Rail Reform: Wales and Borders
Heidi Alexander Excerpts(6 days, 14 hours ago)
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The Secretary of State for Transport (Heidi Alexander)
Today we have introduced the Railways Bill to Parliament. This landmark legislation is a significant milestone in our journey to modernise and improve rail services across the United Kingdom, delivering a more integrated, accountable, and passenger-focused railway.
Throughout the development of this Bill, I have greatly valued the positive and constructive engagement between UK Government, Welsh Government, and Transport for Wales officials, which has been supported by the strong inter-ministerial relationship between UK and Welsh Ministers. Our ministerial discussions have been both productive and forward-looking. We are committed to the UK and Welsh Governments’ shared ambition to establish a clear set of joint objectives, understanding of the governance and management roles of UK and Welsh Ministers in relation to railways and railway activities for the Wales and borders area.
A key outcome of this collaboration is the inclusion of a specific clause in the Bill, which provides for the development of a memorandum of understanding between the Secretary of State for Transport and Welsh Ministers, represented by Ken Skates as Cabinet Secretary for Transport and North Wales. This clause recognises the shared ambition to codify devolved responsibilities, funding arrangements, and joint governance mechanisms, thereby strengthening accountability in the delivery of rail services across the Wales and borders area. In parallel, UK and Welsh Government officials have jointly undertaken the drafting of the heads of terms for this memorandum, which has been a positive and collaborative process.
The heads of terms will provide a basis for the development of the memorandum. It will provide clarity on the expectations of how UK and Welsh Ministers and delivery agencies such as GBR and Transport for Wales will work together to deliver a more integrated railway in the Wales and borders area. This agreement will form the foundation for the MOU and reflects our shared priorities and principles for working together.
The heads of terms includes our shared ministerial intention for:
Shared objectives and control period/funding period planning for the Wales and borders area—An outline of jointly agreed and published objectives and business plans that are shaped by both Governments.
Track and train integration—Agreed principles to deliver a more responsive and resilient railway by delivering a simpler, better, integrated railway for the users of the Wales and borders network.
A GBR Wales and borders business unit—To provide the Wales and borders area with a dedicated, empowered business unit within GBR that will deliver against the shared objectives set by both Governments.
England and Wales cross-border services—An aligned framework between the Welsh Ministers and the Secretary of State for joint governance and transparent funding arrangements concerning cross-border rail services, reflecting the vital importance these services have on the connectivity, wellbeing and economic development of communities in both Wales and England.
Access and use—Principles to enable GBR and TfW to work together to simplify access contracts and charging framework and ensure GBR’s capacity allocation decisions and infrastructure capacity plan development are consistent with the joint objectives established for the Wales and borders area.
Core valley lines—To support TfW to integrate track and train, reduce internal regulatory complexity, and jointly develop an interface framework with GBR for service continuity across both networks.
Wales rail board and enhancements—A formally recognised and renewed Wales rail board as a strategic body within the governance framework. The evolved Wales rail board will review funding allocations, business plans, and performance of enhancement schemes across the Wales and borders area.
Governance—Governance principles to ensure adequate accountability channels to UK and Welsh Ministers by GBR and TfW.
Appointments and Representation—Welsh Ministers role in shaping the overall recruitment strategy for the GBR board, and consultation from the GBR CEO during the recruitment of senior executives within the Wales and borders business unit.
The publication, review and amendment process for the MOU.
The heads of terms will enable us to move forward with the full development of the MOU, which we aim to publish and share publicly in spring of 2026. This will provide clarity and transparency on how our respective Governments will work together to deliver better rail outcomes in the Wales and borders area.
Alongside and supported by the development of the MOU, a partnership agreement will be developed between Great British Railways and Transport for Wales for the Wales and borders area. This agreement will support operational alignment and ensure that both organisations can work effectively together to deliver high-quality rail services for passengers in the Wales and borders area.
This statement marks a significant step forward in our collaborative approach to rail reform, and I am confident that our continued joint working with the Welsh Government will support the delivery of a modern, integrated railway that works for passengers across the United Kingdom.
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Rail Reform
Heidi Alexander Excerpts(6 days, 14 hours ago)
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The Secretary of State for Transport (Heidi Alexander)
Today I have published our consultation response, “A railway fit for Britain’s future”, and introduced the Railways Bill to Parliament.
Up and down the country and across all political parties, the consensus is clear: our railways need urgent reform. Passengers feel abandoned—forced to treat delays, cancellations, and poor value for money as unavoidable facts of daily life. Meanwhile, a broken, outdated model is holding the railway back, stopping it from unlocking the growth our country needs and delivering the efficiency taxpayers rightly expect.
The need for change was laid bare in the thousands of responses to our recent consultation. The British public were unequivocal: we need an affordable, reliable railway that passengers can count on and that makes the most of every taxpayer pound invested. One that makes education, healthcare, public services, and even just the support of family and friends more accessible to those who need them. A railway that backs our businesses and helps our communities thrive. A railway fit for Britain’s future.
So today I am bringing forward legislation that will pave the way for the biggest transformation of Britain’s railways in 30 years. Informed by the consultation feedback, the Railways Bill will give us the tools we need to create Great British Railways—a new, publicly owned company to oversee the management of track and train.
Today’s passengers are at the mercy of a complex system of poorly co-ordinated organisations, all incentivised to look inward and outsource blame. GBR will put an end to this by bringing together the work of 17 different organisations—from train operators to public bodies, Government, and the regulator—eliminating unnecessary duplication and creating a single organisation responsible for operating, maintaining, and improving our railways.
Unencumbered by the bureaucracy and perverse incentives of the old system, GBR will have the tools and authority it needs to make the railway deliver for passengers, freight, and taxpayers—and to be held unambiguously accountable for doing so. It will be the “directing mind” for the network, responsible for improving performance and taking long-term decisions across the whole system to unlock growth, decarbonise transport, enable the construction of new homes and support a thriving supply chain. GBR will be underpinned by a clear set of statutory duties—including those relating to passengers and accessibility, rail freight, and social and economic benefits—as well as an overarching strategic direction set by the Government. This approach will enable GBR to make decisions with a whole-system view, optimising network use and utilising opportunities such as open access to make the most of constrained capacity.
GBR will create a new culture that prioritises passengers and their experience. It will simplify fares and ticketing, setting more transparent fares in line with parameters set by Ministers. It will consolidate the ticket retailing operations of 14 separate train companies—each with their own websites and apps—into a single, straightforward GBR ticketing platform. A new GBR app and website will make it easy to purchase tickets, check train times, and access a range of support all in one place. Together, this will make it easier for passengers to understand the fares system, to know they are buying the right ticket, and to be confident they are getting the best value.
The Bill will pave the way for creating a powerful voice for passengers, with a passenger watchdog responsible for setting tough standards and, where these are not met, investigating issues and resolving disputes. It will protect and advocate for all passengers’ interests and rights, offer advice, and independently monitor passenger experience, reporting on its findings publicly and transparently.
GBR will work in partnership with devolved leaders to create a national railway that serves local needs. Through a new statutory role for devolved leaders, national and local strategies will be factored into GBR decision-making ensuring communities across Britain feel the benefits of our reforms. England’s mayors will have a greater say in how the railways will run, enabling genuine local influence and laying the foundations for integrated public transport that meets the needs of the communities it serves.
Devolved Ministers in Scotland and Wales will also have an enhanced role, with bespoke arrangements to ensure GBR is able to deliver an integrated national network across Great Britain. I will publish a joint memorandum of understanding with Welsh Ministers setting out how our continued collaboration will drive improvements to our railways across the Wales and borders area. Scottish Ministers have a similarly strong settlement reflecting their role as funder of the railway, including powers of direction and guidance over GBR. This will be set out in a joint memorandum of understanding that will outline how GBR will work with Scottish Ministers to maximise local opportunities and deliver for communities.
While this Bill will unlock the most significant set of reforms our railway has seen in a generation, we are not waiting for the creation of GBR to drive improvements across the rail network. We have accelerated the roll-out of pay-as-you-go and we are ushering in a new era of transparency with latest performance data now available at over 1,700 stations. We recognise that disabled passengers’ experience on today’s railway too often falls short. That is why today I have also published an accessibility road map: a transitional plan focused on delivering immediate improvements while laying the foundations for longer term transformation led by GBR.
This Bill enters Parliament 200 years on from the birth of the modem railway. The first passenger train between Shildon, Darlington, and Stockton in 1825 marked the start of a technological revolution that would change the course of world history and trigger an explosion of growth and prosperity across the country. As this Government continue their mission to deliver a decade of national renewal, the plans I am setting out today will ensure the railway is fit to drive economic growth in the 21st century as it has done in the past.
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Heathrow: National Airports Review
Heidi Alexander Excerpts(2 weeks, 6 days ago)
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The Secretary of State for Transport (Heidi Alexander)
With permission, I will update the House on the steps this Government are taking to realise the benefits of expansion at Heathrow airport, having invited proposals for a third runway earlier this year.
Today I am launching a review of the airports national policy statement. Britain wants to fly, and this Government will act to meet public aspirations. Our review of the ANPS will ensure that while we unlock long-term capacity for more flights at the nation’s only hub airport, we will also meet our obligations to passengers, communities and the environment. Today is a step forward for UK aviation and infrastructure, supporting growth in the economy and enabling a modern, efficient transport system that harnesses international investment, boosts connectivity and strengthens UK competitiveness.
We are committed to making a decision on a third runway at Heathrow within this Parliament, and we are clear in our ambition to see flights taking off on a new runway in 2035. We said we would get on with this, and we have. When the previous Government set up the Davies commission, it took them five years to publish the original draft ANPS. We will get to the same point in 18 months, with the process completed by the end of 2026, showing our commitment to delivering progress swiftly but robustly. When we say we back the builders, not the blockers, we mean it.
But this is not a blank cheque. Expansion at Heathrow must minimise cost for passengers and customers. The taxpayer must not be expected to foot the bill. That is why the scheme will be privately financed—both the core project and the related infrastructure improvements. Extra staff and passengers must be able to get to and from the airport without turning the M4 and M25 into Europe’s largest car park. Crucially, the expansion must align with our legal, environmental and climate commitments. Starting the review of the ANPS is critical to delivering expansion and will provide the basis for decisions on any future planning applications.
The world has changed since the last ANPS review in 2018, which is when it was designated. New environmental and climate obligations have been introduced, and patterns of travel have changed. However, pretty much every UK airport saw its busiest summer on record. We could put our head in the sand and pretend this is not the case, but we would be doing a disservice to our economy and to the next generation. That is why, in carrying out this review, we will consider how any proposed scheme must meet four clear tests: that it contributes to economic growth across the country; that it meets our air quality obligations; that it is consistent with our noise commitments; and, crucially, that it aligns with our legal obligations on climate change, including net zero.
We will seek the independent opinion of the Climate Change Committee, which I will write to shortly to request this advice. While a third runway at Heathrow has been factored into carbon budget 6, it is right that we update our modelling and seek the views of the CCC. Given Heathrow’s national importance, we will also consider naming the airport as critical national priority infrastructure, in line with our approach to low-carbon energy projects. We are further considering whether to name a statutory undertaker as an appropriate person to carry out the project under the Planning Act 2008, providing additional clarity to stakeholders and the local community. It is clear that this is a large and complex programme that requires a thorough and evidence-led approach. Over the coming months, my Department will develop analysis on economic and environmental impacts of expansion. We will also undertake an appraisal of sustainability, as required by statute, alongside a habitats regulations assessment and other necessary technical work. If amendments are needed to the ANPS as a result of the review, we expect to consult on an amended policy statement by next summer. Communities will be able to have their say and we will shortly publish an updated stakeholder engagement approach to ensure transparency and fairness throughout the process.
Earlier this year, we invited potential promoters to submit proposals for delivering a third runway at Heathrow. Seven proposals were received and were considered by officials from the Department for Transport, the Treasury and expert financial and technical advisers. Following that assessment, two potential schemes remain under active consideration: a proposal from Heathrow Airport Limited and a proposal from the Arora Group. We know that we must provide as much clarity and certainty for communities, investors and users of Heathrow as soon as possible, so we are seeking further information on the two proposed schemes with a view to reaching a final decision on a single scheme to inform the remainder of the ANPS review by the end of November.
When making that decision, we will consider: the interoperability of the proposed scheme with existing infrastructure; the plans for transport to and from the airport and associated road schemes; the land take and impact on surrounding homes and communities; the evidence that the scheme can be privately financed; and the economic benefits of the scheme. This Government are committed to moving quickly but we will also do this properly.
To deliver the scheme on time, the Government are also pressing ahead with a series of enabling reforms. The Planning and Infrastructure Bill will streamline the delivery of major infrastructure, including Heathrow. That includes faster consenting routes and more proportionate consultations. On judicial reviews, we have announced that we will work with the judiciary to cut the amount of time it takes for a review to move through the court system for national policy statements and nationally significant infrastructure projects. We are establishing the UK Airspace Design Service to deliver modernised airspace. That will initially prioritise airspace design for the London region, supporting both Heathrow and the wider network, and will also make flight paths more efficient so that planes spend less time over London. We will initiate slot reform to ensure future allocation maximises benefits of an expanded Heathrow, as well as approved growth at Gatwick and Luton for passengers, local communities and businesses.
Expanding Heathrow will be one of the largest infrastructure projects in the UK. Rigorous and effective cost control will be essential to its success, both in minimising any impact on airline charges and costs to passengers and in maintaining credibility with financial markets. The Government will therefore work with the Civil Aviation Authority to review the framework for economic regulation for capacity expansion at Heathrow, ensuring the model provides strong incentives for cost-effective delivery. We expect the CAA to publish a working paper in November, with a view to that work completing next summer.
This is a landmark opportunity for Heathrow, for the aviation sector and for the UK economy. The Government remain fully committed to ensuring the expansion is delivered in a way that is timely, cost-efficient and environmentally responsible. I commend this statement to the House.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the shadow Secretary of State for Transport.
Mr Richard Holden (Basildon and Billericay) (Con)
I am grateful to the Secretary of State for her statement and for advance sight of it.
The statement should have been brought to the House months ago. The Secretary of State surely recognises that today marks a delay and an acknowledgment of that, rather than a decisive move forward. The truth is that this whole process has come about the wrong way round. Recent announcements on Gatwick and Heathrow, rather than being any clear plan for the future of British aviation, are not driven by planned and prepared work but by a clear attempt to divert attention from the Government’s growing list of crises, scandals and cover-ups. However, we on these Benches welcome the fact that this statement has finally been brought forward to the House, because both the aviation sector and passengers deserve clarity, as do the local people who will be affected, and we hope that they will see sensible mitigations to these proposals.
