High Speed Rail (Crewe - Manchester) Bill: Second Additional Provision

Huw Merriman Excerpts

Monday 3rd July 2023 Written Statements

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

On 9 March 2023, the Secretary of State for Transport restated the Government commitment to building HS2 between London Euston and Manchester. Continuing to progress the High Speed Rail (Crewe - Manchester) Bill through Parliament is a vital part of this commitment. Today the Government are introducing into Parliament a second additional provision to the High Speed Rail (Crewe - Manchester) Bill.

HS2 is a key part of the Government levelling-up agenda; this new railway will act as a catalyst for investment and economic growth, offering an unparalleled opportunity to deliver new homes, jobs and commercial development. The section of the railway between Crewe and Manchester will also form the foundations for Northern Powerhouse Rail, boosting inter-city connections and speeding up east-west rail services between the north’s towns and cities.

The second additional provision proposes a number of changes to the powers of the Bill. These changes have been developed following engagement with individuals and businesses, requests from individuals affected by the route, and further improvements to the route design, to ensure that the best possible railway is built. The main changes are:

Realignment of the M56 junction 6;

Lane and slip road works at junctions 19 and 20a of the M6;

Relocation of the Palatine Road Vent Shaft to the former Hollies Convent School site near the Britannia Country House Hotel;

Altered utility works to avoid or mitigate impacts on five ancient woodlands and sites of special scientific interest;

Road works along the line of route between Crewe and Manchester Piccadilly station to reduce congestion and increase road capacity during construction and operation.

The additional provision also includes works to reduce the risk of flooding, new footpath provision, changes to parking and taxi provision at Manchester Piccadilly station, and added areas of planting to mitigate impacts on the environment.

Delivery of a project on the scale of HS2 will inevitably cause disruption for local people and their communities. Those individuals who are directly and specially affected by today’s proposals can petition against the changes. The petitioning period will open tomorrow—4 July 2023 —and continue until 15 August. I have overseen extensive engagement with affected individuals and their communities by HS2 Ltd and I have written to elected representatives, such as parish councils and local authority leaders, as well as my colleagues with impacted constituencies in Parliament. Petitions will be heard by the specially appointed Select Committee. The Select Committee can make recommendations to address matters raised—it may amend the Bill, it may ask for new Bill powers, or it may require HS2 Ltd to address a petitioner’s issues via other means.

I am also publishing a supplementary environmental statement setting out the significant effects, mitigation, and compensation from the changes in the additional provision, as well as reporting new environmental information relating to the scheme. A public consultation on these documents will run until 31 August 2023. The documents will be put in the Libraries of both Houses and will also be made available in locations open to the public in all local authorities and parishes affected by the changes.

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East Birmingham Tram Line

Huw Merriman Excerpts

Monday 26th June 2023 Commons Chamber

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

I thank the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) for securing this debate and for his representations regarding transport services and growth opportunities in his constituency and the wider region. I pay tribute to him for the words he used—he has set out a great case for how transport can be an enabler to transform and regenerate areas that really do need it. His knowledge and expertise in this area speaks for itself, and I thank him for being an enabler of the HS2 project, for which I am very proud to be the Minister. He referred to the time when he was Chief Secretary to the Treasury and the work he did at that point. I can assure him that the Government are steadfastly committed to levelling up and empowering communities in the west midlands, and I want to talk about some of the ways that we are delivering that.

Let me begin by talking about local funding and opportunities. As the right hon. Member knows, the Government recognise the importance of transport to the people and economy of the west midlands, as demonstrated by the commitments made through the recent Trailblazer devolution deal. Our significant wider funding commitments also mark a further step in ensuring that we empower local leadership and enhance transport connectivity across the region.

Through the west midlands city region sustainable transport settlement, an unprecedented sum—more than £1 billion in capital funding—has been allocated to deliver projects and priorities which have been decided locally. For instance, West Midlands Combined Authority has earmarked £25 million of those funds to make significant improvements in bus services on the key A45 corridor in east Birmingham as part of its Sprint programme. The scheme will deliver new bus priority and journey time savings for passengers, linking people with opportunities in the city centre and Solihull and providing connections to Birmingham airport. The Department will work closely with stakeholders across the region to help ensure that schemes of this kind deliver economic growth and better transport experiences for local communities.

I am aware that the right hon. Member, and others, have called for an extension of the west midlands metro through east Birmingham to Solihull and Birmingham airport. As he will know, the metro route is already being extended eastwards as far as Digbeth, with backing of more than £131 million through the Government’s local growth fund programme. This scheme will serve the new Curzon Street station, helping to connect more of the region to the growth opportunities unlocked by HS2. I recognise the importance of the metro to the region, and I also recognise that light rail can be an attractive and environmentally friendly way of connecting people with jobs, education, healthcare and, indeed, each other in our largest towns and cities. While the Government are rightly investing in local transport networks across the country, local transport authorities retain responsibility for their delivery. The right hon. Member will appreciate that decisions on these proposals are devolved to the Mayor of the West Midlands, although I note his call for the Government to do the work that Governments can do to enable such proposals to reach their full potential.

It is crucial that local representatives, who know the challenges in their areas, are responsible for assessing the options available and ultimately deciding on the best way forward. I therefore encourage the right hon. Member—as well as pressing me, as he rightly does—to consult the Mayor about the proposals that he supports. He will know that Andy Street is a champion for transport throughout the west midlands, and frequently pushes me for more investment: he clearly shares the ambition to which the right hon. Member referred at the start of the debate. In his spring Budget statement, the Chancellor announced a second round of the city region sustainable transport settlements, providing areas across England with a further £8.8 billion over five years from 2027 to allow them to continue to develop transformational local transport improvements. That funding may represent an opportunity to develop the east Birmingham to Solihull metro proposals further, should the Mayor choose to do so.

Of course, I could not talk about transport in Birmingham without going into a little more detail about the opportunities for HS2. This new railway will change the economic geography of the whole country, bringing our biggest cities and economic regions closer together with reliable, low-carbon, high-capacity travel, and I take the right hon. Member’s point about its linking Birmingham not just with London—west London, that is, through Old Oak Common—but, via the new Elizabeth line, with Canary Wharf. It will provide enormous opportunities for businesses that are currently in London to extend their reach to Birmingham, and that is very much part of our ambition.

The Government are developing an HS2 local growth action plan which will outline the way in which we will continue to work with host station places to support their local growth ambitions. As the right hon. Member mentioned, around Curzon Street, in central Birmingham, HS2 will support thousands of new jobs—19,600, according to the latest estimate—and 2,200 additional homes. At the interchange station in Solihull, HS2 Ltd is working with local stakeholders on a brand-new, mixed-use development that will capitalise on its well-connected location. At Washwood Heath, HS2’s national control centre and maintenance depot, hundreds of new jobs in the railway sector will be created in east Birmingham. HS2 Ltd is committed to supporting further employment opportunities in the development area south of the depot through the release of land following its construction.

Mention has been made of surplus land at Washwood Heath and the question of when it will be released; I know that the right hon. Member has led the charge on that issue. I am advised that the design and extent of the environmental mitigation in the development area is still ongoing, but HS2 Ltd anticipates that the plan for the area will be submitted to Birmingham City Council for schedule 17 planning consent later this year.

I will conclude by addressing the right hon. Member’s three points. First, he spoke about a statement of principle and policy; I will write to him and provide as much detail as I can, which I hope will answer that call. Secondly, he asked whether I would meet him and other east Birmingham MPs so that ideas could be pitched; I should be delighted to meet them and will seek to do so at the earliest opportunity. Thirdly, he asked about support for Birmingham’s levelling-up bid and about matters relating to devolved taxation. He will know that it is not for Ministers in a spending Department to speak about such matters; in fact, in his previous role he would probably have been the first to give them a good ticking off for it. However, I will discuss the matter with the Department for Levelling Up, Housing and Communities and the Treasury, and perhaps when I meet him I can provide him with any information that they give me.

[Liam Byrne]

I am grateful to the Minister for giving way, because I sense that he is about to conclude. The clear thing that we will need to discuss when we meet is how to ensure that the levelling-up zone maximises the opportunity of the High Speed 2 growth and opportunities plan. Between us, we must make sure that there is joined-up government.

