HS2: North-west of England

Andrew Jones Excerpts

Tuesday 11th October 2016 Westminster Hall

[Andy McDonald (Middlesbrough) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Owen. I thank my hon. Friend the Member for City of Chester (Christian Matheson) for securing the debate. He passionately put forward his case on how HS2 can serve the interests of his constituents and the wider north-west. I echo his sentiment that HS2 has Labour’s backing. We welcome infrastructure investment, but part of the case for HS2 that convinced so many was that it was not simply another project designed for the benefit of the south-east but that it would benefit regions across the country.

Crewe is already a gateway station for the north-west, with regional and long-distance connections to the wider north-west, the east midlands and Wales, but there are significant capacity constraints that have an impact on reliability, which has been below industry targets, and there are bottlenecks at Colwich junction and around Stafford. This is also a problem for national freight operators, with much freight traffic on the west coast main line routed through Basford Hall yard, south of Crewe, and 43% of rail freight journeys using the west coast main line at some point.

The phase 2a link will help provide much needed additional capacity for freight and will improve reliability for commuter services, so it should be welcomed that the Government have brought forward the opening of the phase 2a link to 2027 as that will provide benefits to the north-west and beyond. However, it would be disappointing if a Crewe hub were not developed, as the fact that it is already a regional hub provides a springboard for further developing and improving connectivity with conventional rail. The benefits of stopping more trains at Crewe are clear, as expressed in David Higgins’s “HS2 Plus” report.

We welcomed the Government’s decision to accelerate the section of route from the west midlands to Crewe so that it opens six years earlier than planned in 2027, bringing benefits to the north sooner than initially thought, but the primary concerns are the rumours that phases 2a and 2b might be downgraded or delayed as the project increasingly comes under budgetary strain.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

indicated dissent.

[Andy McDonald]

I see the Minister shaking his head—he can give me that assurance, then. In the words of the Public Accounts Committee report,

“the cost estimates for phase 2 are still volatile”.

There was a cost estimate from the Department for Transport that was £7 billion over the agreed £28.5 billion funding, and then £9 billion of potential savings were subsequently identified. We know that much of the savings are a result of more detailed and accurate estimates being applied, but the worry is that without a confirmed route and a firm cost estimate, and with budgetary pressures, the planned savings on phase 2 will be delivered by adversely affecting the expected benefits of the programme to the north, including the north-west.

I know the Minister will wish to reassure the House that he intends to preserve the integrity of HS2 to the north, because that will tackle the lack of capacity south of Birmingham and the poor connectivity not just between the region and London but within the north. It is crucial that we ensure that HS2 remains an infrastructure project that delivers for the whole country.

We have seen the uncertainty surrounding the proposed route changes in south Yorkshire. We do not want to see the same uncertainty on the western leg. It has been rumoured that if costs for the existing scheme cannot be brought down, one option under consideration is to delay or abandon altogether the section to Manchester and build the line only as far as Crewe, or to delay the line—an HS2 spokesperson said that the Treasury is taking the position that that nothing is ruled out.

I echo the concerns of my hon. Friend the Member for City of Chester and stress the importance of delivering a hub station at Crewe, which will benefit the sub-region, the north-west and the country as a whole, and of phase 2b, which ought to transform connectivity in the north and through the country. It would be disastrous for the north-west and make a mockery of the so-called northern powerhouse if phase 2 were to be downgraded.

We eagerly await the Government’s proposals for HS2 phase 2, but whatever the forthcoming route proposals, they must ensure that HS2 is an infrastructure project that delivers for the whole country. I hope the Minister can provide reassurances to that effect.

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

It is a pleasure to serve under your chairmanship, Mr Owen. I congratulate the hon. Member for City of Chester (Christian Matheson) on securing this debate on HS2 connectivity in the north-west. He represents a beautiful city—one of the many places in the north-west that really stands to benefit from HS2. It has been great to hear the appetite for the scheme from across the Chamber.

HS2 will become the backbone of our national rail network. It will be a key part of building a transport system and economy that works for all. It will increase rail capacity and improve connectivity, and people will not need to travel on HS2 to benefit from it. By providing new fast lines for inter-city services, HS2 will free up space on our existing railway network for new commuter, regional and freight services. We are already starting to see the benefits of the scheme in the form of jobs and skills, which are being created now.

