Rail Infrastructure Investment

Diana Johnson Excerpts

Thursday 17th January 2019 Westminster Hall

[Lilian Greenwood (Nottingham South) (Lab)]

I beg to move,

That this House has considered the Fourth Report of the Transport Committee, Rail infrastructure investment, HC 582, and the Government response, HC 1557.

I am delighted to lead this debate on the Transport Committee’s Fourth Report of this Session, on rail infrastructure investment. I will start the debate as we started our report, by underlining the importance of the UK’s railways. They are a vital part of our national transport network and make a substantial contribution to the economy. Their importance has been recognised by successive Governments of all parties, with billions of pounds invested in rail every year. The importance of our railways is not in question.

However, there are serious challenges for both rail passengers and the industry. While 1.7 billion journeys were made by rail in 2018, it was not an easy year for passengers, who faced disruption and disappointment. Planned improvements—including electrification in south Wales, the midlands and Cumbria, and the opening of Crossrail—have not been delivered, while May’s timetable changes caused unprecedented chaos across the network. This year started with more unwelcome news for rail commuters, with fares increasing by an average of 3.1%.

We must work towards improving services for rail passengers and freight customers. Investment in the network is essential for enabling better services, which in turn provide new opportunities for our constituents and support the development of our towns and cities. That was the focus of our report, and today I will look at three of the main issues it raised.

First, we need to ensure that rail investment and its benefits are shared equally across the country. It is clear that many feel that rail investment is unfairly centralised in a small number of areas, and the Department for Transport has done little to respond to those concerns. Secondly, there are serious questions about what future improvements the Government’s new approach to funding rail enhancements will deliver. To date, more than a year after the new system was put in place, there is a total absence of information about what proposals are even being considered. Thirdly, there remain questions about the future role that electrification will play in improving the UK’s rail network, following the cancellation of the electrification of the midland main line north of Kettering to Nottingham and Sheffield, the Great Western main line to Swansea and Cardiff and the lakes line between Oxenholme and Windermere.

There is long-standing dissatisfaction about the level of investment in the rail network in different regions, and our report looked in detail at the disparity in investment across the country. We considered the issue in the context of the Government’s stated intention to rebalance the economy away from London, exemplified by the northern powerhouse and the midlands engine. From 2012 to 2017, the north-east, the east midlands, the south-west and Wales all received less than 10% of the level of rail investment that went to London. Only the north-west, the south-east and Scotland received even a fifth of the level of rail investment in our capital.

The capital’s size and population mean that it is unsurprising that more is spent in London, in absolute terms, than in other regions. However, there is also a substantial disparity between spending per capita in London, at £773 a head in 2016-17, and other regions, with a low of just £70 per head in my own region, the east midlands. The Institute for Public Policy Research North analysed the Government’s planned transport spending, as set out in the Government’s 2016 “National Infrastructure and Construction Pipeline”, stating that it showed problems not only in the past but in the future and

“a stark gap between London and the rest of the country”,

with £1,900 per capita spending planned in London from 2017 onwards, compared with £400 in the north.

The sense of unfairness felt by many regions across the country has been exacerbated by continued investment in major developments that primarily benefit London. It is hardly surprising that there was real anger when, four days after the cancellation of those electrification schemes, the Secretary of State and the Mayor of London jointly announced an agreement in principle to fund Crossrail 2 at an estimated cost of £30 billion.

The Government have tried to rebut the figures about the regional disparity of investment in our railway. Their response to our report said that

“the planned spending per head figure is within 33% of the national average for all nine English regions. Moreover, the overall figure for the three Northern regions (North West, North East, Yorkshire and Humber) is £1,039 per head, compared to £1,076 per head for the Middle regions (East of England, East Midlands and West Midlands) and £1,029 per head for the Southern regions (London, South East and South West).”

However, those figures are based on a selective analysis. By aggregating regions, variations in the midlands, the north and the south are masked. For example, Yorkshire and the Humber received just £729 per head, the north-east £822 per head and the south-west £851 per head.

[Diana Johnson (Kingston upon Hull North) (Lab)]

As usual, my hon. Friend makes a powerful case for the report that her Committee has produced. She just referenced the funding for Yorkshire and the Humber. The Department for Transport seems to put its head in the sand whenever it is challenged on these regional disparities. Given that the new Rail Minister is a Yorkshire MP, does she think that we might now see a recognition that the north has not had its fair share, and that we will now start to get our fair share?

[Lilian Greenwood]

My hon. Friend has been an outstanding advocate for the north and its need for rail investment. The Minister is a newish Rail Minister, but I know that he previously served in the Department for Transport. We had discussions in the past, when he was the Minister responsible for buses, and I always found him genuinely prepared to listen. I hope that he brings the same approach to his new role.

In January 2018 IPPR North assessed the Government’s analysis of regional spending and stated that it excluded spending in the pipeline for after 2020-21, meaning that the analysis omitted some £42.5 billion of planned investment, 40% of which—£19.8 billion—is earmarked for London. The Government have therefore presented, even if accurate, a rather skewed picture of how planned transport spending will be distributed across the country in the coming years.