[Huw Merriman]

I thank the right hon. Member for making that point. He is absolutely right. To continue to make the case for HS2—I will certainly do so, and I am grateful that he is doing likewise—we have to show that it really can maximise growth. We are very happy to take all ideas from Members of this House, and indeed from wider stakeholders, for how that can occur. Matters that are in the domain of other Departments will need to be decided on by those Departments, but I am certainly happy to feed ideas through and see what can be done.

I thank the right hon. Member for his continued engagement with HS2 and for raising the other matters that he has listed in relation to regenerating his constituency and the city that I know he loves. Significant funding has been and continues to be invested in delivering transformative local transport projects. My Department will continue to work with regional stakeholders to make the most of this once-in-a-generation opportunity and identify ways to improve transport links, drive economic growth and improve access to jobs, education, healthcare and leisure. I look forward to working with the right hon. Member, and with his colleagues nearby, on these shared priorities.

Question put and agreed to.

High Speed 2 Parliamentary Report

Huw Merriman Excerpts

Monday 19th June 2023 Written Statements

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

I am reporting continued progress on High Speed 2 (HS2) with the Government’s sixth update on HS2 to Parliament.

The Government remain committed to delivering HS2 from London Euston to Manchester and the east midlands to bring our biggest cities and economic regions closer and giving companies and workers more choice about where they locate and live.

Since notice to proceed on phase 1 three years ago, we have seen significant progress on construction of the Birmingham to London section, Royal Assent to the High Speed Rail (West Midlands to Crewe) Act 2021 and the introduction of High Speed Rail (Crewe to Manchester) Bill to Parliament.

On 9 February 2023, Sir Jon Thompson was appointed as the Chair of HS2 Ltd following an extensive search. The Secretary of State for Transport, my right hon. Friend the Member for Forest of Dean (Mr Harper) was pleased to meet him and the HS2 Ltd Board in Birmingham on 12 April 2023 to discuss the programme.

Progress on building the railway has been achieved in the face of significant challenges from the effects of covid-19 and the impact of excess inflation driven by the war in Ukraine.

As the Secretary of State for Transport outlined in his written statement to Parliament on 9 March 2023, the Government have acted to balance the nation’s books, necessitating deferral of some of the Department for Transport’s capital spending including rephasing the delivery of parts of HS2. As set out in previous reports, the Government remain concerned about the increasing projected costs to complete phase 1 reported by HS2 Ltd.

Construction of the Old Oak Common to Birmingham Curzon Street section continues at full pace, which will provide initial passenger services to schedule. There has been notable progress on this section in this period.

HS2’s tunnel boring machine (TBM), Dorothy, began and completed her second one-mile tunnel bore under Long Itchington Wood in Warwickshire and the Chiltern TBMs reached the halfway point of their 10-mile drive at Christmas. Six TBM journeys have now been launched on phase 1 and driven a total distance of approximately 14.5 miles. Work is progressing north of Birmingham but has been rephased south of Old Oak Common and at Euston.

We remain committed to delivering HS2 services to Euston. We have decided not to proceed with construction at Euston over the next two years both to reduce expenditure during that period and to address the affordability challenge set out in the recent National Audit Office report. We will use this time to develop a more affordable scheme design that delivers for passengers, the local community and taxpayers.

The Government will not be proceeding to construction on phase 2a—west midlands to Crewe—in the next two years to reduce expenditure. We will use the time to develop mature designs and delivery approaches to ensure that this section is delivered in the most cost-effective way.

The High Speed Rail (Crewe to Manchester) Bill Select Committee Members have now been appointed and the Committee has begun hearing petitions against the Bill and first additional provision (AP1), which gives effect to Parliament’s instruction to remove the Golborne Link from the bill while alternatives are considered.

Other notable milestones of the HS2 programme in this reporting period include:

HS2 Ltd and its supply chain have now begun over 1,200 apprenticeships, more than halfway to the target, with the programme now supporting over 28,500 jobs as of March 2023.

There are now 19 diesel-free work sites on the HS2 programme. This is a significant step towards the project’s aim to cut carbon emissions during construction and improve air quality for workers and local communities.

In North Warwickshire, the Marston Box Rail Bridge—the world’s longest box slide—was successfully installed. During a short closure of the M42 over Christmas 2022,450 people worked to move the 12,600-tonne box structure 165 metres across the motorway into position.

Despite the global economic challenges, this Government are continuing to invest in the country’s future infrastructure. HS2 is not just a railway: it will drive economic growth and opportunities across the country, provide a low-carbon alternative to car travel and domestic flights and train a skilled workforce for the UK’s future infrastructure sector.

This report uses data provided by HS2 Ltd for phases 1, 2a, 2b and HS2 East and covers the period between September 2022 and February 2023 inclusive. Unless stated, all figures are presented in 2019 prices. Data on benefits performance is reported on quarterly; the data included in this report is taken from March 2023.

Programme update

Schedule

The forecast date for initial HS2 services between Birmingham Curzon Street and Old Oak Common remains within the range of 2029 to 2033.

On the phase 2b western leg, we continue to aim for the delivery of the railway within the estimated delivery-into-service date range of 2035 to 2041, as provided in the Strategic Outline Business Case. The High Speed Rail (Crewe to Manchester) Bill is currently working its way through Parliament.

Following the decision to rephase the construction of Euston and phase 2a, revised delivery-into-service ranges for these elements of the railway will be confirmed once plans have been redeveloped.

Affordability

As set out in the last Parliamentary Report, HS2 Ltd has advised the Department for Transport (DfT) that its projected costs for phase 1 would exceed the target cost of £40.3 billion if unmitigated.

HS2 Ltd’s Executive and Board are currently reviewing the estimate at completion for phase 1. This will assess the previous pressures and further emerging costs as well as the work the Government commissioned from HS2 Ltd to address these pressures.

With around half of the phase 1 budget spent and significant work completed on enabling and main works, this is an appropriate time to review the projected costs against the budget noting that significant judgments remain in any projection. I will update Parliament further once this important work has been concluded and assured.

As reported in the recent National Audit Office report on Euston, the latest proposed target price from the construction partner—Mace Dragados joint venture—is £4.8 billion—around £2.2 billion over HS2 Ltd’s budget and a higher cost than the previous design.

I visited the Euston site on 5 April 2023 and saw for myself the challenges of constructing a complex station in a dense urban environment that will integrate with the existing conventional station and London Underground and local transport, as well as enabling oversite development.

Nonetheless, the station is not affordable at this cost, nor in any case, does the Government have the financial headroom to proceed with the construction over the next two years. We will, therefore, use the time to look again at the Euston station design to ensure it delivers for passengers, the local community and taxpayers. This will include considering how we might partner with the private sector to capture benefits for customers. It will require careful prioritisation of requirements and a willingness from stakeholders to compromise.

I welcome the NAO’s report and recommendations, and we will act upon them as we look again. Officials are now working with the Euston Partnership, HS2 Ltd and Mace Dragados to understand the causes of the additional costs and to develop alternative delivery options. I will update Parliament as this work progresses through future publications of this report.

As it was noted in the last Parliamentary report, like the rest of the economy, the HS2 programme has experienced higher-than-expected levels of inflation, which HS2 Ltd is actively seeking to mitigate alongside its supply chain.

The Secretary of State’s written statement to Parliament of 9 March 2023 outlined the action we have taken over the short term to rephase certain parts of the programme in order to live within annual cash budgets.

HS2 Ltd is working with its supply chain to understand the wider cost and schedule implications for the programme, including identifying mitigations that seek to protect taxpayer value-for-money from these deferrals. Nonetheless, the decisions I have made will ensure that spending on the programme in the next two years remains within the annual budgets that have been allocated to HS2, and reflect the need to manage the inflationary pressures that the UK is facing.

Reporting progress on the programme in 2019 values does not reflect the significant inflation that has occurred since and I intend to work with HM Treasury to update the price base.

Delivery

Phase 1 delivery continues to build momentum with around 350 active construction sites between the West Midlands and London. Six years after beginning work, all the early works contractors have now left sites having prepared them for the main work civils contractors who are entering peak construction effort this year.

