Transport Infrastructure: Lancashire

Daniel Zeichner Excerpts

Tuesday 15th March 2016 Westminster Hall

[Daniel Zeichner (Cambridge) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Pritchard.

I congratulate the hon. Member for South Ribble (Seema Kennedy) on securing the debate. She made a series of detailed points well, and I am sure that the Minister was listening closely. The hon. Lady also referred to city deals and, as a Member with a city deal in my part of the world, I cannot help but reflect that they are sometimes similar to the candyfloss that I used to buy on Blackpool seafront when I was at the Labour party conference—they look magnificent and sound wonderful, but a bit further down the line they can seem a touch insubstantial. That is a word of caution.

[Seema Kennedy]

I thank the hon. Gentleman for attending, because shadow Ministers do not always have to come to 60-minute debates. I appreciate that. As I said in my speech, however, in the first three years of the Lancashire city deal, substantial infrastructure projects have already taken place and are making a real on-the-ground difference to road times. So our city deal is going very well.

[Mark Pritchard (in the Chair)]

I do not like to correct the hon. Lady, because she is rarely wrong, but shadow Ministers do have to attend 60-minute debates; they do not have to attend 30-minute debates. I just to ensure that we get that on the record. They may attend whatever debate they wish.

[Daniel Zeichner]

Thank you, Mr Pritchard. I am here very happily.

I have also listened closely to the other contributions to the debate, and I have consulted colleagues who know a little more about Lancashire than I do—I come from the east of England. I have heard worries from colleagues about cuts to bus services, as we have heard this afternoon, and about old recycled trains trundling along through east Lancashire. I must say that I have also heard talk of Chorley being given insufficient mention in transport plans, but my source will have to remain anonymous.

In January this year, the Lancashire enterprise partnership argued that connectivity, in Lancashire as elsewhere, is fundamental to maximising our growth potential. Sadly, however, Lancashire’s average economic performance is more than 20% below the national average, in terms of gross value added per resident. Clearly, in order to unlock and harness the economic power of Lancashire, we need far greater and more efficient delivery of promised projects to improve transport connectivity in the region than we have had so far—delivery, not just announcements.

The Secretary of State for Transport told us last week:

“I do not think I need to encourage the Chancellor on infrastructure spending. I have been incredibly successful in securing funding for infrastructure from the Chancellor, who certainly gets the importance of infrastructure investment, not least in the north. Indeed, it is his policy to pursue the northern powerhouse and to take forward transport for the north. That will have a transformative effect on transport between our northern cities and is something other parts of the country are looking to follow.”—[Official Report, 10 March 2016; Vol. 607, c. 424.]

The rhetoric is good, but the record is not so good. Despite the claims, the Government have a poor record on transport infrastructure. In 2010, they cut a huge £4 billion from the strategic road network, which created major uncertainty and saw existing schemes scrapped and delayed. Road maintenance budgets have fallen in real terms and we discovered recently that the much vaunted permanent pothole fund is yet to fill a pothole. We have bus passes preserved, but in too many cases there are no buses on which to use them, and manifesto promises to electrify key rail lines have been broken. Those are hardly the actions of a Government that certainly gets the importance of infrastructure investment.

Indeed, Britain is lagging behind other countries when it comes to delivering major projects. Embarrassingly, we are now 28th in the World Economic Forum rankings for infrastructure quality. We should be trailblazing for transport infrastructure, not trailing behind. The Government’s sluggish delivery of infrastructure projects in Lancashire aptly illustrates that failure.

In December 2014, nine new schemes to improve major roads in the north-west were announced, worth around £800 million. However, just one of those schemes has an updated cost estimate and that cost is careering out of control. Latest estimates on the Highways England website suggest that the M6 junction 19 improvements will cost between £192 million and £274 million, but in the “Road investment strategy: investment plan”, they were estimated to cost between just £25 million and £50 million. That single scheme is now projected to cost ten times as much as initially predicted.

What of the other eight schemes? When my hon. Friend the Member for Birmingham, Northfield (Richard Burden) asked a question last week requesting the latest cost estimates for schemes announced in 2014, the question—as so often—was ducked. Will the Minister give us an update on the delivery and projected cost of those schemes now? We worry that those announcements were little more than part of a pre-election stunt. Also, the numbers keep changing. A £15.2 billion road investment strategy was announced in December 2014, yet in the Office of Road and Rail’s first “Highways England Monitor”, a different figure of £11 billion emerged. We suggest that the Government have been announcing those road plans since July 2013 and we need some action to accompany the announcements.

