Road and Rail Projects

Baroness Pidgeon Excerpts

Monday 14th July 2025 Lords Chamber

[Lord Moylan (Con)]

My Lords, in the light of that last vote on the Bill, I will have to be very careful about what I say to ensure that it does not offend staff.

It must be tough being the Secretary of State for Transport, because every time the Government are in difficulty with their Back-Benchers she is sent out to make another announcement about some great, distant spending plans. Of course, all the rail announcements made in this Statement were in fact announced by the previous Government. Before the Minister says, “Where was the money?”—and when he does say that, it displays a certain frailty of constitutional grasp—the fact is that, had the previous Government been re-elected, there would have been a spending review, just as this Government have had a spending review, and the schemes that this Government have announced would be in that spending review. That was the pledge; that is how our constitution works.

Part of this Statement is not about announcing new rail schemes but about cancelling road schemes. We are not going to get the widening of the A12 or the A47 scheme from Wansford to Sutton. They are gone for the foreseeable future. However, I will turn back to the rail schemes, as my few remaining remarks will be about them.

We find ourselves in the extraordinary position of being asked to celebrate rail expansion when the Government have still failed to lay the Great British Railways Bill before Parliament. Great British Railways, optimistically suggested for late 2026 at the earliest, now appears increasingly likely to slip to 2027 or beyond, with the legislation yet to appear before either House of Parliament. Perhaps the Government have finally realised that centralising control of our railways is not the simple solution that they once claimed it would be. The complexities of their grand nationalisation project appear to have caught them rather off guard.

So my first question to the Minister is: where is the Bill? Where is Great British Railways? More pertinently, where is shadow Great British Railways—which already has a remunerated chair—in these announcements? The relevance of that is that, under the Government’s scheme and their plans for rail, proposals such as this—the expansion of the rail network—are meant to be proposed, worked up and delivered by Great British Railways, subject to government funding, not the other way round. We are not even sure that all these schemes will necessarily be carried out, because what guarantee is there that they will be a priority for Great British Railways when that body comes into existence? Is it, in fact, merely a puppet for the department after all, as we suspect might be the case?

When we were debating the Passenger Railway Services (Public Ownership) Bill, which began the process of nationalising the train operating companies, I warned that the Government were moving not from one state to another but from one state to a huge transition period. That is what we are in at the moment: a transition period where we have no idea who is in charge of the railways and no real accountability. It is a governance mess. The Department for Transport continues its iron grip on the rail operators, which it now owns through subsidiary companies, with civil servants in effect running train services while the promised arm’s-length body remains a distant aspiration. This raises fundamental questions about whether their calls for rail growth are genuine or merely a smokescreen for increased state control.

The Government’s actions speak louder than their words. The Office of Rail and Road, under instruction from the Secretary of State, has already rejected eight open access operator contracts, despite compelling evidence that competition drives service improvements and passenger growth. That ideological opposition to open access operations flies in the face of economic evidence and passenger benefits. Consider the transformative impact of operators such as Grand Central and Hull Trains, which have brought direct services to previously underserved communities in Sunderland, Scarborough, Bradford and Hull. These are not abstract policy successes but tangible improvements to people’s lives, connecting communities that had previously lacked such direct rail links.

Independent research by Arup and Frontier Economics provides unequivocal evidence of competition’s benefits. On corridors with open access competition, service frequency rose by up to 60% and total passenger numbers increased by approximately 40%. Those are not marginal gains; they represent the kind of transformational improvements the Government claim to seek through their infrastructure spending. Yet instead of embracing this proven model for growth, they actively suppress it.

If this Government were truly committed to rail growth, they would be encouraging, not stifling, the competition that demonstrably delivers increased services and passenger numbers. The fact that they do the opposite suggests that their rail policy is driven more by ideology than economic efficiencies.

The delays to Great British Railways reveal a Government who perhaps underestimated the complexity of their grand nationalisation project. What was once promised as a streamlined solution now appears mired in the very bureaucratic inefficiencies they claimed to oppose. The latest date we have for the Great British Railways Bill to appear is the autumn. Will the Minister confirm that date or will he have to say, as is now widely believed in the industry, that he will not make that deadline and that the Bill will be coming much closer to Christmas at the earliest?