Tunnel drives are making good progress across all three sites. In March 2023, the TBM named Dorothy completed its work under Long Itchington Wood in Warwickshire, completing its second one-mile drive and marking the first complete twin-bore tunnel across the project. In the Chilterns, the TBMs called Florence and Cecilia have successfully reached Amersham Vent Shaft, which represents the halfway point of their 10-mile drive. Sushila and Caroline, the two TBMs used to create the first section of tunnel that will make up the 8.4-mile Northolt Tunnels between West Ruislip and Old Oak Common station, are also making progress.

Overall, five of the 10 TBMs boring the tunnels for the route have launched, two of the 12 TBM journeys are now complete and approximately 14.5 miles have been dug.

In November 2022,1 attended the launch of a 1.7-mile-long conveyor system that is removing spoil excavated from three London construction sites: Old Oak Common Station, Victoria Road Crossover Box and Atlas Road. The conveyor transports excavated material to Willesden Euro Terminal, where earth is processed and then removed by rail freight to three sustainable sites in Kent, Rugby and Cambridgeshire, significantly reducing HS2’s carbon footprint.

To date, approximately 125,000 tonnes of excavated material has been transported by the conveyor, removing circa 7,400 lorries from the roads, significantly reducing the traffic congestion and carbon emissions for residents.

At Old Oak Common, the excavation of the underground box that will house the subterranean HS2 station platforms is well underway. In line with the programme, groundworks for the conventional rail station that will accommodate eight platforms on the realigned Great Western mainline and relief tines commenced in October 2022, which together will provide a step change in connectivity for the area. This is a crucial step forward in realising the potential for creation of jobs and provision of housing enabled by the station, which together with the Mayor we are working hard to achieve.

Stage 1 of the 2 two stage design and build contracts for Birmingham Curzon Street Station and Interchange Station at Solihull are expected to conclude later this year, subject to agreement of affordable target prices.

HS2 Ltd continues tendering for phase 1 and 2a rail systems packages, including track, catenary, mechanical and electrical power, control and communications. The tendering process has been extended to clarify scope and provide opportunity for tenderers to submit updated competitive bids.

On phase 2a, early environmental works have demonstrated good progress, with design complete for all sites. Five utility diversions have been completed along the phase 2a route. These have predominantly related to diversions of high-pressure gas pipelines, which are works that only the network provider can perform and have annual windows for outages that constrain when works can be done. Further construction work will be suspended for the next two years, but we expect to continue some design work in preparation for the start of major construction works.

On the phase 2b Western Leg, the High Speed Rail (Crewe to Manchester) Bill had its second reading in June 2022 and it was remitted to a Select Committee. The first additional provision (AP1) was deposited on 6 July 2022 and a further additional provision will be deposited shortly. The committee is continuing its work hearing petitions against both the bill and AP1. While the bill progresses through Parliament, HS2 Ltd is working to develop a robust future delivery strategy for the scheme applying lessons from phase 1.

The Government have committed to progressing HS2 East, which is currently in its development stage. HS2 East will feature a new high-speed line between the West Midlands and East Midlands, which will allow HS2 to serve Nottingham and Sheffield (via Derby and Chesterfield).HS2 Ltd and Network Rail are undertaking work to develop advice on these plans, in conjunction with work by Network Rail to electrify the Midland Main Line. The output of this work will be used to inform future decisions by the government on how to progress the scheme, including how HS2 East can support economic growth aspirations in the East Midlands and South Yorkshire.

Benefits

Growth and opportunities for local communities

We are committed to bringing the transformational benefits of HS2 to places as soon as possible. HS2 will act as a catalyst for growth around new station sites and this is already well underway at station sites along the route.

At Old Oak Common, work continues to strengthen collaboration with the Old Oak and Park Royal Development Corporation, the London Mayor and the Department for Levelling Up, Housing and Communities (DLUHC) to bring forward regeneration proposals for the area around the station, with a projected 25,500 new homes and 56,000 new jobs.

Through regional development, HS2 will provide an opportunity to level up the economies of the midlands and the north.

At Interchange Station in Solihull, HS2 Ltd continues to work collaboratively with private and public sector stakeholders to support local ambitions to realise the economic and social benefits of HS2 and provide up to 30,000 new jobs and 3,000 new homes through a high-quality masterplan for development.

In the heart of Birmingham, the West Midlands Combined Authority anticipates 19,600 new jobs and 2,200 additional new homes around the Curzon Street area. DfT and HS2 Ltd are also working closely with DLUHC to make sure that wider regeneration is delivered at Crewe.

HS2 offers an unprecedented opportunity to transform local areas. We are developing an HS2 local growth action plan outlining how this Government will continue to work with host station places to support their local growth ambitions. Alongside this, later this year, we will publish an HS2 investment leaflet and brochure showcasing HS2 places to potential investors.

Green transport for a net-zero future

Environmental sustainability is integral to HS2’s design, with huge efforts being made to minimise the impact of construction on biodiversity, to limit the level of carbon emissions during construction and to respect people and places.

HS2 Ltd’s latest Environmental sustainability progress report was published in December 2022, highlighting key environmental achievements, including how we are continuing to update designs on the project to minimise impacts to sensitive habitats. For example, on phase 1, we have now reduced the ancient woodland impacted by construction by a third.

HS2 Ltd is leading on the decarbonisation of the construction industry.

I was pleased to confirm in December 2022 that HS2 Ltd had launched a Diesel free plan, which sets out how all HS2 construction sites will eliminate diesel use by 2029. Good progress is being made with 19 construction sites on the project now operating completely diesel-free.

Further efforts to reduce carbon emissions in construction include the launch of a construction railhead in Aylesbury to move more materials by rail and the 1.7-mile conveyor system in West London. These initiatives will remove over one million lorry journeys from local roads, improving air quality around sites and reducing noise pollution and traffic impacts for local communities.

HS2 will be an important part of the sustainable transport network. The programme will improve active travel opportunities such as cycling and walking, creating a sustainable transport legacy for local communities.

HS2 Ltd has appointed an active travel team to oversee the delivery of facilities for more cycling and walking in 20 locations across phase 1and to assess five locations on phase 2a. HS2 Ltd has continued to assess opportunities to repurpose some sections of haul roads and access routes into cycling and walking routes, where local communities are in agreement.

Skilled workers for an innovative industry

HS2 is playing a significant role in growing skills for the wider construction industry and today is supporting over 28,500 jobs. The programme celebrated its 1,000th new apprentice and is now over halfway to its target of creating 2,000 apprenticeships over the course of the programme, with over 1,200 apprentices recruited to date. Over 3,200 people who were previously unemployed have been supported into work on the project.

HS2 continues to support businesses across the UK—there are over 3,000 unique UK businesses in the supply chain and over 61% of the overall supply chain are small or medium-sized enterprises. The HS2 supply chain continues to beat industry averages for female and BAME employees, achieving 28% and 23% respectively.

Following the spring Budget 2023 and in light of the rephasing of parts of HS2 , we anticipate that some roles will be redeployed within the programme, or individuals will secure relevant employment that builds on the skills they have gained working on HS2.

HS2 is helping to train a skilled workforce for the UK’s future construction industry and it is expected that many of those currently working on HS2 will, in the future, go on to work on other infrastructure programmes in skilled, well-paid jobs.

Innovation across the programme is making HS2 more efficient—HS2 Ltd has established an ecosystem of innovative partners across a world-class supply chain, leading academic frameworks from infrastructure and rail, and an entrepreneurial accelerator to boost and scale digital technology start-ups into the sector.

Local community impact and engagement

The decision to rephase construction for phase 2a and Euston will lead to increased uncertainty around the schedule and status of HS2 works in these areas and we are sympathetic to the prolonged impact on some local communities in the areas where we have rephased work. HS2 Ltd will continue to focus its community engagement to address any uncertainty and ensure that affected communities and residents are kept informed and involved.

The Independent Construction Commissioner and Residents’ Commissioner will continue to report regularly on the delivery of HS2 works, including on the impact of delays and uncertainty, and provide assurance that HS2 is still being delivered in a considerate, efficient and responsible way.