HS2 is working with businesses across the UK, including many small and medium-sized firms, to ensure that they are well prepared to bid for contracts and reap its benefits. Construction alone will generate about 25,000 jobs and 2,000 apprenticeships. A supplier roadshow has travelled the UK, highlighting the range of commercial opportunities that the construction schemes will present, encouraging companies from all over the UK to consider tendering for some of the work. I attended the last one, which was up in Aberdeen, which highlighted to the engineering businesses in the area who have perhaps developed great skills through the oil sector that HS2 presents opportunities for them.

HS2 is not just about serving a few destinations—that phrase was heard across the House. It is not just that; HS2 services will also run on to the existing network, serving destinations in the north-west and indeed those going as far as Scotland. Interchange with conventional rail will also be key in allowing places far beyond the network to benefit. Last year we decided to take the HS2 route via Crewe and to open the route to Crewe in 2027. The journey time between Crewe and London will be just 55 minutes—that is 35 minutes faster than today. Passengers interchanging at Crewe, for example from Chester or north Wales, will also be able to take advantage.

Sir David Higgins recognised the opportunity that Crewe presents for the region. He recommended a north-west hub at Crewe to integrate regional and high-speed rail. It is a sensible idea; Crewe already is a hub. It has rail services to London, Birmingham, Shrewsbury, south Wales, Stoke, Derby, Manchester, Liverpool, Scotland and, of course, north Wales and Chester. It is also well connected to major A roads and the M6.

The Government are developing options for Crewe and we expect to provide an update on the scheme later this year as part of our planned announcement on phase 2b. I will talk a little bit more about the timing later. The hon. Member for City of Chester has clearly put across the local ambition for high-frequency HS2 services at Crewe and for the increased frequency of conventional services between Crewe and Chester. I understand that local ambition. I have made the case for my own constituency as well, as indeed have many hon. Members. We are already investing in connectivity in the region, and we only have to look at the working taking place at the Halton curve to see that. We are looking at what HS2 connectivity could be provided at Crewe to benefit the whole region.

I have to say that it is too early to lock down the service proposition at this stage. We need to understand what is possible and what benefits could be delivered, but options need to be left open so that services meet the demands and priorities of the 2020s and beyond. I also have to say that we have to think about affordability. We have incredibly ambitious rail investment programmes and there are priorities for investment across the network.

[Christian Matheson]

Does the Minister accept that the opportunities for the 2020s and beyond will actually be created by getting the service level for HS2 right?

[Andrew Jones]

I have absolutely no doubt that when we consider those services we are all thinking ahead. I entirely buy the argument that transport investment is a driver of economic growth and, indeed, social progress—whichever mode of transport we are talking about. The Government are not buying trains because we like trains; we are buying them because they facilitate economic growth. That is the same with buses and social progress.

Taking HS2 to Crewe will play an important part in turning the town around. It is already a hub and it is also a town that is in need of investment, but HS2 is not a silver bullet in itself. We need to ensure that HS2 drives regeneration, not only in the places that it serves directly but far more widely. For the economic growth benefits of HS2 to be realised and to spread, local partners have an important role to play.

It is fantastic to see the north-west making such excellent progress in its plans for the region. The northern gateway partnership is already developing its growth strategy. That work, which is aiming to deliver around 100,000 homes and 120,000 jobs, will ensure the regeneration benefits of HS2 are felt right across the region. I have met with the combined authority, Transport for Greater Manchester, on a number of occasions, and I have done the same with the west midlands. It has been fantastic to see the ambition that those areas have for regeneration, recognising that, when HS2 arrives, it will present them with significant opportunities.

[Andy McDonald]

The Minister said it is too early to “lock down” the level of service, but he will undoubtedly appreciate that, if we cannot establish a bare minimum level of service, this becomes a rather pointless and redundant exercise. If he is not able to do that now, will he give some indication of when he will be able to give a little bit more detail about the basic minimum level of service we have been discussing this afternoon?