Can the Secretary of State confirm what assessment the Government have undertaken so far of the total cost of Heathrow expansion, given that one of the central estimates now stands at almost £50 billion, excluding an extra £10 billion for further surface access works? Those figures would quadruple Heathrow’s current asset base, which is already responsible for some of the highest passenger charges in the world. If Britain is to remain competitive on the global stage, those costs must be kept down, not driven up.
Crucially, how will the Government ensure that the costs are minimised, not maximised? I am sure that, like me, the Secretary of State does not want those costs directly passed on to airlines and then to their passengers in higher fares, because affordability must be at the heart of any credible aviation strategy. Maintaining affordable flights is crucial for passengers, so can she assure the House that the Heathrow expansion will not result in significant pass-through costs, especially with the Government’s rises in air passenger duty, the jobs tax and now real concerns over how business rates will affect the aviation sector?
I understand that the Chancellor has claimed a third runway will be operational by 2035—something the Secretary of State has reflected today—and that she wants to see spades in the ground during this Parliament. Of course, we welcome the reforms that will enable this to happen. Those reforms will not have any teeth, however, unless the Government commit to backing our plan to scrap the Climate Change Act 2008. Otherwise, Heathrow expansion will face judicial review after judicial review, bogging down the process, driving up costs and delivering further delay. Even Labour’s Mayor of London has said that he “wouldn’t hesitate” to launch legal challenges against a third runway. Can the Secretary of State commit to ensuring that her own Labour colleagues—including those she worked for previously—and allies will not be the ones who prevent this important project from ever seeing the light of day? Can the Secretary of State also commit to ensuring that the associated road and rail links not just into London but to the south are included, so that the expansion delivers genuine economic growth and connectivity for the whole of the United Kingdom?
The Conservatives would end the constant threat of judicial review and eco-lawfare to ensure that infrastructure across the country could finally be delivered on time, on budget and in Britain’s national interests. It was great to hear the Secretary of State’s words on this from the Dispatch Box, but will those reforms relating to the judiciary come into force before the decisions on Heathrow and the development consent order are made, or will they be subject to the current situation we are facing?
We on these Benches recognise that greater competition is the most effective way to deliver value for money and reduce costs to consumers, and I am grateful that the Secretary of State acknowledged in her statement that Heathrow expansion must minimise costs, but the only way to achieve that is through real and genuine competition. Heathrow’s current structure has the potential to create perverse incentives that reward higher spending rather than efficiency, pushing up charges for passengers and airlines. I note the commitment that the CAA’s review into economic regulation will begin in November, but that review must look seriously and fundamentally at how to embed competition and reverse perverse incentives. How do the Secretary of State and the CAA intend to bring competition to the heart of delivering this project? She said that the review would be delivered in the summer of next year. Will it be before the summer recess so that the House will have time to scrutinise it?
While this Government continue to splurge cash, hike up taxes and debt and tie Britain up in eco-lawfare with their Green allies, only the Conservatives would restore confidence, break that cycle and deliver a stronger economy with world-class aviation at its heart. Sadly, under this Government, taxes have risen to historic highs. They have imposed a punishing jobs tax, and borrowing has soared to the highest levels since 2010 outside the pandemic, with £100 billion in annual debt interest payments. A third runway alone will not shield the country from the consequences of Labour’s economic mismanagement, but it is a project that must be delivered correctly and responsibly and put passengers at its heart.
Heidi Alexander
I am interested in the right hon. Gentleman’s comments about our pace of delivery, and I roundly reject his criticisms on this. We are the party that is accelerating Heathrow expansion, today setting out this swift and robust review of the ANPS to help us determine applications swiftly. Previous work to get a final airports national policy statement by the last Government took more than five years. This Government will do it three years faster. We are getting on with the job and taking the important and sometimes difficult decisions to get Britain building. I gently remind him that when his great ally and mentor, Boris Johnson, was Prime Minister, he went to such lengths to duck decisions on this issue that he ended up in Afghanistan.
The right hon. Gentleman is absolutely right to care about consumers and cost control, and that is precisely why we are reviewing the ANPS and why we are starting the work, via the Civil Aviation Authority, on the model of economic regulation. If we fail to plan for future capacity, prices will rise and choice will shrink. This review will be integral to keeping the UK competitive and connected by ensuring sufficient capacity, sustainable growth and fair competition between global hub airports. I agree with him that consumers deserve affordable fares and greener aviation, and that is what we are working to deliver.
The right hon. Gentleman also asked about climate change, service access and our reforms to judicial reviews. On service access, I can be clear with him that we expect this project and associated infrastructure improvements to be privately financed. Through the ANPS review, we will be looking holistically at public transport requirements, be that southern rail access, western rail access or how people get to and from central London. He will recall that, in the spending review, we set out the biggest investment in London’s transport for over 10 years, with £2.2 billion enabling Transport for London to buy new rolling stock on the Piccadilly line and 10 extra Elizabeth line trains. We will work closely with our colleague, the Mayor of London, and TfL to ensure that appropriate infrastructure is in place.
The right hon. Gentleman talked about the changes that we are making to judicial review, and I would simply say to him that we are acting where his Government had their head in the sand. I am confident that the CAA will look carefully at competition issues in the work that it is doing. I am also confident that, ultimately, we could create 100,000 jobs through expansion at Heathrow. We could boost economic growth as well as opening up new opportunities for trade, tourism and travel. We will do this properly, and that is what we are doing by launching the ANPS review today. I look forward to answering further questions from other hon. Members.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Chair of the Select Committee.
Ruth Cadbury (Brentford and Isleworth) (Lab)
I thank the Secretary of State for her statement. I look forward to the work she does on this ANPS coming to our Committee in due course. A third runway at Heathrow, combined with all the other agreed—or likely to be agreed—expansions of capacity in London and south-east airports would involve an increase of 177 million passengers, which would be 70% more than the number of passengers in London and the south-east from 2024. I look forward to the Climate Change Committee’s response to the proposal, because it has said that a 35% increase in capacity would be the maximum that would keep the UK compliant with our international legal commitments.
To return to the specifics of the statement, the Secretary of State said that she seeks to minimise costs for passengers and customers, but given that the cost of a third runway will be between £25 billion and £49 billion, how exactly will that cost not be passed on to the airlines and therefore the passengers if the Treasury is not going to fund those costs, which we know it is not? On surface access, ever since the building of the fifth terminal, the local authorities all around Heathrow have been pushing for southern rail access to Heathrow. Heathrow Airport has long said—and has clarified recently—that it will not pay the cost of southern rail access, so how does she expect that to be funded? If the M25 and M4 are not to grind to a halt, and if passengers and workers from the west and south of the airport are to be able to get in and out of the airport, how is that to be achieved?
Heidi Alexander
My hon. Friend is entirely right to raise these issues. We will give very careful and thorough consideration to them in the airports national policy statement review, which will take place in the coming months. She referred to the Climate Change Committee’s opinion on capacity expansion. We are making rapid progress in cleaning up the fuel that is used in planes, and we are making huge efforts to reform our airspace, so that we can have cleaner and more direct flights. The carbon intensity of flying has to come down if we are to have more planes in the air. She was also right to highlight the importance of the regulatory model. That is why we have asked the Civil Aviation Authority to do this piece of work over the coming months; it is aligned with the review in the airports national policy statement. We will say more on that in due course.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Olly Glover (Didcot and Wantage) (LD)
I thank the Secretary of State for her statement, which made the Government’s intent of supporting the proposed third runway at Heathrow very clear. It was good to hear her recognise the complexity of all that will be needed to deliver it, including major diversionary works on two of the country’s busiest motorways. We Liberal Democrats continue to support the right infrastructure in the right place, which is why we have always supported schemes such as East West Rail and Northern Powerhouse Rail. However, we need the right infrastructure to tackle the right problems, and there are many unanswered questions about the Heathrow third runway.
The New Economics Foundation has been very clear in its analysis that the environmental impact of airport expansion will erode a lot of our carbon emission reduction plans, and many studies have questioned the economic case for Heathrow expansion. I would be interested to hear from the Secretary of State about the dangers of relying solely on the private sector to fund large schemes, as happened in the case of the channel tunnel, which remains an enormously underused asset, partly because of the costs that resulted from the decision to fund it only through the private sector.
It is welcome that the Secretary of State has made her support for Heathrow expansion subject to four tests, but I detect perhaps a slight hint of cognitive dissonance, and a contradiction in the Government setting out timelines for delivering something that they say is subject to four tests. The Secretary of State said that she would hear the independent advice of the Climate Change Committee. If the CCC decides that the preferred option for the Heathrow third runway is incompatible with our carbon emissions and our net zero targets, will she drop her support for the third runway?
Heidi Alexander
I start by congratulating the hon. Gentleman on his appointment. He referred to New Economics Foundation research. I should be clear with him that the Government are absolutely committed to reaching net zero for the whole economy by 2050, and that we will meet our climate change obligations as set out in the Climate Change Act 2008. We have also been clear repeatedly that any airport expansion proposals will need to demonstrate that they will contribute to economic growth and can be delivered in line with the UK’s legally binding climate change commitment. We will engage with the CCC in the ANPS review.
Heathrow is only one part of the process; the expansion of Heathrow, Luton, Gatwick and Bristol airports was factored into carbon budget 7, and the hon. Gentleman will know that the Government will publish our updated delivery plan for carbon budgets 4 to 6 in the coming weeks. We should not see economic growth and our climate change commitments as being inconsistent with each another. I believe we can go further, faster, on cleaner fuels and technological developments, but people want to fly, and I do not think that this Government should get on the wrong side of public aspiration.
John McDonnell (Hayes and Harlington) (Lab)
I first of all express my sympathy for the Secretary of State: she knows from past experience that this is like watching a car crash in action, and it has been thrust upon her by the Chancellor. She knows that Heathrow has made the clear commitment that it will not pay for the infrastructure; that landing charges will go up, and passengers will pay for it; and that there is no way that we can meet our climate change targets if the expansion goes ahead. That is why I express my sympathy; she has been given an impossible task.
I have a constituency interest, as the Secretary of State will know, because Heathrow is in my constituency. She mentioned that the stakeholder engagement process will be published shortly. Could she be a bit more precise on the timescale, and on what measures will be included in that? The House needs to know that in my constituency, 4,500 homes will be demolished or rendered unliveable; 15,000 people will lose their homes; we will lose three schools; and whole communities will go. My constituents want to ask: where are they going to live? Where will their children be educated, and what will their happen to their community? We just need some certainty now—and from my point of view, it is certain that this is a white elephant. It is almost like watching High Speed 2 all over again.
Heidi Alexander
I am sure it will not come as a surprise to my right hon. Friend to hear that I reject his characterisation of the work I am doing. I see the expansion as an opportunity to improve our connectivity as a nation, to improve UK competitiveness and to ensure that we deliver for businesses and passengers all across the UK. I understand why he raised the interests of his constituents who live closest to the proposed expansion. He asked me for more detail about the consultation timeline. If we make changes to the ANPS through the review, a consultation will take place on that next year, and we are working on a timeline that would see a new ANPS designated by the end of next year. I give him a commitment to meaningful engagement and consultation. In the document that I referred to in my statement, we will set out a new stakeholder engagement approach, so that people will be treated with fairness. We will act transparently throughout the process.
Several hon. Members rose—
Lincoln Jopp (Spelthorne) (Con)
I sympathise with the right hon. Member for Hayes and Harlington (John McDonnell); my Spelthorne constituency is on the southern side of Heathrow airport, and the residents of Stanwell Moor, a village of some 520 homes, are half a mile away from the southern perimeter. They have put up with a lot, including appalling behaviour by Uber drivers, holiday parking and noise pollution. In the consultation, will the people of Stanwell Moor be engaged with directly? I also ask that we measure air and sound pollution, and use current levels as a baseline, so that we can determine the impact of the Heathrow expansion.
Heidi Alexander
In the ANPS, there will be a very thorough review of the noise requirements, and mitigations are set out in that document. I can give the hon. Gentleman a commitment that there will be meaningful engagement with his constituents.
Andy Slaughter (Hammersmith and Chiswick) (Lab)
Can the Secretary of State confirm that this is not a done deal? As part of the ANPS review process, will there be a full and independent analysis of the economic costs and benefits, the environmental effects, and demand in London and the south-east, given airport expansion elsewhere? As she says, the world has changed since 2018. Can my constituents, who will be seriously detrimentally affected by any further expansion of Heathrow, be assured that the Government have their best interests at heart?
Heidi Alexander
We will do this properly. As Secretary of State for Transport, and as the person who may ultimately be the decision maker on any future planning application, I assure my hon. Friend that I will approach this issue with an open mind and will apply the highest standards of professionalism and probity to the process that I am overseeing.
Dr Ben Spencer (Runnymede and Weybridge) (Con)
Egham in my constituency is five miles from Heathrow, and it is not the fact that it is overflowing that I want to ask about today. The shadow Secretary of State for Transport, my right hon. Friend the Member for Basildon and Billericay (Mr Holden), visited the patch on Monday, and we waited 12 minutes while level crossing barriers were down in Pooley Green. The Secretary of State did not mention whether trains would be part of the consultation. Will they be within scope? If the expansion goes ahead, we will desperately need to deal with our level crossings, and we will need better rail access from Egham to Heathrow to make this work.
Heidi Alexander
I agree that we need to deal with the issue of level crossings on the rail network. We will look holistically at rail requirements in the ANPS review.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
I thank the Secretary of State for her statement, and am pleased to hear that this will be a thorough and meaningful consultation, because even though my constituency is not near the airport, my constituents in Camberwell, Stockwell and Brixton write to me regularly to say that they are suffering from air and noise pollution. The Secretary of State talked about infrastructure; a key point will be ensuring that more people use public transport to get to Heathrow. The reality is that some upgrades to the airport have not had the funding over many years, as the Chair of the Select Committee, my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury), highlighted. I want to tease out more from the Secretary of State on private funding, because in a number of cases, developers commit to something, but then the viability issue comes up, and the money never seems to appear. Will she ensure that there is funding to secure the transport infrastructure that will be vital if there is any new airport runway?
Heidi Alexander
How people get to and from an airport is as important as the number of planes landing and taking off, so I can give my hon. Friend an assurance that we will look at these issues closely. I point out that Transport for London is buying a new fleet of Piccadilly line trains that have higher capacity. It is part of a larger fleet replacement programme, and 10 new Elizabeth line trains are also being built. We will look at the whole issue of how people get to and from the airport, because I agree that it is absolutely vital.