The HS2 Helpdesk has now recorded 204,918 enquiries since its launch in 2018. Of the overall enquiries, 5,469 have been complaints, of which 100% of urgent construction enquiries and complaints have been responded to within 2 working days between April 2022 and February 2023. HS2 Ltd received 1,032 complaints between April 2022 and February 2023. This compares with 1,515 for the same period in 2021 to 2022, a decrease of 32%.

The volume of anti-HS2 protestor activity has decreased significantly since September 2022 when the High Court granted HS2 Ltd an injunction prohibiting trespass on, and obstruction of access to, land acquired. There are currently no protestor sites that directly threaten safety, the supply chain or the delivery of HS2. HS2 Ltd is currently seeking an extension and renewal of the injunction.

To date, illegal protest has cost the project an estimated £38 million in direct costs and around £113 million in consequential costs such as delays.

HS2’s community and business funds, the Community and Environment Fund and the Business and Local Economy Fund, are helping to leave a positive legacy in areas affected by construction near the new railway. Over £15 million has so far been granted to 268 projects from Crewe to London, helping to attract over £65 million in additional match funding.

Land and property

We continue to acquire land between the west midlands and Crewe to meet the five-year limit set by Parliament for phase 2a.

We continue to protect the route from the west midlands to Manchester from alternative development by means of safeguarding directions. We also maintain current safeguarding and property schemes across the Eastern Leg and committed in the Integrated Rail Plan that this will remain in place until final decisions on routing HS2 services to Leeds are made.

We are publishing research into attitudes to a variation to the Need to Sell non-statutory scheme alongside this report. We have concluded that pursuing the variation further is not justified, as any potential improvements it offers to the existing scheme appear marginal.

Programme governance and controls

Following a comprehensive search, on 9 February 2023, the Secretary of State for Transport announced the appointment of Sir Jonathan Thompson as the new Chair of HS2 Ltd. He will be supported by Elaine Holt, whom the Secretary of State has asked to take on the role of Deputy Chair and reappointed for a further term on the HS2 Ltd Board, alongside Dame Judith Hackitt and Stephen Hughes.

These appointments are critical to ensuring the HS2 Ltd Board has the right capability to oversee the delivery of this large and complex project and ensure benefits are fully realised.

Forward look

On phase 1, as we enter peak construction there will be more earth moved, more concrete poured and more visible progress of construction above ground.

HS2 Ltd has appointed a managing director for the rail systems alliance, the team that will be responsible for delivering systems packages including track installation, overhead catenary and high-voltage power in a collaborative and integrated model.

In the coming months, HS2 Ltd will continue to develop its internal processes and capabilities, including governance arrangements, to manage the integration risk between the 14 different systems suppliers in advance of appointing contractors.

On the phase 2b Western Leg, ongoing design development work has enabled HS2 Ltd to identify further scheme changes that may be brought forward in relation to highway, environmental mitigation and utility works. Some of these changes will be proposed in a second additional provision (AP2), focusing on the northern part of the route between Crewe and Manchester.

The Greater Manchester Combined Authority (GMCA) trailblazer deeper devolution deal, in addition to highlighting the benefits of HS2 and Northern Powerhouse Rail for Greater Manchester, confirmed the GMCA’s commitment to engage meaningfully on a locally led funding strategy for scope in the High Speed Rail (Crewe to Manchester) Bill. This is subject to a local funding contribution, with the expectation of significant progress by the end of 2023.1 welcome this commitment and look forward to progress being made on these issues.

I will continue to engage closely with Parliament and provide an update in the next publication of this report.

Financial Annex ^[1]

Forecast costs by phase—2019 prices.

Williams-Shapps Plan for Rail

Huw Merriman Excerpts

Wednesday 14th June 2023 Westminster Hall

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

It is a pleasure to serve under your chairship, Ms Fovargue, and to reply to this debate secured by my hon. Friend the Member for Cleethorpes (Martin Vickers). I thank him for his work as chair of the all-party group for rail.

Given my former role as Chair of the Transport Committee, it is also a pleasure to be surrounded by former Committee colleagues, including the shadow Rail Minister, the hon. Member for Slough (Mr Dhesi), who cannot stand to be Chair. We also have two former Transport Ministers. I welcome all continued liaison with the Transport Committee—a great Committee with great members.

In his Bradshaw address in February, the Transport Secretary set out his vision for rail: a customer-focused, commercially-led industry with Great British Railways as the guiding mind for the sector. I welcome the supportive comments of my hon. Friend the Member for Cleethorpes about the Bradshaw address and the need for a guiding mind. I agree and, to answer my shadow, we still support it and will still deliver it.

The case for rail transformation is now stronger than ever. As many have said in the debate, the railways are not delivering the services that customers deserve. The industry remains fragmented, which limits effective decision making. The existing commercial model is not sustainable, with the cost to the taxpayer remaining too high, and the structure does not provide adequate opportunity for private sector investment or initiative. Like my hon. Friends, I fully support the private sector in what it does and what it has done in the past; we need it now more than ever, following the pandemic and the reduction in passenger numbers. We need to put customers at the heart of what we do.

By establishing Great British Railways, we will enable a single guiding mind to co-ordinate the network, bringing infrastructure and operational decisions together, and planning coherently for the future with robust levers of accountability. It will develop local partnerships to bring decision making closer to the communities that the railways serve. Importantly, Great British Railways will enhance the role of the private sector, developing a new commercial model that focuses on operators competing to deliver high-quality, punctual services and excellent customer service.

New passenger service contracts will balance the right performance incentives with simple, commercially-driven contracts. Those will not be one size fits all. I want the private sector to play its part in reinvigorating the rail sector, driving innovation and attracting customers to rail. We are now working with industry on how we can introduce more private sector risk and reward into existing contracts.

On the points made by my hon. Friend the Member for Cleethorpes about open access, I too want to see more open access where it benefits passengers and taxpayers, with a more level playing field in track charging. As part of rail reform, we want more competition to drive up quality and choice. We look forward to working with existing open access operators, as well as new entrants to the market such as Grand Union Trains, which will shortly introduce new services between London and Carmarthen, to maximise benefits for passengers. Legislation is needed to take forward some of the structural elements of reform, but we will ensure that customers feel the benefits as soon as possible, ahead of the introduction of such legislation.

My hon. Friend mentioned the Luxembourg rail protocol. The Government signed it in 2016 and remain committed to unlocking the benefits of greater private sector financing of rolling stock, which the protocol aims to support. The Government intend to implement the protocol, and we will continue to explore all suitable legislative opportunities to do so.

Let me turn to the point made by my hon. Friend the Member for Cleethorpes about lowering barriers to entry to create a more competitive retail market. As set out in the plan for rail, we recognise that there is a multitude of train company websites with different standards of service, which is confusing to passengers. We are looking and working closely with industry partners to review the best way to address that. Reform is not something that can be completed overnight, but delivery is well under way. We have launched national flexi-season tickets, as mentioned by my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton), and over 700,000 have been sold since launch. We have delivered on our commitment to extend single-leg pricing to the rest of the LNER network from 11 June. That delivers simpler, more flexible tickets that are better value. In March, we announced Derby as the winner of the GBR HQ competition.

The accessibility audit of all 2,572 railway stations in Great Britain is complete and work is under way to ensure that data is kept up to date and made available to the public. In response to the points on rail freight, the rail freight growth target call for evidence will be published shortly, and we remain committed to introducing a long-term rail freight growth target towards the end of this year.

The transition team at Great British Railways has analysed hundreds of responses to the first-ever long-term strategy for rail call for evidence. The plan will be published later this year. In response to the complex rules and industry processes, the Great British Railways transition team, with the support of the Office of Rail and Road, will identify and recommend such rules and what can be done.

We continue to press ahead to deliver reforms and tangible benefits, including publishing the Department’s response to the rail reform legislation consultation this summer, taking forward workforce reform, developing the new commercial model, and continuing to simplify fares and roll out pay-as-you-go ticketing, ahead of legislation. I was asked many questions about legislation in the debate; I can only say that we will deliver legislation when parliamentary time allows. Such decisions are made collectively across Government and can be confirmed only during the King’s Speech in autumn.

