Railways Bill (Ninth sitting)

Edward Argar Excerpts

Committee stage
Tuesday 3rd February 2026 Public Bill Committees

[Keir Mather]

On the role of the Secretary of State in setting parameters for fares, we have had a lot of debate in the Committee about the need to ensure efficiency on behalf of taxpayers, who are also passengers on the railway. It is the Secretary of State who ultimately has the democratic responsibility to do so; therefore, it is right that the power exists to set broad parameters as they relate to fares. However, that process must be undertaken transparently. Parameters will be set through guidance and public service contracts, which will be published and open to scrutiny. The Bill says that the Secretary of State can direct on fares, but not that she will do so regularly. That is important to the point about overreach, and the exceptional circumstances in which direction might be a wise provision to have in the legislation. I will turn to that later.

[Edward Argar (Melton and Syston) (Con)]

Can the Minister give a few examples of the exceptional circumstances that might cause the power to be used?

[Keir Mather]

The right hon. Member is far too eager. I shall turn to that in due course.

Amendment 148 would prevent the Secretary of State and Scottish Ministers from issuing directions to GBR relating to fares, and amendment 45 would do the same for directions and guidance. I remind hon. Members that, as I said when we debated the directions and guidance clauses earlier in the Bill, the strategic parameters and guardrails that the Secretary of State will set for GBR on fares may not ultimately be delivered through directions and guidance by default.

Clause 33 already allows for provisions on fares parameters and guardrails to be included in public service contracts awarded to GBR for operating passenger services. Nevertheless, it is crucial that the Secretary of State retains the powers to direct and give guidance to GBR on fares. It is necessary that the Government and GBR alike can respond to exceptional circumstances, which may necessitate a swift reappraisal of the strategic approach to fares. That is precisely what the Secretary of State’s directions-making power allows for, supplemented by the ability to issue guidance, to ensure a clear and speedy response if there is a crisis or unexpected change in context.

Amendments 148 and 45 would remove those options for the Secretary of State and, in fact, for Scottish Ministers where GBR is operating services that they designate. The Government strongly believe that that is not in the interests of passengers or taxpayers. I agree with Opposition Members that we do not want Ministers interfering with day-to-day fares policy. GBR will have the freedom to define its fares policy within the parameters and guardrails set out, simplifying fares, removing duplication and, in turn, improving value for money. It will therefore be set up to succeed from the outset. Contrary to what Opposition Members believe, the powers in clause 33 do not undermine that.

--- Later in debate ---

[Olly Glover]

I will speak briefly about the Conservative amendments. I agree with some of the shortcomings identified by the shadow Minister, but there would be a risk in setting in stone some of the current discount and fares arrangements, as amendment 61 seeks to do.

On amendment 62, apart from the good points made by the hon. Member for Bexleyheath and Crayford about the existing differential discount rates, I am not sure of a particularly compelling reason for why the main discount rate of one third should be preserved in aspic—I said that I would not say “aspic” any more, but I have anyway. There may be times in the future when a higher discount, or maybe even a lower one, could make sense.

I assure the shadow Minister that our new clause 13 would require the examination of the idea, rather than a commitment to do it. Our idea is based on the ubiquity of air miles as a highly valued consumer product. So many people talk about air miles in conversation, and the popularity of certain credit cards—I can probably name them, as I do not have an interest, but I will not—is explained by the accumulation of air miles. Why not rail miles? It would promote our network, reward loyal customers and be a brilliant way of promoting domestic tourism, were people able to accumulate rail miles as they currently can air miles. It would also be a good way to promote lower-carbon transport.

Our new clause would simply require the examination of the idea of a rail miles programme, and the production of a report on its potential merits that the Secretary of State would lay before Parliament within 12 months of the passage of the Bill. I hope to hear the Minister’s warm words about the idea, although I would naturally be astonished if he embraced it.

[Edward Argar]

Is the hon. Member aware that, although not in a domestic context, there have in the past been schemes in which, instead of air miles, points or miles have been available—for example, with Eurostar—and they were extremely popular?

[Olly Glover]

The right hon. Gentleman makes a good point. The air miles concept has been highly successful for Eurostar, and it is now time to apply the idea to the domestic market.