Rail Manufacturing: Job Losses

Debate between Wera Hobhouse and Huw Merriman

Tuesday 16th April 2024 Commons Chamber

[Huw Merriman]

My hon. Friend is absolutely right. We are talking not just about the jobs at the manufacturing plant in Derby, but about all the jobs throughout the supply chain. I work really closely with the supply chain and its trade representatives—the Railway Industry Association and Railfuture—and I am keen to continue to do so. Our work and our endeavour is to try to find a solution, not just for the workforce in Derby working directly for Alstom, but for those who are temporarily employed at Alstom and for the entire supply chain. That is why the Secretary of State is meeting Alstom right now, so that we can try to find a solution for them all.

[Wera Hobhouse (Bath) (LD)]

The Government’s inaction in signing off new orders for trains is now threatening hundreds of jobs in County Durham and wiping millions of pounds off the value of rail manufacturing companies. Inadequate supply to our rail infrastructure will have a big impact on decarbonising the UK transport system. Is the Minister aware of that, and what are the Government doing in the long term to invest in our rail infrastructure?

[Huw Merriman]

Thanks to the UK taxpayer, the Government have invested over £100 billion in the railways, and a lot of that investment has gone through to rolling stock. As I have mentioned, the rolling stock is now on average under 17 years old, with a life cycle that goes to 35 to 40 years. I will give the hon. Lady a good example of where the future is bright: in the area of innovation and technology. Great Western has just completed a battery trial for a train that has covered 86 miles, with stops, on just one single charge. My hope is that as well as new orders for trains, we will find new solutions for manufacturing rolling stock that is greener than it is right now.

HS2 Cancellation and Network North

Debate between Wera Hobhouse and Huw Merriman

Wednesday 17th January 2024 Westminster Hall

[The Minister of State, Department for Transport (Huw Merriman)]

It is a pleasure, as always, to see you in the Chair, Mr Davies. I thank my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) for securing this important debate on HS2 phase 2a and Network North, and for the manner in which he set out his case.

As has been mentioned, on 4 October last year, the Prime Minister announced that phase 2a of HS2, along with phase 2b—the western leg—and HS2 east, would be cancelled, and that funding would be redirected towards alternative transport projects in the north and midlands through Network North. Let me give a bit of the background and rationale. The HS2 programme accounted for over one third of all Government transport investment. That prevented us from spending money on other genuine priorities, and it could be argued that, if we were not investing in the areas that matter to people, we were doing little to improve the journeys that people make the most.

Network North will drive better connectivity across the north and midlands, with faster journeys, increased capacity, and more frequent and reliable services across rail, bus and road. Rather than delivering phase 2a, the phase 2b western leg and HS2 east, the Government are redirecting £36 billion to hundreds of transport projects across the country, one of which, of course, is in Shipley.

[Wera Hobhouse]

Will the Minister give way?

[Huw Merriman]

I will come to the hon. Member shortly.

Every region is now set to receive the same or more transport investment, on an unprecedented scale. We will still deliver HS2 between Euston and the west midlands as planned: 140 miles of new railway and new stations at Old Oak Common and Birmingham interchange. HS2 tracks will end with two branches in the north: one to Curzon Street station in central Birmingham and one to Handsacre, near Lichfield, where HS2 trains for Manchester, Liverpool and Scotland will join the west coast main line.

Delivery is well under way, and there are 350 active sites. Initial high speed services will start between 2029 and 2033, and will run between Old Oak Common in west London and Birmingham Curzon Street. We will appoint a development corporation, separate from HS2 Ltd, to manage the delivery of the project at Euston, and create a transformed Euston quarter that will potentially offer up to 10,000 homes.

I turn now to land and property safeguarding with regards to the disposal that will come into effect now that phase 2a is not being completed, and I will then come to point made by the hon. Member for Portsmouth South (Stephen Morgan)—that it is not possible at the moment for the Labour party to determine what it will do. If he listens to this part, he will realise it is entirely possible. We know it is just a smokescreen: the Labour party cannot make a decision because it does not know what to do.