I heard the call from my hon. Friend the Member for Milton Keynes South (Iain Stewart), Chair of the Transport Committee; Nigel Harris is indeed an influential figure who has a lot of good ideas. With regard to the suggestion of a shadow body, I am working with my Department—I had meetings in the last week—to try to escalate and set up more of the teams, so that rather than waiting for matters to be transitioned over, they can take those matters and come up with ideas. I am not saying that our idea is exactly the same as the one put forward, but we are looking to create the very same culture. My hon. Friend is absolutely right: so much can be done without legislation, and so much is being done. Since the end of last year, I have met weekly with the team that is transitioning everything to Great British Railways to ensure that whatever can move without legislation does move. The reality is that this change project is more about getting the change delivered than, ultimately, about legislation; legislation delivers paper and powers—it does not actually deliver the change, which is what I am working on.

To the point made by my shadow, the hon. Member for Slough, it is deeply regrettable that today ASLEF has balloted its members to continue strike action. It has balloted to ask for a continuation of strikes, but it has not asked its members whether they would like to take up the fair and reasonable pay offer put forward by industry, which would take average pay from £60,000 to £65,000 for a 35-hour week. That is on the table, but it is not being put to members. We remain committed to that offer, but we ask the unions to do their part and ask their members to give their view on it. I hope that the hon. Member would join me in welcoming that stance, which could bring an end to strikes rather than seeing the unions continue to put this country and rail passengers through absolute misery.

To conclude, nationalisation is not the answer. We need simplification and modernisation. I agree with my hon. Friend the Member for Cleethorpes: privatisation has been a success story. The new model will take the very best of the private sector—innovation, an unrelenting focus on quality and outstanding customer service—and fuse it with a single guiding mind to drive benefits and efficiencies across the system as a whole. I look forward to working with all my colleagues across the House to make this reform work.

East West Rail: Bedford to Cambridge

Huw Merriman Excerpts

Tuesday 13th June 2023 Westminster Hall

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

It is a pleasure, Sir Mark, to serve under your chairmanship this afternoon. I thank my hon. Friend the Member for North East Bedfordshire (Richard Fuller) for securing this important debate on East West Rail from Bedford to Cambridge. I have listened carefully to his representations. As everyone in the debate has said, he makes excellent points and sets us a challenge. I am keen to work with him to address those points.

I have noted the six or seven points he raised. I will go through some this afternoon, but I will write to him on all of them. I want to work with him to ensure the project is delivered in a way that maximises benefits for members of his constituency and the country as a whole. I am well aware that, when it comes to building new railways, some are very much in favour because they benefit directly or indirectly from the delivery of that new railway. We will always call for infrastructure to be delivered before housing. This is an opportunity where that can be delivered.

Of course, there are those whose lives are directly impacted and blighted by railways, who suffer as a result of the build. I have every sympathy with them, and I am keen to work with my hon. Friend and other hon. Members to minimise that and to give as much information, clarity and frankness in the process as we can. I say that as someone whose family lives in Buckingham and is well aware of the impact of HS2. “I get it,” is what I want to say this afternoon.

Let me speak a little about the project and then go into detail as I go along. The East West Rail project will improve the UK economy, supporting ambitions for the Oxford to Cambridge region, to add £103 billion extra gross value added by 2050, securing the UK’s future as a world leader in science and technology. East West Rail will improve connectivity and ensure growth is spread across the region as a whole. The route update announcement, which was mentioned, was laid before us on 26 May, and set out the preferred route alignment between Bedford and Cambridge. That would serve new stations at Tempsford and Cambourne, and approach Cambridge from the south, enabling services to call at the new Cambridge South station and to serve the world-leading biomedical campus. As my hon. Friend the Member for South Cambridgeshire (Anthony Browne) mentioned, I was at the site a couple of weeks ago. It is absolutely fantastic; people are incredibly excited about what this railway will deliver through not just better connectivity but allowing more jobs to flow to the campus, enabling it to succeed and to take on the world’s finest. I am very excited to have been able to announce the funding.

The route update announcement is a milestone that reaffirms the Government’s commitment to the project, along with funding of £1.3 billion to deliver the first connection stage of East West Rail between Bicester and Bletchley. It is part of our national commitment to unlock transformative growth within the globally renowned Oxford-Cambridge hub of science, research and technology. It will transform connectivity for residents and businesses in addition to supporting economic growth and local housing plans. Again, I acknowledge the challenge that housing can deliver in that particular part of the country. The support from Cambridge University, biopharmaceutical companies such as AstraZeneca, Oxford University science park and local enterprise partnerships across the route demonstrates the confidence that key stakeholders and businesses have in the benefits of East West Rail.

With every project at this scale, important decisions must be made to optimise and maximise the benefits it can provide. The proposal to build new stations at Tempsford and Cambourne will enable communities to grow, provide opportunities to improve biodiversity and give people increasing access to green spaces, significantly outweighing the benefits that a St Neots station could provide. As I have stated, I recognise that the proposals will have an impact on some homes and businesses. In particular, I understand the concerns of residents immediately to the north of Bedford station.

The hon. Member for Bedford (Mohammad Yasin) mentioned a six-track rather than a four-track proposal. That is being put in place to regulate the disruptive performance on the existing Midland main line, as well as to mitigate congestion and provide options for future growth. It is an example of where we are building for the future, not just through East West Rail, but to deal with a spot of disruption that already exists. By going to the six-track proposal, we will deliver better infrastructure and a better service on both of those lines, though I do recognise that it has more of an impact on residents.

For local residents who are affected, East West Rail Company has launched a need to sell scheme, designed to support residents who have a compelling need to sell their property but are unable to do so other than at a substantially lower value because of the railway. On the point made by the hon. Member for Slough (Mr Dhesi) that I should meet the hon. Member for Bedford, I did that very recently. We discussed the case of one of his constituents and were able to talk about a solution. I continue to make myself available to all hon. Members on behalf of their constituents who are impacted.

East West Rail Company has also proposed to provide a new relocated station building at Bedford Midland, which will offer opportunities for local authorities to partner with East West Rail to deliver a destination station, if supported by third-party funding. Alongside that, the existing Bedford St Johns station will be relocated so that it is closer to Bedford Hospital, providing better connectivity for patients, hospital staff and visitors. Proposals for East West Rail will also mean a significant investment in the Marston Vale line between Bletchley and Bedford to provide a step change in the frequency of services.

As the House and my hon. Friend the Member for North East Bedfordshire will know, East West Rail Company is holding public information events to answer the questions that have been raised by Members on behalf of their constituents. It is also meeting with stakeholders along the line of route. I will take some of the questions that have been posed, particularly by my hon. Friend the Member for South Cambridgeshire about the design stage, and get responses to them.

A statutory consultation is planned for the first half of next year, in which the next stage of technical and operational design proposals will be presented alongside plans to mitigate any associated environmental impacts. East West Rail Company has committed to delivering a 10% biodiversity net gain across the entire project, and traction options such as full electrification along the whole line of route are currently being reviewed.

Phase 1, which goes from Oxford over to Bletchley, is a mix of an existing line and one that once was a railway line. Phase 2, from Bletchley to Bedford, is an existing line. In that sense, electrification is a more difficult challenge, because bridges and other infrastructure are already in place and would have to be significantly changed. Where we have built new bridges and infrastructure, we have done so with electrification for the future in mind, so there is that pathway available to it. Of course, we are looking toward hybrid options in future as far as trains are concerned, which would enable a better, decarbonised line of route. I know all hon. Members have mentioned that point.

The business case was also referenced. As is standard for a project of this size, a final business case will be put forward once planning consent is secured. Before then, a development consent order application will be prepared in accordance with the Planning Act 2008. East West Rail demonstrates the Government’s commitment to supporting growth and improving connectivity for people and business across the Oxford and Cambridge region.

Let me come to some of the points that were raised—my hon. Friends worked hard to raise as many as they could. The first question was, will I walk the line of route? I am not sure whether that is an invitation to walk the entire line of route or selected parts of it, but I am certainly able to say yes to the former—sorry, I should say the latter. I should get that right for Hansard. Yes, I will walk parts of the line of route so that my hon. Friend the Member for North East Bedfordshire can show me the areas that are impacted. Indeed, we did something similar when we looked at the options of coming into Cambridge from the north or going from Cambridge to the south, and I will of course do that in my hon. Friend’s constituency.

