services for passengers.
The Department will also provide dedicated support to local authorities interested in pursuing bus franchising. The next stage of our reform will be the introduction of the buses Bill, which will seek to make bus franchising even quicker and easier to deliver, to devolve funding and to improve accessible travel. It will also improve bus services for councils who choose not to franchise. The transformative work the Government are doing will turn the tide by giving communities the opportunity to control local bus services and have a real say in building the local transport networks that form part of their communities. I commend this statutory instrument to the Committee.
Simon Lightwood
I thank Members for their consideration of the regulations, and I will try to respond to the points they have raised.
On funding, the Government have committed to delivering better buses, and the investment confirmed in the Budget is the next stop in our journey towards improving services. We have confirmed investment of over £1 billion in 2025-26 to support improved bus services and to keep fares affordable. That funding includes £151 million to introduce the £3 national bus fare cap on single fares from 1 January until 31 December 2025; £640 million for local transport authorities to support and improve bus services in their bus service improvement plans; and £285 million for the bus service operators grant, to protect and continue the running of existing services.
Of course, officials now need to run a detailed business planning exercise to work out the exact allocation of those amounts. Local transport authorities and bus operators will see further information on that as soon as possible when the process is concluded. That investment sits alongside measures we have already undertaken to reform the bus system, including through the buses Bill, which will be introduced later in this Session, as we seek to ensure that local leaders have the powers they need to deliver better buses in their areas.
Let me turn now to how we will support local transport authorities to deliver franchising. The changes provide additional options to enable franchising, so that local transport authorities have the ability to choose the model that works for them. There is no one-size-fits-all approach; it could be franchising, municipal bus companies or enhanced partnerships. The Department for Transport is building its capacity to provide tangible, on-the-ground support for local authorities that wish to take back control of their bus services.
The buses Bill aims to make franchising easier and cheaper to deliver, to further reduce the barriers to bus franchising. The Department for Transport is working with stakeholders to determine how local transport authorities can best make use of the new toolkit the Bill will provide and deliver bus services suited to the needs of their local communities.
On rural communities, I would argue that local transport authorities are actually best placed to manage their local networks. By devolving powers to their areas and allowing them to take back control and have a greater say over the funding, we are leaving them much better placed to make decisions on rural bus routes than someone sitting in Whitehall or indeed Westminster.
This statutory instrument represents an important first step towards delivering the Government’s aim of ensuring that local authorities have the tools they need to plan and deliver services in a way that suits their communities, and the upcoming buses Bill will build on that progress. Through this statutory instrument and the Bill, the Government will deliver on their plan to improve bus networks and end the postcode lottery of bus services. That plan is centred on putting control of local bus services back into the hands of the local communities that use them, and will give local leaders more control and flexibility over bus funding, as well as the freedom to take decisions that deliver their local transport priorities.
This statutory instrument reduces the barriers that may prevent local transport authorities from pursuing franchising, and is a crucial first step in the process I have outlined. I commend it to the Committee.
Question put and agreed.
Taxi Licensing: Deregulation Act 2015
Simon Lightwood Excerpts(3 weeks, 1 day ago)
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The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
I do not know about you, Madam Deputy Speaker, but I feel a Westminster Hall debate may be coming soon.
First, I thank my hon. Friend the Member for Harlow (Chris Vince) for securing this debate. The taxi and private hire vehicle—or PHV—sectors provide a vital service to our communities. Whether that is taking elderly people to their hospital appointments or making sure that children get their education, every day our hard-working taxi and PHV drivers show up and deliver an excellent service. The benefits of having a thriving taxi and PHV sector should not be underestimated. These services play a crucial role in our leisure and tourism industries, taking passengers to and from airports and railway stations, and in our night-time economy, making sure that everyone—particularly young women and girls—can get home safely after a night out when other modes of transport might not be available. That is why I am so pleased to see this great industry being debated in the House tonight. I am sure that Members will recognise and applaud the work of our taxi and PHV drivers and operators.
Turning to my hon. Friend’s point about the Deregulation Act 2015, I would like to take this opportunity to share what I have learned about this issue since I became the Minister with responsibility for local transport. The 2015 Act did not enable PHVs to work anywhere; PHVs and taxis have always been able to fulfil bookings anywhere. Evidence submitted to the Transport Committee in 2011 shows that out-of-area working was an issue long before the Act. The Act enabled the subcontracting of bookings to operators licensed by other authorities, as was already allowed under the legislation that applies in London. That was introduced to enable an operator to more easily meet customer requests.
Dr Ahmed
I must declare an interest as the son of a long-standing taxi driver. Does the Minister agree that taxi drivers are, as they proved in covid, key workers and key to our economy, and furthermore, that in recent years their business costs, specifically their insurance costs, have risen to a prohibitively high level? Will he undertake to investigate the root causes of those rising business costs, which are stifling individual taxi drivers from maintaining their businesses?
Simon Lightwood
I thank my hon. Friend for his intervention. I agree that our taxi trade played a vital role during the covid pandemic. I will, of course, take his comments away with me.
Rather than decline or cancel a booking, if an operator did not have a driver and vehicle available, the ability to subcontract to another operator, often within the same company, meant passengers would be better served, as they would not have to find an alternative. The operator could do that for them. Ending the subcontracting of bookings to operators licensed by another authority would not stop out-of-area working. Under the current legislation, it would remain possible for a PHV or a taxi licensed by any licensing authority to carry passengers anywhere. If subcontracting was banned again, and banned in London for the first time, operators would be able to choose to license with a single authority or to have regional hubs and direct all bookings through those.
I turn now to cross-border hiring or out-of-area working, which I believe more accurately reflects the real issue. The difference—I hope we can all accept this —is that people naturally travel across local authority borders, and that some flexibility in the licensing system is beneficial to both passengers and the sector. Out-of-area working is the practice whereby the PHV driver licenses with one authority but intends to work predominantly or exclusively in other areas. PHVs provide a wide range of services, such as home-to-school transport, executive hire and other specialised services. We need to ensure that our regulation of the sector provides the necessary flexibility, while ensuring that local authorities have the tools they need to deliver on their objectives for the industry.
Sir John Hayes (South Holland and The Deepings) (Con)
I am extremely grateful to the Minister for giving way. He will not necessarily be aware—I would not expect him to be, nor the hon. Member for Harlow (Chris Vince), whom I congratulate on securing the debate—that as a Transport Minister, I commissioned a major piece of work on taxi licensing. The report was conducted by Professor Mohammed Abdel-Haq and all its recommendations were accepted by the then Government. They were focused on safety, and the relationship between the protection of passengers and licensing. I invite the Minister to take a look at that report. It is not partisan and I am sure there is much in it that might inform the debate and service some of the requirements that have been so admirably cited by the hon. Member for Harlow.
Simon Lightwood
I thank the right hon. Gentleman for his intervention, and I will certainly take a look at the report.
I understand that there are concerns about authorities’ ability to carry out effective enforcement in their areas, especially against drivers and vehicles that they have not licensed. We are considering numerous options to address that, but I would also urge caution. Certain options could have negative consequences, both for the sector and for passengers. Restricting operations could reduce the availability of services, increasing fares and waiting times for passengers, and bringing more dead miles for drivers. I am sure the last thing any of us would want to do is to drive members of the public into the cars of those who are unlicensed and unvetted, waiting at the roadside or offering rides on social media.
We also need to consider the context within which we are working. In England, there are 263 licensing authorities. A high number of authorities are, in some cases, responsible for licensing a very small number of drivers and vehicles which serve a small area.
Simon Lightwood
I will not give way; I mean to make some progress.
There is a balance to be struck here and the Government are committed to working with all stakeholders to get it right. Most if not all Members will, like me, have more than one licensing authority in their constituency. Our constituents do not live their lives within the boundaries of a local authority area. Their lives will take them across borders frequently. They may live in one area, work in another and socialise in a third, but they might still prefer to use their tried, tested and trusted local operator. It is therefore important for whatever actions the Government take to be examined in detail, so that all the possible benefits and consequences are fully understood.
Our taxi and PHV industry is, on the whole, very well regulated in terms of safety. We are all too aware of failings in the past and their awful consequences for the most vulnerable in society, and that cannot and must not ever happen again. Since those failings were identified, much has changed. Anyone who wishes to become a driver must be considered fit and proper to do so before any licence is granted. I thank my hon. Friend the Member for Telford (Shaun Davies) for his contribution; he has been a passionate and effective campaigner on this issue for many years. I am aware of the report, and I am happy to meet him to discuss it in more detail.
All authorities in England now require drivers to undergo enhanced DBS checks as part of the “fit and proper” assessment. A national database must be used to record all instances in which a driver’s licence is refused, revoked or suspended on safeguarding, road safety or unlawful discrimination grounds. In short, regardless of where in the country a driver is licensed, passengers can feel reassured that that driver has undergone extensive vetting.
Overall, our regulation is increasingly effective, but it is far from perfect, and a conversation still needs to be had about how we can ensure consistent standards for passengers across the country, and how we can put their safety at the heart of the sector. After all, some legislation harks back to the days when a taxi was a horse-drawn carriage. Some solutions may create more problems than they solve, which is why I need Members’ support. I ask them to work with the local authorities in their constituencies to ensure that authorities are using their existing powers appropriately. Safety must always come first, but putting up unnecessary, costly barriers to obtaining a licence, or making those who want to obtain a licence for where they intend to work wait months before they can start to earn a living to support themselves and their families, helps no one.
Overwhelmingly, those in the sector and those who seek to enter it want to do the right thing, and they need to be helped to do just that. We will continue to help authorities to make the best possible use of their existing powers. That must include authorities working together across boundaries in co-authorisation agreements, so that one authority’s enforcement officers can take action against drivers and vehicles licensed by the other authority. They can work with their local police forces in joint enforcement operations, or use the community safety accreditation scheme to equip their enforcement officers with targeted powers—such as the power to pull over taxis and PHVs at the roadside—so that they can do their jobs more effectively.
Out-of-area working is not, should not and need not be the norm, but we need licensing authorities to ask themselves if they are doing what is best for passengers. Just as we are asking local authorities to see what they can do, we are looking at what we can do to help the better regulation of the sector. A range of options is being considered, and I welcome the debate and the ideas of my parliamentary colleagues. I hope that we can work together to find a solution and continue to support a successful taxi and PHV trade, one that is safe, accessible and affordable, and one that continues to serve the wide range of needs of our diverse communities.
Question put and agreed to.
National Highways Maintenance and the A5036
Simon Lightwood Excerpts(3 weeks, 6 days ago)
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The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
It is a pleasure to respond to my hon. Friend the Member for Bootle (Peter Dowd)—although I agree with him: it is more of a pleasure to see you in the Chair, Mrs Harris.