This House has a duty to scrutinise not just the Government’s spending commitments but the coherence of their overall transport strategy. We cannot properly fulfil that duty when key legislation remains unpublished and when policy appears to contradict evidence. The Government must explain why they continue to reject open access applications when the evidence so clearly demonstrates their value. They must clarify when Parliament will finally see the Great British Railways Bill and they must reconcile their rhetoric about rail growth with their actions that constrain it. Until then, I fear we are being asked to applaud announcements while the fundamental questions about rail policy direction remain unanswered. The British public deserve better than this policy vacuum masquerading as progress.

[Baroness Pidgeon (LD)]

My Lords, I will focus on the Statement and the rail and road projects contained within it and, perhaps, those not within it. Across the country, communities have been let down by a transport system that is creaking, crying out for investment and improvement, and was neglected by the last Conservative Government. Constant announcements and reannouncements of transport projects were made, with what appeared to be fictional budgets that never materialised, while our roads and railways deteriorated. The public have been let down.

A safe and reliable transport system is vital for economic growth, and therefore this capital investment is welcome news for the communities that will benefit. In particular, I welcome the Midlands rail hub, the east coast main line being upgraded with digital signalling, new stations at Wellington in Somerset and at Cullompton in Devon, the east-west railway line to Cambridge, and over £2 billion for Transport for London to continue with the purchase of new Piccadilly, Bakerloo and Docklands Light Railway trains. We await the detail of Northern Powerhouse Rail—the Statement says “soon”, whatever that might mean.

It would be helpful, given the hopes raised in the past, for the Government to provide details of the timescale and how the money will be spent to deliver the projects outlined in the Statement. The Statement also confirms that many other schemes will now need to be reviewed. These are projects that are paused or effectively scrapped. I am particularly concerned about the pause to the electrification of the Midland main line from London to Sheffield. Given the removal of the High Speed 2 leg to Sheffield, it feels as if Labour is letting down Sheffield and South Yorkshire by once again cutting major investment in its railway, leaving Sheffield as the largest city in Britain without an electrified railway. When can we see this important project back on track?

I am also deeply concerned that stage 5 of the resilience programme in Dawlish has not been funded. It would take only one large storm to close the railway to the south-west once again. Monitoring is not enough, and I hope the Minister, as the former chair of Network Rail, will assure the House about the future of this project. Then there is the busiest interchange station in the entire country, without step-free access to platforms or accessible facilities for passengers. Its platforms and corridors are far too narrow for a station with around 6 million entries and exits a year. Planning permission has been granted and it is ready to start construction next year, but the project has been put on hold. What am I talking about? Peckham Rye in south-east London. This is such a busy and important interchange. When can we expect funding for this vital project?

Finally, away from the specific projects that I have outlined, can the Minister give a firm assurance that the Government have learned from the overruns of High Speed 2 and Crossrail, and that all these projects will be delivered on time, on budget and using technology such as digital twins, where appropriate, to ensure value for money for the taxpayer?

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, I am pleased that the noble Lord, Lord Moylan, said so much about other things. He did not have much to say about the list of funded schemes, so I am concluding that, by and large, he is happy with what he has read in the Secretary of State’s Statement in the other place. He makes a lot of noise about the fact that they would have been in some spending review had his Government been re-elected. They were not. Before that, however, they had published documents with endless numbers of schemes that were, frankly, never likely to be funded. There were promises everywhere but funding nowhere. The best example of that is the notorious Network North document. Incidentally, it included Tavistock and a number of other places not in the north of England at all, but the characteristic of all the entries in that document was that none of them was ever funded.

He does not have to listen to me about this, although it is a pleasure to speak to the House now. My predecessor, Huw Merriman, was in front of the Transport Select Committee a few days ago and said:

“A lot of promises were made to MPs and others as to the ambition, but it did not match the amount that was actually being set down. By the time I came into post I ended up with a list that was much longer than could be funded”.


That is true: around the country, all sorts of communities were promised transport schemes by the previous Government that were never likely to be funded and were not funded. Somebody has to sort that out and announce a programme that will bring long-term economic prosperity around Britain, get schemes built and stop a lot of money being spent on endless scheme development without the schemes being delivered. This is such a list, and this list will be delivered. The funding is in place through the spending review to do it, even though there is less than we would like because of the lamentable state of the economy at the time this Government took over.

The noble Lord, Lord Moylan, has a lot to say pejoratively about the Government’s rail reform and he continues to ask where the Bill is, but he knows perfectly well that progress can be made without the Bill. Indeed, the purpose of the Passenger Railway Services (Public Ownership) Act 2024 was to start the process of bringing passenger operations back into public ownership. The consequence is that we already have two parts of the railway controlled by one person, both the infrastructure and operations. That will allow better reliability, increased revenue and reduced costs. Things are happening today that were not going to happen under the previous regime, and which will produce a better railway. That is important.