Safeguarding on the former phase 2a of HS2 between the west midlands and Crewe will be lifted very shortly. The lifting of safeguarding does not in any way trigger the start of a sell-off of property already acquired. HS2 Ltd has ceased the issuing of any new compulsory purchase notices on phase 2a and is now working to close out all transactions across phase 2 that were outstanding on 4 October. Where we can agree with property owners to withdraw from an agreed acquisition, we will do so, but in many cases we are under a legal commitment to proceed. In others, we have discretion and we are examining those on a case-by-case basis, considering the circumstances of the claimant and the implications for the taxpayer to identify the right way forward.

We are currently developing the programme for selling land acquired for HS2 that is no longer needed, and we will set out more details in due course. We will take the time to develop this programme carefully to ensure that it delivers value for money for the taxpayer and does not disrupt local property markets. Under what are known as the Crichel Down rules, land and property acquired through compulsory purchase or under statutory blight, and which is no longer required, should in certain circumstances be offered back to its former owner at its current market value. We will of course engage with all affected communities throughout this process.

Therefore, the choice will be quite clear for the Labour party. As I said, the safeguarding will shortly be lifted, and the land is not owned by the Secretary of State; it is owned by other property owners who are stymied at the moment from doing what they may want to do with it because safeguarding is imposed. No land will be sold off until we are ready. It is perfectly feasible for the Labour party, if it supports HS2 going ahead, to say that it will put the safeguarding back on, which would be relatively straightforward. As none of the land will have been sold, it can just continue.

However, the Labour party will not say that because it does not know whether it wants it to go ahead. The hon. Member for Portsmouth South mentioned going to Manchester and not committing to HS2 phase 2a or 2b, but that is exactly what the Leader of the Opposition did last week. He went to Manchester and said, “We will not proceed with that project.” Even worse, I am going talk to all these projects, and hon. Members are here to talk them up, but where are the Labour MPs to talk up these projects across the north and the midlands? Nowhere to be seen. Those projects have not been committed to, so where will the £36 billion that we have committed to these projects go? The silence is deafening.

[Wera Hobhouse]

Will the Minister give way?

[Huw Merriman]

I am not going to give way because I am going to come to the hon. Lady shortly. I want to refer to the points that my hon. Friend the Member for Stoke-on-Trent South raised on the local causes. He said that he is delighted with the decision on Meir station—I was delighted to join him up at Meir to see the site— and since then, he has been really successful in his campaign. That project aims to provide a new station in the town of Meir on the existing Crewe-Derby line, and it was awarded initial funding to develop a strategic outline business case as part of the first round of the restoring your railway ideas fund. The full business case is expected to be submitted in July of this year, and decisions on further funding for the project will be made within the context of the broader programme. As he knows, his station is mentioned in Network North; we are committed to it.

My hon. Friend mentioned Stoke and Leek, and a bid to reinstate the railway line between Stoke-on-Trent and Leek has been made to the restoring your railway programme. The proposal examines the potential for six intermediate stations on the route, and the Network North announcement included the intention to progress the Stoke-Leek restore your railway scheme to delivery. I am grateful to him for all his work on that.

Longton station is another that I visited with my hon. Friend. That original station project includes public realm, cycle hub, waiting shelters and accessibility improvements. The council has faced a number of challenges in relation to cost pressures, delays and technical issues. The estimated cost of the Longton project is now forecast at £3.5 million to £4 million, compared to £1.1 million at the time the funding was awarded. We are committed to working with Stoke-on-Trent City Council—Network Rail has entered into a development services agreement, and the council has indicated that the project is forecast to complete by September 2025. On junction 15, which my hon. Friend mentioned, improvements are being developed and delivery would be on a similar timeline as improvements to the A50. Those are all subject to a supportive business case.

On a point mentioned by my hon. Friend the Member for Lichfield (Michael Fabricant), I can assure him and my hon. Friend the Member for Stoke-on-Trent South that HS2 will be delivered with a branch to Handsacre near Lichfield. In the absence of phase 2a, Handsacre remains the only connection between the high-speed infrastructure and conventional rail. I can confirm that work is being undertaken to assess the options to enhance the railway in the Handsacre area, to support train services and capacity, making use of the £500 million set aside in Network North. I can give my hon. Friend the Member for Lichfield that reassurance, which he can pass on to our fantastic Mayor of the West Midlands, Andy Street.