Munira Wilson (Twickenham) (LD)
The Chancellor has staked her economic credibility and growth strategy on a third runway at Heathrow. The Secretary of State said that she is committed to seeing flights take off from it in 2035, yet at the same time, she talks about taking an evidence-led approach, putting this project to her four tests, taking the advice of the Climate Change Committee and doing a thorough economic and environmental impact assessment. Could she clarify a point for the House, because I fear my hon. Friend the Member for Didcot and Wantage (Olly Glover) did not get a straight answer? If the evidence shows that the environmental costs are too great and the economic benefits are too little, will she and, crucially, her Chancellor be prepared to do a U-turn and can this whole project?
Heidi Alexander
We see the huge opportunities and benefits associated with expanding capacity at Heathrow and having a third runway there. There will be a thorough process, which we are starting today by reviewing the policy framework in which any planning application will be judged. The Planning Inspectorate will look at that and consider all the issues to do with economic need, air quality, noise and carbon, and then a decision will be taken. We have an ambition to see planes taking off from the runway in 2035, but that does not mean that we will not have a thorough process. We are committed to that, and that is what I am setting out today.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
It is abundantly clear that air travel is here to stay; in fact, the amount of it has risen over recent years. We of course need to take mitigation measures to tackle the noise and environmental impacts, but while we have for decades been debating ad nauseam building a third runway, dozens of runways and, indeed, airports have been built by nations across the globe. I ask my right hon. Friend the Transport Secretary to safeguard the thousands of Slough households who are dependent on Heathrow to pay their bills; to boost business and trade; and to maintain our world-leading position in the aviation sector. Will she work at speed to tackle the blockages and finally help to deliver this third runway?
Heidi Alexander
My hon. Friend is absolutely right. We have had decades of dither and delay on this issue, and it is right that we crack on and start the process of reviewing the airports national policy statement. He is also right to highlight the huge economic benefit of Heathrow—it is the largest single-site employer anywhere in the UK—and its effect on the livelihoods of and opportunities for his constituents. We will move at speed, but we will also do this properly.
Kit Malthouse (North West Hampshire) (Con)
As the Secretary of State knows from her time at City Hall, Heathrow has been a planning disaster since it was accidentally sited to the west of London, forcing planes to land over millions of heads. While it might be amusing to watch her take the chainsaw to all those trees planted at Sipson by a series of Labour politicians, why she would compound that planning disaster I have no idea. More than that, if this goes ahead, she will also be compounding the Heathrow monopoly on long-haul flights. To her four rules, I suggest that she adds a fifth, which is the impact on direct connectivity to and from regional airports. There is the strong view that the expansion of Heathrow would kill connectivity from Manchester, Birmingham, Bristol and elsewhere.
Heidi Alexander
I actually think the opposite could be true: an expanded Heathrow could provide greater regional connectivity. The right hon. Member is right to highlight that Heathrow is our only hub airport, and it accounts for over 70% of long-haul flights, as well as over 70% of air freight by gross value, so it is an important economic asset. I repeat what I have said to others: we will move at speed and look at economic growth impacts across the entire country. But where he sees a challenge, I see opportunity.
Danny Beales (Uxbridge and South Ruislip) (Lab)
I thank the Secretary of State for her statement. I welcome the mention of the four tests that will be part of the review, but it must be said that scepticism is running high in Hillingdon, where the effects are greatest, and the four tests need to be more transparent. I encourage her to publish clearly what those four tests are and the metrics against which they will be assessed. I ask her for a commitment that the data and information that will be assessed will be fully and transparently shared with communities as early as possible so that it can be interrogated. I echo colleagues’ comments about the need for meaningful engagement with the communities most affected. Can she confirm that the engagement will not just be the formal consultation on the draft statement, but that there will be meaningful early engagement for the communities affected?
Heidi Alexander
We are moving at pace on this, but I do believe it is possible to have meaningful consultation opportunities as well. If through the review that we are conducting in the next couple of months it becomes apparent that we need to change the ANPS, we will consult on a new draft by the summer of next year. I will ensure that I remain in close contact with my hon. Friend, who is a fearsome advocate for his constituents, because I know that it is important that we not just address concerns about noise, air quality and carbon, but demonstrate the important economic effect that expanding Heathrow could have.
Monica Harding (Esher and Walton) (LD)
My constituents, particularly those along the river in Molesey and Ditton, are concerned about an increase in the noise pollution that already affects us from a third runway at Heathrow. How can they be reassured that their views will be taken into account, unlike in the top-down centralised planning policies that this Government have implemented? Will the four tests be transparent, meaningful and readily available to constituents? Can I please ask again: should it be shown that the climate commitments of the UK will not be met by this expansion, will the Minister U-turn?
Heidi Alexander
This is the start, not the end, of the process. We will be transparent and clear about those four tests. We will consult on an amended ANPS if that is required following the review. A planning application would then come forward, and there would be consultation around that. There would be a public inquiry led by the planning inspector. There will be ample opportunity for people to make their views known. I refer the hon. Member to the remarks I made earlier about treating this whole process with professionalism and integrity to ensure that we make the right decision for the future of the country.
Fleur Anderson (Putney) (Lab)
Heathrow aircraft noise has a significant detrimental impact on my Putney constituents. Similar hubs in other European countries affect far fewer people: for Schiphol it is 44,000 and for Charles de Gaulle 133,000, while for Heathrow it is more than 680,000 people who are directly impacted by the noise. Currently there are no legal noise limits. I welcome the mentions of noise in the Secretary of State’s statement; will she commit to a binding noise limit within the new strategy, as well as strong environmental limits and full community consultation in the process?
Heidi Alexander
I can tell my hon. Friend that the current ANPS sets out very clear requirements on noise that any scheme would have to meet. We will review those requirements alongside any necessary mitigation requirements, and we will consult on any changes. I should also say that the rules around the operation of a night flight ban, including the exact timings of such a ban, would be defined in consultation with local communities and relevant stakeholders.
Sarah Olney (Richmond Park) (LD)
The DFT’s own updated appraisal report shows that the economic benefits of a third runway are either exaggerated or misguided. The Labour Government are yet to produce their economic analysis. Meanwhile, Heathrow Airport Ltd is in more than £15 billion-worth of debt and its own proposal has increased in cost by 50% since 2016. What makes the Secretary of State so confident that private financing will be found not just for the proposals on the table, but for all the surface transport upgrades that will be required?
Heidi Alexander
The two promoters that remain in the scheme will be responsible for securing private investment, and they have expressed to me confidence that the scheme can go forward. I also gently point out to the hon. Lady that there is huge support for this expansion among the business community: the Confederation of British Industry, the Federation of Small Businesses and the British Chambers of Commerce all support Heathrow expansion, as do regional business groups across the UK.
Mr Toby Perkins (Chesterfield) (Lab)
The Environmental Audit Committee has just completed its very detailed work on aviation expansion, which we will announce soon. One thing that came across was that the Climate Change Committee was advising demand management as one of the ways that it should be delivered, consistent with our environmental commitments. I am glad that the Secretary of State has reaffirmed that the expansion will have to be consistent with those commitments, but can she tell us whether demand management will be part of that? What assessment has she made of the aspects that will require Government policy rather than being within Heathrow’s gift, such as the expansion of sustainable aviation fuel? Finally, I am glad to hear that she recognises that this is a 21st-century plan with 20th-century road links and 19th-century rail links, so can she tell us more about how she will reduce the overall carbon emissions contribution that Heathrow makes?
Heidi Alexander
There were probably three questions in one there. I say to my hon. Friend that I am not prepared to stand in the way of the public’s aspiration to fly. We are not looking at demand management at the moment; our approach to aviation decarbonisation is based on the analysis suggesting that the sector can make a significant contribution to our economy-wide net zero target by 2050 by focusing on new fuels and new technologies.
Luke Taylor (Sutton and Cheam) (LD)
I have mentioned that the naming of Heathrow as critical national priority infrastructure is vital to ending the disruption to power and systems we have seen over the summer, so I encourage the Government to go forward with that. On the plans for transport to and from the airport and associated road schemes, can the Secretary of State confirm that the costs of the southern and western rail access, the new southern access tunnel that will ease congestion on existing roads and lower emissions, and the rail access to provide reliable public transport links for passengers and staff are included in the estimates we have already seen? I implore her, as others have done, to ensure that those plans are covered as part of the project, and that it is not left to the taxpayer to pick up the bill?
Heidi Alexander
I am clear that the project will need to be privately financed. That includes both the core project and the associated infrastructure improvements. It will be for the promoter submitting a planning application to set out in that application how it is consistent with the reviewed ANPS. However, I refer the hon. Gentleman to the remarks I made earlier; I am clear that we must ensure that the M4 and the M25 do not turn into a car park, because that will not result in the successful operation of the airport.
Tulip Siddiq (Hampstead and Highgate) (Lab)
My right hon. Friend knows my constituency well, and she will know that my constituents are very concerned about air quality in London and worried that the expansion of Heathrow will affect air quality in the constituency, especially for future generations. Will she reassure not just me, but local organisations such as Green School Runs and the London Clean Air Initiative, which are campaigning hard to ensure that air quality is not impacted and is at the heart of the review, not ignored by the Government?
Heidi Alexander
Air quality will be one of the factors looked at through the ANPS review. Obviously, there may have been some changes in baseline conditions compared with when the ANPS was last designated back in 2018, given that the ultra low emission zone is in force now, but we do take the issue seriously and that is why it is one of the four tests.
Mr Will Forster (Woking) (LD)
About an hour ago, the Prime Minister did not answer my request for a cast-iron guarantee, so I wonder whether the Secretary of State can do a bit better. My constituency is 16 minutes from Heathrow, yet it has no rail link to our country’s busiest airport. Can she give me a cast-iron guarantee that, if this airport is expanded, Woking will finally get the rail link it needs?
Heidi Alexander
Far be it from me to give a different answer from the one the Prime Minister gave. I can assure the hon. Gentleman that we will be looking at rail in detail through the ANPS review and the public transport requirements, in order to have an expanded Heathrow with a third runway that operates successfully.
Baggy Shanker (Derby South) (Lab/Co-op)
Providing jobs for 800 people and supporting a further 7,000, East Midlands airport is a fantastic example of how aviation powers regional growth. Does my right hon. Friend agree that, whether it is through Heathrow expansion or at East Midlands airport, delivering sustainable expansion in aviation is not just about flights, but about delivering jobs, apprenticeships and growth, and about securing Britain’s role as a green aerospace and aviation leader?
Heidi Alexander
My hon. Friend is right; I know that East Midlands airport plays a particularly important role in air freight, second only to Heathrow. That is something we do not talk about enough, given its importance to the economy, so I welcome the comments he has made.
Charlie Dewhirst (Bridlington and The Wolds) (Con)
I am and always will be a proud Yorkshireman, but I lived in west London for a number of years, so I am aware of the diverse range of views on Heathrow expansion. I certainly do not subscribe to the luddite nimbyism of the hon. Member for Hammersmith and Chiswick (Andy Slaughter), but may I ask the Secretary of State what consideration she has given to potential Chinese investment into this critical national infrastructure?
Heidi Alexander
It will be for the promoters of any future scheme to secure financing for the development. I can reassure the hon. Gentleman that national security always comes first and foremost for this Government, but we are keen to secure international investment so that we can boost UK competitiveness and improve global connectivity. That is central to everything we are trying to do.
Alex Mayer (Dunstable and Leighton Buzzard) (Lab)
Regarding the new airports national policy statement, can the Secretary of State clarify whether “airports” is in the plural? If so, will she be looking to change the planning process so that it can take into account the cumulative environmental impact of different airport expansions around the country?
Heidi Alexander
The review of the airports national policy statement is site-specific for Heathrow. The other applications I have dealt with for Luton and Gatwick in the past couple of months were dealt with using the “making best use of runways” policy. The ANPS is specific to Heathrow.
Siân Berry (Brighton Pavilion) (Green)
Britain wants to thrive, but all I can hear is this Government once again prioritising the needs of the wealthiest, most frequent flyers above those of us on the ground. Can the Secretary of State tell me what crumbs of our carbon budget will remain for the rest of us and our lives after the review is complete? After the fudge on Gatwick, if the tests say no, will she say no as well?
Heidi Alexander
I refer the hon. Lady to the remarks I have made previously about carbon budgets, but I dispute the statement that it is only the wealthiest in this country who want to fly. This may be sad, but one of the highlights of life for me is the bacon butty on an easyJet flight to a Greek island in the summer. That is an aspiration shared by many of the British public.
John Slinger (Rugby) (Lab)
I reassure my right hon. Friend that many of us on the Government Benches want us to get on and build, baby, build. [Hon. Members: “Hear, hear!”] Thank you. While much of the national conversation is understandably London-centric, can she assure the House that regional airports, particularly those in the west midlands, and the communities and businesses that they support, are being considered by the Government?
Heidi Alexander
I assure my hon. Friend that this Government are ambitious for all airports across the UK, including regional airports. I was with the chief executive of Birmingham airport only yesterday, and I am really excited about the £300 million investment in that airport that they announced at the regional investment summit yesterday. Just as with the expansion of Heathrow, there is huge potential for driving economic growth through our regional airports.
Sammy Wilson (East Antrim) (DUP)
While most of the comments today have been critical, regions across the United Kingdom need a strong hub airport, and Heathrow provides that. I seek assurances from the Secretary of State that slots at any expanded airport will be ensured for flights from regional airports. But I also warn her: given the way climate change targets have been used to stop major infrastructure projects in Northern Ireland, such as major roads, is she confident that, by sticking by the Climate Change Act 2008, we are not giving a weapon to those who are opposed to this project and will use the courts to ensure that it is stopped?
Heidi Alexander
The right hon. Gentleman is right to highlight the opportunity for other regional airports and the regional connections that an expanded Heathrow could provide. It has been operating at about 95% capacity for much of the past two decades, so we are taking slot reform forward. We will look closely at a range of issues to ensure that we are maximising the contribution of that process to our economy.
Jacob Collier (Burton and Uttoxeter) (Lab)
I thank the Transport Secretary for her statement and recognise the national importance of this project. As she said, we must ensure that the whole of the United Kingdom benefits from the project, should it go ahead, and I am particularly keen that firms across Staffordshire and the midlands are involved. If she approves the scheme, how will British firms play their part in this nationally significant project?
Heidi Alexander
My hon. Friend is right to highlight the very significant supply chain that will exist, and not just in relation to the construction of a third runway, but in terms of the expanded airport and the opportunity that presents to the aviation sector. We will review the economic impacts through the ANPS review, so more detail will be available on all that in due course.