Good transport connections are key to unlocking essential growth for cities, which is why I thank my hon. Friend for calling this debate. I note that this is the third debate that he has secured on the subject of the A5036; he is indeed a strong advocate for his constituents and for road users, campaigning extensively on the proposed improvements to this vital road in his constituency.
Transport links play a crucial role in supporting productivity, innovation and economic growth in cities, towns and communities. That is why the Government are determined to build a transport infrastructure to drive economic growth and opportunity in every part of the country and deliver value for money for taxpayers.
Our strategic road network is the backbone of our country’s economy: with 4,500 miles of motorways and major A roads, it connects people, builds communities, creates opportunities and helps the UK to thrive. Although it makes up only 2.4% of England’s overall road network, it is the most heavily used part, and carries a third of all traffic and two thirds of all freight. Transport is at the heart of this mission-driven Government. We will transform infrastructure to work for the whole country—to unlock growth, promote social mobility and tackle regional inequality.
The A5036 performs a number of important functions. It serves its local community as a commuter route, acts as a link for trips to and from Bootle, Maghull and Liverpool city centre and forms part of the strategic road network providing national routes to and from the port of Liverpool. My hon. Friend will be aware of the previous Government’s commitments to improve the A5036 Princess Way, and I know that he has long campaigned against the scheme, but he will also be aware that the Secretary of State has commissioned an internal review that will look at the Department’s capital projects. That review will consider the Department’s capital portfolio spending, including on road projects such as the A5036 Princess Way, and will include and inform the Department’s new long-term strategy for transport, developing a modern and integrated network with people at its heart and ensuring that transport infrastructure can be delivered efficiently and on time. He will appreciate that we are not yet able to provide assurances on any individual project at this time, but we will provide any updates once that review has concluded.
My hon. Friend raised an important point about finding a multi-modal solution that includes rail. I am aware of the commitment to find a multi-modal solution to port access and wish to acknowledge the work of the port access steering group, chaired by the Liverpool city region mayoral combined authority. He will be aware that the Liverpool city region mayoral combined authority is also consulting on its fourth draft of the local transport plan, which will include a strategy for freight and logistics. National Highways supported the city region to develop that plan, and the Department awaits its adoption with interest.
Turning to the issue of Park Lane footbridge, as my hon. Friend will be aware, the bridge was struck by a heavy goods vehicle in October 2022 and National Highways has since installed a temporary signal-controlled crossing for cyclists and pedestrians. National Highways has undertaken a review of possible solutions and determined, as he said, that a permanent signal-controlled crossing at all arms of the junction is the best solution. In considering that option, National Highways considered the need to provide safer journeys for everyone, including those with mobility issues, cyclists, and parents with pushchairs. I have heard my hon. Friend’s message on information sharing and candour loud and clear, and will of course discuss the issue with the Under-Secretary of State for Transport, my hon. Friend the Member for Nottingham South (Lilian Greenwood), who is the Minister for the future of roads.
National Highways is working with Sefton council and Active Travel England to develop the scheme, which will align with other schemes, including the nearby maritime corridor active travel scheme. National Highways expects to start work on the crossing in the next financial year. This is partly due to the need to co-ordinate roadworks at Park Lane and the Atlantic gateway maritime corridor, together with safety improvements at Switch Island, along with pavement resurfacing work, which is planned for delivery in the first half of 2025-26.
Peter Dowd
I heard what the Minister said in relation to the footbridge—another matter that I will take up. There was massive, major consultation on the replacement of the footbridge, and for some reason National Highways chose to ditch that plan without discussing it with anybody at all. That is the concern our concern. Nobody knows why. Nobody knows what the information was based on. That is where we are at. I would ask National Highways to hold on until we can pursue this further, because what it did is absolutely outrageous.
Simon Lightwood
As I say, I will take that back and discuss that further with the Minister for Future of Roads. I agree that maintenance of the strategic road network is of the utmost importance. The National Highways maintenance regime is guided by the standards contained in the design manual for roads and bridges. It has a programme of maintenance activities for the A5036 planned for this year, which I can assure my hon. Friend is mostly completed now. Outstanding works on the grass and vegetation will be completed by the end of this financial year.
My hon. Friend will also be pleased to know that National Highways is currently delivering a scheme to improve safety at Switch Island. This includes average speed cameras on the M57 approach and red light enforcement at some of the traffic signals on the junction. Those vital safety improvements will be completed by the end of this financial year.
I thank my hon. Friend once again not only for securing this debate and for the important points he raises—I will raise the issues of candour and information flow with the Minister for roads—but for his continued commitment to champion the needs of his constituents. I hope he is satisfied by the response I have provided, which has made it clear that the Department recognises the vital importance of good transport links for cities, regions and the whole United Kingdom.
Question put and agreed to.
Oral Answers to Questions
Simon Lightwood Excerpts(1 month ago)
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Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
Officials will continue to work with Children Railways to support the delivery of its fleet renewal programme to improve passenger experience and drive sustainable growth across the region. Chiltern is exploring options to expedite its procurement of additional trains while following robust assurance steps to ensure that it has a strong business case that delivers value for money for the taxpayer.
Dr Shastri-Hurst
Chiltern Railways has the oldest fleet of any operator at over 30 years of age, and additional capacity is needed to meet the demands of my constituents in Solihull West and Shirley. While I welcome the Department’s commitment to reducing overcrowding by moving more rolling stock to where it is needed in the network, can the Minister expand on the specific steps the Department is taking to reduce overcrowding on the Chiltern main line?
Simon Lightwood
Chiltern’s business case assesses both like-for-like and enhanced capacity rolling stock options. Like-for-like offers similar capacity to the current fleet but more modern trains to deliver a better customer proposition. Enhanced capacity would enable Chiltern to run more services to relieve crowding. Both options are still under consideration ahead of further market engagement. A final decision will be made taking into consideration value for money and affordability.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
Fabian Hamilton (Leeds North East) (Lab)
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
The Secretary of State has met the Mayor of West Yorkshire, Tracy Brabin, to discuss the vital role that mass transit can play in delivering sustainable economic growth and housing and to improve connectivity to jobs, healthcare and education in the region. The Department is working in partnership with the West Yorkshire combined authority to support the development of the combined authority’s business case, to help bring forward the benefits of mass transit in West Yorkshire.
Fabian Hamilton
Leeds North East is the only constituency in the city without a railway station. Leeds is the largest city in Europe without a rail-based public transport system. Plans for mass transit networks in West Yorkshire are essential for jobs and our local economy, so will the Minister join me in congratulating the Mayor of West Yorkshire, Tracy Brabin, on her plans to build a tram network in Leeds in the very near future?
Simon Lightwood
West Yorkshire combined authority has been allocated £200 million of Government funding for 2022 to 2027 to develop a new mass transit system, including £160 million from the city region sustainable transport settlement, and £40 million from the integrated rail plan. I commend the hard work and tenacity of Tracy Brabin as the Mayor of West Yorkshire, who is determined to create a better connected region that works for everyone.
Mr Speaker
Could Members stand every time so that I know they want to ask a question? I call Tom Gordon.
Tom Gordon (Harrogate and Knaresborough) (LD)
Sorry, Mr Speaker. West Yorkshire borders my patch. Will the Minister ensure that a mass transit system in Leeds connects with places such as Harrogate just across the border, so that there is a combined approach for the entire region?
Simon Lightwood
I will bear the hon. Member’s contribution in mind and share it with colleagues in the West Yorkshire combined authority.
Mr Speaker
Let us continue the Yorkshire love-in with shadow Minister Sir Alex Shelbrooke.
Sir Alec Shelbrooke (Wetherby and Easingwold) (Con)
Let me say to my near neighbour, the hon. Member for Leeds North East (Fabian Hamilton), that my constituency does not have a train station either. Joining up towns and cities in the north of England is a way to untap this country’s great economic potential. As the first ever shadow Minister for northern transport, and a Yorkshire MP, I am incredibly excited about the mass transit system in Leeds that I have campaigned on for years. Along with the rest of Network North, it will be a transformative endeavour but, unfortunately, Labour has a history of not delivering mass transit projects in Leeds. In fact, it seems the only deliveries it is interested in are boxes of clothes from Lord Alli. What message does that send to the people and businesses of Leeds, whose lives it will improve? Can the Minister put them all out of their misery and confirm that the project is going ahead?
Simon Lightwood
Let me remind the hon. Gentleman that the Conservatives were in government for 14 long years. Now, the hon. Gentleman has the temerity to stand there and ask why we are not getting on with it. This Government are moving quick and fixing things. We are determined to work with Tracy Brabin as the Mayor of West Yorkshire to achieve her objectives.
Bambos Charalambous (Southgate and Wood Green) (Lab)
Clive Jones (Wokingham) (LD)
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
This Government recognise the huge benefits of walking and cycling. They support our economic growth, health and net zero missions by helping to revitalise high streets, improve air quality and support people in living longer, healthier lives. This Government will embrace green and healthy transport choices, and we will set out ambitious plans to promote safer, greener and healthier journeys as part of an integrated transport strategy.
Clive Jones (Wokingham) (LD)
Barriers to active travel are many, including old footbridges that are needed for crossing railways. In my constituency of Wokingham, Network Rail is in the process of replacing the footbridge at the Tan House crossing. Despite an offer from the local authority to contribute towards the cost of making the bridge accessible to all, Network Rail has insisted on spending millions of pounds to build a bridge that many people will never be able to use. Can the Minister review with Network Rail why it believes that it is not required to make its estate accessible to all, and take steps to ensure that it is required to do so in future?
Simon Lightwood
I thank the hon. Gentleman for his question. I will refer this matter to the Minister with responsibility for rail, and will write to the hon. Gentleman with further information.
Peter Swallow (Bracknell) (Lab)
E-scooters offer an excellent opportunity for promoting active travel, but many of my constituents are concerned about the speed at which people travel on them. Will the Minister confirm that the Government’s road safety strategy will look at e-scooters, so that we can make sure that they are a safe part of our active travel system?
Simon Lightwood
We believe that micro-mobility has a vital role to play in an integrated transport system. We are looking very carefully at the e-scooter trial areas across the country, and will look at what further steps we can take to push forward this agenda.
Josh Babarinde (Eastbourne) (LD)
My constituent Alex suffered a life-changing cycling accident at the hands of an untraced driver, and is now battling with the Motor Insurers’ Bureau to get the compensation he deserves. The bureau’s delays in providing compensation are intolerable, and are undermining his confidence to cycle again. Will the Secretary of State or the Minister meet me to discuss Alex’s case, and how the bureau can be reformed to restore cyclists’ confidence in the system?