I will turn to the other contributions—none from Labour MPs because they did not make any. I will start with my right hon. Friend the Member for Suffolk Coastal (Dr Coffey) and thank her for again championing the Ely and Haughley capacity enhancement project. That will increase freight trains from 36 to 42 trains a day from the port of Felixstowe, allowing trains to go into the midlands, rather than further south. Network North has confirmed its support. It is a project that I have long championed but we have been unable to put on the list due to HS2 spend. Because of this decision, we now can. The next steps are for a full business case, and we are engaging with the Treasury. I take my right hon. Friend’s point about getting back the Network Rail team on the Haughley preparation work project. That is something that we are looking at in the Department, and I thank her for her points.

I will turn to other contributions. My hon. Friend the Member for Lichfield, in addition to his other intervention, referred to funding for the cross-city line. Perhaps I can point him towards the city region sustainable transport settlements and the local integrated transport settlements, which are two funds from Network North. As well as the list of projects we have committed to deliver, we are also committed to deliver money on a devolved basis, so that local transport authorities can determine on which projects they want to spend their money.

For example, an extra £1 billion has been put into the city region sustainable transport settlements fund for the west midlands, which takes it up to £2.64 billion, allowing the west midlands to make its own choices, because there is devolution within this programme. My hon. Friend the Member for Stone (Sir William Cash) mentioned the case for new stations, showing their business case worth. He is absolutely right regarding Stone, and we hope that will be the case for Meir. I also want to thank him for his work with Trevor Parkin, and for the time he took to drive me through his constituency, so that I could see the impacts that he talked about.

My right hon. Friend the Member for South Staffordshire (Sir Gavin Williamson) asked me to go away—in the most polite terms, I am sure—and assess the west coast main line timetable. I am happy to do so and will write to him. I hear his call for more pothole funding for his roads. Every hon. Member will have seen money given to them for pothole funding. It is essential that it is spent well, and I hear his call that more should be spent.

I now come to the contribution from the hon. Member for Bath (Wera Hobhouse), which I found extraordinary. She made the case for HS2, and, of course, I agree. That is why we are delivering 140 miles of it. I find it extraordinary that I was delivering leaflets in Chesham and Amersham for the Conservative party, talking up the project on similar lines to hers, yet the entire Liberal Democrat campaign in Chesham and Amersham was to run down HS2 and call for it to be cancelled. I have no issue with individual Members campaigning against HS2 because they always have done, but for a party in a by-election to focus its entire campaign on cancelling a project only to then stand here and talk it up—sorry, only a Liberal Democrat could do that.

The leader of Plaid Cymru asked what HS2 does for Wales. The reality is that it was always an England and Wales project, which is why with Network North we are allocating £1 billion to the electrification—

Refurbishing Trains: Contracts

Debate between Wera Hobhouse and Huw Merriman

Thursday 7th December 2023 Commons Chamber

[Huw Merriman]

I hope my hon. Friend’s constituents will be comforted by the order, because it is not just an order for new TransPennine express trains but a complete upgrade of the TransPennine route. The UK Government are spending more money on the TransPennine upgrade than was spent on the Elizabeth line, and that will mean delivering a better service. I was with the managing director of TransPennine trains on Monday up in Yorkshire and we were discussing just that. We need to improve the service and the rolling stock.

[Wera Hobhouse (Bath) (LD)]

Upgrades to our trains must include electrification, but electrification is at a standstill, with only 101 miles of track being electrified this year. East West Rail will not be electrified as standard, and dirty diesel trains are still going through Bath. Will the Minister commit to a long-term plan for electrification?

[Huw Merriman]

The Prime Minister’s Network North plan did just that—electrification for Hull, between Sheffield and Manchester, and between Sheffield and Leeds. They are vast projects, not small projects. With regard to East West Rail, that is the upgrade of an existing line, which has its bridge sizes all the way through from Winslow to Bletchley, so it is difficult to put electrification on to that part. Let me remind the hon. Lady that there has been more than 1,200 miles of electrification in the past 12 years compared with just over 60 miles in the 12 years before that. I think that is a pretty good record.