Transport Focus has identified that, in the north-west, car and van drivers’ top priorities for major road improvements are improved quality of road surfaces, safer design and upkeep of roads and better management of roadworks. While in both 2013 and 2015 the Government committed £6 billion

“to resurface 80% of the SRN and keep our network in top condition”,

it was reported last month that Highways England will not meet that target. Will the Minister now tell us where the billions have vanished and which projects have had to be scrapped?

On rail, too, Lancashire and the north-west is being let down. Labour supports the extension of high-speed rail services. The Secretary of State for Transport has said of HS2:

“When we start the service from Birmingham, it will be possible to link with conventional rail routes, rather as high-speed trains currently run from St Pancras to Ashford and then beyond. I hope that the northern parts of the United Kingdom will be served by HS2 straightaway.”—[Official Report, 28 January 2016; Vol. 605, c. 394.]

Indeed, Lancashire local enterprise partnership is planning to modernise Preston station as part of its HS2 growth strategy in order to accommodate HS2 trains and to reduce journey times between Preston and London from the current 128 minutes to 77 minutes by 2033 after phase 2 of HS2 is complete, but, unfortunately, we are still waiting for Ministers to confirm the route and the station locations for HS2 north of Birmingham. We were told that the route for phase 2 of HS2 would be confirmed by the end of 2014, but the target has now been deferred for at least another two years. That lack of certainty is damaging for residents, damaging for potential investment and damaging for the Government’s credibility when they profess their commitment to HS2 in the north.

We are full of questions today and we have some more. How can Lancashire and other areas in the north-west plan to benefit from HS2 when its route and station locations have not yet been confirmed? Why has that confirmation been kicked into the long grass and why are the Government letting down the north by dragging their heels?

[John Pugh]

Does the hon. Gentleman accept that for many people who live in Lancashire—I know he does not, so he cannot be expected to know this—HS2 is a distant dream? The improvements they would most like are some ease of getting by train from, say, Preston to Liverpool, or anywhere in east Lancashire from the coast.

[Daniel Zeichner]

While I recognise that it may seem like a distant dream, as far as we are concerned it is certainly an improvement on the current situation and that is why we will continue to support it.

The Government also paused the trans-Pennine electrification last year; pausing seems to be a characteristic of this Government when what we actually need is fast-forward. Furthermore, after recommencing in September, completion of the whole Manchester to Leeds and York corridor was pushed back from 2019 to 2022. Transport infrastructure improvements in the north, including in Lancashire and the wider north-west, have too often been characterised by dithering and delay. There is still no official estimate of the cost of the trans-Pennine electrification outside the initial funding commitment of £300 million and the £92 million that has been spent so far on contracts.

In addition to delays in infrastructural improvement, Lancashire has also suffered severe cuts to its funding from central Government. Lancashire County Council has had to reduce funding of bus services from £7 million to £2 million to make £85 million in budget savings next year. The hon. Member for Blackpool North and Cleveleys (Paul Maynard) has already referred to bus issues, but I have said it before and I will say it again: the Government are devolving cuts, not power. They are putting local authorities in impossible positions and keeping their own hands clean.

[Paul Maynard]

As the shadow Front-Bench spokesman, might the hon. Gentleman be able to help me by encouraging his colleagues in Lancashire to explain to us what the £400 million in reserves at county hall are being kept back for? When will it rain to such an extent that we need the rainy day fund? That is our key question to the Labour party.

[Daniel Zeichner]

Ah, reserves—they are always quoted on all sides as the answer to every question. Of course it is for every authority to decide responsibly how to use its resources appropriately, and I do not think that Government Members can really deny that there has been a squeeze on resources.

Lancashire County Council has said that in the next five years it will need to make savings of £262 million on top of those agreed in previous budgets. It describes that as

“an unprecedented financial challenge due to continued cuts in Government funding, rising costs and increasing demand for key services.”

It states that by April 2018 it will not have sufficient financial resources to meet its statutory obligations even if it does not deliver any of the non-statutory services.

In the comprehensive spending review, the Government announced a reduction of 24% in central Government funding for local government over the spending review period. The Local Government Association tells us:

“Even if councils stopped filling in potholes, maintaining parks, closed all children’s centres, libraries, museums, leisure centres and turned off every street light, they will not have saved enough money to plug the financial black hole they face by 2020.”

In conclusion, those cuts alongside the uncosted deferment of major transport infrastructure projects is preventing Lancashire—and other areas—from reaching its full potential. Lancashire is rightly ambitious to unlock the potential for economic growth, but that will happen only when the Government move from their current practice of recycling announcements and actually start to deliver.