Lisa Smart (Hazel Grove) (LD)
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
Up again! The Government are making a five-year, £5.7 billion investment to improve the transport networks of eight city regions between 2022-23 to 2026-27 through the city region sustainable transport settlements. We have announced plans to introduce an English devolution Bill, which, alongside our major bus and rail reforms, will equip mayors with the powers and influence that they need to create an integrated local transport network and improve local transport in their area, in line with the Government’s missions.
Lisa Smart
When my constituents in Hazel Grove travel to the centre of the city region, they can use the train service—subject to landslide issues and, of course, the whims of the train operating companies—but when they are moving around my constituency, they must rely on the bus network. Can the Minister give the Greater Manchester combined authority and my residents clarity about funding for the bus model in Greater Manchester, so that it is not the 10 constituent local authorities who are burdened with paying the price for keeping the £2 bus fare cap?
Simon Lightwood
I am proudly wearing my Bee Network badge this morning, having visited Greater Manchester to meet the operators of the Bee Network and Mayor Andy Burnham; that is trailblazing work in Greater Manchester. In the year in which the network has been operating, we have already seen a 5% increase in passenger numbers, and buses are turning up on time, which is always great. The question of funding for the future will of course be part of the spending review.
Nick Smith (Blaenau Gwent and Rhymney) (Lab)
I was reading the Treasury’s “Fixing the foundations” document, and I understand that because of the need to restore control over public spending, the Government have had to cancel the restoring your railway programme. However, I note that individual projects will be reconsidered in the Transport Secretary’s review. Will the Minister please look at the development of the Abertillery spur on the Ebbw Vale to Cardiff line, as he considers good-value investment and connectivity in our railways infrastructure?
Simon Lightwood
The Government are reviewing a number of infrastructure projects in the light of the terrible financial situation that we find ourselves in, following the terrible damage inflicted on this country by the Opposition.
Mr Paul Kohler (Wimbledon) (LD)
In London, connectivity is provided by Transport for London, but in my constituency of Wimbledon, despite its wonderful tube, tram, train and bus connections, my constituents suffer from repeated track and signal failures on the District line, while South Western Railway is labouring with ageing rolling stock and decreased frequency of service at stations such as Malden Manor and Worcester Park. What are the Government planning to do to address the capital funding crisis that they inherited from the Tories across London’s transport system, and will the Minister meet me to discuss the problems affecting the District line and South Western trains?
Simon Lightwood
The Government remain committed to supporting London and the transport network on which it depends. We are working with the Mayor of London on funding plans for transport in the capital, to provide value for money and lasting benefits to the public. I would, of course, be delighted to meet the hon. Gentleman to discuss these matters.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
So many questions! As the executive agency responsible for walking, wheeling and cycling, Active Travel England is investigating how to improve the modelling and forecasting of cycling levels to ensure that we invest appropriately. I have asked its officers to meet Sustrans colleagues to discuss the potential benefits of its tool.
Seamus Logan
The brilliant cycle to work scheme runs across the four nations of these islands, but under current rules, it cannot be used by people who earn less than £17,000 a year. This almost certainly contributes to the fact that only 30% of people on lower incomes have access to a cycle, compared with 59% of people on higher incomes—that is almost double. Various solutions have been proposed, including the Sustrans suggestion of a voucher giving 40% off the cost of a bike. Can the Minister do anything to address this unfair situation, and to help our national Governments support people on lower incomes who would like to be able to take advantage of the cycle to work scheme?
Simon Lightwood
I recognise the problems with the scheme, and I will work closely with Treasury colleagues on this matter. I was delighted to attend the launch of the Sustrans report in the Palace a couple of weeks ago, and I will pay careful attention to its recommendations.
Ian Lavery (Blyth and Ashington) (Lab)
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
As part of our plan to deliver better bus services, the Government have committed to reforming bus funding by giving local authorities the tools they need to ensure services reflect the needs of the communities they serve. We want to give local leaders more control and flexibility over bus funding, and allow them to plan ahead to deliver their local transport priorities. We are considering how best to support buses in the longer term as part of the spending review.
Ian Lavery
The Government’s better buses Bill is a fantastic example of what a Labour Government can achieve and do. For the Bill to be successful, if funding is made available, we must ensure bus drivers are paid adequately and local residents have an input into the design, regularity and quality of routes. Will the Minister confirm that that will form part of the Bill and that this Labour Government will end the Tories’ 14-year ideological war on municipal transport?
Simon Lightwood
I agree with my hon. Friend. I reassure him that we are committed to delivering better bus services and that we will always put passengers first. Our forthcoming bus Bill is a crucial part of our reforms. When it is introduced later in this Session, it will increase powers available to local leaders, because those local leaders are best placed to make decisions on their bus networks, and remove the Conservatives’ ideological ban on municipal bus companies.
Patrick Spencer (Central Suffolk and North Ipswich) (Con)
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
The Government know that Britain needs a modern transport network to help kickstart economic growth. Under the previous Government, the loss of thousands of vital bus services across the country has left too many rural areas with poor transport links. That is why the Government will be introducing a new buses Bill to put power over local services back in the hands of local leaders right across England, to ensure networks can meet the needs of the communities that rely on them, including in Suffolk and other rural areas in England.
Patrick Spencer
While I welcome the news that this Government plan to deliver 1,200 UK-made zero-emission buses to help local authorities deliver on their transport ambitions and seize opportunities to embrace zero-emissions transport technology, may I ask what consideration the Secretary of State and her Department have given to the much-needed expansion of electric vehicle charging networks in rural communities, specifically those in central Suffolk, to support the roll-out of the electric fleet?
Simon Lightwood
We will be making an announcement soon on that expansion.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
Rachael Maskell (York Central) (Lab/Co-op)
As a result of a failure in regulation, the cross-border taxi trade is undermining the high standards set by local taxi companies and black cabs. What is being done to improve regulation, and will the Minister meet me to discuss the situation in York?
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
We are aware of concerns about the current legislative and regulatory framework and would be delighted to meet her to discuss that further.
Mr Richard Holden (Basildon and Billericay) (Con)
The previous Government introduced the “get around for £2” bus fare, which was committed to for five years in the Conservative manifesto. Given that—
Simon Lightwood
We are considering the benefits that have accrued as a result of the £2 bus fare and what steps we will take next. Of course, that will all form part of the spending review.
Dr Lauren Sullivan (Gravesham) (Lab)
While the lower Thames crossing is under review, what steps is the Secretary of State taking to promote river transport crossings such as river buses?
Cost of Rail Fares
Simon Lightwood Excerpts(1 month ago)
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The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
I congratulate the hon. Member for Woking (Mr Forster) on securing this debate on rail fares, and all Members who have made contributions this evening.
For the past 200 years, our railways have been at the heart of our transport network. During that time, they have played an essential role in enabling people to travel across our country, visit their loved ones and seize economic opportunities. This Government are committed to getting our railways back on track, which is why we are already delivering major reforms to fix our country’s broken rail network, in the context of a challenging fiscal inheritance. They include the Passenger Railway Services (Public Ownership) Bill, which will potentially save taxpayers up to £150 million every year in fees alone once all franchises are in public ownership.
Reform and public ownership are essential to delivering further fares reform. The current system is fragmented, with train operators that take no revenue risk making decisions on aspects of fares and ticketing. That is hampering the Government’s ability to make the fares system fit for purpose. Public ownership will allow a joined-up approach to be taken across the network.
Tim Roca (Macclesfield) (Lab)
In Macclesfield we have the pleasure of being served by both Avanti and Northern trains, unfortunately. The previous Conservative Government handed Avanti yet another franchise, despite its being one of the least reliable operators in the previous year. Does my hon. Friend agree that our plans for Great British Rail will not only improve reliability but ensure that rather than profits being repatriated to Italy, they are used for the public good here at home?
Simon Lightwood
I agree, and I can assure my hon. Friend that in the very first week, when the Secretary of State took office, she summoned a number of companies to her office to hold them to account. They will be held to account, and we are determined to see improvements.
Fares revenue is crucial to funding day-to-day railway operations, as well as Government priorities to put passengers first and improve performance on the railway. However, I recognise the serious concern that consumers have about the cost of rail fares. The affordability of the railway is a key objective for this Government, making sure that, wherever possible, prices are kept at a point that works for both passengers and taxpayers. A rise in rail fares can affect the family budgets of working people, including commuters between Woking and London.
Rail fares have always been an emotive subject, and rises in fares are often contentious. In that context, it is vital that passengers know that they are getting value for money. That is why this Government are committed to reviewing the overly complicated fares system with a view to simplifying it. The regulation surrounding the fares system is rooted in the privatisation of the 1990s, so there will be many opportunities to modernise the fares system as we move towards establishing Great British Railways and bringing forward the legislation needed to take on fares, ticketing and other operational aspects of the railway.
However, there is progress we can make now in improving fares and ticketing. We are progressing the expansion of simpler, easier and more flexible pay-as-you-go ticketing across the south-east. Along with simplified ticketing, pay as you go with contactless offers passengers a best price guarantee on the day. For most passengers, it will always provide them with the best price for a single day’s travel. We are also considering how simplifying long-distance fares can unlock better-value opportunities for passengers, as well as smoothing demand to make the best use of capacity while minimising crowding.
James MacCleary (Lewes) (LD)
Rail fares from my constituency of Lewes to London have increased by 20% since 2020, meaning that if increases go ahead this year, a commuter from Lewes will incur £5,500 of cost for a season ticket. For many people whose salaries have not increased in recent years while the cost of living has gone up, that is a major cost. We have seen quite a lot of success capping bus fares in recent years. For some of our local users that has been an improvement. Will the Minister support a similar cap on rail fares?
Simon Lightwood
I thank the hon. Gentleman for his intervention. Affordability is one of our six key objectives, so that prices, wherever possible, are kept at an affordable point that works for both passengers and taxpayers.
We are supporting LNER to offer its Simpler Fares trial tickets between London and stations around Newcastle, Berwick-upon-Tweed and Edinburgh from 30 September this year. Naturally, we will evaluate carefully before taking further decisions. LNER has published on its website the opportunities the trial offers, including the new 70-minute flex tickets between Newcastle and London, priced at £45 subject to availability. The ticket offers a degree of flexibility at nearly £40 cheaper than the old super off-peak. LNER sets out that, overall, around half of standard class 70-minute flex tickets sold have been cheaper than the old super off-peak, according to its latest figures.
In addition, those and the vast majority of other tickets on LNER are now sold on a single-leg basis, where a single costs approximately half the price of the previous return ticket rather than being priced within a pound of the return, as was often the case. That allows passengers to pay only for what they need by mixing and matching the right ticket for them for each leg of their journey, for example advance tickets with flexible tickets, or peak with off-peak where those exist.