Rail Ticket Offices

Debate between Wera Hobhouse and Huw Merriman

Thursday 6th July 2023 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

The Government have overseen the largest increase in rail fees. My constituents must deal with frequent delays and cancellations, and now people in Bath and across Somerset face losing their ticket offices. Bath is a world heritage site that has a large number of visitors. Foreign visitors, in particular, find getting through apps and ticketing machines bewildering; they depend on the ticket offices. It more important than ever now to attract people on to public transport, so will the Minister explain why my constituents, and the many visitors to Bath who would otherwise come by coach, should feel confident that train journeys will be more reliable, cheaper and more attractive than driving?

[Huw Merriman]

It is because we want to give that better customer experience, so that more passengers are seeing more staff at the stations to help them with information, make them feel more secure and welcome, help them purchase a ticket, and do so in a manner where those passengers are used to transacting across the space. I very much hope the hon. Lady will see a better staff experience as a result and therefore even more people will be attracted on to rail.

Electric Vehicles: Infrastructure

Debate between Wera Hobhouse and Huw Merriman

Wednesday 22nd February 2023 Westminster Hall

[The Minister of State, Department for Transport (Huw Merriman)]

It is a pleasure to serve under your chairmanship, Mr Bone. I thank my hon. Friend the Member for Winchester (Steve Brine) for securing this important debate, and I thank every participant for their words. It may not be possible to answer all their questions, but I hope we can cover the bulk of them.

The Government are committed to decarbonising transport and to phasing out the sale of new petrol and diesel cars and vans by 2030, becoming the first G7 country to do so. The benefits of zero-emission motoring are there to be won: improved air quality in our towns and cities, economic growth through our automotive industry, and ultimately cheaper and cleaner driving for all. Getting to that point will require Government and industry to furnish this country with an accessible, affordable and secure charging infrastructure network.

Perhaps I can give you some reasons to be cheerful, Mr Bone; I fear the hon. Member for Slough (Mr Dhesi) also needs cheering up. Industry data shows that in December 2022, 32.9% of new cars sold were fully electric. That was the best ever month for new battery electric car registrations, with more sales than in all of 2019 combined. The UK had the second highest battery electric car sales in Europe in 2022, with Germany being first and France third. A survey by Zap-Map found that only 1% of EV drivers want to switch back to a petrol or diesel vehicle. One in five public charge points in the UK are rapid or ultra-rapid, and under our plans, new homes and non-residential premises undergoing renovation will have to install charging infrastructure at the point of construction. That should lead to 145,000 further charge points across England every year. Those are some reasons to be cheerful.

Last March, we published our strategy and set out our plans to accelerate the roll-out of the network. To answer one of the questions posed by my hon. Friend the Member for Winchester, the Government expect at least 300,000 public charge points to be installed across the UK by 2030. We do not regard that with the same cynicism as my good friend from the SNP, the hon. Member for Paisley and Renfrewshire North (Gavin Newlands). A recent industry report by New AutoMotive, “On the Road to 2030”, found that the charge point roll-out is

“progressing at an adequate pace, growing by a third every 12 months, and the UK is on track”

to meet the expected 300,000 public chargers by the end of 2030. So do not just take my word for it.

That will all be achieved thanks to billions of pounds of investment by industry. There are more than 37,000 open access public chargers already on UK roads, hundreds of thousands of charge points in homes and workplaces, and more than 600,000 new chargers added to our road network each month on average. In fact, public charging devices have more than tripled in the last four years. We are on track to meet expectations.

On electric vehicle uptake, Government grants have supported drivers to buy plug-in vehicles for over a decade, with more than £1.4 billion already having been invested in the early market. Colleagues at the Treasury are committed to ensuring that motoring tax revenues keep pace with the changes brought about by the switch to electric vehicles, while keeping the transition affordable to consumers.

I will touch on local charging infrastructure, which has been raised. This debate is a timely one. Lack of access to off-street parking should not be a barrier to owning a plug-in electric vehicle. We are working with local authorities to ensure local provision meets local needs. Just yesterday, as my hon. Friend the Member for Winchester mentioned, we announced that drivers across the UK will benefit from a further £56 million of public and industry funding to support the roll-out of electric vehicle charge points across the country.

[Wera Hobhouse]

Will the Minister give way?

