Zero Emission Vehicle Mandate
Gareth Bacon Excerpts(2 weeks, 5 days ago)
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Gareth Bacon (Orpington) (Con)
Thank you very much, Mr Speaker. I will not embarrass myself by announcing how old I am, but it is far too old.
Gareth Bacon
I thank the Secretary of State—[Interruption.] That was a very helpful intervention by the hon. Gentleman; he is completely right. I thank the Secretary of State for her statement, and for advance sight of it. The announcement by the United States of America that 25% tariffs will be imposed on UK automotive exports has understandably caused significant concern in the automotive sector. Automotive manufacturers now face tariffs of 25% on around £8 billion-worth of car and auto parts exports—a potentially devastating blow for the automotive industry. I assure the Secretary of State that we will support the Government when they do sensible things to reverse the impact on our already fragile economy. In that vein, I am glad that the Government have recommitted to negotiating a better deal with our closest ally and largest single-country trading partner, and I sincerely hope that they are successful in their negotiations.
However, on the substance of the right hon. Lady’s statement, I cannot share her enthusiasm for the rest of Labour’s plans. The reality is that today, Labour is simply trying to clear up the uncertainty that it has contributed to. When the previous Conservative Government reacted to sluggish automotive trade figures by making the pragmatic decision to delay the ban on new diesel and petrol cars from 2030 to 2035, aligning the UK with major global economies such as France, Germany, Sweden and Canada, Labour accused us of undermining the automotive industry. This morning, the Secretary of State criticised the previous Government for chopping and changing, and a consultation put out by Labour claimed that our policies caused “great harm” to the UK’s reputation as a leading nation in the EV transition by moving the goalposts. However, that is precisely what Labour did upon taking office by ideologically reversing the 2035 deadline. The plans announced over the weekend do not place the automotive sector in a better position than it was when we left office, despite some minor adjustments to the zero emission vehicle mandate.
What is more, this announcement will not undo the damage that this Labour Government have already caused. Their introduction of a £25 billion national insurance jobs tax in their first Budget was a major blow to businesses; we have warned for months that this tax will harm industries, and the automotive sector is no exception. The Secretary of State will know that US tariffs on UK car exports are set to cost the automotive sector £1.9 billion. Combined with the Government’s jobs tax—which is predicted by the Office for Budget Responsibility to put 50,000 jobs at risk, and is likely to cost the automotive sector an additional £200 million—that double whammy is going to be very difficult for the sector to absorb.
Indeed, despite today’s announcements, the Society of Motor Manufacturers and Traders has stated that zero emission vehicle mandate targets remain “incredibly challenging”. In its words:
“ZEV Mandate targets are incredibly challenging, especially with a paucity of consumer demand and geopolitical upheaval. Growing EV demand to the levels needed still requires equally bold fiscal incentives…to give motorists full confidence to switch”,
but that is not what the Government are offering. Instead of the “bold changes” that the Prime Minister boasted of at the weekend, what we have is mere tinkering at the edges. Allowing producers of luxury vehicles, such as Aston Martin and McLaren, to be exempt from the 2030 ban on the sale on new internal combustion engine vehicles is welcome, as is the news that all forms of hybrid cars will be available until 2035. However, this does not go anything like far enough. The Government are still proposing to increase the level of tax liability on the value of hybrid company cars by as much as 16%, which could potentially cost individual drivers thousands of pounds each. The reduction in fines for missing EV sales targets from £15,000 to £12,000 per vehicle is nothing to be celebrated—it is like drowning at the depth of 100 metres instead of 120 metres.
Over the past few months, we have heard from numerous businesses that they simply cannot cope with the ZEV mandate. In October, the chief executive officer of Jaguar Land Rover warned that the mandate was causing severe disruption to the new car market. Not long after, Vauxhall announced the closure of its Luton factory, citing the ZEV mandate as a key factor in making that plant economically unviable. More recently, uncertainty has surrounded Plant Oxford, the home of the Mini since 1959. Last year, excluding fleet sales, the fact is that only 10% of private purchases of new vehicles were electric. Far from doing retailers a favour, the Government’s offer to fine them a small amount less for failing to sell a product that consumers demonstrably do not want is a kick in the teeth to the automotive industry.
I must therefore ask the Secretary of State the following questions. With just one in 10 private buyers purchasing an electric vehicle in 2024, why are the Government still trying to force people to buy something for which there is limited consumer demand at present? Is she really pretending that any of the measures announced today were not already in train before the tariffs were announced? Will she commit to reversing the hike in the hybrid company car tax? Does she really think that reducing the fine for each car that fails to comply with EV quotas will be enough to mitigate the impact of tariffs? Does she not believe that, rather than chasing an arbitrary timeline, now is the time for a more gradual transition to electric vehicles, one that would allow the sector to mitigate many of the challenges it is currently facing? Finally, does she recognise that the combined impact of the ZEV mandate, the jobs tax and external tariffs is a perfect storm for the automotive sector, which is facing significant and exacerbated challenges because of the choices her party has made over the past nine months?
