Restoring Your Railway Fund

Huw Merriman Excerpts

Tuesday 24th January 2023 Westminster Hall

[The Minister of State, Department for Transport (Huw Merriman)]

It is a pleasure to serve under your chairship, Mrs Cummins. I congratulate my hon. Friend the Member for Torbay (Kevin Foster) on securing this important debate on the restoring your railway fund. Like me, he has a passionate interest in the future of our railways, and I pay tribute to him as my predecessor.

My hon. Friend and other hon. Members will know that the £500 million restoring your railway fund was announced in January 2020, with the aim of delivering on our manifesto commitment of levelling up and beginning a process of reopening lines and stations in England and Wales that had previously been closed. This investment is being used to explore and deliver on how we reconnect communities, regenerate local economies and improve access to jobs, homes and education opportunities.

We have already seen that in action, as many hon. Members have mentioned—not least those who represent Devon. I was delighted to travel to Devon last November to help celebrate the first anniversary of the restoration of the Dartmoor line between Exeter and Okehampton. That was the very first reopening under the restoring your railway manifesto commitment. It was delivered on time and on budget, and I am pleased to say that the restored service has been hugely popular. Over 250,000 new journeys have been recorded on the Dartmoor line in its first year. I was heartened to meet members of the local community and to hear how the reinstated line has improved their lives and is boosting local businesses, college numbers and tourism.

Another restoring your railway scheme, which I plan to visit in the next month or so, is the Northumberland line. It received £34 million of funding in January 2021, which has enabled track to be upgraded for passenger services. Once open, the Northumberland line will reintroduce direct passenger trains between south-east Northumberland and the centre of Newcastle, improving access to jobs, leisure and learning, with services likely to start in 2024. The area has been identified as being in the top 10% of most deprived areas nationally, and it has the lowest rates of regional car ownership, with poor public transport options into Newcastle.

[Jack Brereton]

Will my hon. Friend give way?

[Huw Merriman]

I will give way briefly, but I want to take time to respond to every hon. Member.

[Jack Brereton]

I thank the Minister for giving way. On the point about levelling up communities, will he ensure that projects such as Meir station, which has so much potential to level up communities, are considered favourably and that that ability to level up areas is considered in the assessment process, to ensure that levelling-up factors determine which projects get the go-ahead and move forward to full development?

[Huw Merriman]

I thank my hon. Friend for his point and for his work on the Transport Committee. I will indeed look at the issue in that regard. It is important that the business case has a good cost-benefit ratio, but it is not just the direct return on money that matters; following the reform of the Green Book rules, one also needs to consider—this is great news—what projects do for regeneration and decarbonisation, and these projects deliver on both fronts.

As hon. Members will appreciate, the restoring your railway fund is heavily over-subscribed. My Department received nearly 200 bids—200 excellent bids—to the ideas fund element of the programme alone. We also reviewed proposals whose business cases were already in their advanced stages, such as the Northumberland line and the Bristol to Portishead line, along with existing proposals to introduce a number of new stations under the new stations fund element.

On the points raised by the hon. Member for Slough (Mr Dhesi), I gently remind him that eight schemes under the restoring your railway fund are being delivered; 13 are progressing past the strategic outline business case towards their full business case; and 23 projects have been taken through the ideas fund stage. So I did not recognise the part of his speech where he said that not much appeared to have been delivered. And one of my hon. Friends said, the beauty of this fund is that one gains the buy-in of the local community, local Members of Parliament lead things, and schemes are decided from the grassroots up, not from the top down, which I dare say would be more the line of thinking of the hon. Member for Slough.

[Mr Dhesi]

Will the Minister give way?

[Huw Merriman]

I will not give way, because I have quite a lot to go through.

I appreciate that many hon. Members—particularly those who have sponsored individual proposals—will have received disappointing news along the way about their schemes not progressing under the restoring your railway programme, although hopefully with constructive and detailed feedback. I hope that the process has been helpful in allowing promoters of projects all over the country to develop their cases.

The hon. Member for Slough also mentioned my contribution to last week’s Transport Committee, which I was very pleased to attend. As I mentioned, we need to be mindful of the fact that it will not be possible for all schemes in the restoring your railway portfolio to progress to the next stage of development. The fact is that we do not have a limitless budget; indeed, although schemes may show promise at an early stage of their business case, some may not be able to cover their operational costs in the long term, and we should not add greater cost to the railways, given how stretched the finances are. When one looks at the schemes that are already being delivered or that are moving to the full business case, one gets quickly to £500 million halfway down the list, so I do want to manage expectations. At the same time, however, that demonstrates that we are getting on with things and spending the fund’s money. We should also be mindful of the wider context of the rail portfolio, where all projects face increasing costs for a variety of reasons, particularly inflation.