Vikki Slade (Mid Dorset and North Poole) (LD)
Can the Secretary of State update the House with a bit more detail on the progress of airspace modernisation in relation to noise? Residents in my constituency who are on the flightpath for Bournemouth airport have no night-time restrictions and are seeing massive increases. In places such as Dorset, people are being disturbed in their homes and in their sleep. If regional airports will not be included, can the Secretary of State explain when we can get something further on them?
Heidi Alexander
This Government have moved with speed to set up the UK airspace design service, and we plan to have that mobilised by the end of the year. The first region we will look at is London—that is partly to do with the connection to expansion schemes in London as well. If the hon. Lady writes to me with the details of what her constituents are experiencing, I will look into the matter further.
Ben Coleman (Chelsea and Fulham) (Lab)
Does my right hon. Friend recognise the severe concerns that my constituents in Fulham will have about aspects of this proposal, particularly the noise? They will hence take an interest in ensuring that the four tests are properly adhered to. Can she reassure me that she has no intention of watering down the ANPS to lessen its noise commitments?
Heidi Alexander
As I said in response to a similar question from my hon. Friend the Member for Putney (Fleur Anderson), we will review the noise requirements set out in the current NPS and the mitigations associated with that. As I stand here today, I have no intention of diminishing in any way those requirements, but we will look at the new technology associated with new aircraft and new places, and we will do a thorough piece of work. If any changes are made, we will consult on those before next summer.
Robin Swann (South Antrim) (UUP)
As far back as 2019 there was talk of manufacturing and logistics hubs for the Heathrow hub being sited in Northern Ireland. Can the Secretary of State still give a reassurance that the whole of the UK will be considered in support of the manufacture of the third runway, should it go ahead? Will sites be considered in my constituency, for example, which is critical to Belfast international airport?
Heidi Alexander
One of the four tests relates to economic growth across the whole of the UK, and when I talk about the whole of the UK, I mean the whole of the UK. I hope that provides the hon. Gentleman with sufficient reassurance.
Peter Swallow (Bracknell) (Lab)
My right hon. Friend knows how ambitious I am for improving connectivity from Bracknell to Heathrow airport. Heathrow’s proposals say that it is exploring the option of promoting a new rail scheme that combines the objectives of a western rail link to Heathrow and southern rail access to Heathrow, and there are similar commitments in the Aurora Group’s plans. Will she ensure that the review of the ANPS helps us to hold it to account for those promises so that we can deliver the better surface access that my constituents so badly need?
Heidi Alexander
The ANPS will provide the policy framework against which any future planning application is assessed. As I have said to other hon. Members, when a planning application comes forward, a thorough consideration process will be associated with that before any decision is taken. Clear conditions will be set out on any planning decision relating to surface access.
Jim Shannon (Strangford) (DUP)
I very much welcome the Secretary of State’s statement—her positive words are encouraging. This is an economic advantage for everyone, and I thank her for that. The fact that Heathrow’s numbers look set to surpass last year’s numbers, with 8 million passengers in August 2025 alone, demonstrates abundantly clearly the need for expansion. A fit-for-purpose airport can only increase revenue through tourism and connectivity for business. How can she ensure that the extension will secure regional airport connectivity and enhancement and a streamlined domestic service, as well as international increases? How can she ensure that Northern Ireland contractors can be part of the building of the new third runway?
Heidi Alexander
We are at the start of this process, and I am as ambitious for the whole UK as the hon. Gentleman is. We will look at the economic impact through the ANPS review. If a scheme comes forward and gets planning consent during this Parliament, all Government Departments and I are absolutely clear that we must make the most of this incredible economic opportunity.
Dr Scott Arthur (Edinburgh South West) (Lab)
I thank the Secretary of State for her statement, her leadership, her focus on growth and her commitment to fit this project within the Paris agreement. I welcome the four tests that it will be judged against, but I have a suggestion for a fifth test—people might not be surprised to hear that it focuses very much on my constituency. In recent years, Edinburgh South West has benefited from fantastic rail connections between Edinburgh and London, and from fantastic direct international flights from Edinburgh airport to overseas. Does she agree that if this project goes ahead, it cannot be to the detriment of places such as Edinburgh?
Heidi Alexander
My hon. Friend is a fine champion for his constituency and the fantastic city of Edinburgh. An expanded Heathrow could open up more regional connectivity to cities such as Edinburgh. Improving the rail network between our two capital cities is absolutely essential as well, and we are committed to doing that.
Tom Hayes (Bournemouth East) (Lab)
We urgently need to modernise and expand British airspace—it is at capacity, and our growth depends on it. I was at Bournemouth airport last week. We are close to a bus service and a public transport interchange, but Bournemouth airport cannot easily connect with European airspace, as most traffic joins it at a single space. That is particularly problematic, given that I hope the Cherries, who are contesting for European football, get to play European teams next season. Will the Government review and modernise our airspace and back regional airports such as Bournemouth’s?
Heidi Alexander
As I said in answer to a previous question, the work that the UK airspace design service will do to modernise our airspace will start with the London area. It will not be limited to the London area, but we need to make that a priority. I appreciate the case that my hon. Friend makes with respect to Bournemouth.
Laurence Turner (Birmingham Northfield) (Lab)
I draw attention to my chairship of the GMB parliamentary group. As someone who worked on this issue the last time around, I was astonished to hear the Opposition’s flight of fantasy when they accused others of delay. On their watch, the airports commission was artificially delayed until after a general election, with three more years spent producing the current NPS and a further two years tied up in the courts. Can the Secretary of State assure the House that the lessons have been learned from those eight wasted years?
Heidi Alexander
I totally agree with my hon. Friend. Let us be honest—it was not just eight wasted years, it was 14. I repeat what I said earlier: it comes to something that the previous Prime Minister, Boris Johnson, went to such lengths to duck these decisions that he ended up in Kabul.
Greater Anglia: Transfer of Services into Public Ownership
Heidi Alexander Excerpts(4 weeks, 1 day ago)
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The Secretary of State for Transport (Heidi Alexander)
I can confirm to the House that yesterday, Sunday 12 October, Greater Anglia’s services became the third to successfully transfer into public ownership under the Passenger Railway Services (Public Ownership) Act 2024. Operations are now run by a new public sector operator —GA Trains Ltd—a subsidiary of public corporation DfT Operator Ltd.
This means that seven of the 14 train operators that my Department is responsible for, and which will form the backbone of passenger services under Great British Railways, are now in public ownership. West Midlands Trains services will be next to transfer on 1 February 2026, followed by Govia Thameslink Railway on 31 May 2026. The intention is for Chiltern Railways and Great Western Railway services to follow. Expiry notices will be issued to confirm the dates of transfer, once a final decision has been taken in regard to each operator.
Public ownership is putting passengers at the heart of the railway, but public ownership alone is not a silver bullet. To truly fix the structural issues that have long plagued our railways, we need systemic reform. Legislation to establish GBR will be introduced later in this session, marking the next phase of the Government’s bold rail reforms.
GBR will build a simpler, more unified railway that delivers reliable and safe journeys to passengers and value for money to the taxpayer. It will take responsibility for the day-to-day operational delivery of the railways: from delivering services to setting timetables, managing access to the network and operating, maintaining and renewing infrastructure.
Ahead of the establishment of GBR, integrated leadership teams are being set up across publicly owned train operators and Network Rail routes to increase collaboration and accountability, in turn delivering improvements for passengers and freight users. Integrated leadership creates a “system-wide” view of the railway, meaning better, faster decision making, and is another step towards GBR. Jamie Buries has been named Integrated Managing Director (Designate) for Anglia and will drive this change across the region, working closely with leaders across Greater Anglia, c2c and Network Rail Anglia.
The Government are delivering on the plan for change, with investment and reform driving growth, putting more money in people’s pockets and rebuilding Britain. Reforming our railways is central to this and will drive improved performance, bringing more people back to rail, generating greater revenue and reducing costs.
[HCWS949]
Oral Answers to Questions
Heidi Alexander Excerpts(2 months ago)
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Charlotte Nichols (Warrington North) (Lab)
The Secretary of State for Transport (Heidi Alexander)
The previous Government’s neglect of the railways saw a decade of decline in passenger performance, but we are starting to see performance stabilise. Passengers are responding to these improvements, and passenger numbers were up 7% last year. We are now working with the rail industry on a performance restoration framework with five clear focus areas, including timetable resilience, staffing and keeping trains safely moving during disruptive events, to help restore the performance that passengers deserve.
Charlotte Nichols
I am sure I speak for all fellow MPs on the west coast main line who are regular commuters on Avanti when I say that having to plan our weeks around its appalling service and regular last-minute delays and cancellations is among the worst parts of the job. My constituents—both those travelling north to Wigan and Cumbria and those travelling south to London—are fed up with the service, which affects their ability to work, visit family and travel for leisure. What consideration has the Secretary of State given to reviewing whether Avanti has breached the terms of its franchise contract, and accelerating the process by which it can be brought into public ownership?
Heidi Alexander
I am obviously sorry to hear about the issues that my hon. Friend and her constituents experience when attempting to travel on Avanti West Coast. I know how frustrating these issues can be, but let me reassure her that while performance has improved, officials continue to hold regular meetings with Avanti and Network Rail to try to resolve matters. We have always been clear that we will transfer operations to public ownership when contracts end, rather than spending money on breaking contracts early. We expect the transfers to have completed by the end of 2027.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
Last week, London North Eastern Railway announced huge cuts to rail services from Berwick-upon-Tweed station, which serves not only the town of Berwick but my constituents in the Scottish Borders and North Northumberland. The Government promised more trains, but this is the opposite. LNER is now owned by the Government, so will the Secretary of State meet me and local residents, so that we can explain the impact that the cuts will have on local communities?
Heidi Alexander
Passengers on LNER will benefit from the new December timetable, which will bring an overall improvement in reliability and capacity, but I would be very happy to ask the Rail Minister to speak to the hon. Gentleman about the particular issues at Berwick-upon-Tweed.
Jerome Mayhew (Broadland and Fakenham) (Con)
Before I ask my question, I would like to take a moment to reflect on the fact that last night, a man lost his life, a wife lost her husband, and children lost their father because of political intolerance. It was a personal tragedy, but also a tragedy for the body politic. I want to take a moment to recognise the importance of free speech in our democracies.
The Secretary of State quite rightly talks about improving rail performance, yet we are in a city paralysed by strike action from the RMT. The Government claim that nationalising the railways under Great British Railways will bring untold improvements. They are “untold”; Lord Hendy tells us that there will be rigorous performance standards, but he has repeatedly refused to set out what they will be. When will the Secretary of State set out the standards by which the Government’s nationalisation experiment should be judged—or are they still discussing them with the RMT?
Heidi Alexander
I associate myself with the hon. Gentleman’s remarks about the importance of free speech, but I disagree with his assertions about improvements under Great British Railways. Conservative Members know the value of bringing train operating companies into public ownership; they did it themselves when they were in government. Back in 2023, they brought TransPennine Express into public control, following years of poor performance. It is no surprise to me and Labour Members that since then, TransPennine Express has had a 75% reduction in cancellations and 42% growth in passenger numbers.
Tom Collins (Worcester) (Lab)
Dr Lauren Sullivan (Gravesham) (Lab)
The Secretary of State for Transport (Heidi Alexander)
The Government confirmed over £92 billion of capital investment in transport infrastructure at the spending review to drive economic growth and put more money in people’s pockets. That includes £24 billion to improve roads, £15 billion in long-term funding for our largest city regions and £2 billion for local transport, boosting growth in towns, cities and regions across the country.
Chris Webb
Taxis are an essential part of Blackpool’s transport network, yet the licensing scheme is failing both passengers and our local economy. Vehicles licensed outside the area continue to operate in Blackpool, undermining passenger safety, costing our publicly owned bus company nearly £1.5 million, and holding back wider economic growth. Will the Minister commit to urgently reforming the licensing scheme, so that vehicles and drivers licensed locally can operate in Blackpool, ensuring that public safety is protected and that vital taxi revenue supports our local economy?
Heidi Alexander
Following the sobering recommendations of Baroness Louise Casey in her review on child sexual exploitation, this Government are more committed than ever to tackling this issue. We have committed to legislating to address inconsistency in driver licensing, and we are considering all options, including on out-of-area working, national standards and better enforcement, to ensure the best overall outcomes for passenger safety.
Natasha Irons
I am a member of a parliamentary group on the Gatwick diamond growth area, and it is clear that expanding Gatwick airport gives huge potential for economic growth across the south-east and Croydon. Plans to upgrade Norwood Junction station, in my constituency, with a lift were shelved when plans to make wider improvements to capacity on the Brighton main line were scrapped by the previous Government. What consideration has the Secretary of State given to ensuring that there is enough capacity on our railways to support the projected growth of Gatwick, and how will she ensure that stations like Norwood Junction receive the investment that they need, so that communities like mine can feel the tangible benefits of growth?
Heidi Alexander
I was pleased to meet my hon. Friend in the summer to discuss this issue, and she is right to say that the previous Government cancelled plans to upgrade the Brighton main line. I can assure her that my officials are in regular discussion with Network Rail on opportunities to improve services and ease congestion in the Croydon area. I can also report that the recently completed upgrades to the station at Gatwick airport, and to track configuration in the Gatwick area, have significantly improved performance and journey times on the Brighton main line.
Henry Tufnell
Pembrokeshire is a beautiful county with huge potential for growth. Improved rail connectivity and more frequent services would bring significant benefits to our local economy, including by boosting tourism and expanding employment opportunities. How is the Secretary of State working with our Welsh Labour Government to enhance rail links for rural communities like mine in Mid and South Pembrokeshire?
Heidi Alexander
My hon. Friend is a great champion of the communities he represents, and I can assure him that the Government are investing in Wales’s future to drive economic growth. We continue to work with the Welsh Government, through the Wales Rail Board, to ensure that the benefit of our £445 million investment in rail, announced at the spending review, is delivered right across the nation, including in Pembrokeshire.
Mohammad Yasin
There is an exciting proposal for a Universal Studios resort in Bedford. The resort is projected to attract 8 million people every year, and the development is a golden opportunity for modern transport planning. What assurances can the Secretary of State give that in the infrastructure planning, public transport will be prioritised over road traffic, and that electric rail, buses, and walking and cycling solutions will be integral from the outset?
Heidi Alexander
The scale and significance of the proposed Universal Studios development in Bedfordshire is huge, and its success will undoubtedly be dependent on modern, sustainable transport options. We are committed to working very closely with Universal and the relevant local authorities as the development progresses to ensure that infrastructure planning prioritises public transport and active travel. We are really determined to make the most of this fantastic growth opportunity.