Heidi Alexander
I also extend my birthday wishes to the shadow Secretary of State. I hope he is grateful for the two birthday presents I have given him: not only a statement but a general debate, so that we can face each other across the Dispatch Box not once but twice today.
It is rich for the shadow Secretary of State to blame uncertainty in the automotive sector on this Government. I can only think that he has some sort of selective amnesia going on, because it was his Government who introduced this policy. They then delayed the phase-out date, tanking EV demand by 15% almost overnight. We had the spectacle of the previous Prime Minister, the right hon. Member for Richmond and Northallerton (Rishi Sunak) standing up to make a speech pushing that date back out to 2035. Almost overnight, we saw those sales tank. The shadow Secretary of State should be explaining to Britain’s car manufacturers why his party faffed about so much, costing them millions and arguably leaving the sector less resilient to the global economic headwinds it now faces.
The shadow Secretary of State claims that this is a moment when we are tinkering at the edges, but nothing could be further from the truth. This is a significant moment for industry. He quotes the SMMT, and I just gently say to him that Mike Hawes, its chief executive, said this morning:
“The government has rightly listened to industry, responded quickly to global dynamics and recognised the intense pressure manufacturers are under.”
The shadow Secretary of State is also right to raise Jaguar Land Rover, which is affected by the imposition of the global tariffs that President Trump announced recently. I point out to the hon. Gentleman that Adrian Mardell, CEO at JLR said:
“We welcomed our announcement of the increased flexibilities in the zero emission vehicle mandate, and the clear commitment from Government to incentivise electric vehicle uptake and invest in infrastructure.”
The shadow Secretary of State also said that consumers do not want to buy electric vehicles. He needs to do his homework; the UK is the third largest market for electric vehicles in the world, after the US and China. It is the largest market in Europe. Last year—[Interruption.] He can chunter as much as he wants. Last year, 382,000 EVs were sold. We have had record figures in February and March this year, where we have seen demand for EVs go up by more than 40% compared with the same month in the previous year.
The shadow Secretary of State claims that we were going to make this announcement anyway. Well, he is right that we have been talking to industry for a number of months, and we were always going to have to do something to clear up the dog’s breakfast of a policy left by his Government. Clearly, the announcement last week about US tariffs on the car industry has made it all the more important that we act with pace and urgency. It is completely right that we have provided the certainty and clarity for which the sector has been calling for years.
The shadow Secretary of State claims we are not going far enough. We are investing £2 billion in an automotive transformation fund, which will ensure we can build the battery gigafactories of the future, support the EV supply chain and ensure that those high-skilled jobs of the future are available in communities across the country. Between now and 2030, we are spending £200 million supporting the roll-out of charge points, backed by £6 billion of private investment. We are spending £120 million on plug-in vehicle grants, giving people who want to purchase a new van up to £2,500 and those wanting to purchase a larger van up to £5,000.
I say to the shadow Secretary of State that this Government are acting where his Government failed. We are giving certainty to businesses, protecting jobs in a critical industry, cutting carbon and fostering a competitive market to benefit consumers.
Oral Answers to Questions
Gareth Bacon Excerpts(4 weeks, 2 days ago)
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Gareth Bacon (Orpington) (Con)
When the Government handed the ASLEF trade union an eye-watering £9 billion pay agreement in the summer, they promised that it would
“protect passengers from further national strikes”.
Yet recently the Secretary of State said on national television that
“there will be occasions on which strikes will be necessary”.
Will she provide the House with an example of a necessary strike?
Heidi Alexander
The hon. Gentleman will know that I have extensive experience from my time in London, where we did take strikes when safety was at risk. That is one direct example that I can give him.
Gareth Bacon
The Secretary of State will be aware that in response to her Department’s recent rail consultation, the trade unions welcomed her plan and said that a just transition to nationalisation would mean the levelling up of pay and conditions for rail workers. The cost of that to the taxpayer could be considerable. Would she consider a strike over harmonising pay and conditions to be a necessary strike?
Disruption at Heathrow
Gareth Bacon Excerpts(1 month ago)
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Gareth Bacon (Orpington) (Con)
I thank the Secretary of State for her statement and for advance sight of it. I join her in extending my gratitude to the firefighters who responded so swiftly to the incident. I extend my sympathies to everybody affected by the disruption and place on record my thanks to all those at Heathrow who worked diligently to ensure that the airport came back on line over the weekend.
