Rail Freight

Debate between Amanda Hack and Lilian Greenwood

Wednesday 3rd June 2026 Westminster Hall

[Lilian Greenwood]

I thank my hon. Friend for raising that concern in his part of England. I will ensure that the Rail Minister writes to him about that matter, or arranges a meeting if that is more appropriate.

In a world of increasing uncertainty and geopolitical volatility, it is vital that we have secure, resilient supply chains. Rail freight, which is a fuel-efficient way of transporting goods, is a core node in those supply chains. That is why the Government have been absolutely clear about our ambition to encourage the growth of the sector and to strengthen its role in our transport network. To that end, we have committed to the target of increasing rail freight by at least 75% by 2050.

Rail reform is a significant opportunity to realise that ambition. Members have been closely scrutinising the Railways Bill over the past few months, and it will of course return to this House for further debate shortly. Members know that the current system has failed to unlock fully the potential of rail freight, and lacks the incentives and the structural framework to drive growth. Nor do we have a single entity with strategic overview of the railway deciding what network capacity should be made available for freight.

The current model for network access is an application-led first come, first served market model with no whole-system oversight. The concept of strategic freight capacity, designed to reserve space on the railway for new freight, is broken. Train paths labelled as strategic freight are not actually strategically planned—often, they do not even join up to form useful routes—and even those limited paths are nigh-on impossible to safeguard because they are given the very lowest priority in the timetable rules. That has meant that, over time, the capacity earmarked for future freight has been eroded.

Great British Railways can and will deliver better outcomes for freight. It will have two freight-specific statutory duties: first, to promote the use of rail freight and, secondly, to have regard to the freight growth target set by the Secretary of State for Transport. Taken together, those duties will ensure that freight is embedded at the heart of GBR’s decision making.

[Amanda Hack (North West Leicestershire) (Lab)]

It was great to welcome the Minister to my constituency to visit the east midlands rail freight terminal, which has huge potential to take vehicles off the road and on to rail.

Bardon has a quarry, and a private spur of the Ivanhoe line is used. In the conversation about reopening the Ivanhoe line, only a passenger assessment has been undertaken. Will the Minister consider both freight and passenger rail in future conversations about bringing rail lines back into use?

[Lilian Greenwood]

I thank my hon. Friend for that important point. She is a great champion for the freight industry more broadly, and I know how important it is to her constituency. I will certainly ensure that the Rail Minister, my noble Friend Lord Hendy, considers the issues that she raises.

A representative on GBR’s board will have responsibility for freight, and a central freight team will provide customers with a single point of contact for promoting freight across the organisation. Taken together, those measures will ensure strong leadership at the top and advocacy at the heart of the organisation.

The sector will also benefit from a new capacity allocation framework. That framework will support a more strategic and proactive approach to allocating capacity. It will have one single directing mind—Great British Railways—taking a whole-system approach to make best use of the available capacity. The access-and-use policy required by the framework and by the Railways Bill is being developed and will be consulted on in September.

We know that we alone cannot achieve our ambitions for the sector. That is why we are setting up GBR as an astute commercial entity. It will be equipped with the right incentives and mechanisms to engage with private investors and offer them commitments that secure a return on investment. That will encourage third parties to invest in rail, helping to drive modal shift and grow rail freight, which many Members, including the hon. Member for Hazel Grove, have called for.

The hon. Lady raised a number of questions, a few of which I will attempt to pick up on. She asked about the expansion of more modern signalling, which will be helpful. The east coast digital programme is fitting signalling in a number of locomotives. That will be the first part of the network to have the signalling that she described, which can then be rolled out further. I recognise the importance of modernising our rail network to ensure that we take advantage of the new technologies available to enable trains to run closer together, for example, and therefore to create more capacity.

The hon. Lady also asked about the freight growth target. Under the duty set out in the Bill, GBR must have regard to the freight targets set by Ministers. It is expected to demonstrate how it has considered those targets and how its activities align with the goals set out by Ministers. Additionally, GBR’s business plan will be expected to demonstrate how it plans to work towards achieving the freight growth target. The Secretary of State will sign off that plan only once they have received expert advice from the Office of Rail and Road and are satisfied that the plans set out meet the Government’s expectations and priorities for the railways, including on rail freight.

Of course, the ORR has powers of appeal where freight operators are not happy about the way in which GBR has carried out its duties or feel that it has not taken decisions that are consistent with its policies. GBR is obviously bound by the Competition Act 1998, and will not be able to prioritise its own services. Its decision making must be fair, transparent and subject to challenge in the ways that I have set out.

I also want to take this opportunity to touch on the ongoing crisis in the middle east and the impact that it might have on the rail freight sector. The effects of the crisis have highlighted the importance of having a strong rail freight sector as a node in our resilient, diverse supply chains. Last month, the Chancellor cut fuel duty for red diesel users, such as rail freight operators, by more than a third until the end of the year. That means that rates are at their lowest level in more than 20 years. That will help to keep costs down and protect those vital businesses. As I think we all recognise, the economics of freight transport have sometimes disadvantaged rail freight. My officials will continue to work closely with rail freight operating companies on routine resilience planning as a sensible precaution to protect supply chains.

Finally, I emphasise again that rail freight will continue to be an integral part of our transport network as we transition to a new operating model for the railway. Our ambitious programme of reform will mean that rail freight can continue to prosper under a transformed rail sector. That will bring benefits for all our constituencies, including that of the hon. Member for Hazel Grove. I recognise the importance of aggregates, not just in her constituency, with the example of tarmac, but across that whole part of the country, stretching into the east midlands—I have been and seen that for myself. That is why we want rail freight to thrive and prosper, and why, in setting up Great British Railways in the way that we have—with important duties in relation to rail freight—we are confident that we can grow this sector for the future, delivering the many benefits that she and other hon. Members have set out.

Question put and agreed to.