There is a large range of railcards available to make rail travel more affordable for some, with at least a third off the cost of most rail tickets. Once established, I would expect Great British Railways to take a fresh look at the railcard suite, so that we can encourage the highest possible number of passengers to use our railways.
Woking is part of South Western Railway’s critical corridor between Woking and London Waterloo, and is therefore key to ensuring strong operational performance. South Western Railway recorded an 87% overall satisfaction rating in the Transport Focus rail user survey in September this year.
Helen Maguire (Epsom and Ewell) (LD)
Many of my constituents commute into London for work, and they complain that since the pandemic the number of trains has halved. They express their dread at the prospect of squeezing on to yet another train. Despite the reduction in service and the subsequent overcrowding, prices have increased. Residents tell me that they pay extraordinary prices for sub-par service. Does the Minister agree with me that as a principle—
Madam Deputy Speaker
Order. I made the point earlier this week that interventions need to be short. They are not mini speeches, they should be spontaneous and they should not be read out. Perhaps the hon. Lady has finished her comments.
Simon Lightwood
I thank the hon. Lady for her intervention. If she would like to follow up with me in writing so that she can finish the rest of her point, I would be more than happy to pass it on.
South Western Railway also offers innovative products that let passengers choose tickets that suit their needs, such as the Touch smartcard. This allows tickets to be added to a smartcard online, via an app or from ticket machines at a station. In recent months there has been an issue with a specific set of points at Woking, for which a temporary fix has been found. In the medium term, a more permanent solution will need to be sought, which may cause the temporary closure of lines for planned engineering.
For the commuter, season tickets are still a great way to save money on travel and are available on a smartcard. For two to three-day-a-week commuters, the flexible season ticket offers further savings against traditional season tickets. In Woking, flexible season tickets offer two and three-day-a-week commuters into London better value than both anytime day tickets and standard season tickets.
Simon Lightwood
We know that across the country people rely on trains to get to work, get to school, and see their loved ones. That is why we are relentlessly focused on securing improved services for passengers, along with better value for money for taxpayers.
I thank the hon. Member for Woking for securing the debate. I am sure he appreciates that rail plays an important part in people’s lives across the country, and especially in his constituency. This Government are putting passengers at the heart of the railway, and I want to reassure Members that we are working hard on putting in place reforms that will create stronger, more reliable railways that work for the people who use them.
Question put and agreed to.
Rural Bus Services
Simon Lightwood Excerpts(2 months ago)
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The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
It is an honour to serve with you in the Chair, Dame Siobhain. I want to start by thanking the hon. Member for Glastonbury and Somerton (Sarah Dyke) for securing this debate on the important issue of bus services in rural areas. She has been a committed champion for her constituents when it comes to local bus provision. She has worked hard to try to prevent cuts to essential bus services in her constituency, as reflected in her speech.
Access to reliable and affordable public transport is a lifeline for communities across England, whether for getting to work or education, accessing essential services, or seeing family and friends. I want to make sure that no matter where someone lives—whether it is in one of our cities or in a rural area in England such as Glastonbury and Somerton—they have access to buses that they can depend on. Britain needs a modern transport network that reaches every corner of the country to help kick-start economic growth. Many people feel let down by bus services and that is often exacerbated in rural areas.
Ashley Dalton (West Lancashire) (Lab)
Can the Minister confirm that the Government will ensure that rural voices are heard in their plans to empower local communities to influence and shape bus services, because of the specific issues that rural communities face in terms of the bus services they need?
Simon Lightwood
I thank my hon. Friend for her intervention. Our announcement on Monday that all local transport authorities—not just those in mayoral combined authorities—will be able to explore franchising will enable just that. It will enable local leaders to take back control of their buses and set fares and routes, taking careful consideration of their local communities, including the rural aspects of some of them.
Ben Maguire (North Cornwall) (LD)
Will the Minister and his Department commit to working with me to bring back the 503 National Express service, which served my town of Launceston in North Cornwall and ran through to Exeter and London? The community in Launceston and other towns in North Cornwall have been left without any connection to Exeter and London.
Simon Lightwood
I will certainly explore that with the hon. Member. Obviously it is a decision for the commercial operator whether to continue that service, but I am happy to explore that with him outside today’s debate. I will crack on now, because I have limited time.
For too long bus users have been subjected to a postcode lottery when it comes to the quality of their services. That is not just an inconvenience but a barrier to opportunity and growth. Our plan aims to end that disparity and ensure that everyone, regardless of where they live, has access to dependable public transport.
Ellie Chowns
The inequality in funding between rural and urban bus services that the hon. Member for Glastonbury and Somerton (Sarah Dyke) highlighted is of enormous concern to my constituents in North Herefordshire. Rural bus services need more support per head than urban ones; they are less commercially viable. Will the Minister commit to reversing that inequality?
Simon Lightwood
I thank the hon. Member for her intervention. We are committed to simplifying the plethora of different funding pots that are available for buses. We hope to deliver more long-term funding for local authorities and devolve to them the power to decide where the money is spent.
The Government have set out an ambitious action plan to deliver better buses, grow passenger numbers and drive opportunity to underserved regions. A core part of that plan was announced in the King’s Speech: the passing of a buses Bill. We are introducing the Bill in this Session because we want to see change as quickly as possible. On Monday, we announced a package of franchising measures to support local leaders to deliver better services for passengers in advance of the buses Bill. The first measure is the publication of a consultation document, which will gather views on proposed updates to the bus franchising guidance. The second measure was the laying of a statutory instrument that will open up bus franchising to all local transport authorities and reduce barriers. Later in the Session, we will introduce the Bill, which will be designed to put power back in the hands of local leaders right across England and ensure that networks meet the needs of people who rely on them, including in rural communities.
Simon Lightwood
I need to make progress.
The Bill alone will not remove all the challenges facing the bus sector, so the Government will take further steps to deliver more reliable and accessible bus services. Those will include giving local authorities more flexibility and control over bus funding, so they can plan for the long term and deliver on local priorities. We also want to provide safeguards over local networks, to raise the standard of the services that passengers should expect to receive.
The Government know that what each community needs from its public transport network is unique, and we want to empower local leaders to work with operators to design networks that meet their needs. It is great to see that that work is already under way in Somerset, with the trial of the Slinky digital demand-responsive transport service. Somerset county council has also introduced some great local schemes that aim to encourage people on to buses.
Through our plans, we will support and empower local transport authorities to take back control by working in collaboration with bus operators and passengers to deliver bus services for passengers.
Helen Grant
The Minister is being very generous in giving way. In my Maidstone and Malling constituency, local bus companies Arriva and Nu-Venture tell me that a significant reason for the lack of services is the lack of drivers, and that speeding up the process for granting provisional licences could make a real difference. Will the Minister look at that?
Simon Lightwood
I pushed for that when I was in opposition, and we did some consultation just before the general election. We are busy looking at the feedback and will report on it in due course.
Under the Government’s action plan for buses, we will step in and ensure that local bus networks provide more accountability over bus operators, so that standards are raised wherever people live across the country. Making fares as affordable as possible is one of the Government’s top priorities. As the hon. Member for Glastonbury and Somerton said, the £2 fare cap is due to run out on 31 December. We are looking carefully and at speed at what to do in the future to support bus networks.
Local authorities, bus operators and passengers are eager to hear more details of our plans, and I assure them that we are working at pace to consider how we might best support buses in all areas, including rural communities, in our upcoming spending review. We will work closely with local authorities and bus operators to understand what is needed to improve and grow bus networks.
Simon Lightwood
I am just about to finish, but go on—I have given way to everyone else.
Caroline Voaden
Will the Minister consider the health impact of rural bus networks? Rural settings are very different from urban ones, and given the serious health implications of isolation and loneliness, particularly among older people, good bus connections can have an impact. My hon. Friend the Member for Glastonbury and Somerton (Sarah Dyke) talked about balancing the rural-urban funding divide. It is so much more important that bus services are subsidised in rural areas.
Simon Lightwood
As I said, it is important that local leaders get to decide—that they take back control of bus services, use the funding that is devolved to them and make informed decisions in their local areas.
We want to learn from the experiences and build on the successes, and I look forward to announcing more information on the buses Bill and the Government’s plans for bus funding in due course.
Bus Franchising
Simon Lightwood Excerpts(2 months ago)
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The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
With Permission, Mr Speaker, I wish to make a statement. Today marks the first stop on this Government’s journey to deliver better buses. Day in, day out, buses shoulder the needs of millions of working people across the country, whether they are getting to work or school, or seeing the doctor or friends. A reliable bus service is the difference between aspiration and isolation, between getting on and being forced to give up—a lifeline, plain and simple. But over the past four decades of deregulation, that lifeline has been on life support. Communities have suffered cuts to thousands of services, with 1.5 billion fewer journeys taking place in 2019 than in 1985, when deregulation began. Since 2010, a staggering 300 million fewer miles have been driven by buses per year. That is the legacy the previous Government left behind: a shocking decline in this country’s bus services, which has done untold harm to communities across the country.
Behind those stats lie human stories—of the poorest groups, who catch 10 times as many buses as trains, regularly let down; of people denied access to work or education, because they cannot depend on the journey there; or women and girls denied access to a safe journey home. They represent a steady cycle of decline that reverberates beyond buses to our economy as a whole, and of public services not working for working people.
Enough is enough. This mission-focused Government were elected to repair what is broken, and to reform what does not work. We are clear about the fact that better buses are essential to a better Britain, and that buses are a route not just to connection but to economic growth, cleaner air, and a fairer chance in life for everyone. That is why my right hon. Friend the Transport Secretary has made fixing this country’s broken bus network one of her top priorities in her Department, and it is why, just two months into office, we are kick-starting a bus revolution that will put services back into the hands of local leaders, achieving in just 10 weeks what the last Government failed to achieve in more than 14 years.
The statutory instrument that we laid this morning opens up bus franchising for all local transport authorities in England. It gives local leaders more flexibility to adopt a model that works for their areas, and because we are streamlining the current two-step process, authorities will now only need to obtain the Transport Secretary’s consent before preparing a franchise scheme. This is a transformative change, one that will give every community the same powers that mayoral combined authorities across the country are currently using to deliver better services, along with the power to match them to local needs. We know that the franchising model works: we need only look at the Bee Network in Greater Manchester, where buses were brought under public control just one year ago and where reliability has already improved, passenger numbers have already grown and a new 24/7 service has just been introduced; or at Greater London, where public control has meant that more bus journeys are now taken in our capital than in the rest of England combined.