The loss of power in the Heathrow area caused significant disruption for thousands of travellers and countless businesses. Heathrow is one of the world’s busiest airports and Europe’s busiest air hub. It was scheduled to handle 1,351 flights, carrying up to 291,000 passengers on Friday. However, as we know, the fire at a nearby electrical substation forced planes to be diverted to other airports, with many long-haul flights returning to their points of departure. The financial cost of the shutdown to the airline industry is expected to total tens of millions of pounds, and there are significant question marks over the airport’s possible vulnerability to further disruption in the future.
Before we discuss the specifics of the incident, I ask the Secretary of State to confirm that she will remain engaged with Heathrow, the airlines and other key stakeholders throughout this period to minimise the impact on passengers and the economy.
I note that the Secretary of State for Energy Security and Net Zero, whom I am pleased to see in his place, has instructed NESO to investigate the incident urgently. It is crucial that NESO’s investigation delivers a clear and objective assessment of the incident’s circumstances and the UK’s broader energy resilience. I ask the Government to keep the House informed as that investigation develops.
I also note that the Secretary of State for Transport will closely monitor Heathrow’s internal investigation into the incident. She is right to do so. Although I trust that she will share any conclusions drawn from the report with the House, may I ask that she provides specific assurance today that she will indeed do so?
Let me focus on the details of the incident, which evidently raises significant concerns about the resilience of Heathrow airport and critical infrastructure in general. On Heathrow’s resilience, important questions arise about why the airport was dependent on a single electrical substation, which proved so vulnerable to such an incident. I understand from media reports and from the Secretary of State’s statement that although two additional substations are capable of powering the airport, doing so would require reconfiguring the power supply structure for all terminals. Does the Secretary of State believe that that set-up is appropriate for the country’s largest airport? Additionally, what assessment has she made of the power supply resilience of other major UK airports?
With regard to the resilience of our critical national infrastructure, the episode underlines the urgent need to ensure that our critical infrastructure is safeguarded against both accidental incidents and deliberate acts of sabotage by malign actors. Hon. Members will recall that when President Putin launched his illegal invasion of Ukraine, global energy markets faced immense disruption, which posed the most significant threat to European energy security since the 1970s. Despite that upheaval, Britain’s energy prices remained broadly stable, but only because the Government of the day took decisive action to protect businesses and households from price spikes as far as possible. That came at a significant financial cost.
The event at Heathrow reminds us that true energy security depends not only on price stability but on the physical safety of our energy infrastructure. Given the crucial role of airports in our economy, we must remain vigilant. In the light of that, what discussions has the Secretary of State had with the Secretary of State for Energy Security and Net Zero about ensuring that the energy supply to major airports remains secure? What is the timeline for the Kelly review, and will its findings be made publicly available? Will the Secretary of State engage with colleagues across Government Departments to assess and mitigate the risks posed by malicious actors who will undoubtedly have taken note of this weekend’s events? Finally, what specific steps will she take to strengthen the resilience of our critical national infrastructure?
Heidi Alexander
I am grateful to the hon. Gentleman for the tone of his comments. I assure him and other Members of this House that I will do everything I can to keep them updated, and I will continue the engagement I have had with Heathrow since the incident first became known to me. I spoke to the chief executive of Heathrow on Friday morning and again today. If my officials can do anything to assist those on the Opposition Front Bench in understanding this very serious issue, I am willing to facilitate any such meetings that the hon. Gentleman wishes to have.
On the internal investigation that the London Heathrow board has commissioned Ruth Kelly to do, as the hon. Gentleman knows, I have asked to see a copy of that report. Assuming that I have the permission of Heathrow to share it more broadly, I am happy to share its contents with him and the House. On his question about whether I am content with and confident about the set-up for airport power supplies, I am not going to become an armchair electrical engineer; I want to see the report that has been commissioned by the airport and the report that my right hon. Friend the Secretary of State for Energy has commissioned from NESO. We are also conducting a resilience review of critical national infrastructure via the Cabinet Office, and I assure the hon. Gentleman that we will look at any and all the issues that this incident raises in those reviews. I spoke with my right hon. Friend the Secretary of State for Energy on Friday evening, and I assure the hon. Gentleman that I will continue to engage across Government on any of the issues that this incident raises.
Oral Answers to Questions
Gareth Bacon Excerpts(2 months, 1 week ago)
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Gareth Bacon (Orpington) (Con)
Heathrow airport is already the largest single-site payer of business rates in the country, paying approximately £124 million annually. To fund the Chancellor’s next spending spree, the Valuation Office Agency is currently revaluating airports in England and Wales, and any significant increase could impact Heathrow’s ability to fund airport expansion and a third runway. Is the Secretary of State aware of the latest estimate of how much Heathrow’s business rates will increase by?