Oral Answers to Questions

Debate between Wera Hobhouse and Huw Merriman

Thursday 24th November 2022 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

Research from the Campaign for Better Transport suggests that the Government are so far behind on their electrification plans that rolling stock leasing companies are being forced to destroy electric units that they cannot use. At the same time, the Government continue to introduce new diesel trains—more not zero than net zero. Will the Government ensure that they order no more diesel trains and get on with electrification?

[Huw Merriman]

The Government are committed to phasing out all diesel trains by 2040. That remains our aim and our ambition. There is electrification going on at the moment along the west midlands line, and we are certainly committed to ensuring that we can roll out more electrification, and indeed use hydrogen and battery power where appropriate, in the years to come.

Vehicle Taxation Reform

Debate between Wera Hobhouse and Huw Merriman

Wednesday 19th October 2022 Westminster Hall

[Wera Hobhouse]

Absolutely. We see that people are facing great problems in rural communities and it is important to make short-term interventions to help them. However, I am really talking today about what vehicle taxation will look like in the long term, once we transition to net zero. Nevertheless, I fully take the point made by my hon. Friend.

On the other hand, drivers of electric vehicles pay no fuel duty. The Government need to continue incentivising the use of electric vehicles for environmental reasons. However, there are many ways in which that can be done without subsidising fuel duty. One option is to increase the number of public electric vehicle charging points. So far, the UK has only 31 electric vehicle charging points and only six rapid charging points per 100,000 people. If the Government are serious about encouraging the uptake of electric vehicles, they must ensure that the infrastructure is there. That would be of great benefit to my constituents in Bath and to the wider south-west, as our region is the second largest in the country for electric vehicle uptake.

Other incentives could include providing grants for electric car conversion. The conversion of old cars has significant benefits. For example, the carbon footprint of producing a new car is far higher than that created by continuing to use an old car. Currently, buying a new electric car is not an easy option for many people who do not have off-road parking or their own charging facilities. The conversion of older cars would help lower-income families who are struggling with the cost of living crisis, while also being part of the movement to less carbon-intensive transport options.

If we are to transition to net zero sustainably, the Government must find a way to fill the taxation income gap caused by declining fuel duty. The Government’s own net zero strategy from 2021 states that the taxation of motoring must keep pace with electric vehicles. I understand that the Treasury has said in the past that the level of income from motorists should stay about the same in future, but how can that be achieved?

[Huw Merriman (Bexhill and Battle) (Con)]

I congratulate the hon. Lady on securing this excellent debate. The Select Committee on Transport, which I chair, has put a series of recommendations to the Treasury, and we work closely with it. In advocating a form of road pricing, she rightly says that there will be a fiscal black hole. Some 4% of the entire tax take comes from motoring taxes. The evidence we received from the Treasury was that that figure would plummet to zero by 2040, so that means a loss of investment not just for roads, which account for just 20% of that total tax figure, but for schools and hospitals. Does she agree that the reason why we need road pricing is not just to fill the hole, but because devolved Mayors, in using their powers, are creating a patchwork of road-pricing schemes, and it will be difficult for the Government to get into that space with that patchwork already in place?

[Wera Hobhouse]

I totally agree. We need some clarity and something that motorists across the country can see as a coherent strategy, rather than the patchwork that the hon. Gentleman spoke about. One approach would be a scheme based on mileage. Other factors, such as emission levels or road type, could be added into the mix. Road pricing, as it is often referred to, is not a new idea. The Liberal Democrats proposed a version of it in our 2010 manifesto. It has been explored in depth many times. So far, no noticeable progress has been made towards its adoption and the hon. Gentleman is absolutely right that we need to act and find ways forward quickly.

Nearly 20 years ago, the then Transport Secretary said that road pricing was 10 years away, but we do not have another 10 years to waste. The motivation then was to cut pollution and reduce congestion, particularly in larger cities. Our most urgent need now is getting to net zero and, while doing that, looking at the immediate financial implications that I have mentioned.

I want to draw the Minister’s attention to an excellent report released just a few days ago by the Campaign for Better Transport. The report tested options for a national road pricing system with a large cross-section of the public. The good news is that the public appear to be open to the idea of road pricing, otherwise known as pay-as-you-drive. In the survey, nearly 50% of respondents felt that fuel duties were unfair. That is unsurprising. Low-income households are more likely to have older, more polluting and less fuel-efficient cars and to pay more fuel duty per mile travelled. That is in contrast to wealthier households with newer, more fuel-efficient vehicles. According to Policy Exchange research, someone with a new car could pay half the amount of fuel duty compared with the owner of an older car. Other findings from the report show that 65% of those surveyed believe that electric vehicle owners need to pay tax to use the road system. Drivers felt that people with electric vehicles are effectively driving tax free, while those who are unable to switch—largely for financial reasons—must pay.