Alison Hume
This week, I visited Schneider Electric’s brand-new manufacturing facility in Scarborough, which will create 200 new jobs. However, those opportunities are out of reach for so many of my constituents who rely on public transport. What is my right hon. Friend doing to ensure that poor transport in coastal communities like Scarborough and Whitby, which are untouched by city transport region funding, does not strangle economic growth?
Heidi Alexander
I assure my hon. Friend that we are committed to driving economic growth in all areas, not only the large city regions. York and North Yorkshire combined authority will receive £94 million in local transport grant capital funding over the next four years, allowing local leaders to support schemes, including public transport schemes, that are in line with local priorities.
Dr Sullivan
Given the scale of the disruption that Gravesham faces during the construction of the lower Thames crossing, what steps will the Secretary of State take to ensure that a new transport system there supports real jobs for local people and has wider economic benefit? For example, reinstating the Tilbury-Gravesend ferry would strengthen business connections across the Thames.
Heidi Alexander
My hon. Friend will know that ferry services run on a private sector basis to meet local demand, and funding for local ferry services is a matter for local partners, including Thurrock council and Kent county council. However, my officials are working with them to ensure that the public transport opportunities that the lower Thames crossing may create are exploited.
Sir Jeremy Wright (Kenilworth and Southam) (Con)
Economic growth is, of course, one of the stated aims of the High Speed 2 project, but the Secretary of State knows well that it has adverse effects on communities along the line of construction. She knows also that those communities need to make plans for land that will be made available to them when construction is over and HS2 no longer needs it. At Transport questions on 27 March, I asked her about the land disposal strategy, which was by then long overdue. Six months later, we still have not seen it. Can she tell us when we will?
Heidi Alexander
We have made some progress on the proposed eastern leg of HS2, which had been due to run up to Sheffield, but the previous Government cancelled it. During the summer, I made announcements about sites on that part of the line. I am aware that there are further issues in the Birmingham area, and with the section between Birmingham and Manchester. I am keen to make progress, but we also need to make sure that we have sites available for the necessary development and construction. My first priority is to get HS2 built at the lowest reasonable cost.
Helen Morgan (North Shropshire) (LD)
The A483 is critical to economic prosperity in mid-Wales and North Shropshire—it runs between Welshpool and Oswestry—but it has a huge accident blackspot at Llynclys in my constituency, which really holds up the traffic, and local people positively avoid the area. Highways England has said that it is keen to improve that road. Will the Secretary of State tell us the timetable for those works?
Heidi Alexander
I understand the point that the hon. Lady is making. If I may, I will write to her with details about that junction on the A483.
Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)
The announcement by the Secretary of State of the investment in the M54-M6 link road was very much welcomed, but a number of local businesses, including Hollies farm shop and Cate’s Cakes, will potentially be impacted, as people may not be able to access them during construction. Will the Secretary of State arrange for one of her senior officials to meet me and a number of local businesses to discuss how these issues can best be mitigated?
Heidi Alexander
I was very pleased that the Chancellor announced in the spending review that we would move ahead with the M54-M6 link road. As the then Roads Minister, my hon. Friend the Member for Nottingham South (Lilian Greenwood), has said, that was a “no-brainer”. I would be very happy to ask my officials to meet the right hon. Gentleman to discuss support for local businesses during construction.
Max Wilkinson (Cheltenham) (LD)
Junction 10 of the M5 on the edge of my constituency is a key piece of transport infrastructure that can unlock growth, thousands of new jobs—it is adjacent to GCHQ, and so can support national cyber-security and intelligence work—and housing growth, which the Government have made a key priority. As a result of delays, there is a huge funding gap, amounting to about £70 million. Can Ministers have a word with their colleagues at Homes England and the Ministry of Housing, Communities and Local Government to work out how that gap can be fixed, so that we can deliver those new homes, which are much needed, and the jobs too?
Heidi Alexander
I would be very happy to have those discussions across Government. I believe the local authority met recently to consider whether it could provide any support to fill the funding gap and, potentially, secure developer contributions towards that scheme.
Rebecca Smith (South West Devon) (Con)
Previous Conservative Governments were committed to repairing the railway line at Dawlish, which is vital to Devon and Cornwall’s economic growth, yet this Labour Government have said that they will complete the rail resilience programme only if and when survey work shows that it is needed. Given the likelihood that the Treasury’s emergency fund will have been spent on public sector pay increases, can the Secretary of State guarantee that funding will be found for resilience works, if they have not been planned and committed to as part of a fiscal event, should an unexpected incident or landslip take out the line at Dawlish?
Heidi Alexander
We are still funding drainage works and survey work on the Dawlish line. Four phases of work have already been completed. The cliffs are much more resilient than they were a number of years ago, when we experienced catastrophic failure. We have paused funding, but we will continue to keep under review the information that comes back from the survey so that we can continue to provide a reliable and resilient service for people in the south-west.
John Glen (Salisbury) (Con)
On Friday, I had the privilege of meeting Lawrence Bowman, the new chief executive of South Western Railway, who brings with him over 20 years of experience in the industry. We travelled from Salisbury to Tisbury. He says that he has to write a five-year plan. I am keen to ensure that that has the maximum impact and deals with the Tisbury loop. Salisbury is on the gateway to the south-west. I would be grateful if the Secretary of State delegated an official or a Minister to meet me so that, as the five-year plan is constructed, there are no unreasonable constraints or misunderstandings over what is necessary to ensure that the railway is at the centre of economic growth in the south-west.
Heidi Alexander
I am pleased to hear that the right hon. Gentleman had a constructive meeting with the new South Western leadership. I was clear with Lawrence Bowman when he took up the job that I wanted him to meet local MPs along the route to talk about quick wins to improve services. I am very happy to ask officials from the Department for Transport to meet the right hon. Gentleman to have the conversations he seeks.
Mr Speaker
Before the Secretary of State answers, I say to the right hon. Gentleman that welcoming the shadow Secretary of State does not mean that he can then have an essay to portray one question! [Laughter.]
Heidi Alexander
Let me congratulate the right hon. Gentleman on his appointment. I know he has experience as a Transport Minister. And, of course, he had extensive experience of travelling the length and breadth of the country before the last election searching for that rarest thing, a Tory safe seat. [Laughter.]
On the substantive point, I of course recognise the frustration of the travelling public about strikes. The Mayor of London is completely right to have called for the RMT—the National Union of Rail, Maritime and Transport Workers—to get back around the table with Transport for London to find a resolution to the dispute. May I caution the right hon. Gentleman, though? He might wish not to adopt such an indignant tone, because when he was at the DFT there was a rail strike one day in every 10. In fact, under the Tory Government, we saw the highest number of total strike days for any 19-month period since the 1980s. Forgive me, I will not be taking any lectures from him on industrial relations.
Mr Holden
I have obviously followed the Secretary of State’s lead; I believe she had a constituency once upon a time in south London, but now represents Swindon. It is great to have that leadership there.
Growth requires investment, which Labour is cutting as it gives billions in no-strings-attached pay rises to train drivers. We have already seen a 50% increase in the bus fare cap, and just last week we saw the draft road programme published, with investment down 13% in real terms on the past five years. Labour is delaying schemes and cancelling vital upgrades like the A303 entirely, with hundreds of millions of pounds wasted. As ever, 90% of journeys take place on roads. Can the Secretary of State name one thing this Government have done for the millions of motorists who drive petrol or diesel cars?
Heidi Alexander
We have frozen fuel duty—that is what we have done. We have also invested £1.5 billion this year to fix potholes—a record amount of money—which will fix the equivalent of 7 million extra potholes.
I also say gently to the right hon. Gentleman that I am a very proud representative of my home town in Swindon. Searching around the country for a safe seat was not something that I indulged in.
Mr Paul Kohler (Wimbledon) (LD)
A transport system can support economic growth only if it provides a reliable service on which businesses and passengers can depend. According to the Evening Standard, there have been 149 incidents of industrial action on TfL since Sadiq Khan became Mayor, with millions of people inconvenienced and businesses disrupted again this week in yet another tube strike. Can the Secretary of State tell us what steps she is taking, as a senior Labour politician, to sort out the mess caused by the Labour Mayor of London’s failure to reach an agreement with his Labour friends in the RMT, a union that has given hundreds of thousands of pounds to their comrades on the Government Benches in recent years?
Heidi Alexander
I understand everyone’s frustrations with the tube strikes; I use public transport in London every week, and I know that when the tube is down, not only are there queues for buses, but there is gridlock on our roads. It is right that the Mayor of London has called for the RMT to get back around the table with TfL. That is what this Government want, and it is what the travelling public want. I will be talking to the director of operations at Transport for London, Claire Mann, this afternoon, to understand what the next steps are in resolving this dispute.
Joe Robertson (Isle of Wight East) (Con)
Paul Davies (Colne Valley) (Lab)
The Secretary of State for Transport (Heidi Alexander)
The Government are investing an unprecedented £15.6 billion in local transport across our city regions, including £1.5 billion for South Yorkshire and £2.1 billion for West Yorkshire, to support the delivery of transport schemes across the region. We have also confirmed £2.3 billion for the local transport grant over the spending review period for improvements in places outside major city regions, including to support more zero emission buses, cycleways and congestion improvement measures.
Paul Davies
I welcome the Department’s recognition of the positive impact that the Penistone line rail upgrade will have, boosting economic growth, improving connectivity and supporting ambitions for half-hourly services between Huddersfield and Sheffield. This is a clear example of what can be achieved when Labour leads at every level—council, mayor and MP. What further support can the Secretary of State’s Department offer when it comes to securing the next phase of this vital project to ensure a frequent and reliable service across the entirety of the Penistone line?
Heidi Alexander
I have a meeting soon to discuss the matter with my hon. Friend’s constituency neighbour, my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball). I would be happy for him to join that meeting.
Perran Moon (Camborne and Redruth) (Lab)
The Secretary of State for Transport (Heidi Alexander)
The Government are committed to making Britain a clean energy superpower, which is why we are investing £4.5 billion to support the transition to electric vehicles. That includes £1.4 billion to support the continued uptake of EVs through targeted grants, with 35 models now eligible for discounts of up to £3,750 through our electric car grant. To make charging up an electric car as easy as filling up at the petrol station, we are also supporting the roll-out of 100,000 more public charging points, building on the 84,000 already available.
Perran Moon
Meur ras ha myttin da, Mr Speaker. I declare an interest as chair of the electric vehicle all-party parliamentary group. In the year to date, one in five new car registrations has been an electric vehicle, with the sale of new EVs up 27%. Demand is rising thanks in part to the Government’s proactive commitments to reducing transport emissions. Will the Secretary of State meet me to discuss how we can make even more progress by providing that vital certainty to industry transitioning away from a fossil fuel-based transport system and ultimately saving drivers across the UK thousands of pounds?
Heidi Alexander
I would be happy to meet my hon. Friend, who—as chair of the all-party parliamentary group on electric vehicles—has great expertise in this area. It is right to acknowledge that the motor industry has faced unprecedented challenges in the last 12 months, so it was right that we responded proportionately by extending the flexibilities in the zero emission vehicle mandate. But we have also given certainty back to the industry and consumers with the reinstatement of the 2030 phase-out date.
Richard Foord (Honiton and Sidmouth) (LD)
The Secretary of State for Transport (Heidi Alexander)
Good rail infrastructure supports reliable services and economic growth, and is a central part of this Government’s growth mission. In July, I set out my priority for improvements to the rail network as part of giving the green light to over 50 road and rail upgrades, supporting over 39,000 new homes and 42,000 jobs. That included plans for stations at Cullompton in the hon. Member’s constituency, and in Wellington.
Richard Foord
Rail travellers are used to the excuse of leaves on the line, but travellers on the railway between Exeter and London Waterloo have recently encountered a new one: soil moisture deficit. Dualling the line on a three-mile section of the track near Whimple could give passengers travelling on the west of England line two trains per hour. Will the Minister please look favourably at that modest investment, which would improve frequency, reliability and resilience for one of the two main rail routes into the south-west?
Heidi Alexander
I understand the frustration of the travelling public. We experienced a particularly dry summer this year and Network Rail had made preparations to deal with that, but I recognise that “dry soil” is as frustrating as “leaves on the line”. I will certainly look into the specific scheme that the hon. Gentleman suggests and I am happy to write to him with more information on that.
Luke Myer (Middlesbrough South and East Cleveland) (Lab)
On 28 September, the historic Boulby line in my constituency will be reopened for passengers to celebrate 200 years of passenger rail. Yet I believe the line ought to be open permanently so people can access jobs and opportunities. Will the Secretary of State meet me to talk about that prospect and other transport proposals that I have for East Cleveland?
Heidi Alexander
I would be very happy to meet my hon. Friend. He is right that in some instances, reopening branch lines on the rail network can be transformative for areas. I visited the opening of the Northumberland line in the first week I was in this job. Passenger numbers on that stretch of line have exceeded expectations and are unlocking opportunities for a whole range of communities in the north-east. Of course we want to replicate that across the country. That is why we have announced additional investment in the MetroWest scheme, down in the areas surrounding Bristol. I am happy to talk to him about the situation in his constituency in Cleveland.
David Davis (Goole and Pocklington) (Con)
Mr Andrew Snowden (Fylde) (Con)
The Secretary of State for Transport (Heidi Alexander)
Can I start by welcoming my hon. Friend the Member for Selby (Keir Mather) to my ministerial team? I am really pleased to have him on board, and I am sure he is equally pleased to be facing oral questions on day four. He is joining a great team that has achieved a lot over the summer as part of the Government’s plan for change.
The new electric car grant is putting money back in the pockets of drivers; 35 electric vehicle models, including from Ford, Nissan and Vauxhall, will see their prices slashed thanks to £650 million of Government investment. Since its launch, the grant has already helped over 7,000 drivers to choose an EV. We have announced a further £100 million in transport funding for local transport outside major cities in England, with uplifts for the north-west, Yorkshire and the Humber, and the midlands. Public ownership is already improving our railways, with South Western more than doubling the number of new trains in service, and there is much more to come in the next few months. We will publish the first road safety strategy in over a decade, as well as an integrated transport strategy for England, delivering better journeys that put people first, grow our economy and improve our day-to-day lives.
Mr Snowden
If my constituents pay £2 for a bus ticket one day, then £3 for a bus ticket the next, their fare has increased by 50%, not gone down, has it not?
Heidi Alexander
The hon. Gentleman seems to be suffering a case of amnesia because his party allocated absolutely zero money to fund the bus fare cap beyond December of last year. I know how important affordable bus travel is to the British people, and this Government are determined to deliver it.