The Parliamentary Under-Secretary of State for Transport (Mike Kane)
This was a policy cooked up by the Valuation Office Agency under His Majesty’s Revenue and Customs by the last Government. We have engaged with airports on this matter and asked them to continue to engage with the Valuation Office Agency.
Gareth Bacon
I notice that the Minister did not answer my question, so I will assist him. The estimate is that Heathrow’s rates bill will increase fivefold to £600 million annually, putting substantial additional pressure on Heathrow’s finances. In the light of that, will the Minister confirm the long-standing policy that the full cost of a third runway, including related works such as relocating, tunnelling or bridging over the M25, will be fully funded by the private sector and not by the taxpayer?
Mike Kane
The airports national policy statement from 2018, which was two Governments ago, made it clear that any proposal—we have not had a proposal come forward—should treat surface access appropriately, and that should be funded by the private sector where possible.
Airport Expansion
Gareth Bacon Excerpts(2 months, 4 weeks ago)
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Gareth Bacon (Orpington) (Con)
In recent days we have heard that the Chancellor is about to announce her support for airport expansion at Luton, Gatwick and Heathrow. His Majesty’s Opposition are supportive of airport expansion because we recognise the huge economic benefits that would bring. For Luton and Gatwick, as the Minister has said, planning processes are well under way, but the situation at Heathrow is rather different.
A completed third runway at Heathrow would undoubtedly bring economic benefits, which we would support, but delivering that will not be straightforward because there are major logistical barriers to its construction. Those include, but are not limited to: hundreds of thousands of additional people being brought on to Heathrow’s flightpath; the potential for significant disruption to the M25 and M4, which could harm the economy for years to come; the fact that a large incinerator is in the way and would have to be demolished; and the need to address local concerns about noise and air pollution. The uncertainties do not end there, because to date Heathrow has not applied for a development consent order, and neither has it confirmed that it intends to do so.
That all leaves the Minister with many questions to answer. What assessment has he made of the impact of building a third runway on the M25 and M4, which are two of the busiest motorways in Europe? How certain is he that any proposed plan will have the support of affected communities? What is the estimated cost, and who will pay not just for the runway construction, but for the massive additional work that will need to be done, including, among other things, rerouting motorways, demolishing the incinerator and rebuilding it elsewhere? Perhaps most importantly, what assurances can he provide that there will be an application for a development consent order?
I sincerely hope that the Minister can answer those questions, because if he cannot it will be clear that this is not a serious policy, but rather a panicked and rushed attempt by the Chancellor of the Exchequer to distract attention from the state of the economy, which is currently withering under this floundering Labour Government.
Mike Kane
Well, the brass neck! The last Government crashed the economy, sending mortgages through the roof, and called an early election to avoid having to make difficult decisions. Transport policy should be enabling growth as a priority in this country, so that we can bring about the change that the British people voted for. For 14 years we had a Government who had become so sclerotic in aviation, and indeed maritime—that is also part of my brief—that no decisions were brought forward on decarbonising the maritime or aviation sectors, or making the difficult decisions that this country needs to make. As the hon. Member rightly says, there is currently no development consent order before us, and that is for Heathrow or a related party to bring forward.
Draft Airports Slot Allocation (Alleviation of Usage Requirements etc.) Regulations 2025
Gareth Bacon Excerpts(2 months, 4 weeks ago)
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Gareth Bacon (Orpington) (Con)
It is a pleasure to serve under your chairmanship, Ms McVey, and I thank the Minister for his opening statement. The regulation of slot allocation is an important part of maintaining the efficient operation of the UK’s busiest airports, which are often constrained by capacity. The core objective of airport slot co-ordination is to optimise the use of available transport infrastructure, benefiting consumers and industry alike. Airport slots are allocated by independent co-ordinators to airlines for their planned operations, particularly at airports such as London Heathrow, London Gatwick and others, as the Minister outlined, where demand consistently exceeds available capacity.
Historically, the system has adhered to the principles of historical rights and the “use it or lose it” rule. Those principles prioritise airlines based on past usage, requiring them to operate at least 80% of their allocated slots in order to retain them for future use. However, as the Minister said, recent events, particularly the covid-19 pandemic, have exposed vulnerabilities in that framework, which this statutory instrument seeks to address. The Opposition do not intend to oppose the SI or divide the Committee on it—quite the opposite. We support it, because it implements measures proposed by the previous Government’s consultation on airports slot allocation.