We must encourage the take-up of electric vehicles to reach net zero. However, the public are acutely aware that Britain’s finances are under pressure after the recent economic shocks. Money must be found somewhere. There is evidence that the current vehicle taxation system is not fit for purpose, and the public agree. In the Campaign for Better Transport report, 60% of respondents agreed that there was a need to reform the vehicle taxation system. What options are available to Government and are these options fair in the eyes of constituents? Pay-as-you-go, or pay-as-you-drive, is worthy of consideration. It is widely regarded by experts as a progressive step forward. A pay-as-you-drive system could charge drivers directly per mile driven with a set distance charge. Another alternative could be smart road pricing, whereby the charge per mile varies depending on different factors. The Treasury would have the option of applying this equally to all vehicles. Alternatively, it could create a series of levels based on emitting status and/or the location where the person is driving.

The Climate Change Committee report to Parliament this year noted that road pricing “will be necessary” in the longer term. It recommended that the Government implement it “later this decade”. The Select Committee on Transport has recommended smart pricing, as has the Policy Exchange, the AA, and the Social Market Foundation.

For the first time in a long time, consensus is beginning to emerge. When pay-as-you-drive was initially pitched in the Campaign for Better Transport survey, 42% of respondents supported the idea, with 21% saying “No”. After the concept had been explained and questions answered, the percentage in favour rose to 49%, with opposition dropping to just 18%.

Pay-as-you-drive can come in many forms, but there are three options worth considering. One is a flat per-mile charge for electric vehicles. That would keep fuel duties as they are for existing petrol and diesel vehicles, and those duties would wither away as those cars disappear from our roads. Another option is replacing fuel duty and vehicle excise duty, with a set per-mile charge based on the emissions level of the vehicle. That could be estimated at the annual MOT mileage check. Lastly, we could replace fuel and excise duty with a smart per-mile charge that varies with vehicle type, emissions, location and time of day.

The main argument in favour of pay-as-you-drive comes from the need to reduce the number of people driving to lower congestion and reduce air pollution and carbon emissions. The transport sector is now the biggest source of domestic greenhouse gas emissions and accounts for 28% of all emissions. Cars make up 55% of that figure, while lorries and vans make up 32%. Buses, coaches, and rail collectively account for just less than 5%, according to Government figures.

A system based on rewarding those who drive less, rather than a flat rate, could lead many members of the public to use their cars less and use public transport more. The idea that drivers who drive more should pay more in tax, and that those who drive less should pay less, was popular in the survey and it is clearly the right direction to take.

There is no doubt that ensuring investment in public transport, including reforms to the integration of bus and rail ticketing systems, is critical to a functioning pay-as-you-drive system. Those reforms cannot exist in a vacuum and must be part of a wider conversation on how we move people away from private cars and on to environmentally friendly public transport.

In the Campaign for Better Transport survey, 69% of respondents stated that a key element of making the entire system fairer for drivers was to make public transport cheaper. The Liberal Democrats would seek to give new powers to local authorities and communities to improve transport in their areas. That would include the ability to introduce network-wide ticketing, like that in London, and greater powers to franchise bus services and simplify the franchise application system. We would also reverse the ban on local authorities setting up their own bus companies, which should give councils the tools to make transport accessible for everyone.

Reforming the system towards pay-as-you-go would also bring transparency to vehicle taxation. Many drivers are unaware of the level of fuel duty that exists within the price that they pay for fuel. It is important that we bring clarity and openness to the vehicle taxation system when we reform it.

We must do everything possible to reach our net zero targets. However, that transition needs to be sustainable and accessible. Pay-as-you-drive is a progressive way of solving the problem of declining fuel duty revenue. In particular, it would encourage much more sustainable transport habits. Clearly, pay-as-you-drive schemes must be combined with more investment in public transport and environmentally friendly infrastructure. I look forward to the Minister’s response.