Mr Richard Holden (Basildon and Billericay) (Con)
When we next have transport questions, the Budget will be just days away, so can the Transport Secretary rule out any of the following—increased duty on fuel or flights, VAT on private hire, increasing the insurance premium tax or raising rail fares above inflation? If she will not, has she at least spoken against any of these measures in Cabinet or to the Chancellor since she took up her role?
Heidi Alexander
I know the importance of affordable public transport to people in Britain. I know the importance of the fuel duty freeze that we brought in last year. I assure the right hon. Gentleman that I will have conversations across Government to protect businesses and the travelling public.
Baggy Shanker (Derby South) (Lab/Co-op)
Heidi Alexander
I know that affordability is a top concern for people when it comes to rail. No decisions have been made on next year’s rail fares, but our aim is that prices will balance affordability for travellers with what is fair for taxpayers.
Markus Campbell-Savours (Penrith and Solway) (Lab)
Matt Rodda (Reading Central) (Lab)
Heidi Alexander
Like my hon. Friend, I am a big fan of the Elizabeth line, and I commend him for his dogged support of the scheme on his constituents’ behalf. It is a significant addition to the transport network in London and the south-east, and it has had tangible positive impacts on the supply chain around the country, as well as providing faster journeys into and across London from Reading. I was proud to have personally helped deliver this new railway in my previous role in London, and to see that it has now supported around 55,000 full-time jobs, as well as creating over 1,000 apprenticeship opportunities.
Christine Jardine (Edinburgh West) (LD)
Brian Mathew (Melksham and Devizes) (LD)
A workshop taking place in Bath this morning brings together key stakeholders from the rail industry and local authorities. It focuses on the development of rail services in Wiltshire, and will include the case for building a Devizes gateway station and increasing services in Melksham. Following Network Rail’s Wiltshire rail strategic study, will the Secretary of State or Rail Minister meet me and key stakeholders to discuss taking those key projects forward?
Heidi Alexander
I can assure the hon. Gentleman that I am aware of the Bath and Wiltshire metro scheme and the Devizes gateway project. Although we do not have any plans to take forward those schemes, I encourage local authorities, Great Western Rail and Network rail to continue working together to develop those plans and explore funding opportunities.
Tom Rutland (East Worthing and Shoreham) (Lab)
My constituents who use the A259 coast road are being deprived the choice of safe and sustainable travel to Brighton, as Conservative-run West Sussex county council has dragged its feet for more than three decades on delivering a cycle path. What can the Government do to help me and Shoreham-By-Cycle to push for that much-needed infrastructure, which West Sussex county council has long promised but failed to deliver?
Andrew Rosindell (Romford) (Con)
I wonder whether the Secretary of State might have a word with her friend the Mayor of London about the appalling mismanagement of the Gallows Corner junction, where a flyover is being constructed. The gridlock, chaos and delays are affecting the whole Romford side of Essex, and east London. It really is chaos. Will she get it sorted out?
Heidi Alexander
I am sure that the Mayor of London and Transport for London will want to do all they can to minimise disruption during any construction of the type that the hon. Gentleman describes. I am sorry but I did not hear his question in full—did he say it was Gallows Corner?
Heidi Alexander
If he wishes to write to me with the specific details of those local issues, I will come back to him.
Mary Kelly Foy (City of Durham) (Lab)
My constituents have been very vocal about their opposition to the LNER timetable changes from December, including the removal of the 8.22 am commuter service from Durham to Newcastle on weekdays. LNER assured me that it would replace it with a similar service, but reports this week suggest that the service will now take an extra 10 minutes, arriving at 8.44. That is not an equivalent service. Will the Minister meet me and LNER to ensure that commuters leaving Durham are provided with an equivalent service?
Heidi Alexander
My hon. Friend is a great champion for her constituents. I reviewed her correspondence with the Rail Minister over the summer and was aware that the 8.22 service had been reinstated, but I was not aware of the longer journey times. I would be happy to meet her to discuss that further.
Tom Gordon (Harrogate and Knaresborough) (LD)
In response to a recent written parliamentary question, the Department confirmed that it is shelving improvements to Skelton junction outside York. That will have an impact on the proposed improvements to rail services for commuters in Harrogate and Knaresborough. How does that align with the Government’s vision for growth?
Heidi Alexander
We are committed to improving rail connectivity and capacity in the north of England. I would be happy to have a further conversation with the hon. Gentleman about that scheme.
Fleur Anderson (Putney) (Lab)
Hammersmith bridge closed six years, four months and 22 days ago, cutting off the bus routes and causing congestion in Putney. I welcome the Under-Secretary of State for Transport, my hon. Friend the Member for Wakefield and Rothwell (Simon Lightwood), holding the first Hammersmith bridge taskforce meeting. When will the next one be held?
Heidi Alexander
I am very aware of the problems relating to Hammersmith bridge, and I know the Minister hosted that first meeting of the resurrected Hammersmith bridge taskforce. I do have some good news for my hon. Friend: we announced in the spending review a structures fund, to assist local authorities with repairs to bridges and tunnels that are beyond their financial capacity to fund. We will set out the criteria for access to that fund in due course.
Laurence Turner (Birmingham Northfield) (Lab)
Half the bus sector’s funding now comes from public sources, but during the summer, National Express announced changes to bus services in my constituency with just two weeks’ public notice, which will have a really negative effect on residents in New Frankley, Allens Cross and Bournville Gardens Village retirement home. Does the Minister agree that when regulation is brought in—which is welcome—consultation must be included?
Kim Johnson (Liverpool Riverside) (Lab)
The Liverpool city region Mayor, Steve Rotheram, has submitted a new town bid with Liverpool and Sefton councils, to regenerate the most deprived areas of the country. Does the Minister agree that for new towns to succeed, there needs to be proper funding for integrated transport, and will he commit to working and meeting with the mayor and the politicians to make that happen?
Heidi Alexander
I can assure my hon. Friend that I have regular meetings with the Mayor of Liverpool city region. I am completely cognisant of the fact that for new towns to be successful, thriving communities, they need public transport built in from the start. Indeed, there is capacity to almost create new towns in existing towns where public transport is already available. Those are the sorts of conversations I am having with our regional mayors.
Pam Cox (Colchester) (Lab)
The A12 is a major transport route into Colchester and a vital part of economic growth in the region. Will the Minister meet me to discuss the urgent need for upgrades to its western end?
Rachel Hopkins (Luton South and South Bedfordshire) (Lab)
Luton station is the gateway to Luton town centre, and thanks to this Labour Government, it will soon be getting lifts to all its platforms. However, the roof still leaks. Will the Minister meet me and representatives of Luton council to see what can be done with regard to the state of the station?
Heidi Alexander
I will talk to the Rail Minister and ask him to meet my hon. Friend. We cannot have a leaking roof in Luton station.
Oliver Ryan (Burnley) (Lab/Co-op)
The Padiham Greenway bridge has been closed since 2021. In December last year, this Government gave £280,000 to Sustrans to get the work finished, but there is a shortfall. The Government have given £19 million to Lancashire county council through the active travel fund and the capability fund to get this project online. Does the Minister agree that Lancashire county council should prioritise this and get it done? I thank him for his extensive correspondence with me on this topic.
Bus Services (No. 2) Bill [Lords]
Heidi Alexander ExcerptsWednesday 10th September 2025
(2 months ago)
Commons ChamberRead Full debate Bus Services Act 2025 View all Bus Services Act 2025 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Report Stage Amendments as at 10 September 2025 - (10 Sep 2025)
The Secretary of State for Transport (Heidi Alexander)
I beg to move, That the Bill be now read the Third time.
This Government believe that reliable, affordable and accessible transport is not simply a luxury to be enjoyed by some, but that it should be everyone’s right to access essential services, travel to work or school, fulfil aspirations and expand horizons. Today we take a step closer to that vision, because after 14 years of failed deregulation, seeing services cut, routes axed and fares rise, we are finally taking our lifeline bus services off of life support. This vital legislation ushers in the biggest change to our buses in a generation. It means improved services for passengers and protection for socially necessary routes. Greener buses will be rolled out faster. Accessibility and safety standards will be raised across the board, and buses will be integrated across local transport so that it is easier and simpler to get around.
Ultimately, this Bill is about where power lies. It transfers control away from private interests and towards the public good, and away from central Government and towards the local leaders who know their areas best. They and they alone will choose how best to meet local transport needs, be it through franchising, enhanced partnerships or locally owned bus companies. My message to the public is simple: buses will get better.
I thank hon. Members for the scrutiny and support they have provided throughout the Bill’s passage. I specifically recognise Opposition Members including the hon. Member for Broadland and Fakenham (Jerome Mayhew) and the hon. Member for Wimbledon (Mr Kohler) for holding the Government to account and for their considered questioning. It has been a respectful and constructive process, which I must say has been refreshing.
Many of the measures in the Bill build on the national bus strategy, which I know the right hon. Member for Basildon and Billericay (Mr Holden), played a role in implementing, particularly in Greater Manchester. I also thank the Under-Secretary of State for Transport, my hon. Friend the Member for Wakefield and Rothwell (Simon Lightwood), for his excellent work and dedication in steering the Bill through the House. I know that the genesis of the Bill stretches back a long time, so I also acknowledge the passion and foresight of my predecessor, my right hon. Friend the Member for Sheffield Heeley (Louise Haigh), in making the case for the Bill and her advocacy for a better bus network for all. Finally, Madam Deputy Speaker, I am grateful to all the parliamentary staff, including the Clerks and Chairs, as well as to my officials, who have worked at pace to help deliver this landmark legislation.
Buses connect us to the things that matter most, yet for too long they have been a symbol of decline. That changes now. After committing substantial funding for bus services, we are now getting on with fundamental reform, fixing the faults of the industry, transferring power to the local level and putting passengers and local communities first. Change is coming to our buses. I commend the Bill to the House.
Madam Deputy Speaker (Caroline Nokes)
I call the shadow Secretary of State.
Automated Passenger Services Permitting Scheme
Heidi Alexander Excerpts(3 months, 3 weeks ago)
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The Secretary of State for Transport (Heidi Alexander)
I wish to provide the House with an update on steps the Government are taking to progress the implementation of automated passenger services regulations to kick-start economic growth, a top priority in the Government’s plan for change.
The APS permitting regime was created to address complexities of applying current taxi, private hire vehicle and public service vehicle legislation to passenger services that would operate without a driver. This scheme will help facilitate commercial pilots of services with paying passengers and no safety driver to be deployed from spring 2026.
In June, I announced the Government’s intention to accelerate the introduction of APS regulations, subject to the outcome of a consultation launching in summer. Today—21 July 2025—I can announce that the consultation on the draft regulations and wider considerations in respect of the management and use of the permitting scheme has been published. The consultation will run until 28 September 2025.
Through the APS permitting scheme, we intend to provide businesses with the regulatory confidence to invest in testing and deploying these innovative services on our streets, reinforcing Great Britain’s position among the world leaders in tech deployment.
Safety, including the safeguarding of passengers, is at the heart of the proposed permitting scheme. Where automated vehicle technology needs approval by Government before it can be used, Government will use comprehensive safety standards that take into account the developing United Nations regulation for automated driving systems.
Government intend that the accessibility of services will be a factor in consideration of whether to grant a permit, alongside a reporting requirement placed on permit holders. Pilot deployments will continue building Government’s understanding of new ways in which accessibility can be achieved through these services. Government will continue to explore the role for research in further understanding how self-driving passenger services can best enable older and disabled people to travel, alongside others with limited or restricted mobility.
Consultation Proposals
The consultation is divided into seven chapters covering a range of matters relevant to the implementation of APS permitting.
These chapters consider the outline of the legislative scheme, necessary guidance regarding the consent process for local licensing authorities and bus franchising authorities, the application process, the variation, suspension and withdrawal of a permit, accessibility, the review process and disclosure of information.
A copy of this publication and associated annexes will be placed in the Libraries of both Houses and published on www.gov.uk.
[HCWS858]
c2c Train Services: Public Ownership
Heidi Alexander Excerpts(3 months, 3 weeks ago)
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The Secretary of State for Transport (Heidi Alexander)
I can confirm to the House that this Sunday, 20 July, the Government will take another step towards a unified railway overseen by Great British Railways, as c2c’s services become the second to transfer into public ownership under new legislation. From Sunday, operations will be run by a new public sector operator: c2c Railway Ltd, a subsidiary of the public corporation, DfT Operator Ltd.
This means that from this Sunday, there will be six public sector operators running services which were previously franchised. Greater Anglia’s services will be next to transfer on 12 October 2025.
This weekend therefore marks another significant step in our plans to meet our manifesto commitment to tackle the current fragmented network and create a more efficient, reliable railway with passengers at its heart. Over the next two and a half years, we will be transferring all passenger services currently delivered under contract with the Department into public ownership. This is a vital step that will allow us to consolidate Network Rail, DfTO and 14 train operators into one organisation, GBR.
The Public Ownership Act, passed last year, has been the first step in our plans to reform the railways. I expect to introduce the railways Bill this parliamentary Session. The Bill will enable the establishment of GBR as a new directing mind for the railways, unifying track and train under a single public body to deliver better services for passengers and freight customers, and better value for money for taxpayers.
Instead of having to navigate 14 separate train operators, passengers will once again simply be able to use “the railway”. They will travel on GBR trains, running on GBR tracks, and working to a GBR timetable. That will mean fewer delays, a better overall experience, and a timetable that better serves their needs.
[HCWS854]
High Speed 2
Heidi Alexander Excerpts(3 months, 3 weeks ago)
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The Secretary of State for Transport (Heidi Alexander)
Today I am publishing this Government’s second update to Parliament on the progress of High Speed 2 (HS2). Nominal prices, including land and property. Phase Overall spend to date (£ billion) 2025 to 2026 budget (£ billion) 2025 to 2026 forecast (£ billion) 2025 to 2026 variance (£ billion) Phase 1 total 37.9 7.1 7.1 0.0 Civils 26.4 5.4 5.4 0.0 Stations 2.3 0.6 0.6 0.0 Systems 2.0 0.3 0.3 0.0 Phase 1 indirects 3.5 0.4 0.4 0.0 Land and property phase 1 3.6 0.3 0.3 0.0 Former phase 2 2.6 0.1 0.1 0.0 Overall total 40.5 7.2 7.2 0.0 Total spending review period (2026 to 2030) (£ billion) Settlement 25.3
Overview
In my previous report, I set out the difficult position that we inherited. HS2 has suffered from repeated cost increases and delays for too long. Although there have been external factors outside of the programme’s control, it has also been mismanaged. It is now clear that cost estimates were overly optimistic, and the programme moved to construction too quickly when designs were still immature. Delivery of the programme has not been sufficiently controlled, with a poorly performing supply chain that was insufficiently incentivised. There have been repeated changes in policy, scope and funding, and excessive costs incurred in achieving environmental and planning compliance. This means delayed benefits, and cost increases incurred on HS2 have diverted billions of pounds from other vital transport priorities. This is unacceptable; the cycle of cost increases and delays must be broken, and I am determined to achieve this.