[Andrew Jones]

I will come on to timing a little later on. I turn to the matter of the north Wales main line and the work that is being carried out by the North Wales and Mersey Dee rail task force. I welcome its establishment and it is doing a good job of making the case for rail modernisation in north Wales and of developing wider growth plans for the region. This is an opportunity for north Wales to make the best case for investment in rail infrastructure and services. It is vital that a shared local vision is brought together with a defined set of prioritised outcomes based on economic growth, journey times, connectivity and modal shift. We will continue to work closely with that taskforce and with the Welsh Government to provide advice and assistance and to consider what can be jointly accomplished. We want the taskforce to advise us effectively on options for enhancements, including electrification, to address the regional economic needs and, of course, on the value of those options.

Many hon. Members have commented today. I will first respond to my hon. Friend the Member for Eddisbury (Antoinette Sandbach), who has raised concerns with me previously regarding the route north of Crewe, given the ground instability problems associated with the route crossing the Cheshire saltfield. I have been down that salt mine as part of looking at the winter preparations for the road network last year. I have to say it was a very interesting place to visit. I am aware of the scale of this enormous undertaking and I reassure my hon. Friend and other hon. Members that we are not ignoring that risk. HS2 Ltd has carried out surveys to better understand the geological issues in Cheshire and has commissioned further studies from third-party organisations. We are looking at a range of options in that area.

At this stage, I cannot provide any further information about where that part of the route will run. My right hon. Friend the Secretary of State will make an announcement on that during the autumn. My hon. Friend the Member for Eddisbury also made a further point about blight for residents affected by the potential routes. I will look at those cases with every sympathy, and I know she will write to me so I will look out for her letter.

I thoroughly agree with the points made by the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) on transport being a driver of economic growth, on how capacity is necessary and on how, looking not too far ahead, we will have a rail network that is full, which is something we have discussed previously. He will not be surprised that we are in further agreement. To my hon. Friend the Member for Weaver Vale (Graham Evans), I say this is not a white elephant: it is a scheme that is a fundamental and critical part of our national infrastructure and it will happen.

To my hon. Friend the Member for Cheadle (Mary Robinson), I say yes, the debate really has moved on; it is not if but when this happens. The debate we should be having is on how we maximise the benefits that will flow from HS2 when it arrives. To the hon. Member for Wythenshawe and Sale East (Mike Kane), I say that I completely recognise that Manchester airport is thoroughly important, not just for Manchester but for the whole of the north of England with its power to connect it. I can also confirm that we are developing plans for HS3 alongside HS2; they are not separate schemes being developed in isolation. We are looking at integration of the two.

I can confirm that we have had absolutely no loss of ambition. I will run through some timing: on phase 1, we hope the Bill will complete its passage through the Lords very soon and we hope to start the build in the spring. The necessary work to prepare the Bill for phase 2a is underway and we intend for it to start its parliamentary journey next year. On phase 2b, the Government will announce our proposed route from Crewe to Manchester and from Birmingham to Leeds, south Yorkshire and the east midlands later this year. That will be an important moment and will begin to make the project far more tangible.

This is a project that is from the UK and for the UK. It is all about national benefits, including extra capacity on the network and developing skills, and companies from right across the UK will be able to benefit from the significant amount of work required. We view this as a critical part of our national infrastructure and of building a transport network and an economy that works for all. We have had a positive debate today. Though it has been focused on the north-west—and it is clearly right that this presents a huge opportunity for the north-west, for the city of Chester and for the whole region—it is a national project and we have to view it in that way.

[Jason McCartney]

Will the Minister give way? This will be very short.

[Andrew Jones]

It will have to be.

[Jason McCartney]

Will the Minister confirm that in November the Secretary of State for Transport will confirm the phase 2b route, from Birmingham to Crewe, up to Manchester and also the Yorkshire leg?

[Andrew Jones]

I can confirm that we will announce the Yorkshire leg. I do not know when the Secretary of State will announce it, but I can confirm that we will be announcing the full “Y” route—that is the Yorkshire leg and the Manchester leg.

[Jason McCartney]

This autumn?

[Andrew Jones]

This autumn; that is exactly right. This is a major undertaking for our country but it is an essential one. I emphasise one further point with my last comment: this project is one that central and local Government, and both the public and private sectors, have to come together to deliver. If we all come together to deliver this project we will maximise the benefits, both in transport and regeneration, and our whole country will benefit from that.

Question put and agreed to.

Resolved,

That this House has considered HS2 in the North West of England.