My hon. Friend mentioned the new Mayor, Tom Wootton. I met him and he laid out his arguments as to why he believes the line of route should come through the south rather than the north of Bedford. I have said I will write back to him to explain our thinking behind that and I am very happy to continue to liaise with him. We need to ensure that our case is the strongest case and cannot be rebutted, and that it is not only open and transparent but subject to challenges that will make it more robust. I am very keen to do that.

My hon. Friend also asked whether the National Audit Office will conduct an inquiry. We can consider that option. I always enjoyed working with the NAO when I was Chair of the Transport Committee; it has a lot of value to add when it comes to ensuring projects are built to time and cost. External assurance is provided by the Infrastructure and Projects Authority, whose next review is expected before the statutory consultation. It works as an external review body for the project.

My hon. Friend asked whether I will instruct East West Rail to release the maps. We can check what further information and detail can be provided. East West Rail does not yet have a detailed design for every single area, but where it has the details, it will publish them. It has done so in the Poets area of Bedford. I am very keen that we do that at the earliest opportunity to give residents and businesses impacted by the line as much clarity and detail as possible, so I will look at that point for my hon. Friend.

My hon. Friend’s fifth point was about writing to property owners about the current corridor. East West Rail has written to property owners about the route update announcement and will engage with them further in the lead-up to the statutory consultation. Again, I am committed to ensuring that more detail is provided. I will come back to my hon. Friend on all those points and the one or two that I have not addressed because I have not had the time.

The hon. Member for Cambridge (Daniel Zeichner) asked how much money has been spent on the Oxford-to-Cambridge road that was proposed and then stopped, and how many officials are still working on it. I can tell him that £28 million was spent on the development project, and there are no officials working on it right now. I hope he is impressed with that transparency and immediacy.

My hon. Friend the Member for South Cambridgeshire asked who will be responsible for producing the business case. It is East West Rail in partnership with the DFT. We will work closely with the Treasury to make sure that is properly done in the manner that one would expect. There was talk of the theory of change exercise. That methodology is validated by the Government. We have previously discussed the fact that the Green Book is not particularly good at taking into account regeneration and decarbonisation. Changes have now been made; I welcome them because they mean that transport, and certainly rail projects, score much higher. We will of course ensure that that is rigorous, and that the preparation is transparent. I note my hon. Friend’s expertise in this area from his academic background and his business work. I am keen to work with him to ensure the business case works and is in the right form. He can take that assurance.

The hon. Member for Slough visited Winslow. I did so too, and I was actually brought up a few miles away. I am a supporter of this project because when I went to the further education college in Aylesbury, I used to go over that bridge every day, and there was nothing going on underneath it. Now, as the hon. Gentleman is aware, there is a station that will be ready to be opened shortly, and off the back of that we have the housing and the school. The secondary school in Winslow closed down. I was at secondary school in Buckingham, and all the pupils had to be bussed over. That no longer has to happen, and it is the railway that has allowed that to be built. Winslow is a good example of the fact that, if we build the infrastructure, the rest follows.

I am keen to work with the hon. Member for Slough, because it is clear that he supports East West Rail and wants it delivered. I support his support, as it were. He talked about the electrification miles that have been built, but I have to correct the record. In the past 13 years, while we have been in government, 1,200 miles of railway has been electrified. In the previous 13 years, when the Labour party was in power, the figure was a paltry 63 miles. I am sure the hon. Gentleman will not wish to give me any lessons about how to electrify lines, because we are doing that.

[Mr Dhesi]

rose—

[Huw Merriman]

I know the hon. Gentleman is going to tell me that he will do a lot more in the future, but the trouble is that we only have Labour’s record to judge him on, not his future deeds. Go on, have a go.

[Mr Dhesi]

I would like to rebut what the Minister just said. I referred to what has been electrified in the past year, which is a mere 2.2 km of rail line. The Minister is right to point to the Conservative-led Governments’ record in the past 13 years, but having been Chair of the Transport Committee, he will also be aware that the previous Labour Government’s main priority was to invest tens of billions of pounds in our rolling stock to get rid of the old, inefficient trains that we inherited from the previous Conservative Government after 18 years of grinding public transport to a halt. Having got the rolling stock back up to full speed, the last decade has been a lost decade for electrification, which is what other European Governments have done. That is why I said that the Minister and the Conservative Government have been failing on electrification.

[Huw Merriman]

That was more than an intervention. The reality is—

[Mr Dhesi]

It was a reality check!

[Huw Merriman]

I am impressed with that argument, actually, that rather than electrifying lines—I am a big supporter of that, and we want to and will do more, as we have done 1,200 miles whereas, as I pointed out, in the previous 13 years Labour had done 63—there was a priority focus on rolling stock. That really is pulling the other one. We have been doing both during that whole process. If the hon. Member has been on an Azuma train, he will know full well that they have been delivered under our—

[Sir Mark Hendrick (in the Chair)]

Order. Can we stick to the subject, please?

[Huw Merriman]

Of course, Sir Mark. I am happy to do so, but the invention was so long that I thought you might give me the grace of replying to it fully. I think the point has been made.

Overall, we are committed to the project of East West Rail. The hon. Member for Cambridge set out the case that was recognised—

[Mohammad Yasin]

Will the Minister give way?

[Huw Merriman]

I will make a little more progress, then I will perhaps give way one final time.

My hon. Friend the Member for North East Bedfordshire mentioned the housing challenges in the area. I recognise that, because, having family and being brought up between Oxford and Cambridge, I see that every single time I go back. He is right to prod me on the figures. In my own constituency, we have an 85% area of outstanding natural beauty. I would like to see more development, so that we have the housing, infrastructure and resources where I am, and spread that load more equally.

I recognise the points raised by most hon. Members that the housing will potentially impact their constituencies. I appreciate that, but I will come back to the point made by the hon. Member for Cambridge. We must ensure that cities such as Oxford and Cambridge can compete not just in this country, but internationally. It is absolutely vital that the scientists, entrepreneurs and innovators there who are coming up with extraordinary cures, which will help people not just in this country but around the world, have the support to do that. At the moment, they do not have a workforce. The idea of this line is to deliver a workforce to Oxford and Cambridge, to use Milton Keynes and allow towns such as Winslow to grow further and get schools in place. In my view, it is a good example of rail delivering for the regional economy. I truly believe that it will do that but, as I say, I know the impacts and I understand them. I want to work with hon. Members across the piece on behalf of their constituents so that they feel more reassured, understand what is going on, get the detail and reassurance and, where needed, get compensation, and so that we make the project work for them as well. I will take one final intervention, then I will conclude.

[Mohammad Yasin]

The Minister mentioned a statutory consultation earlier that will take place from January next year. My constituents think that it is a tick-box exercise; they think that the decision has already been made. If the Minister wants to prove my constituents wrong, will he commit today—I made this point in my speech as well—that if the majority of people taking part in the statutory consultation go against these plans, he will ensure that he puts the proposals on hold? Let him prove my constituents wrong, if he can.

[Huw Merriman]

That is not a commitment I can give. As we know, those who tend to write back on consultations tend to be the most affected and are therefore the most troubled by the issue. That is not the way that we would run a consultation. We have of course set out a preferred line of route and the ambition that this railway can deliver, but I can give the hon. Member the assurance—I say this as a former Chair of a Select Committee—that consultations run in my Department under my name will be run properly. We will look at all the responses that come back and at where we can make improvements because residents have come up with really good ideas that will be a win for everyone. I expect to look at those closely and work with those suggestions. It will not be a tick-box exercise for as long as I am responsible for the project; I can give the hon. Member that assurance.

I will wrap up. As I stated, I encourage my hon. Friend the Member for North East Bedfordshire and his constituents to continue to use the opportunities provided through the East West Rail company’s community events and its forthcoming consultation to provide feedback on the plans. I will conclude by thanking you, Sir Mark, and all those who have spoken with passion and expertise. I give my commitment that the Department for Transport will work closely with all the MPs who are represented and have concerns. I hope to assure those who have the most striking concerns and deliver for those who believe, like me, that East West Rail can be a power for good in the region.