As the Minister said, this SI proposes two key changes to the existing rules. Its first provision revises the definition of a new entrant in the context of airports slot allocation. As we heard, the amendment increases the threshold for airlines to qualify as new entrants from those holding fewer than five slots a day to those holding fewer than seven. This change is a significant shift in policy, with the potential to broaden access to congested airports for smaller carriers, thereby encouraging greater competition. The change is intended to make it easier for smaller airlines to obtain slots at busy airports, because the threshold for being considered new has been raised. We hope that it will encourage greater competition by giving smaller airlines a chance to access slots at crowded airports.
The second provision introduces more extensive alleviation measures. These measures, previously temporary, will be made permanent and apply in cases in which airlines cannot meet their slot usage targets because of Government-imposed restrictions. The alleviation provisions state that those restrictions must significantly affect the viability of air travel—for instance, through flight bans, border closures, health crises or severe restrictions on airport operations. The goal of the changes is to make the aviation sector more resilient to unexpected events, such as another pandemic or health crisis.
However, the introduction of permanent alleviation raises questions, particularly about the long-term impact. With the broad discretion given to co-ordinators in determining eligibility, there is a real need for clarity and oversight. I note that in the other place, the noble Lord Hendy of Richmond Hill did not outline how the Government will monitor and assess the effectiveness of the alleviation measures, so I would like to take this opportunity to ask the Minister to reassure the Committee as to how the Government intend to ensure that the alleviation measures are applied judiciously, fairly and consistently.
Oral Answers to Questions
Gareth Bacon Excerpts(3 months, 2 weeks ago)
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Gareth Bacon (Orpington) (Con)
I was appalled to discover this morning that I have known the Secretary of State for the thick end of two decades. We have had various exchanges in various other fora, but this is our first exchange across the Dispatch Box in this House. I therefore warmly congratulate her on her appointment and welcome her to her place.
The Government promised to deliver more reliable rail services, but over Christmas, what did we see? Chaos, cancellation and delays. The train drivers, having accepted the Government’s no-strings pay deal, chose to turn down overtime shifts, leaving passengers stranded and left in the cold. The Government’s no-strings agreement was supposed to bring stability to the railways, but it did the exact opposite, causing major disruption. Will the Secretary of State admit that the pay deal that they thought would improve reliability in fact only made services worse?
Heidi Alexander
I am grateful to the hon. Gentleman for his kind words. I remember those days on the London Councils transport and environment committee. I hope he does not mind my saying that both he and I have a little bit more grey hair since then, which is not necessarily helped by this new job.
On the substance of the hon. Gentleman’s question, I must vehemently disagree with him. The reality is that this Government acted when the previous one refused to do so, to put an end to the industrial action that was blighting our railways. We had a two-year national rail strike that ground down everyone who travelled or worked on the railways, at a cost of £850 million in lost revenue. He might take a lesson from the former Conservative Rail Minister, the former Member for Bexhill and Battle—
Mr Speaker
Order. I say to the Secretary of State gently that I had wanted to welcome her today, but I have to get through a lot of Members. We are on topicals, which are short and punchy. I call the shadow Secretary of State to give us a good example.
Gareth Bacon
I note the Secretary of State’s answer, but, in the real world, we know that the Government’s union paymasters will keep pushing for more. Labour’s plans to scrap the minimum service levels will give the unions more power to hold the railways hostage. Does the Secretary of State accept that the Christmas chaos will not be a one-off, and will in fact be the start of an ongoing decline in reliability?
Heidi Alexander
We have had decades of chaos on the railways, and railways that simply did not work for people. What is needed is a fundamental reset with the trade unions to deliver improvements for passenger services.
Improving Public Transport
Gareth Bacon Excerpts(4 months, 3 weeks ago)
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Ms Polly Billington (East Thanet) (Lab)
I thank the hon. Member for Glastonbury and Somerton (Sarah Dyke) for securing the debate. I am grateful in particular to my hon. Friend the Member for Dunstable and Leighton Buzzard (Alex Mayer), who showed the depth of her knowledge and understanding of this important matter. I have an observation about the Opposition Benches, however, Madam Deputy Speaker. It appears that you wait all day for a Tory MP to turn up to a debate on public transport—and none do.
Ms Billington
With the exception, of course, of the shadow Minister—who is obliged to be here.
I am also grateful that the scope of the debate was widened beyond the west country, as I represent the second easternmost constituency in the country: the far eastern corner of the Isle of Thanet. Hundreds of years ago, up to Tudor times, we were cut off from the rest of the country by the River Wantsum. I fear that the legacy of the Conservative party is that they tried their best to effectively reinstate our island status by gutting our public transport and cutting us off from the rest of the country.
Fortunately, however, when it comes to trains, there is a Labour Government legacy, thanks in particular to the support and involvement of my Labour predecessor, Stephen Ladyman—a former MP for South Thanet and Transport Minister—and, of course, of the late, great John Prescott. They made enormous progress on connectivity and public transport, salvaging the high-speed rail project from which my constituency benefits so much as it links us to London and the rest of the UK, with all the economic benefits that follow. I and others, including my constituents and colleagues from across Kent, strongly advocate for the return of international services to Ashford on the high-speed rail line, because of all the economic benefits that would deliver.