The noble Lord says that civil servants are running train services. Actually, I note that Steve White at Southeastern Railway and Lawrence Bowman at South Western Railway are good railway people. They are not civil servants; they are public servants, and they intend to run those businesses for the benefit of the travelling public and the British economy.

The noble Lord talked a bit about open access. What he failed to say about the applications that the Office of Rail and Road recently rejected is that it did not reject them on any competitive grounds; it simply rejected them, most recently, because of a lack of capacity in the railway system. Those train services could not run, and if they had then they would have disturbed further—or, rather, reduced—the reliability of the system.

One point about the list of schemes—lamentably, he did not go into it in detail, but I could—is that many of those schemes will help the railway to run by improving its capacity, such as the digital signalling on the southern end of the east coast main line, which the noble Baroness referred to. The list is starting to look at improving railway capacity and reliability, which was not a feature of many of the Network North schemes—even though they were not funded—but is a feature of these schemes. This is part of the Government’s intention for a long-term investment strategy, and the schemes announced by the Secretary of State last week are an important part of that. I absolutely contend that the Government are on track to deliver what the economy needs in terms of local transport, particularly in the Midlands and the north; to deliver on road schemes without having a horrifically long list of schemes that were encouraged but never likely to be funded; and to start to do things on the railway that will make a real difference.

The noble Baroness, Lady Pidgeon, was much more focused on the announcement itself, for which I am sure both I and the House are grateful. She enumerated a number of the schemes in the announcement; I am pleased that she welcomes those, as the rest of us will. There will be an announcement on Northern Powerhouse Rail shortly. I will not define “shortly” today; it needs to be worked out with the combined authority mayors in the north of England, which is the reason for some delay. On the road schemes, details of the timescales will emerge as road investment scheme 3 is put together and announced in the early part of next year. On the railway, we will now move forward with the schemes that have been announced.

The noble Baroness is of course right that there are well-known projects and schemes that have not made this list, particularly railway schemes, principally because the other thing that the Government did, as the Chancellor announced as part of the spending review, was to fund HS2 to continue to be delivered alongside the wholesale revision of its governance and management, which will make spending that money more successful.

That does not mean that everything that one would have wanted to have been done is capable of being done for the moment. In particular, the noble Baroness referred to the electrification of the Midland main line, which has got to Syston, near Leicester, but will not go forward, at least in this spending review programme. What will go forward, however, are the bi-mode trains that take advantage of the wires, where they are up, as well as the improvement of the power supply and resilience of the existing wiring south of Bedford, which is quite old. Sheffield, Derby, Nottingham, Leicester and other major places on the Midland main line will see a betterment of service due to the introduction of the new trains in the autumn. I think we all want to regard future electrification as a deferral rather than an abandonment.

The noble Baroness referred to phase 5 of the scheme at Dawlish in Devon on the resilience of the Great Western main line. Phases 1 to 4 were principally about repairing the sea wall and the damage created 10 years ago by an exceptional storm, whereas phase 5 is looking at the stability of the cliffs behind the railway, which indeed should be the subject of future work. The remediation, and indeed the speed of movement, of those cliffs is worth monitoring now, whereas the work that has been done up to now has been on the basic resilience of the sea wall in order to keep the railway running.

The noble Baroness is right about Peckham Rye; it is the largest interchange station, but the scheme is, at least at present, unaffordable. Although, again, I would expect that to form part of a longer-term enhancement pipeline. It is regrettable that there are things across the railway that everybody would have wanted to see, but there is simply not enough money for them.

The noble Baroness is right about the lessons from recent projects. We have talked in this Chamber about HS2 and the need for new management, governance and a focus on understanding what is being delivered at the time the money is spent. The Government, frankly, should be commended for their commitment to continue HS2, which will produce large-scale economic benefit in the Midlands while that process takes place. Not everything is bad in the railway project firmament. Indeed, the trans-Pennine upgrade and east-west rail are so far on time and on budget. Learning from those is as important as learning from HS2, which, sadly, is neither.

Finally, the noble Baroness referred to digital twins. My noble friend Lord Vallance has a lot to say about digital twins for the whole of the Oxford to Cambridge arc, of which east-west rail will form part. Its use in project management is only in the foothills but it needs to be increased. I agree with her on that, too.