We are taking aim at the current postcode lottery of bus services to ensure that our most popular form of public transport starts running in the public interest. Local authorities know best how to deliver for their communities, which is why today we are empowering them to follow in the footsteps of Greater Manchester and London, to ensure that they have buses in the right place at the right time, truly serving local needs. Our plan will help to turn the tide after decades of decline. The statutory instrument will be backed by a public consultation, which my right hon. Friend the Transport Secretary also launched today. It seeks views on breaking down the barriers to franchising, and on how we can support safer and more accessible services. By delivering simpler guidance, it will support and speed up the franchising process, meaning that councils will spend less time and money filling in forms, and more time planning routes and prioritising the interests of the communities that they serve.
However, this is just the start of our journey. Today’s steps pave the way for a new bus Bill later in the current parliamentary session—a Bill intended to reform funding, to allow franchises to be rolled out to more places more quickly and cheaply, and to support councils that choose not to franchise but still want the flexibility to deliver on local transport priorities. The Bill will also allow us to remove the ideological ban on municipal bus companies that was imposed by the last Government despite the huge success of those companies, which can be seen across the country where they are still in place—for instance, the award-winning publicly owned services in Nottingham and Reading. This, rightly, is not a one-size-fits-all approach, and, crucially, it places no additional burden on taxpayers. It simply acknowledges a truth with which many in the House will agree: that the best decisions are not always made by Whitehall, but are made in town and city halls throughout the country by those who are accountable to local communities, and by those who, day in day out, use the very services that we are talking about.
It has been said before, and I will say it again: under this new Government, the Department for Transport is moving fast and fixing things. Today’s steps place better buses at the heart of this Government’s plan for change. Four decades after buses were deregulated, and after 14 years of decline, we are now empowering communities to take back control of the services on which they depend—to get Britain moving, to get our economy growing and to get more passengers, wherever they live, back on board. I commend this statement to the House.
Dr Kieran Mullan (Bexhill and Battle) (Con)
I thank the Minister for his statement.
We on this side of the House are in full agreement that good local transport is something that everyone deserves access to, both for helping people to live their lives and for fulfilling the economic potential of all parts of the country. At the heart of our local transport services are buses. They are some of the most convenient, well-connected and accessible forms of public transport out there—crucially, not just in urban areas, but very often in under-connected rural areas. That is why, in government, we invested billions of pounds in the bus sector, including the vital support provided to maintain services during the pandemic. We rolled out thousands of new zero-emissions buses and introduced the “Get around for £2” scheme, saving millions of people money on their fares and helping to get passengers back on buses.
Those interventions worked. Bus passenger journeys in England increased by nearly a fifth in the year ending March 2023, and we welcome this Government’s desire to build on our progress in order to improve services further, to get more routes running at better frequency, and to make sure that as many people as possible have reliable services that get them where they need to go. I am genuinely interested in understanding how the Government feel that this set of measures will achieve that. We are worried about some of the significant risks, which the Government do not seem to have considered.
This legislation places greater responsibility in the hands of local authorities. We know that a number of local authorities face financial and organisational challenges, and although I do not doubt that there will be enthusiasm for making use of the new powers, running any form of public transport brings real challenges. Of course, as the Minister said in opposition, gaps in experience could be filled by support from the Department for Transport, but depending on the number of local authorities that choose to take up franchising, this could mean that significant central Government resources are required. Unless I have missed something, today’s announcement includes absolutely no funding to pay for increased capacity at the Department. What projections have the Government made of the costs, and how exactly do they expect them to be paid?
It is the same story with local government finances. Make no mistake about it: this is going to cost money. Many bus routes, especially rural services, are loss making, even before we account for the additional resources that local authorities will presumably need to operate them. In his statement, the Minister did not recognise the enormous challenges that have been created by changing travel patterns post covid. If this Government are committed to providing services at 1985 levels, as he seemed to imply, they will need to commit to enormous levels of subsidy.
I welcome the success stories in metropolitan areas that the Minister talked about, but such services operate in a fundamentally different space, because of the density of those areas’ populations. It means that if passenger numbers fall next year, the financial risk will be taken on not by a private company, but by the local council and, by definition, taxpayers. Again, given that there appears to be no funding attached to the policy, surely it can be funded only by increases to council tax or cuts to other local services.
It is the same story when it comes to responsibility for capital expenditure. Will this now be the responsibility of local authorities? How exactly are they expected to fund it? As we recently made clear when debating the Passenger Railway Services (Public Ownership) Bill, it might be the Labour party’s priority to undertake ideological reforms to bring the transport sector further into the control of the state, but passengers’ priorities are the price, performance and reliability of services, not who is running them. We want to hear how the reforms will make a difference to passengers’ journeys and their accessibility, frequency and cost, and how they will help to restore the number of rural services and make journeys cheaper for passengers—and not just through the generic pledges we have heard today, but through concrete commitments on which the public can hold the Government to account. The Minister made absolutely no commitment to increase levels of services or miles travelled as part of the Government’s “revolution”.
There are some simple things that the Government could do for passengers, such as extending our “Get around for £2” scheme, which has been hugely positive for passengers and for the viability of services up and down the country. I am aware that the Chancellor is not Labour Members’ favourite person at the moment, but I encourage them to make the case for the cost-of-living benefits of the £2 scheme, as well as for the benefits of the winter fuel payment, in any hurriedly organised meetings today and tomorrow.
The Government have got the wrong priorities yet again. At the end of the day, passengers care about the preservation of existing services, the extension of routes, improvements in frequency and reliability, and cost. We on this side of the House are all ears when it comes to what difference this policy will make for them and—not to be forgotten—who is going to pay for it.
Simon Lightwood
Modernising our transport infrastructure and delivering better buses are at the heart of our plan to kick-start economic growth in every part of the country to get our country moving. This statutory instrument is just the start of a package of measures; the buses Bill will deliver further measures on issues such as funding. Despite the challenging financial circumstances we find ourselves in—inherited from the previous Government—we are determined to deliver better bus services, growing passenger numbers and driving opportunity to underserved regions. All funding is rightly being considered as part of the spending review.
There is no one-size-fits-all approach for buses within local transport authorities. Franchising is just one way that this can be explored; there are also enhanced partnerships and municipal ownership. We firmly believe that our priorities to deliver better buses across the country are the right priorities, and we have the mandate from the British people following the general election to do just that.
Graham Stringer (Blackley and Middleton South) (Lab)
Last week and this week have been the best two weeks for public transport for many decades, righting the wrongs of the privatisation of the rail service and the deregulation of buses. I did not hear an apology from the Conservative spokesperson for laying waste to local government finance over the last 14 years and destroying public bus services by handing them over to be run by profiteers, pirates and other completely unsuitable people—not in all, but in many cases. Does my hon. Friend agree that there should be a massive apology from the Conservatives for the damage they have done to public transport?
Simon Lightwood
I believe there should be a massive apology from the Opposition for the mess they have left this country in and for the mess they have left our bus services in. Following the previous Government, almost 300 million fewer miles are now driven a year compared with 2010. That is an appalling statistic. This Government will turn the tide for communities across the country by giving them the opportunity to control local bus services and to have a real say in developing the local transit systems that serve them. The Secretary of State said—I will say it again—that we will move fast and fix things. Here is the proof.
Wera Hobhouse (Bath) (LD)
We Liberal Democrats welcome today’s statement to give local authorities, not just metro Mayors, more powers and the potential to run their bus services. We Liberal Democrats have campaigned for exactly that for a very long time.
The previous Conservative Government completely decimated local transport systems, but the rot set in a long time ago. Almost a quarter of bus routes have been cut in the past 10 years outside London. Whoever wants to apologise for that, we need to see some change. Bus services should be the most affordable and accessible of all forms of public transport. Good, well-used bus services would significantly contribute to getting to net zero and to improving our air quality. The previous Government, again, completely failed to make a positive case for that.
Not only are public buses crucial in urban areas such as Bath, which suffers from more and more congestion, because people can continue to increase their use of motorised individual travel, and is also still struggling with cutting air pollution; bus services are also important specifically for rural areas. What we currently have is completely inadequate, so will the Minister set out how today’s announcement will improve rural bus services, not just in the long term, but in the short term?
Simon Lightwood
The ability of local areas and local transport authorities to take back control of their bus services is crucial for rural areas, because they know their communities best. Those decisions should not be made from places in Westminster or Whitehall. Again, local transport authorities understand the specific needs of their local communities, be they rural or urban, and are best placed to make those decisions and design the network around those needs.
Grahame Morris (Easington) (Lab)
I welcome the statement and draw to the Minister’s attention the Transport Committee report, “Bus services in England outside London”, which was produced under the chairmanship of my hon. Friend the Member for Nottingham South (Lilian Greenwood), who is now Under-Secretary of State for Transport. There are some excellent recommendations in there. In regions such as Greater Manchester, the process of introducing bus franchising has been quite lengthy. Granting combined authorities the ability to directly award contracts would significantly shorten that timeline, allowing areas such as the north-east to bring about faster improvements. Will the Minister confirm that the better buses Bill will include provisions for direct award powers?
Simon Lightwood
I can confirm that my officials are investigating the means to do just that, and I will update the House accordingly as progress continues.
Simon Hoare (North Dorset) (Con)
I welcome the Minister’s statement. He and the House know that local government finance is under pressure, and that the delivery of services in rural areas is much more costly than it is in Manchester, Nottingham or London. That is just a geographical fact, which I think we all accept. May I urge the Minister, if he has not already done so, to engage the good offices of the County Councils Network, as the lead body for county councils and the unitaries, to find their views and suggestions? I also say to him politely that if this is to work in rural areas, for all the good reasons that he sets out about social mobility and access to work and education, rural councils will require some extra money to deliver what we all want to see achieved.
Simon Lightwood
I thank the right hon. Gentleman for his question and for his constructive engagement. I will certainly take up his recommendation to meet that grouping. Of course, all funding is being considered in the round as part of the spending review, but I take his points on board.
Mr Clive Betts (Sheffield South East) (Lab)
I very much welcome the Minister’s statement. Deregulation has been an absolute disaster in South Yorkshire. Since 2010, bus passenger miles have fallen by 50%. That means lots of people are not getting the services they previously had. The Minister has referred to Greater London, which gets more than 10 times as much Government finance per head for transport as South Yorkshire. He also mentioned Greater Manchester. Manchester got a very good bus service improvement plan—BSIP—settlement last time round. South Yorkshire got nothing in the BSIP settlement. Does he recognise the need to review some of these settlements? Otherwise, Mayor Oliver Coppard, who is committed to franchising, might see that the only responsibility they have is to make the cuts to bus services in a different way from what would have been the case without franchising.
Simon Lightwood
There was a host—a plethora—of different funding pots relating to buses, and we are keen to amalgamate and consolidate them, but also, importantly, to devolve them to local areas so that they have the funding flexibility they need to deliver better buses across their areas.