Hon. Members should know that I have asked my officials to carry out a review of all the schemes in the restoring your railway portfolio to prioritise the most viable projects for the next stage. That is particularly important in the light of the remaining budget we have available, so that we deliver the most we can under the challenging financial constraints we all have to live with. I emphasise that the process will be driven by data, expertise and careful consideration—that goes back to the third point my hon. Friend the Member for Torbay made, about how we will determine matters. I also assure hon. Members waiting to hear back about bids made to the second and third rounds of the ideas fund element of restoring your railway that those bids are being fully and fairly considered as part of the overall review process.

I want now to respond to the excellent points, cases and pitches that have been made this morning. First, with regard to my hon. Friend the Member for Sedgefield (Paul Howell), the Ferryhill project received further funding in June 2022. Sedgefield station is a possible additional stop between Ferryhill and Middlesbrough, and it is under consideration.

I thank the hon. Member for Tiverton and Honiton (Richard Foord) for his kind words. As he noted, the Wellington and Cullompton project is progressing to a full business case, and a decision will be made once that has been finalised.

In her brilliant speech, my hon. Friend the Member for Stourbridge (Suzanne Webb) made a pitch for Stourbridge and Round Oak, and it is hard—wellies or no wellies—to resist the points that she made. I know that the bid was not successful in the first ideas round stage, and I hope there has been feedback about what more can be done. I am happy to meet her to go through matters, and I really note—as should her constituents—the passionate pitch she has made.

My hon. Friend the Member for Stroud (Siobhan Baillie) referred to the Stonehouse Bristol Road station. The Department is reviewing strategic outline business case, and we will get back to her.

As ever, brilliant speeches were made by my hon. Friends the Members for Stoke-on-Trent North (Jonathan Gullis) and for Stoke-on-Trent South (Jack Brereton), who made a great pitch for the Stoke-Leek line. That is an ideas fund 3 project, and the strategic outline business case is being reviewed by the Department. I know that my hon. Friends will keep on at me in that regard, and my hon. Friend the Member for Stoke-on-Trent South should be assured that Meir station has been funded to full business case. That was announced in June 2022.

The Leamside project is championed by my hon. Friend the Member for Darlington (Peter Gibson); it is also being talked about outside this place, and I was delighted to meet Members from across the north-east yesterday in that regard. My hon. Friend specifically mentioned the Darlington to Weardale project. That is also in ideas fund 3. We are reviewing the strategic outline business case, and I thank him for the passionate points he made to champion the project.

Every time there is a rail debate, my hon. Friend the Member for Ynys Môn (Virginia Crosbie) is here making the case for her constituents. Despite the spelling of my first name, I will not try to pronounce the names of the projects, but I will tell her, more importantly, that the strategic outline business case, having gone through ideas fund 3, is being reviewed. I am already on my way to see her with regard to other projects, and I am sure I will bring the wellies and we will tramp through. To continue the welly references, my hon. Friend the Member for North Devon (Selaine Saxby) is a real champion for transport and Combe rail. I know it was unsuccessful in the ideas fund, but I want to talk with her to find out what more we can do.

I want to respond to two other points made by my hon. Friend the Member for Torbay. On what happens when local stakeholders do not support a bid, the beauty of these applications is that we want people to be able to crack on at pace. Obviously, it is challenging when one part of the stakeholder community is not willing to support a bid. That applies in particular if a planning authority is involved. I note the points made by my hon. Friend, who comes up with some brilliant ideas and suggestions. I hope his council will think again and join the local stakeholder community in supporting his bid.

My hon. Friend also asked me to recommit to the fund. I recommit to that fund; it is a brilliant scheme that allows MPs and community members to get involved and get back the railways they lost many years ago. I want to finish by congratulating him again—

[Dr Hudson]

Will the Minister give way?

[Huw Merriman]

I will not, if my hon. Friend does not mind. I want to leave time for my hon. Friend the Member for Torbay.

I thank my hon. Friend for securing the debate, and I hope I have assured him and other hon. Members that we are taking a rigorous approach to assessing the projects. In terms of those being taken forward, I want to ensure that the projects that will deliver the greatest benefit for the community succeed.