It is already on the record that Kent saw a massive reduction in bus services under the previous Government, with 20% fewer bus miles than under the previous Labour Government. The Government’s announcement on bus funding is extremely welcome, especially as Kent has received the highest proportion of funding in the whole of the south-east, at £23 million. That funding, combined with the new powers for local authorities, means that Tory-run Kent county council has the ability to reverse the cut in bus miles, and I implore it to use the powers and money to do so.
There may be Members on the other side of the Chamber—it is difficult to see any—who are entirely unfamiliar with bus timetables as they all stick to their cars. However, in Broadstairs, where huge swathes of the town have no access to bus services at all, an older person would be left to walk, cycle or—much more likely—rely on lifts from friends, family or taxis. The sheer expense of relying on taxis as a primary mode of transport is enormous, unsustainable and fundamentally unfair. This has created a situation where, if someone becomes ill and is in need of NHS services, they are forced to pay for a taxi when they may not be able to afford one, or—as often happens—simply go without medical treatment.
This is particularly challenging, as a lot of NHS services in East Thanet have been moved inland. That is an all-too-common issue in coastal communities such as mine; for example, in east Kent, our orthopaedic centre is located in Canterbury. There is now no direct bus from Broadstairs or Ramsgate to Canterbury, so people with mobility issues face barriers to treatment. For some, making that extended journey means taking time off work. That has ramifications for our economy, as people who need treatment have to take time off work when they otherwise would not. That often forces people to simply go without treatment in the early stages of their illness, which can only make them sicker and place more costs on the NHS further down the line. Not only is this damaging to the sick people themselves, it stunts the economy and puts excess strain on public services.
This is not the only way in which a lack of public transport options hurts our economy; it also impacts the regeneration of our local high streets. I have many constituents who would much prefer to do their shopping in person on our local high streets, contributing to our local economy, but who now feel that they have no option but to switch to online shopping because of the lack of transport options, since they do not drive. Let me tell you, Madam Deputy Speaker, that when I have suggested it might be possible to have a bus connecting Ramsgate train station to Ramsgate high street, you would have thought from some people’s faces that I was asking to bend the laws of physics. We have been so used to the idea that this is simply impossible. Reliable, affordable, accessible and safe transport is a matter of social and economic justice. I applaud all the actions that the Government are taking to regenerate our high streets, which is a major issue in East Thanet that the Ramsgate empty shops campaign is seeking to work with the Government on, but if people cannot get to those high streets, I fear we will not make the progress that we rightly want.
Although we have a significant new Secretary of State with responsibility for this area, we also need to think about the legacy of previous Secretaries of State—in particular, Barbara Castle. When she was first appointed by Harold Wilson, she turned around to the Prime Minister and said, “You do know, Harold, that I can’t drive?” In the late ‘60s, this was seen as hampering her ability to be a suitable Transport Secretary, but in his wisdom, Harold Wilson said, “Yes, Barbara—exactly.” That is the point. Think of the changes that she was able to make, not only to public transport but to road safety, giving us a strong legacy that has lasted all my lifetime and, I hope, much further beyond. Good public transport is fundamental to achieving the Government’s missions, in the same way that it is fundamental to us being able to live our own lives and achieve our own ambitions: simply to get up, go to work, access the services we need, get home safely and see the people we love.
Gareth Bacon (Orpington) (Con)
I congratulate the hon. Member for Glastonbury and Somerton (Sarah Dyke) on successfully applying for the debate, and I thank the Backbench Business Committee for granting it. Public transport is an indispensable part of our national life, playing a vital role in our commercial, social and economic existence.
We have had an interesting debate this afternoon, with noteworthy contributions from the hon. Members for Glastonbury and Somerton, for Horsham (John Milne), for Guildford (Zöe Franklin), for Thornbury and Yate (Claire Young) and for Taunton and Wellington (Gideon Amos) as well as just now from the hon. Member for Wimbledon (Mr Kohler) from the Liberal Democrats. From the Government Benches, the first speech was the maiden speech of the hon. Member for Dunstable and Leighton Buzzard (Alex Mayer). It was a thoughtful speech about bus use. I am sure that she will serve her constituents diligently in her time in this place, and I wish her well. She was followed by some capable contributions from the hon. Members for Swindon North (Will Stone), for Stroud (Dr Opher), for Leeds South West and Morley (Mr Sewards), for Edinburgh South West (Dr Arthur), for Rossendale and Darwen (Andy MacNae), for Croydon East (Natasha Irons) and for East Thanet (Ms Billington).