Mr Richard Holden (Basildon and Billericay) (Con)
It is great to hear of the success the previous Government’s £1.1 billion investment into Greater Manchester’s Bee Network is helping to deliver. I was delighted to launch it with the Mayor of Greater Manchester. As the Minister mentioned, one of the key things about the postcode lottery is the cost of using the bus. It can really put people off, particularly in rural areas where bus costs have traditionally been a lot higher. Is the Minister going to look at extending the Get Around for £2 scheme, which has been a real success, particularly for access to education opportunities and for those in lower paid work in rural areas? It has really helped to drive bus passenger numbers upwards since the end of the pandemic.
Simon Lightwood
Delivering reliable and affordable public transport services for passengers is one of the Government’s top priorities, and we know how important it is for passengers and for local growth. We are looking at the future of the £2 fare cap as a matter of urgency. We are considering the most appropriate and affordable approach, and we will update the House in due course.
Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
For as long as I have been a Member of this House, my constituents have looked upon London with envy for one reason, and one reason only—its cheaper and more reliable bus services with real-time bus information. Too often, my constituents do not even know if a bus is coming to the bus stop, never mind when. Kim McGuinness, our regional mayor, has committed to taking back control of buses. Can the Minister set out how he will work with her and support her to deliver the bus services that my constituents need and deserve after 14 years of Tory failure?
Simon Lightwood
I have already met the Mayor of the North-East on a number of occasions, and I am working closely with combined authorities and mayors across the country to make bus franchising simpler and easier. We will, of course, make sure that the Department for Transport provides support to local transport authorities, with a centralised resource to ensure that we spread best practice across the country.
Gregory Stafford (Farnham and Bordon) (Con)
I thank the Minister for his statement. The town of Bordon in my constituency is extraordinarily poorly served by bus routes, and it is crying out for a rail link bus service to the neighbouring town of Liphook. Will the Minister and his officials meet me to discuss how we can get a rail link bus service from Bordon to Liphook?
Alison Hume (Scarborough and Whitby) (Lab)
I welcome the statement, as will my constituents in Scarborough, Whitby and the villages who have seen the vital bus services on which they rely slashed over recent years. For example, cuts to the 95 Sleights to Whitby service have severely restricted my constituents’ ability to go about their daily lives. Does my hon. Friend agree that we need to move at pace to improve such routes in rural and coastal communities?
Simon Lightwood
I completely agree. This is fundamental to the work we have been pursuing to make franchising quicker and simpler, and to avoid the need for local transport authorities to spend their time filling in forms at great expense. Britain is one of the few places in the developed world that hands operators power to slash bus services and set fares with very little say for the communities that depend on those services. Decades of failed regulation have left communities with little say on the essential services on which they rely, and we are determined to change that.
Anna Sabine (Frome and East Somerset) (LD)
As my hon. Friend the Member for Bath (Wera Hobhouse) said, the Lib Dems broadly welcome the principle of this statement, as I think will the Somerset Bus Partnership. The volunteers of this fantastic organisation in my constituency work tirelessly to encourage people to use buses. Somerset council is facing an historic funding crisis and has narrowly avoided bankruptcy, so I am keen to understand how the Government will provide long-term funding so that such authorities can do the franchising that has been promised.
Simon Lightwood
As I said, we are looking to consolidate and simplify the funding pots for bus services, and we hope to deliver more multi-year funding settlements.
Mike Amesbury (Runcorn and Helsby) (Lab)
I welcome the statement. The Minister is genuinely taking control of our buses after years of the wheels on the bus not going round and round. I look forward to seeing the return of a direct service from Runcorn to Liverpool. Will the Minister meet me and leaders in Cheshire to discuss taking control of bus service arrangements through a new devolution deal?
Jim Shannon (Strangford) (DUP)
I thank the Minister very much for a progressive, positive statement that will encourage many. I welcome the steps towards a more personalised approach to bus franchising. However, I believe it is essential, as I think the Minister does, that any changes should be rural-proofed to ensure that bus services allow our rural communities to commute to work, to access medical appointments and even to go shopping, by protecting services over profit through an iron-clad guarantee. Will he confirm that this is the Government’s position?
Simon Lightwood
I absolutely agree that rural bus routes and rural communities must be carefully considered. The best people to take that consideration are local leaders, which is why we are determined to allow local leaders to take back control of their bus services.
Tristan Osborne (Chatham and Aylesford) (Lab)
I welcome my hon. Friend’s statement. Villages in my constituency, such as Eccles, Burham and Wouldham, have suffered from 14 years of Conservative cuts and a reduction to the 155 bus service, which many elderly people rely on. Will the Minister assure councils such as Medway council and Kent county council that they can now join forces and collaborate on bus routes, so that we see an improvement to bus services for all our residents, including those in rural, isolated communities?
Simon Lightwood
The plan makes it possible for all local transport authorities to take back control of their buses. There is also the option of enhanced partnerships and municipal ownership. I look forward to working with my hon. Friend to achieve his objectives.
Lee Pitcher (Doncaster East and the Isle of Axholme) (Lab)
Buses are the most used form of public transport and a lifeline for those on lower incomes. The inadequacy of bus services across Doncaster East and the Isle of Axholme is an issue that comes up regularly on the doorstep. Hatfield Woodhouse only recently had its bus reinstated after many months of having nothing at all. Does my hon. Friend agree that delivering better buses will be essential to the Government’s missions, from growing our economy to breaking down barriers of opportunity and accelerating to net zero?
Simon Lightwood
My hon. Friend is absolutely right. Effective public transport, including bus services, is fundamental to delivering many of our missions in government.
Sean Woodcock (Banbury) (Lab)
At the weekend, I had the pleasure of attending the unveiling of two brand new community-owned green buses in the village of Middle Barton in my constituency. After 14 years of devastation to public bus services in Oxfordshire, such community-led schemes can go a long way to filling the gap. Does the Minister agree that a decade of renewal promised by this Labour Government must see an improvement and regeneration in rural bus services?
Simon Lightwood
Absolutely. We want to give local transport authorities and leaders the power to take back control of bus services, to shape the future of those services to accurately reflect the needs of individual communities.
Dr Scott Arthur (Edinburgh South West) (Lab)
I thank the Minister for his statement—we should speak about buses much more often in this place. Edinburgh has an award-winning bus service, which carries 2 million passengers per week. Its highly unionised workforce—I think over 90%—works in collaboration with the directors of the company. We already get around for £2 inside Edinburgh because that is the price people pay no matter how far they travel inside Edinburgh. That is a fantastic example of what public ownership in public transport can do. Does the Minister agree that more ownership and control of bus services are key to driving down costs for passengers, increasing patronage and hitting our net zero goals?
Simon Lightwood
I agree with my hon. Friend. I was pleased to visit a municipal bus company in Nottingham; the Under-Secretary of State for Transport, my hon. Friend the Member for Nottingham South (Lilian Greenwood), represents that area. I was blown away by the company’s knowledge of and commitment to the local area, and its having received numerous awards, with a satisfaction rating of something like 89%. Municipal bus companies are also a fantastic option for local authorities to consider.
Connor Naismith (Crewe and Nantwich) (Lab)
It was interesting to hear the Opposition Front-Bench spokesperson talk about the importance of preserving existing bus routes, when their party had presided over 14 years when thousands of bus services were lost to communities across the country, including in my constituency, where we still do not have a direct bus route from Nantwich to our local hospital. It has taken this Government just 10 weeks to present a plan to fix local bus services. Does that not epitomise how underserved our communities and local economies have been by 14 long years of Conservative government?
Mr Luke Charters (York Outer) (Lab)
It was great to visit the First Bus all-electric depot in York the other week, but I was saddened to hear just days later that First had withdrawn children’s monthly bus passes. After meeting representatives of the company, they are reviewing that decision, but does my hon. Friend agree that travel to and from school should be affordable? Will he meet me to discuss the future of buses in York?
Simon Lightwood
Of course I want to make sure that bus fares are affordable. I will meet my hon. Friend to discuss his particular circumstances.
Ms Polly Billington (East Thanet) (Lab)
As has been said, the past 14 years of Conservative Government have left local bus services, especially those in coastal communities, in a shocking state. In East Thanet, the 33, 34, 9 and 8A bus services have all been drastically cut, meaning that in certain areas of Broadstairs and Ramsgate there is no bus service at all within easy reach, and no one in either town has access to a bus to Canterbury outside commuter times. Conservative-run Kent county council must take up the powers that are being offered by this Government to serve disadvantaged communities such as that in East Thanet.
Simon Lightwood
Buses matter to millions of people, but 14 years of the Tories’ broken bus system have led to countless communities being failed and a spiral of decline in bus services. I hope all local transport authorities consider the range of options available to them to take back control of their buses and shape services for the communities that they serve.
John Slinger (Rugby) (Lab)
After the deregulation and decline of buses under the previous Administration, I imagine that local authorities are somewhat shocked and surprised at being given the opportunity to shape services genuinely in the public interest. What additional support is my hon. Friend considering to empower local authorities, especially smaller district authorities such as Rugby borough council, so that they can move fast and fix things locally?
Simon Lightwood
I thank my hon. Friend for his question. We are increasing the capacity of the Department for Transport to assist smaller authorities, so that all local transport authorities can consider franchising and other means of improving bus services in their communities.
Jacob Collier (Burton and Uttoxeter) (Lab)
I thank the Minister for his statement. I am pleased to see him driving forward this policy to improve our bus services, which are a vital lifeline for my constituents in Burton and Uttoxeter. Does he agree that this plan puts us on the right route by expanding franchising powers so that local voices can finally steer bus services in the right direction?
Simon Lightwood
I thank my hon. Friend for his question. He has already been a fierce advocate for public transport and bus services in his constituency. Local leaders, not private operators as is currently the case, will have the power to set routes, fares and services, putting passengers first after decades of regulation. That is the option available through franchising. Municipal ownership is also an option, as well as partnerships with operators and local authorities.
Jim Dickson (Dartford) (Lab)
As the Minister has already pointed out, and others in this Chamber have said, bus franchising has clearly delivered fantastic results where it is already in operation in Greater Manchester and London, but it will not be right for all communities. In my constituency, there are often only two buses a day connecting the outlying villages to Dartford and other population centres. Does he agree with me that the upcoming bus Bill will be a fantastic opportunity to end the postcode lottery of bus services across the country, providing maximum flexibility to local leaders, such as those in Kent if they are prepared to use it, to choose the right system for their populations?
Simon Lightwood
I agree with my hon. Friend. We must turn the page on years of Conservative failure in local transport, which is why the forthcoming bus Bill, in conjunction with our announcements today, will help end the country’s transport postcode lottery.