The project is now under new leadership, and I have tasked HS2 Ltd’s new chief executive officer, Mark Wild, with leading a comprehensive reset of the programme. He is making progress but this is a huge task, and we need to ensure he has a robust plan for delivering the programme to completion in a controlled way and at the lowest reasonable cost. To this end, the Department will work with him and HS2 Ltd over the coming months to advise me on the decisions needed to reset HS2, with the aim of providing an updated delivery baseline and funding envelope in 2026. Until this work is completed, this Government are not in a position to say with confidence how much HS2 will cost or when it will be delivered. That is a deeply unsatisfactory position, but it is necessary to complete the hard work we have embarked upon.
Effective ministerial oversight will be at the heart of this reset. The Rail Minister and I meet regularly with Mark Wild to assess progress, and in March I chaired a meeting of the ministerial task force with the Chief Secretary to the Treasury, focusing on completing the programme in a controlled way. In June, I appointed Mike Brown as the new chair of the HS2 Ltd board to help us drive effective oversight and accountability on the programme. Both Mark Wild and Mike Brown have experience in major project recovery from Crossrail, which will be invaluable to this task. Mike’s immediate priorities will include supporting Mark and strengthening the challenge that the board provides to HS2 Ltd, to complement ministerial oversight.
The reset needs to be guided by the lessons learned from HS2’s delivery to date. In June, I published the “Major Transport Projects Governance and Assurance Review”, led by James Stewart. This report set out recommendations and actions that we are taking to avoid repeating the mistakes of the past, helping to bring HS2 under control and to improve the delivery of future infrastructure projects.
The Government’s determination to now see this programme delivered as efficiently as possible is underpinned by the allocation of £25.3 billion (nominal prices) of funding over four years in the spending review, as set out in the financial annex.
Despite the evident challenges, HS2 Ltd, its suppliers and over 33,000 workers have maintained steady progress on construction, achieving major delivery milestones since my last report.
HS2 will foster economic growth in support of this Government’s mission. Research commissioned by HS2 Ltd has found that the prospective arrival of HS2 is already leading to redevelopment around new HS2 stations, demonstrating the early potential of this scheme to act as a catalyst for investment in businesses, new jobs and homes. The research estimates that the programme will deliver economic uplifts of £10 billion in the west midlands and £10 billion around Old Oak Common station in west London over the next 10 years.
Delivering a HS2 station at Euston remains a priority to realise the programme’s benefits. Following our commitment to funding the tunnelling required to bring HS2 to central London, we continue to work with key partners to develop affordable, integrated plans for the Euston station campus alongside significant levels of local development including for housing and life sciences institutions. In parallel, we recently announced that a Euston delivery company will be established to oversee the development of the whole Euston campus, which will comprise the new HS2 station, an upgraded Network Rail station and enhancements to the London Underground station and local transport facilities, along with a significant level of development. We welcome the joint venture that the Crown Estate has announced with Lendlease, our development partner at Euston. As set out in the 10-year infrastructure strategy, we are exploring the use of private capital to design, build, finance and maintain the HS2 station.
Finally, beyond individual rail schemes, the rail network must be viewed as a whole. HS2 will play a key part in our ambition to improve rail for passengers, with its services and benefits extending far beyond London and Birmingham, including the capacity it releases for other regional and London services.
Delivery update schedule and cost
As I set out in the House of Commons on 18 June, based on Mark Wild’s initial advice, I see no route by which trains can be running by 2033 as previously planned. Mark has committed to establishing and delivering to a new baseline in 2026. Once this work is complete, we will have an agreed estimate of how much the project will cost and when it will be delivered.
While the reset is ongoing, the Department is managing HS2 Ltd through strengthened in-year controls including challenging targets and metrics to deliver within annual budgets. To drive in-year delivery performance, an enhanced level of governance and assurance has also been implemented, reflecting the recommendations of James Stewart’s review.
This year, HS2 Ltd has rescheduled some work to ensure it operates within its annual financial settlement.
Expenditure
To the end of April 2025, £40.5 billion (nominal prices) had been spent on the HS2 programme. This is provided in more detail in the financial annex, based on data provided by HS2 Ltd.
Spend to date information covers the period up to the end of April 2025. Unless stated otherwise, all figures are presented in nominal prices.
Following the recent conclusion of the spending review, the Department has reached a settlement with HM Treasury to fund the delivery of HS2, with £25.3 billion (nominal prices) covering financial years 2026-27 to 2029-30.
This funding will enable the reset of the HS2 programme under the leadership of Mark Wild, addressing long-standing delivery challenges. It will enable HS2 to move forward with a more secure delivery plan and will support progress at the lowest reasonable cost.
This settlement will support the continued delivery of phase 1, providing funding for works from Old Oak Common to Birmingham Curzon Street, and Handsacre Junction, Euston tunnels and approaches, and Euston station enabling works.
The HS2 programme is currently in a period of high spend, with much of it in active construction. The Department expects HS2 Ltd’s expenditure to become noticeably lower over the next spending review period as delivery of the programme progresses.
The Department has updated its reporting of historic programme expenditure from 2019 prices to nominal prices. Once the programme reset is complete and a new baseline agreed, HS2 Ltd will also uplift the price base for programme reporting and for the revised cost estimate. The Department will consider how often the price base should be uplifted until the end of the programme.
Construction progress
Over 70% of HS2’s 32 miles of bored and mined tunnels between London and Birmingham have now been completed.
Construction is progressing across the route, with active works under way on 44 viaducts, 126 bridges, 75 embankments, and 60 cuttings.
The Northolt tunnels, which will link Old Oak Common station to West Ruislip, were recently completed. Constructed in two phases—east and west—the tunnels were excavated using four tunnel boring machines (TBMs). TBMs Sushila and Caroline completed mining the western section in April 2025, while mining on the eastern section, led by TBMs Emily and Anne, was completed at the end of June 2025.
In May, the first Bromford tunnel broke through, connecting Warwickshire to Birmingham, marking the completion of the first section of the 3.5-mile tunnel.
In April, a 14,500-tonne box structure that will carry the high-speed line was successfully installed under the A46. The installation utilised innovative civil and structural engineering techniques, which involved constructing the box on land before pushing it across a guiding raft over 64 metres into place.
Over eight and a half million cubic metres of soil have been excavated, representing 73% of the total planned earthworks.
In February, the first viaduct in the Delta junction in north Warwickshire was completed, marking both a significant milestone in the construction of HS2 in the region, and the first use of an innovative giant cantilever system in the UK.
At Interchange station in Solihull, enabling works have commenced on site, including surveys and ground investigations to inform the detailed design.
The “systems and service” tender was launched in February 2025 for the automated people mover (APM) which will provide connectivity between Interchange station, the National Exhibition Centre, Birmingham International station and Birmingham airport.
At Curzon Street station in central Birmingham, piling works continue to progress with only the western section remaining. For this financial year, the focus will be on completing the design before construction starts next year. The updated schedule 17 planning consents for the revised station designs were approved by Birmingham city council on 8 May 2025. Schedule 17 of the High Speed Rail (London—West Midlands) Act 2017 establishes a process for the approval of matters related to the design and construction of the railway. It requires HS2 Ltd to seek approval from the appropriate planning authority, in this case Birmingham city council. This approval shall allow HS2 Ltd to construct the station with improvements to the visuals of the station and refinements to the long-term maintenance requirements.
At Old Oak Common station in west London, the tunnel boring machines are being assembled with preparations currently under way to enable their launch towards Euston in spring 2026.
In November 2024, we reached a key milestone with the award of the rail systems contracts worth around £3 billion in current prices. The contracts commenced in February 2025, but work on site will not start until main works civils are largely complete. Procurement of the Washwood Heath Depot and the National Integrated Control Centre continues.
Lessons from the contracting failures of HS2’s main works programme have been firmly embedded in the systems contracts. The design of rail systems is more advanced at this stage than it was for main works civils, giving better cost certainty. HS2 Ltd has established an alliance with stronger incentives to ensure suppliers share risk, allowing us to manage cost better and drive performance. The contracts require fewer consents to be granted as well.
Mobilisation on the rail systems contract has started and timelines are being developed in line with the wider programme challenges noted elsewhere in this report. There will be a formal review at the end of the design stage to make sure all parties are ready to start work on site, again learning from main works civils.
Euston
The Department continues to work with key partners to develop affordable, integrated plans for the Euston station campus. In parallel, enabling works are continuing to ready the HS2 station site for the main construction programme.
In terms of the delivery model, the Government announced in their 10-year infrastructure strategy that a Euston delivery company will be established to oversee the development of the whole Euston campus. The new delivery model will involve a changed role for HS2 Ltd but will go much broader than that to address historical challenges at the site. HS2 Ltd will remain a key partner, continuing to carry out important work at Euston.
The Department also continues work with partners to examine available delivery and private finance options that will realise the great regeneration potential of the Euston area alongside the improvement of transport links.
Specifically, the Department is exploring options for various elements of the programme to be funded through a combination of private finance, development receipts, and potential local contributions such as tax increment financing, with a degree of residual public funding. The Department has been engaging closely with HM Treasury and the National Infrastructure and Service Transformation Authority as it continues to develop its plans, and has appointed specialist advisers to ensure it has access to expert support.
As we progress our plans to reinitiate delivery, we are embedding the recommendations of James Stewart’s review through the new delivery model and working closely with partners to manage risks sensibly and collectively. We will continue to work with key partners with the aim of restarting design later this year. No final decisions have been made regarding the preferred mechanisms to secure funding and finance, including private finance options; further details will be shared in due course.
Legal and planning challenges
The delivery of HS2 has continued during this period to be the subject of both legal and planning challenges, which have added significant cost, uncertainty, and potential for delay. It is right that there are checks and balances embedded in our legal and planning systems to ensure local interests are considered when national projects are implemented. There is, however, the risk that these rights are used to frustrate the delivery of consented projects, with legal challenges and planning powers used in a way that drives up costs to both local and national taxpayers, rather than protecting local interests.
The HS2 planning and environmental regime set out in the High Speed Rail (London—West Midlands) Act 2017 has been subject to multiple attempts at legal challenge from other public bodies, most recently in relation to the extension of the Bromford tunnel in north Warwickshire—with a judgment delivered in the project’s favour. Since Royal Assent for the Act, there have been nine legal challenges brought by other public bodies. In almost all these cases, the courts have ultimately found in the project’s favour, but not in time to avoid significant uncertainty, costly delays, or additional legal costs for both parties—the majority of which has unfortunately had to be borne by local taxpayers.
In the same time period, there have also been 25 costly and time-consuming appeals relating to the HS2 planning regime. Almost all these appeals have ultimately been determined in HS2’s favour. The Government continue to monitor this issue closely, and will consider further interventions where appropriate, alongside their wider work on planning reform.
Fraud investigation
We are aware of the claims made in relation to a labour supplier on part of the route. The allegations concern inflated invoices and improper PAYE charges, potentially defrauding taxpayers. HS2 Ltd treats all whistleblower allegations seriously and an investigation was launched earlier this year into these allegations. Furthermore, HS2 Ltd has formally reported the allegations to HMRC, and HS2 Ltd’s contractor Balfour Beatty VINCI has implemented additional monitoring and controls.
Benefits housing
Despite all the challenges, HS2 represents a significant plank of the Government’s plan for change, our growth and housing missions, and our ambition to deliver infrastructure that works for the whole country.
HS2 provides an unparalleled opportunity to build new homes, create jobs and attract investment. The redevelopment of land around the new HS2 stations will enable the ideal conditions for business, new jobs and homes and will act as a catalyst for further investment and wider growth.
In the west midlands, HS2 is estimated to support directly 4,000 new homes around Curzon Street station and 3,000 new homes around Interchange station as part of the Arden Cross development in Solihull. Additionally, research from a February 2024 report suggests that HS2 will add £10 billion to the west midlands economy over the next 10 years and help generate over 41,000 additional homes.
In west London, local partners estimate that HS2 will, in the long term, support the delivery of up to 25,500 new homes around Old Oak Common station, including 9,000 new homes as part of the first phase of development at Old Oak West. Separate research from March 2025 estimates that HS2 will add £10 billion to the west London economy over, the next 10 years and support 22,000 additional homes. Around Euston in central London, HS2 will support the delivery of thousands of new homes and the development of a new “knowledge quarter”.
There could also be new housing opportunities along the west coast main line between London and the west midlands, at places that gain improved local services as a result of network capacity released by HS2. Decisions have not yet been made by the Government on where these additional services will run.
Jobs and skills
In addition to long-term ambitions, HS2 is contributing to economic growth now. The programme is currently supporting over 33,000 jobs and over 3,400 UK businesses in the supply chain across the country, including over 2,500 small and medium-sized enterprises.
HS2 is also helping to break down barriers to opportunity and training a skilled workforce for the UK’s wider rail and construction industries. The programme is attracting new and diverse people to the industry. Having created over 1,800 apprenticeships and supported over 5,000 previously unemployed people back into work on the project since 2017, the programme is helping to bridge the skills gap and tackle unemployment along the HS2 construction corridor. By drawing on and developing world-class skills, HS2 will leave a positive skills legacy that will develop and strengthen the country’s construction workforce for the years to come.
Environment
Updated designs for ecological mitigation over the past six months have seen further progress made on the target to achieve no net loss to biodiversity by the end of the construction programme. At the end of 2024-25, the position for area-based habitats has improved while designs for hedgerows and watercourse habitats remained on track to deliver a net gain in biodiversity.
HS2 Ltd is also seeking to reduce the whole-life carbon emissions associated with construction of HS2 by 50%, aiming to maximise productivity and cost-saving measures to achieve this goal. At the end of 2024-25, the programme had so far achieved a 33.8% reduction in carbon against that 50% target.
Community impacts, land and property: appointment of a new independent commissioner
I am pleased to announce the appointment of Robert Herga as the Independent High Speed Rail Residents’ and Construction Commissioner, following an open competition.
The commissioner is responsible for holding HS2 Ltd and the Government accountable to their commitments to treat those people directly affected by the HS2 scheme with sensitivity and respect. The commissioner also makes themselves available to intervene in unresolved land and property disputes, as an objective and independent voice, focusing on timely settlement to save costs on both sides. This new role combines the previous roles of HS2 Construction Commissioner and HS2 Residents’ Commissioner.