I will begin by commenting on the previous Conservative Government’s time in office. It may have escaped the attention of hon. Members that between 2010 and 2024, the Conservative Government spent more than £100 billion operating and enhancing our railways. This allowed the completion of major projects including Crossrail, Thameslink and major upgrades to the east coast main line, the greater Anglia main line, the midland main line and the great western main line. We committed £36 billion to the Network North programme, which, unless the Labour Government stop it, will deliver long-term transformative transport projects that will benefit a great many people in the north of England. The programme is under review by the Government, with no guarantee that any of it will be taken forward. Obviously, we call on the Government to honour the programme in full.
We electrified over 1,200 miles of track, compared with the mere 63 miles electrified in the 13 years of the previous Labour Government. Some 75% of rail journeys are now taken on electrified tracks. We sought schemes that would reconnect communities to our railways, providing new stations for passengers to use, such as the proposed new station at Edginswell in Torbay, which would complement the delivery of a new station at Marsh Barton near Exeter, and would particularly serve the needs of Torbay hospital. I know that Torbay council is a keen advocate for that, and I hope that the Labour Government will offer the same commitment to it that we did.
To support our bus networks, we invested an unprecedented amount of over £3.5 billion in the bus sector from March 2020 to support its recovery from the pandemic. We provided £525 million of funding to deliver 4,000 new British-built electric or hydrogen buses, and we extended the “get around for £2” scheme until the end of 2024, capping hundreds of single bus fares and helping passengers reliant on buses with the cost of travel—a scheme that we pledged to maintain for the entirety of this Parliament.
I also remind the House of some facts that were curiously missing from the speeches of some hon. Members, particularly those sitting on the Government Benches. Let us turn our gaze to Wales, where Labour has been in power for a quarter of a century. The number of journeys taken on local buses has declined by almost a quarter in the past decade, with a severe impact on those in the most rural areas. The Welsh Labour Administration have spent £40 million on rolling out 20 mph speed limits to try to force motorists on to public transport that the Labour Administration themselves have made less reliable, less regular and less affordable.
Let us look at London, which has been blighted by the leadership of Sadiq Khan for the past eight and a half years. London’s mayor recently spent £6.3 million of public money on yet more virtue signalling, renaming London overground lines—something that I am sure commuters thanked him for last week when the Elizabeth line was suspended and five underground lines faced severe delays. From a man who promised to roll up his sleeves and ensure no more transport strikes, we have seen more than 130 days of strikes during his term of office.
We know what the Labour party promised the voters of this country. In its manifesto, it pledged new infrastructure, an overhaul of Britain’s railways and certainty for car manufacturers. It promised a utopian system of public transport. But the methods by which the Government have set out to achieve that have been depressingly predictable. One of the Labour Government’s first acts was to provide train drivers with inflation-busting pay rises, without securing any productivity improvements for passengers at all. That bribe to the unions has, entirely predictably, failed to prevent repeated threats of further strike action.
Then, as part of the Welsh Government’s ongoing war against rural communities, they cut £1.3 billion-worth of road improvement schemes. The Government then increased the previous Conservative Government’s £2 bus fare cap to £3, increasing fares on hundreds of bus routes across the country. [Interruption.] Totally predictably, I get heckled about it not being paid for. As hon. Members will be aware once they have been in this place for a little longer, Government schemes are funded for particular periods of time, and then the funding is reviewed. The new £3 bus far cap, costing bus users 50% more than the previous cap, is guaranteed only until the end of next year, whereas the Conservative party’s manifesto commitment was to retain the cap at £2 for the whole of the Parliament.
Finally, and perhaps most notably, the Government have introduced and passed the Passenger Railway Services (Public Ownership) Act 2024. Instead of implementing the measured and sensible reforms set out in the Williams-Shapps review, the Government have passed an Act that will neither improve passenger experience nor make significant savings. Indeed, it may prove to cost the taxpayer significantly more. The Government insist that savings to the taxpayer will amount to £150 million because of the removal of fees paid to train operating companies. Even if that is correct, it will amount to a saving of a mere 0.6% of what is currently spent on the railways, and even that tiny figure is in doubt. Analysis conducted by rail partners suggested that removing the incentive to control costs could lead to annual subsidies being at least £1 billion higher by the end of this Parliament.
From whatever angle one looks at it, it is hard to see this Act as anything other than an ideological move—one that has more to do with attempting to appease the radical elements of the Labour party, hungry for old-fashioned, hard-left policies, than the good of the passenger and the taxpayer.
Ms Billington
I just wanted to give the hon. Gentleman the opportunity to confirm that the Tory Government were perfectly comfortable with public ownership of train operating companies as long as they belonged to Governments of other countries in Europe.