Passenger Railway Services (Public Ownership) Bill
Simon Lightwood ExcerptsTuesday 3rd September 2024
(2 months, 1 week ago)
Commons ChamberRead Full debate Passenger Railway Services (Public Ownership) Bill 2024-26 View all Passenger Railway Services (Public Ownership) Bill 2024-26 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 3 September 2024 - (3 Sep 2024)
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
It is an honour to serve under your chairmanship, Madam Chair. I thank hon. Members of all parties for their amendments, and for their considered contributions. I commend those Members who have delivered some fabulous maiden speeches today, with such quality, passion and dedication to serve, and a love for their communities. It makes me really proud to be a Member of this House, and I am certain that the memory of delivering their maiden speeches will live with them forever.
I will begin with amendments 18 and 8 to 12, tabled by the hon. Member for Faversham and Mid Kent (Helen Whately). These relate to monitoring, reporting and scrutinising the impacts of public ownership and the effectiveness of train operators. Amendment 18 would require the publication of two reports. The first would outline the anticipated impact of public ownership. That would simply duplicate the impact assessment published earlier this year, and therefore would be redundant. The second report would assess the actual impact of public ownership, some years after implementation. A wide variety of data is already routinely published about both public and private sector train operators’ performance. That includes reliability, punctuality, service quality, customer complaints and financial performance among other measures. The Bill does not change any of that and there is no need to wait five years to consider whether train operators’ performance is improving.
Amendment 9 would require the Secretary of State to procure independent reports about the costs of the contracts awarded to public sector operators. The Department already publishes information on payments made to operators, whether private or public. There is therefore no need for the taxpayer to fund a separate body to report the same data. Nevertheless, the hon. Lady is entirely right to take an interest in the cost of these contracts. In that spirit, I would gently remind her that ending the taxpayer funding of private profits will result in an immediate and enduring reduction in these costs.
Amendment 9 also raises the specific question of whether public ownership will expose the Government to liabilities that have previously sat with private operators. Under the current national rail contracts, the Government fund the costs legitimately incurred by train operating companies. That includes, for example, the net operational cost of running services and the cost of meeting pension liabilities. Prior to the pandemic, franchised operators bore some cost risk, but were protected by the taxpayer against, among other things, inflation and, in more recent contracts, risk on movements in pension deficit recovery payments. The franchising system meant that bidders simply priced any change in liabilities into their bids, meaning that the taxpayer was exposed to liabilities in the long term. Public ownership therefore does not materially change the Government’s exposure to liabilities in the long run.
Amendment 10 would require the annual reporting to Parliament on various aspects of the performance of public sector operators, and amendment 12 would require an independent report on the impact of public ownership on the performance and efficiency of the UK rail network. Again, data is already published on a wide variety of aspects of train operator performance, including by the Office of Rail and Road in its role as a regulator. The Bill does not change that. The Office of Rail and Road also provides independent scrutiny of the performance and effectiveness of Network Rail, enforcing compliance with its licences and conducting five-yearly reviews that set its funding and what must be delivered with that funding.
Amendments 8 and 11 look to require independent monitoring of the financial and operational performance of public sector train operators. The Department holds train operating companies to account for their financial management through regular reviews of their management accounts and business plans. That applies to both public and privately owned operators. In addition, in England publicly owned operators are overseen by DFT OLR Holdings Ltd, known as DOHL. As a holding company owned by the Secretary of State, DOHL is experienced in reviewing and monitoring the financial arrangements of the companies it manages, and contrary to what the hon. Lady said, it is building its capacity in readiness to take over more services. At the same time, public ownership will reduce the other contract management costs, because there will no longer be the same commercial tension of the taxpayer interacting with private profit. Amendment 8 refers specifically to the auditing of publicly owned train operating companies’ accounts. It is already the case that DOHL and the operators it oversees must publish their audited accounts annually.
Turning to amendment 11, train operators are already monitored under their existing contracts against targets for punctuality, reliability and service quality. They are also held to account for managing within pre-set cost budget limits each financial year. Driving up operators’ performance in those areas is vital, and the Government will continue to review train operator performance regularly in those and other areas. This has been an early priority for my right hon. Friend the Secretary of State. For example, in her first weeks in office, Ministers held meetings with the managing directors of Avanti West Coast, TransPennine Express and their Network Rail counterparts to set clear expectations for immediate improvement. In parallel with these arrangements, the Government are developing detailed proposals for holding the future Great British Railways to account for performance. This will form part of the broader package of reform that we will set out in the forthcoming railways Bill. We expect these arrangements will be in place long before the five-year reviews proposed in a number of amendments tabled.
Amendment 11 also refers to performance improvement plans. Mechanisms to require improvement plans are already a feature of the Government’s contracts with both public and private sector operators. The Secretary of State has recently put in place formal remedial plans with CrossCountry in view of its unacceptable levels of cancellations and service reductions. Finally, amendment 11 raises the question of senior management remuneration when performance is poor. This matter can be considered when remedial plans are being put in place, taking account of the circumstances in each case.
Amendment 19, also tabled by the hon. Lady, and amendment 20, from the hon. Member for Bath (Wera Hobhouse), both propose additional procedural steps to be followed before a contract is awarded to a public sector operator. Amendment 19 would require the Office of Rail and Road to publish an opinion on the practicability of transferring services to each public sector operator. Clearly it is vital that services are transferred to public ownership smoothly, without detriment to the quality of service during the transition. For that reason, the transfer of services will take place using a well-established arrangement and process. DOHL has significant experience of managing the transition of services from private to public operation in recent years.
Simon Lightwood
I will not give way to the hon. Lady, as she has had plenty of time to put her case.
Those transfers of services have been completed successfully and smoothly despite the challenging timescales and circumstances, which have included financial failure and poor operator performance. We have also made it clear that we will transfer services on a phased basis as existing contracts expire over the next few years. This is a measured, responsible approach that will further de-risk the process. The Bill does not alter the ORR’s role in granting operators’ licences and issuing their safety certificates; in that role the ORR already independently assesses the suitability and readiness of any operator, public or private, to take over services and operate them safely. In light of those safeguards the Government do not see the need to commission further analysis from the ORR, as amendment 19 proposes.
On amendment 20, the Department for Transport has already awarded multiple contracts to publicly owned operators and has considerable experience of managing them in practice, taking legal, financial and technical advice as needed. We consider a new independent advisory body to be an unnecessary additional step that would add cost and risk delaying progress. I can assure the hon. Member for Faversham and Mid Kent that the Department for Transport is conducting a full review of the standard terms of service contracts entered into with public sector operators, reflecting the fact that public sector operation is to be the Government’s long-term approach, not just a temporary measure of last resort.
On amendments 13 and 14, the Government do not consider it appropriate to spell out such specific contractual requirements in primary legislation, which would risk constraining future flexibility to adapt operators’ contractual obligations to suit changing circumstances. On amendment 13 specifically, it would not be efficient for the taxpayer to require up to 14 different operators in England, plus those in Scotland and Wales, to each pursue its own separate wide-ranging innovation strategy. Indeed, a key purpose of our wider reform plans is to drive a much more coherent cross-industry approach in such areas. On amendment 14, I question why the four groups identified, while clearly of course very important, should be singled out for a specific mention when there are many other relevant considerations to take into account in service design, including the interests of the taxpayer, freight users, people with disabilities and residents of urban areas to name just a few. The list could be endless, and the important point is that decisions about future service levels should take into account all relevant considerations.
Amendment 1, tabled by my hon. Friend the Member for Blackley and Middleton South (Graham Stringer), would remove the power of the Secretary of State to continue existing franchises. I am happy to reassure my hon. Friend that this provision is included in the Bill as a contingency measure only. It exists in case a short continuation is needed to ensure that services transfer to public ownership smoothly and without disruption to passengers. It is intended to be used only in exceptional circumstances and only for so long as necessary to ensure the smooth transfer. It will be available to the Secretary of State only when
“it will not be reasonably practicable”
for a transfer to proceed. Any continuation would be limited by procurement regulations to a maximum of two years in duration, but in practice we would expect the period to be much shorter. The power is clearly transitional in nature; once services are transferred to the public sector it will no longer be relevant, and clause 2 therefore gives us the power to repeal it in its entirety. This is a sensible, pragmatic precaution that exists simply to smooth the transition to public ownership and protect the travelling public from disruption. I hope that explanation offers my hon. Friend some reassurance.
I move now to amendment 6, tabled by the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter). The Bill does not affect the provision of rolling stock. It would not be responsible or affordable for the Government to take on the cost of renationalising billions of pounds-worth of rolling stock when there are so many other urgent pressures on the public purse. However, public ownership will open the door for a much more coherent approach to planning the longer-term rolling stock needs of the whole industry. Once Great British Railways is established, planning the provision of rolling stock across the network will be one of many areas where a single directing mind for the railway will add real value.
We will develop a long-term industrial strategy for rolling stock that supports manufacturing, innovation and interoperability and aligns with the wider objectives of the industry. It will look to end the boom and bust cycle of rolling stock procurement, ensure sustainable pipelines for future work and consider the best financing structures for future orders in partnership with private capital. I can assure my hon. Friend the Member for Easington (Grahame Morris) that we will consider the points he has raised as we undertake work on this matter. My officials are engaging with Eurofima to consider the potential of UK membership and the role that could play in the UK market. We will set out more plans on that in due course. A report mandating that in primary legislation is therefore not necessary in the Government’s view.
Amendment 7, tabled by my hon. Friend the Member for Derby North (Catherine Atkinson), seeks details of the Government’s proposed approach to procurement and the impact of public ownership on the procurement process and the supply chain. She is absolutely right to highlight the crucial role of the broad and diverse private sector supply chain in helping to deliver high-quality rail services, and I very much welcome the contribution made by businesses in her constituency and right across the country. I can assure her and those businesses that innovation and technical progress will remain as fundamental as they have ever been in delivering improvements for passengers, cost efficiency for taxpayers and benefits for the environment.
I can confirm that there will be no immediate impact on the approach to procurement when services transfer to public ownership. Existing private sector operators are already required to follow the same procurement rules as public sector operators. Under the governance reforms, Great British Railways will provide much clearer long-term direction across the whole railway system, giving businesses and the supply chain the certainty and confidence they need to plan, invest and innovate for the future.
Amendment 15, tabled by the hon. Member for Faversham and Mid Kent, considers the Bill’s potential effects on open access operators. The Bill is specifically about the ownership of services currently operated under the contract with the Secretary of State and Scottish and Welsh Ministers. Public ownership of those services will not prevent open access services from running as they do now. The report proposed by her amendment is therefore unnecessary. However, I take this opportunity to reassure her about the role of open access in the future in the context of the Government’s wider reforms. How we make use of network capacity and grant access is fundamental to the performance of the railway and what it delivers for all its users. Open access operators such as Hull Trains, Lumo and Grand Central are a valuable part of our railway. We are keen for such services to continue to operate alongside publicly owned services, where they add value and capacity to the network.