Community engagement performance
HS2 Ltd received 1,209 complaints during 2024-25, an increase of 102 when compared to the previous year. At this stage of the programme, the vast majority of complaints are construction-related, with over half about traffic and transport impacts and about a third related to noise and vibration impacts. Where communities have complaints, HS2 Ltd seeks to resolve issues quickly. Over the last financial year, HS2 Ltd resolved 100% of urgent complaints within two working days and resolved 96% of all other complaints within 20 working days or less.
Local funds
The HS2 project is mitigating some of the impacts of construction on local places through the community and environment fund and the business and local economy fund.
As at June 2025, over £19 million has been channelled through these funds towards 353 local community projects, helping to ensure a positive legacy for communities most affected by construction.
Land and property on the former phase 2b eastern leg
I am today formally lifting the safeguarding directions for the former phase 2b eastern leg (between the west midlands and Leeds), removing the uncertainty that has affected many people along the former route. Safeguarding along the former phase 2b western leg (between Crewe and Manchester) is not being changed as part of this, and an update on future plans for safeguarding on this section will be provided in due course alongside broader plans for Northern Powerhouse Rail.
One small area to the south of the existing station in central Leeds, previously required for the new HS2 station, will remain safeguarded to allow for potential enhancements to the existing station, including for onward travel.
I have also today closed the rural support zone, express purchase, rent back, and the need to sell property schemes along the former phase 2b eastern leg. Existing applications will be reviewed on a case-by-case basis.
Removing safeguarding along the majority of the former HS2 phase 2b eastern leg means we are now able to initiate a programme to dispose of over 550 properties on the former eastern leg that are no longer required. We expect disposals on the open market to begin in 2026. Before then, former owners whose property was acquired under statutory blight will have the opportunity to reacquire their former property at the current market value.
We will dispose of land and property in a sensible and sensitive way, ensuring value for money for the taxpayer and avoiding disruption to local property markets.
I have deposited the safeguarding directions and relevant documents in the Libraries of both Houses.
Programme governance programme reset
Following Mark Wild’s arrival as new HS2 Ltd CEO in December 2024,1 commissioned him to set out a plan to deliver the remaining HS2 infrastructure in a safe, controlled and efficient manner and bring the new railway into operational use, for the lowest reasonable cost to the taxpayer. Mark gave me his initial diagnosis at the end of March, and I expect him to advise me further over the coming months.
His initial assessment summarises the currently uncontrolled state of the programme and the significant challenge of achieving a programme reset that minimises delays and stops further cost increases. He also confirmed his view that based on the current scope and delivery strategy, it is not possible to deliver HS2’s opening stage between Old Oak Common and Birmingham Curzon Street within the stated range of 2029-2033, and that the funding envelope set by the previous Government will not be sufficient. If interventions are not enacted, costs will rise and delivery will be further delayed. As such, it is now the work of Mark and his team to put in place measures to bring the railway into service as quickly and cost-effectively as possible, with Government support and constructive challenge. As part of his work, Mark will advise me on updated estimates to give the Government and taxpayers certainty over HS2’s costs and schedule—breaking the cycle of cost increases and overruns.
The HS2 reset will involve:
Setting a new realistic cost and schedule baseline within which we can complete the programme;
Resetting the commercial relationship with HS2’s principal civil works suppliers to drive increased productivity and control cost;
Making sure HS2 Ltd has the right skills and capabilities to deliver the remaining work, including improvements to setup, operating model, leadership, culture, effectiveness and capabilities; and
Improving how the Department and wider Government sponsors the delivery of HS2, drawing on the findings and recommendations from James Stewart’s independent review and the Department’s own work on lessons.
The scale and complexity of resetting the programme is a major challenge. Mark Wild carried out a similar process as the CEO of Crossrail, putting the project back on track and delivering a successful opening of the Elizabeth line in 2022. It is important we take this opportunity to get it right, which is why the reset will take time and involve close working between HS2 Ltd, DfT and the rest of the Government. The ambition is for an updated and assured full baseline to measure performance in 2026.
In parallel, the Department plans to publish an updated programme business case in 2026, once agreed cost and schedule estimates are available.
Oversight
On 18 March 2025, I chaired a meeting of the reconvened ministerial task force for HS2. I was joined by the Rail Minister, the Chief Secretary to the Treasury, Mark Wild and other senior leaders from HS2 Ltd and across the Government to scrutinise initial plans on resetting the programme and delivering HS2 at the lowest reasonable cost.
On 31 March 2025, Sir Jon Thompson stepped down as HS2 Ltd chair. On 18 June, I was pleased to announce Mike Brown as the new chair of HS2 Ltd. Mike Brown brings decades of experience in delivering major transport projects as former TfL Commissioner, and member of the team that turned Crossrail into the Elizabeth line. He will lead the board and work with Mark Wild on the urgent priority to reset the project.
It is clear from Mark Wild’s assessment that HS2 Ltd currently falls far short of having the capability and culture needed to deliver the programme effectively. Mike Brown has been tasked with strengthening the HS2 Ltd board to more effectively support and challenge Mark Wild in conducting the reset of HS2 and the safe delivery of phase 1 at the lowest reasonable cost. To support strengthened board oversight, a recruitment exercise has been launched to appoint new non-executive directors to bolster board capability and capacity.
I would like to thank Elaine Holt for leading the board in her capacity as deputy chair over the period from 1 April to 13 July.
We have also enacted temporary arrangements which establish additional control measures and monitoring to ensure the programme is managed properly. This will bridge the period leading to the formal reset of the programme.
Capturing, applying and sharing lessons
Following my last report, the major transport projects governance and assurance review, led by James Stewart, has concluded. It has provided important lessons that can be applied to HS2, the Department’s other capital projects and infrastructure schemes across the Government.
Most major programmes experience difficulties in their delivery. However, the failures seen on HS2 are extreme with costs increasing continuously over many years and very rapidly since the start of construction. There is no single explanation for these failings—they span across its lifecycle from conception through to delivery and from governmental sponsorship, through planning and consenting, to how the Government have orchestrated their delivery between HS2 Ltd and the construction supply chain.
We have worked closely with HM Treasury and the National Infrastructure and Service Transformation Authority (NISTA) to identify lessons from the HS2 programme.
The Department is applying the lessons from James Stewart’s and other reviews, including embedding the lessons into the HS2 programme reset plan and in developing and delivering other transport and wider infra- structure projects.
High ambition at inception
Early decisions resulted in an exceptionally high-specification and high-speed railway, which drove higher costs and meant that tried and tested approaches could not be relied upon. In future programmes, opportunities for reducing cost based on the minimum acceptable design should be explored and use of bespoke or cutting-edge specifications should be avoided unless absolutely necessary.
Scope changes
Since HS2’s inception, the scope of the programme has been progressively reduced. Scope reductions have been in part a result of cost increases but have added to delivery challenges and left the residual scheme over-specified in relation to the benefits it will deliver.
To address both these lessons, the Department has contributed to the Office for Value for Money’s study into the governance and budgeting arrangements for “mega projects” to make sure that lessons from HS2 are applied to the wider Government’s approach to infra- structure delivery.
Governance
Governance has evolved through the lifetime of the project and in the light of pressures; however, it has not been sufficiently effective in identifying and managing the scale of challenges, including in relation to cost management and capability. We have implemented a series of changes in the governance of the programme to respond to James Stewart’s recommendations. We held the first shareholder board on 28 May, which provided strategic-level oversight of the programme from the permanent secretary, Mark Wild, HS2 Ltd special directors, the senior responsible officer, interim HS2 Ltd chair and senior DfT and HMT officials. A renewed programme and performance board now meets monthly to focus on the effective delivery of phase 1 (including Euston) against agreed schedule, cost and scope.
Cost estimation
Since the inception of the project, internal and external experts have comprehensively scrutinised cost estimates. However, despite this, estimates have consistently proven to be wrong.
Last year, HS2 Ltd and departmental officials jointly concluded a comprehensive external review of the current approach to cost estimation and programme control. HS2 Ltd has been implementing an action plan to strengthen these vital areas of project control. A priority of the HS2 reset is setting a new, realistic and assured baseline of cost and schedule within which we can complete the programme. In addition, our progress to date means that evidence based on past experience, rather than forecast estimates, can be utilised to inform current and future delivery of the programme, including ongoing progress on civils delivery and the recent letting of the systems contracts.
To validate this new estimate there is also work under way to verify the civils work delivered to date, and its cost. This will allow the programme to validate true delivery costs against the original estimates. This information, combined with continued investment in collating benchmarking data from international comparators, will give us a more reliable “should cost” model for the remainder of the programme. This “should cost” model will enable a more accurate assessment of the reasonableness of assumptions in the cost estimate.
We have learnt that realistic ranges, rather than single target costs, should be set at the early stage of projects. Ranges should only narrow when there is sufficient certainty from external data such as contract prices. We will adopt an approach that uses robustly verified or benchmarked cost data, with ranges and sensitivity analysis, when taking future programme investment decisions. HS2 will lead the way in ensuring that cost analysis is rigorously incorporated into the design of later procurements and decisions. In parallel, the Government have made significant improvements in the analysis of investment benefits in recent years.
Challenges of building large-scale infrastructure
Meeting environmental standards and planning requirements has presented a significant challenge to the delivery of the project and has added to cost. It is now clear that the early stages of HS2 scheme development underestimated the planning and regulatory challenges of designing and building a new high-speed railway while meeting the expectations of local planning and highway authorities, and complying with the latest safety, security and environmental standards. The granting of consents has been subject to routine challenge, and the need for expensive mitigations to meet legal obligations (such as the bat mitigation structure at Sheephouse Wood in Buckinghamshire) have increased the cost of delivering the railway.
The Government have already implementing far-reaching reforms to ensure economic infrastructure can be delivered more efficiently. To strike a better balance between avoiding costs and delays on agreed schemes while allowing local scrutiny, Ministers will be able to intervene more actively in the process within the existing planning framework, utilising the reforms in the Planning and Infrastructure Bill once enacted, as well as considering whether further alterations to the HS2 planning framework could bring benefits for efficient infrastructure delivery, and to taxpayers more generally.
Capability challenges
Costs have increased in part due to insufficient capability in HS2 Ltd and the supply chain in delivering a project of this scale. There has been insufficient focus on the client relationship, too many of HS2’s resources were allocated to the wrong place and contract management and project control were not effective. This led to uncontrolled costs and extremely poor productivity and performance from the supply chain. We will be working with Mark Wild and the board of HS2 Ltd to address the areas where challenges have been identified, such as the need for Mark Wild to put in place a high-calibre and enduring leadership team and to reshape the organisation to deliver efficiently. This will be a priority in the programme reset.
Ineffective incentives
HS2 Ltd’s current commercial contracting strategy has not proved effective at controlling costs and fairly attributing responsibility for risks. The contract incentives have focused on providing positive incentives against target costs; however, as costs escalated and changes arose, the incentivised cost targets were exceeded, leading to no positive incentive to deliver at lower cost. Some risks which should have been borne by suppliers have also been transferred to taxpayers. In the future we need incentives and risk allocation that deliver for taxpayers as well as supplier shareholders. This work is being embedded through our engagement across the Government, to ensure major infrastructure projects are based on effective commercial contracts and incentives going forward.
Financial annex
The information on HS2’s overall spend to date and budget is now being provided in nominal (cash) terms following a commitment made by the Department to the Public Accounts Committee to express the costs of the programme in a more up-to-date price base and better capture the inflation incurred since 2019. The Government will provide further details on the 2025-to-2026 position in cash terms as part of the standard main estimates report to Parliament.
Historic and forecast expenditure [1] [2] [3]
Notes for the table:
[1] The figures set out in the table have been rounded to aid legibility. Due to this, they do not always tally.
[2] Spend to date for phase 1 includes a £0.6 billion liability (provision) representing the Department’s obligation to purchase land and property.
[3] To enable comparison with the figures presented in the December 2024 parliamentary report which were in 2019 prices, the equivalent total overall spends to date on phase 1 and on former phase 2 in 2019 prices are £33.11 billion and £2.5 billion respectively, and the 2025 to 2026 budgets for phase 1 and for former phase 2 in 2019 prices are £5.4 billion and £0.1 billion respectively.
HS2 spending review settlement
Nominal prices
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Zero Emission Vehicles
Heidi Alexander Excerpts(3 months, 3 weeks ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Transport (Heidi Alexander)
The Government are making it easier and cheaper to own an electric vehicle. Today the Government have launched an electric car grant to support the transition to zero emission vehicles and incentivise sustainable automotive manufacturing. This intervention gives clarity about the Government commitment to the zero emission vehicle transition, at a time of unprecedented uncertainty for the automotive sector.
Grant funding of £650 million will be available to purchase new zero emission cars priced at or under £37,000. Grants of £1,500 or £3,750 will make these cars more affordable and enable even more people to access the savings associated with driving electric. The grant will help unlock potential further savings of up to £1,500 a year in running costs for drivers. It will back UK and other manufacturers, with eligibility dependent on the highest manufacturing sustainability standards, driving growth in our automotive and charging sectors.
Grants are available from tomorrow, subject to confirmation of vehicle eligibility by the Department for Transport. A list of eligible vehicles will be updated on the Department website as vehicles are approved. The scheme has funding available until financial year 2028-29. The closure date will remain under review and the scheme will be subject to amendment, or early closure, with no notice, should funds become exhausted.
The electric car grant has two bands. £3,750 for the most sustainably produced cars and £1,500 for cars that meet some environmental criteria. This is in recognition of the need to address embedded carbon emission across a vehicle’s lifetime, as well as tailpipe emissions. Vehicles that do not meet minimum sustainability standards will not be eligible for a grant.
The minimum environmental criterion is for manufac-turers to hold a verified science based target. Science based targets are commitments corporate entities make to reduce their environmental impact, in line with the UK’s international climate commitments, which are verified by the independent Science Based Targets Initiative. The amount of grant available per vehicle will depend on the level of emissions associated with production of the vehicle. Emissions from vehicle production are assessed against the carbon intensity of the electricity grid in the country where vehicle assembly and battery production are located.
The Government have also announced a wider package of measures to support the continued deployment of charging infrastructure. These include £25 million of funding to deliver cross-pavement charging channels; £30 million grant funding to install charge points at depots for vans, coaches and HGVs, supporting the transition of the road freight and coach sectors; £8 million of funding to install chargers at NHS sites; and changes to allow EV hubs to be signed from major roads. All of these measures will support the more than £6 billion of private funding already in the pipeline to further boost the UK’s charge point roll-out by 2030.
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