Gareth Bacon
The previous Government were prepared to do what works, rather than follow ideology in spite of evidence to the contrary.
I have been the shadow Transport Secretary for 31 days and I am already on my second Secretary of State. I have known the new Secretary of State for almost two decades, since our time as councillors representing our respective London boroughs on the London Councils transport and environment committee. She is not in her place today—Secretaries of State cannot be everywhere; that is why they have junior Ministers. I am sure that the Under-Secretary of State for Transport, the hon. Member for Wakefield and Rothwell (Simon Lightwood), will ably deputise for her this afternoon.
I crossed paths with the new Secretary of State when I was Conservative leader on the London Assembly and she was appointed the deputy Mayor for Transport. Unfortunately, during her time at City Hall, London witnessed 28 strikes on Transport for London services, a 77% increase in complaints about TfL over three years, an extension of the hated ultra low emission zone, and, perhaps most concerning of all, a £4 billion overspend and three-year delay in the opening of the Elizabeth line. In defence of the right hon. Lady, though, the buck for all those failings does not stop with her—it stops with the Mayor of London. The right hon. Lady is, in fact, somebody for whom I have a high personal regard, and I look forward to welcoming her to her place.
It is fair to say that the Conservatives have doubts about the start made by this Government. However, having said all that, I emphasise that His Majesty’s Opposition will not oppose the Government just for the sake of it. I do not believe that a single Member of this House wants a public transport system that fails. As I said at the outset, public transport is an indispensable part of our national life, and a successful transport system is vital to both our present and our future. If the Government get things right, we will acknowledge that. Where they get them wrong, we will continue to hold them to account.
Transport
Gareth Bacon Excerpts(5 months ago)
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Gareth Bacon
… On Monday, in her statement on bus funding, the Secretary of State said that a formula was being used to allocate funding. She said that the formula will allocate funding
“based on local need, population, the distance that buses travel, and levels of deprivation…This formula and the funding allocated is a fair arrangement, ensuring that every area of the country gets the service levels it needs”.—[Official Report, 18 November 2024; Vol. 757, c. 43-45.]
The formula, including the weighting given to the various factors by the right hon. Lady, has not been published. When will it be?
Lilian Greenwood
I thank the shadow Secretary of State for his question. We are proud of the work that we have done to ensure that every part of the country benefits from additional funding for their buses, and we will publish that later today.
[Official Report, 21 November 2024; Vol. 757, c. 352.]
Written correction submitted by the Under-Secretary of State for Transport, the hon. Member for Nottingham South (Lilian Greenwood):
Oral Answers to Questions
Gareth Bacon Excerpts(5 months ago)
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Gareth Bacon (Orpington) (Con)
On behalf of the Opposition Front Bench, I too offer my sincere sympathies to the family of the late Lord Prescott on his passing.
On Monday, in her statement on bus funding, the Secretary of State said that a formula was being used to allocate funding. She said that the formula will allocate funding
“based on local need, population, the distance that buses travel, and levels of deprivation…This formula and the funding allocated is a fair arrangement, ensuring that every area of the country gets the service levels it needs”.—[Official Report, 18 November 2024; Vol. 757, c. 43-45.]
The formula, including the weighting given to the various factors by the right hon. Lady, has not been published. When will it be?
Lilian Greenwood
I thank the shadow Secretary of State for his question. We are proud of the work that we have done to ensure that every part of the country benefits from additional funding for their buses, and we will publish that later today.
Gareth Bacon
The Secretary of State also said in her statement:
“Councils such as Leicester, the Isle of Wight, Torbay and Cambridgeshire will see unprecedented levels of funding for services.”—[Official Report, 18 November 2024; Vol. 757, c. 42.]
What levels of subsidy does she believe that bus services in those areas will require?
Lilian Greenwood
It is incredibly important that decisions about local services are taken by those who are operating them. That is why not only have we provided substantial levels of funding—£1 billion announced in the Budget and the allocations set out on Monday—but we are providing local transport authorities with the powers they need to provide the services that local communities want and deserve.
Gareth Bacon (Orpington) (Con)
Greater London is the most heavily populated and most economically active area in the whole country. It also has the highest level of bus use. In the last financial year, the level of bus subsidy in London amounted to £646 million. In the Secretary of State’s statement on Monday, of the £1 billion of funding that she indicated, £700 million will be spent on producing bus planning documents, and only £243 million is going to bus services. That will not touch the sides, will it? Is the truth not that, far from it being generational reform, it is publicly funded window dressing?
Louise Haigh
The way that the previous Government approached bus service improvement plans was to force local authorities to waste money on developing those plans. This money is going directly to authorities to make sure they are delivering public services. Public transport is a public service and it should always be funded.