The hon. Lady’s amendment 16, along with amendment 22 from the hon. Member for Bath and amendments 2 to 5 from the hon. Member for Brighton Pavilion (Siân Berry), touches on the role of devolved and local authorities in the planning and delivery of rail services. Amendments 16 and 22 each refer to exemptions granted under section 24 of the Railways Act 1993. Those exemptions allow services in London and the Liverpool city region to be procured by the relevant authorities in those areas, outside the franchising system. The Bill makes no change to those existing arrangements and it will remain for those authorities to decide how best to deliver the services for which they are responsible.
Amendments 2 to 5 would allow the Secretary of State and Scottish and Welsh Ministers to award contracts to companies owned by certain elected public bodies. While the Government are committed to strengthening local involvement in the planning and delivery of rail services, it will be important to ensure that does not undermine the plan for Great British Railways to act as a directing mind that provides coherence, consistency and clarity for the whole railway. To support that, the Government intend to award contracts specifically to public sector companies owned by the Secretary of State via DOHL.
Wera Hobhouse
Our amendment 22 is not just about the current arrangement with Merseyrail and Transport for London; it is much more about having the discussion about how local authorities and local areas can enter into franchising agreements in future if they so wish.
Simon Lightwood
I do not think that the Bill stops them doing that now, though we have no plans to extend the scope of that.
Looking ahead to the railways Bill, the Government have already said that there will be a statutory role for devolved leaders in Scotland, Wales and mayoral combined authorities in governing, managing and planning and developing the railway network. That will ensure that decision making is brought as close as possible to local communities.
I turn to amendment 17, tabled by the hon. Member for Faversham and Mid Kent, which proposes an independent body to advise the Government on employment terms and pay for rail staff under public ownership. That is an important issue, and one that the Government are determined to get right. My officials are at the early stages of exploring a number of options—including a pay review body—so that we can consider the most appropriate approach to meet the needs of a transformed industry.
Last but by no means least, I come to amendment 21, tabled by the hon. Member for Bath, which deals with fares, ticketing and passenger compensation. Naturally, we are keen to see rapid progress in those areas. We are committed to reviewing the overly complicated fare system. Change is already being delivered by extending pay-as-you-go in the south-east and through fares reform on LNER. We will explore the options for expanding ticketing innovations such as digital pay-as-you-go and digital season tickets across the network, and we will hold operators—and, in due course, Great British Railways—accountable for progress on these vital reforms. We also intend that a powerful new passenger watchdog—the passenger standards authority—will independently monitor standards and champion improvement in service performance against a range of measures.
I thank hon. Members on both sides of the Committee for their contributions to the debate. I hope that my responses will have provided the explanations and reassurances that colleagues were seeking, and that that will enable them not to press their amendments and to support the Bill on Third Reading.
Passenger Railway Services (Public Ownership) Bill
Simon Lightwood ExcerptsMonday 29th July 2024
(3 months, 2 weeks ago)
Commons ChamberRead Full debate Passenger Railway Services (Public Ownership) Bill 2024-26 View all Passenger Railway Services (Public Ownership) Bill 2024-26 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
May I first congratulate you on your election, Madam Deputy Speaker? It is a pleasure to close the debate with you in the Chair.
It may have escaped the notice of Opposition Members, but there was a general election, and there is a reason for the fact that they are sitting on that side and we are sitting on this side. However, I have enjoyed listening to the many maiden speeches that have been made today. It has been just over two years since I made my own maiden speech, and I found it extremely nerve-racking, so I am greatly impressed and, I have to say, somewhat intimidated, by the quality of the speeches made today. I am also grateful to colleagues for their considered contributions, and I will attempt to respond to as many questions and concerns as possible. Where I have not been able to do so, I will follow those up with a letter.
Let me begin by dealing with the issue of public ownership. According to the shadow Secretary of State, the hon. Member for Faversham and Mid Kent (Helen Whately), we have no proof that it will improve outcomes for passengers, but that is clearly not the case. We know for a fact that this Bill will save tens of millions of pounds in fees, and if that is not a good start, I do not know what is.
Furthermore, as the Secretary of State explained earlier, this reform is based on solid evidence. In fact, the public sector has an incredibly strong record of successful delivery, including increased reliability—even when dealing with operators that were previously failing financially, or otherwise failing to deliver for passengers.
I am confident that public ownership will provide the right foundations to drive forward improvements for passengers—be it simplifying the arcane fares system, integrating rail with other transport or improving accessibility. First and foremost, it will deliver the standards of reliability that the travelling public have every right to expect. I remind the House that this is one of two Bills, and that the second will deliver the Government’s wider plans for rail. As my hon. Friend the Member for Luton South and South Bedfordshire (Rachel Hopkins) says, those wider plans are absolutely designed to put passengers back at the heart of the railways and will introduce new measures to protect their interests.
Let me assure the shadow Secretary of State that the wider railways Bill is absolutely a priority for this Government, unlike the previous Government, who had years to bring forward legislation to reform the railways and only got as far as a draft Bill. We are not delaying; rather, we are taking the time to develop the much larger Bill properly, so that it delivers the benefits that we have promised. I look forward to bringing it before the House later in this Session when parliamentary time allows. Under that Bill, the Secretary of State will be the passenger-in-chief and hold Great British Railways to account for delivering for passengers and freight. We will also create a powerful passenger-focused watchdog, the Passenger Standards Authority, to independently monitor standards and champion improvement in service performance against a range of measures.
I am glad that the issue of freight has been raised today. Alongside the overall growth targets set by the Secretary of State, the wider railways Bill will include a statutory duty on Great British Rail to promote the use of rail freight, to ensure that freight remains a key priority.
My hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald) is absolutely right to say that it is shameful that the previous Government’s approach to industrial relations was a failure, which inflicted two years of disruption and misery on millions of passengers. By contrast, this Government will work with unions to mediate disputes. In her first weeks in office, my right hon. Friend the Secretary of State has met representatives of the relevant unions.
My hon. Friend the Member for Hertford and Stortford (Josh Dean), in an excellent maiden speech, raised a very important point about staff shortages on our railways. That is a result of the previous Government’s failure to plan properly for the future, leading to skills and recruitment gaps. It is, of course, important that the right staff with the right skills are in the right place at the right time to provide the level of service that passengers expect and deserve. My ministerial colleagues and I look forward to working with train operators and trade unions on this issue. I wish my hon. Friend well in his endeavours to bring more young people into politics—something we should all be passionate about.
On ticket fares, I share the shadow Secretary of State’s ambition for lower fares for all passengers. We are taking pragmatic steps towards that and are committed to reviewing the overly complicated fares system, with a view to simplifying it and introducing digital innovations. We will explore the options for expanding ticket innovations such as digital pay-as-you-go and digital season tickets across the network. We are aware that increasing passenger numbers is critical to this plan, and that is what our simplified system will aim to do.
The shadow Secretary of State and the hon. Member for Bexhill and Battle (Dr Mullan) raised concerns about the ideology of our approach. I can assure them that our plans are not a return to the days of British Rail and that our approach is not ideological; it is pragmatic. We will take the best lessons from the public and private operation of railways. It is about making sure that the system is right, with checks and balances, growth incentives and proper accountability. We have been clear that our approach means a relentless focus on the interests of passengers and the taxpayer above all else. The same applies to the shadow Secretary of State’s claim that the Government’s plans are about putting politicians in charge, which could not be further from the truth. The point of Great British Railways is to get day-to-day decisions out of the hands of politicians and into the hands of those who are best placed to make such decisions, with the needs of the passenger and the freight user at the heart of the whole system.
The shadow Secretary of State mentioned the Chancellor’s statement. The Chancellor has made some very hard decisions on the basis of the dire financial situation that we have inherited from the previous Government, but this does not change the fact that providing better transport for our citizens is an absolute priority, and we will not waver in our pursuit of better rail services for all.
I also thank the hon. Member for Bath (Wera Hobhouse) for her comments and share her view that intervention is needed. However, let me assure her that we are well aware that this cannot come at the expense of other vital services. I assure her that our plan to fix Britain’s railways is fully costed and will be delivered within our fiscal rules. It will improve services and reduce costs to the public purse.
The hon. Members for Bath and for Moray West, Nairn and Strathspey (Graham Leadbitter) and my hon. Friend the Member for Easington (Grahame Morris) also highlighted the role of the rolling stock leasing companies. This is another area where the Government’s approach is pragmatic, delivering value for the taxpayer and not driven by ideology. It would not be responsible to spend billions of pounds of taxpayers’ money buying up existing rolling stock, especially when, as my right hon. Friend the Chancellor of the Exchequer has set out this afternoon, we face a £22 billion black hole in the public finances created by the Conservatives.
I completely agree with the right hon. Member for Aldridge-Brownhills (Wendy Morton) on the importance of rail links to local communities, and I welcome her constructive attitude to this debate. I deeply sympathise with the points she made, and those made by the hon. Member for Didcot and Wantage (Olly Glover), my hon. Friend the Member for Liverpool Wavertree (Paula Barker) and others, about the Avanti West Coast service. As my right hon. Friend the Secretary of State set out, she has already met with Avanti to make her expectations clear. However, the right hon. Member for Aldridge-Brownhills will appreciate the need to bring services into public ownership as existing contracts expire, to avoid the need to pay a penny in compensation to the operators for earlier termination. That does not change the fact that the Government care deeply about performance and will hold private operating companies to account for the remainder of their contracts.
To reassure my hon. Friend the Member for Derby North (Catherine Atkinson), I will also highlight that contracts can be terminated early if the relevant contractual conditions are met, and we will not hesitate to do so if needed. She also raised the important issue of ticket office closures, as did the hon. Member for Taunton and Wellington (Mr Amos) in his excellent maiden speech. I confirm that this Government have no plans to close ticket offices.
The right hon. Member for Aldridge-Brownhills and the hon. Member for Bexhill and Battle also asked about open access services. We have been clear that there will remain a role for open access services, with existing operators continuing to operate on the network alongside publicly owned services, where they add value and capacity to the network.
Finally, the hon. Member for Brighton Pavilion (Siân Berry) highlighted the role of Transport for London and Merseytravel. How to secure the delivery of services in those areas will remain a matter for local leaders. The wider railways Bill will give local leaders a statutory role in governing, managing, planning and developing the rail network. This, along with our plans to give local authorities more control over bus services through our better buses Bill, will make it more straightforward to integrate the railways with other forms of transport.
I would like to thank hon. Members again for an excellent and considered debate on this “Cinderella topic”, as the hon. Member for Didcot and Wantage called it, and I welcome further engagement from both sides of the House as the Bill progresses. With that, Madam Deputy Speaker, I commend the Bill to the House.
Question put, That the Bill be now read a Second time.