[Sir Mark Hendrick (in the Chair)]

I call Richard Fuller to wind up, cognisant of the fact that there is likely to be a vote at around 4 o’clock.

Oral Answers to Questions

Huw Merriman Excerpts

Thursday 8th June 2023 Commons Chamber

[Afzal Khan (Manchester, Gorton) (Lab)]

2. When he plans to make a decision on which projects will receive funding from the Access for All programme.

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

We are currently working with Network Rail to assess over 300 stations nominated for Access for All, and we aim to make a determination later in 2023 for funding beyond 2024. I hope to be in a position to announce the list of successful projects later this year, in anticipation of securing further funding in the following year.

[Afzal Khan]

I, too, associate myself with the Secretary of State’s comments about the rail crash in India.

The response from the Department for Transport has always been “later”, “soon” or “in due course”, so I ask the same simple question I have asked every rail Minister since 2017: will the hon. Gentleman come to Manchester to meet Levenshulme station users to talk about access and accessibility?

[Huw Merriman]

I have recently come back from a very positive trip to Manchester, where I met stakeholders. I have no doubt that I will be there again soon, and I would be very happy to call in on the hon. Gentleman and his campaign. We have delivered step-free access to more than 200 stations through Access for All, and we have made improvements at 1,500 other stations. I look forward to working with him and his project, which I will visit next time I am up.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

3. What contractual incentives his Department has agreed with train operating companies to encourage more people to use rail services.

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

Under the current national rail contracts, train operators earn a fee linked to their performance on addressing key passenger priorities, including punctuality, reliability, service quality and customer satisfaction, as well as revenue growth. While the new passenger service contract is developed, my Department is looking to introduce a stronger incentive for operators to grow rail patronage and revenue.

[Andrew Jones]

My hon. Friend knows my enthusiasm for open access services and the way they bring competition and innovation. That benefits customers by raising standards and therefore encourages more people to use our railways. Does he share my enthusiasm? If so, how will he be promoting open access services? May I gently remind him that I have written to him on this subject with some ideas to promote this way of driving more usage of our rail system?

[Huw Merriman]

I thank my hon. Friend for his letter, for the number of times we have met to discuss this issue and for his enthusiasm, which is shared not only by me, but by the Secretary of State. We saw the authorisation at the end of last year of Grand Union Trains to run services between London and Carmarthen, and we are committed to getting more open access operators, in order to encourage more operators to come to the market. My hon. Friend will know that during the recent rail strikes, open access operators such as Lumo were able to continue to operate. I am meeting the Office of Rail and Road, which is ultimately responsible for the rules in this area, to encourage it to grow open access.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for his response. Encouraging more people to use rail services is about accessibility, the availability of trains, and park and ride schemes, so that people can park their cars and use the trains. Like him, I am a great believer in this great United Kingdom of Great Britain and Northern Ireland, and we should always share our thoughts, discussions and ideas. Has he had any opportunity to share how he can do those things here in the UK with Translink and the Northern Ireland Assembly back home?

[Huw Merriman]

I am conscious that these matters are devolved in Northern Ireland but, as I have said before to all Members of the House, I am keen to learn from best practice and to ensure that all parts of the UK can learn from each other. It would be ideal if I could meet the hon. Gentleman so we can discuss these things and I can get his ideas, and if I could come over to visit the operators in Northern Ireland that he references and join him in that endeavour.

[Selaine Saxby (North Devon) (Con)]

4. What steps he is taking to support cycling and walking schemes.

--- Later in debate ---

[Sarah Green (Chesham and Amersham) (LD)]

5. What steps he is taking to ensure effective monitoring and oversight of HS2.

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

Comprehensive monitoring arrangements are in place for HS2, which all provide an up-to-date view of the status, challenges and opportunities facing the programme. We produce a range of public-facing updates, including the six-monthly update report to Parliament, the next iteration of which is due for publication shortly.

[Sarah Green]

A few weeks ago, my constituents woke to find a large sinkhole in a field directly above where the HS2 tunnel boring machines had been. This was predicted years ago by my constituents in evidence to this House. The Environment Agency’s response to the sinkhole appears to be little more than allowing HS2 contractors to mark their own homework, and it is the latest example of the Environment Agency’s inadequate response to questions that have been raised about HS2. It is vital that we can have faith in the organisation to undertake its statutory responsibilities. Will the Minister meet me and my constituents to hear directly about their concerns about the oversight of HS2?

[Huw Merriman]

It is certainly the case that the High Speed Rail (London – West Midlands) Act 2017 and the High Speed Rail (West Midlands – Crewe) Act 2021 specify the circumstances in which HS2 must seek the consent of the Environment Agency for construction. I know that, on this particular matter, the Environment Agency has been working with HS2 Ltd since that ground movement was discovered. I have also asked for it to be looked into. I will ensure that I get a separate report from the Environment Agency so that we have that independence, and when I have that, I will happily sit down with the hon. Lady and her constituents to take them through what has been found. She is absolutely right: we need to have independent scrutiny. I am absolutely fixed on that myself.

[Greg Smith (Buckingham) (Con)]

Two weeks ago, my constituents, the Hodges of Elm Tree farm in Steeple Claydon, discovered by accident while walking their dogs that HS2 Ltd was about to chainsaw an area of woodland on the farm that it had not paid for. There was no consultation. HS2 fenced off land that it does not own and then there were suspicious works in the middle of the night. When will my hon. Friend clamp down on this appalling, bullying behaviour from HS2 Ltd and its contractors?

[Huw Merriman]

I was very pleased to sit down very recently with my hon. Friend, people from HS2 Ltd and Buckinghamshire Council to go through some of the matters that were on his agenda. I know that this is the latest case that he has written to me about. I will look into the detail to ensure that we both have the correct facts, and the next time I am up near Steeple Claydon, which, as he knows, happens on a regular basis, we can perhaps take a look ourselves.

[Mr Speaker]

I call the shadow Minister.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I, too, convey my condolences to the families of the victims of the harrowing rail disaster in India.

The Government’s management of HS2 could hardly be worse: the budget has ballooned out of all proportion; we are already years behind on the launch of services; the merry-go-round of Ministers has created chaos; and the project at Euston station may never see the light of day. The six-monthly update to Parliament is already months late. We are none the wiser about the promised excellent alternative to the cancelled Golborne link, and we have been waiting years for the review into the best way to run HS2 to Leeds after this Government betrayed the north by scrapping the eastern leg. It appears that trickle-down economics has been replaced by trickle-down incompetence. Rather than the usual woolly ministerial responses of “coming soon to a station near you” and rather than responding to all of these failures, can the Minister answer just one simple question: when will the Leeds area study finally be published?

[Huw Merriman]

The ministerial merry-go-round goes round to a Merriman to listen to yet another long-winded effort from the hon. Gentleman, which eventually turns into a question. The reality is that we remain committed to HS2 and to line of route from London all the way up to Manchester. He talks about ballooning costs, but we have tried to look at the cost estimate and rephase HS2 as a result. He cannot have it both ways. I am committed to ensuring that the study comes out very soon; I met with my right hon. Friend the Chief Secretary to the Treasury to work on the matter and we work closely together. Our aim is to ensure that when that study comes out, it has the imagination in it to deliver properly all the ideas that we had always intended, and we will do so. We are committed to HS2 and to the investment and decarbonisation it will bring. I am sorry there has been a change of Ministers, but I can tell the hon. Gentleman that there will not be any changes any time soon.

[Matt Vickers (Stockton South) (Con)]

6. What steps he is taking to support bus services.

--- Later in debate ---

[Chris Stephens (Glasgow South West) (SNP)]

9. What recent discussions he has had with the Chancellor of the Exchequer on delivering rail service improvements.

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

The Secretary of State and the Chancellor regularly meet to discuss rail services, and between them they are delivering unprecedented investment in rail infrastructure and reform of the industry. That includes delivering High Speed 2, core Northern Powerhouse Rail and East West Rail, as confirmed by the Chancellor at the autumn statement, while investing in the existing network across the country.

[Chris Stephens]

According to reports, Great British Railways is dead in the water thanks to a Treasury that knows the cost of everything and the value of nothing. We have seen the Yorkshire leg of HS2 dumped, Northern Powerhouse Rail stripped to the bone and HS2 terminating at Old Oak Common. Does the Minister agree that his colleagues in the Treasury are the biggest threat to the rail network and public transport across these islands?

[Huw Merriman]

I do not agree at all. The Secretary of State was quite clear in his Bradshaw talk that Great British Railways would be put forward. It is being put forward, and that Bradshaw address was endorsed by the Treasury and all parts of Government. We are absolutely committed. Later today I will have a discussion with all the team involved in rail reform, as I do on a weekly basis, as we look to transition this project from the Department to Great British Railways. Legislation delivers certain parts of it, but it does not deliver the project. We are delivering the project, and we will look to deliver the legislation when time allows it.

[Martin Vickers (Cleethorpes) (Con)]

I am sure the Chancellor of the Exchequer would be delighted if rail companies, some of which take a rather lax approach to ticket inspection, ensured that passengers had a valid ticket. I can give an example. I, along with seven other members of the High Speed Rail (Crewe – Manchester) Bill Select Committee, went to Manchester on Tuesday. We paid an extortionate amount for our tickets. On the outward journey, no one inspected the tickets, nor did we pass through any barriers. If the Chancellor had more money, he could use it to improve rail services.

[Huw Merriman]

I thought my hon. Friend was about to tell us about an even more unfortunate incident, but I am glad that did not occur. We have increased the fine for those who are not using valid tickets to £100, which is reduced to £50 if it is paid on time. That increase demonstrates that we take this matter very seriously. Like him, I find it frustrating when I encounter journeys where the ticket is not checked either on the train or at barriers. I am determined to do more on that front; he is aware of that, and I encourage him to work with me as we do that.

[Mark Eastwood (Dewsbury) (Con)]

10. What steps he is taking to tackle speeding on roads.

--- Later in debate ---

[Michael Fabricant (Lichfield) (Con)]

13. What comparative assessment he has made of the service delivered by Avanti’s rail timetable (a) now and (b) at the launch of that franchise.

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

Avanti began operating in December 2019 and within 16 weeks had transitioned on to an emergency measures agreement due to the covid-19 pandemic. Since then, the service provision has adjusted to align with demand and to balance taxpayer and passenger needs. I welcome recent performance improvements, with Avanti-caused cancellations down from 13.2% in January 2023 to 1.4% for the month of April.

--- Later in debate ---

[Michael Fabricant]

Take 2. Mr Speaker, you might disagree with the Minister’s answer and say that the reliability of Avanti is still not that good. Nevertheless, my question is about services from Lichfield Trent Valley station. I wonder when services can be restored whereby we have a decent service on Sundays, particularly early Sunday evenings, both down to Euston and to the north. That used to exist before covid, but those services are no longer on the timetable.

[Huw Merriman]

Normal service resumed after a passenger crossed the line of sight in front of my hon. Friend. Anything that deprives my hon. Friend, and indeed his constituents, of the ability to get down from Lichfield is something that I will have to look at and help. I am meeting the managing director of Avanti today, as it turns out. I will raise my hon. Friend’s point and happily write back to him and do my best.

[Patrick Grady (Glasgow North) (SNP)]

ScotRail, the Caledonian Sleeper, LNER and now TransPennine Express have all been nationalised. Increasingly, that is clearly the model that will deliver the reliable train services that customers need. What steps is the Minister taking to monitor the impact of nationalisation and whether it ought to be rolled out to the other franchises?

[Huw Merriman]

The steps I am taking on monitoring are looking at being able to put those operations back to the private sector. That is our preferred model. On TransPennine trains, I had a very good meeting with the interim chief executive, and I thank him for the work he is doing to stabilise. A plan is being looked at that will be delivered by next month, I believe. We currently have a situation where 50% of drivers are not trained up. What that tells us is that we need a lot more co-operation with the unions to get our drivers trained so that they can drive trains across all routes.

[Greg Smith (Buckingham) (Con)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Stephen Hammond (Wimbledon) (Con)]

T2. As railway ridership returns to pre-pandemic levels, we need an efficient approach to railway finance. Can my hon. Friend say when he intends to reunite cost and revenue, so that that continues to drive up demand and provides an efficient method?

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

My hon. Friend is right to point out that we currently view costs as sitting with the DFT and revenue as sitting with the Treasury. This can make it harder to increase services, even when extra revenue can be assured, because costs at the DFT cannot increase. He can be assured that the Chief Secretary to the Treasury and I spoke yesterday about how we can grow services and revenues with one profit and loss statement. I am also working with the train operators to amend their contracts, so they can be the parties that take the risk and get a greater share of the reward.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

T5. Current regulations on hydrogen transport and storage are preventing world-leading renewables innovators such as the European Marine Energy Centre in Scotland from using surplus energy from tidal turbines to produce green hydrogen and export it off-island? Will the Department work with the Competition and Markets Authority to review these regulations and ensure that Scotland’s green industrial revolution is not hampered by Westminster’s regulatory dead hand?

--- Later in debate ---

[Rachel Hopkins (Luton South) (Lab)]

With Luton Town being promoted to the premier league last week, many fans will be travelling by train, including from London clubs such as Arsenal. However, as the Minister knows, Luton station is sadly not accessible for many people with mobility issues, and while he has confirmed Access for All money is forthcoming to put lifts in the station by next year, what recent conversations has he had with the Sport Minister, the right hon. Member for Pudsey (Stuart Andrew), regarding accessibility of the rail network for travelling sports fans?

[Huw Merriman]

I congratulate Luton Town. As the hon. Lady knows, my family are big supporters; they have been there through the bad times and they will be there in the good ones as well. I also thank her for showing me around Luton station. I am committed to ensuring that Access for All is delivered at that station on time; any attempts to push back will not get signed off by me. On her campaign on the leaky roof on platforms 1 and 2, which she showed me, the work will start in August and complete in early 2024—I thank her for that.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

T6. I have heard concerns from many constituents who are business users of Heathrow airport that it is now by some margin the most expensive airport in the world. Will my right hon. Friend consider looking at the regulatory model, bringing it more into line with other airports in the United Kingdom to ensure that its charges become much more competitive in future?

Rail Services: Carshalton and Wallington

Huw Merriman Excerpts

Wednesday 26th April 2023 Westminster Hall

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

It is a pleasure to serve under your chairship, Dame Maria. I thank my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) for securing this important debate on rail services in his constituency. He is right that, at every opportunity since I was appointed six months ago, he has got hold of me to champion the rights of his constituents. As he says, he is a constituency Member who has a lot of constituents who rely on rail. I am keen to work with him to make their service better.

I will start by setting the context, and talking about covid and changing demand. I am conscious that over the months, my predecessors and I have talked about the challenges, but I want to be more optimistic about the future for rail. I believe it has a great future. Over the past few months, there have been encouraging signs that passengers’ confidence in our railway is beginning to be restored. Nationally, passenger numbers show signs of improvement, and have come close on several occasions to levels seen in equivalent weeks in 2019. There has also been some improvement in the revenue generated across the industry; in some weeks, it averages around 90% of what was generated in that week in 2019.

I believe there is a great future for rail. It is the greener way to travel, and we have a railway heritage. The great people who work on it deserve our support and thanks. I am keen to entice as many people as possible back on to the network, so that we can continue to improve it. However, the pandemic has caused unprecedented change in passenger travel habits. Many people now adopt a hybrid approach, working from home some days of the week, and travelling at different times of the day to avoid the peaks. That means it is quite difficult to make like-for-like comparisons with 2019.

In the light of that, my Department has been working with operators to ensure that they provide rail services that respond to new passenger travel patterns, are fit for the future, and carefully balance cost, capacity and performance. As has often been remarked, the Government have earmarked £16 billion of funding for rail services since the start of the pandemic. That is money from the taxpayer. That is clearly unsustainable in the long term. I am sure you would agree, Dame Maria, that it is unfair to expect taxpayers to subsidise services that continue to exceed demand, and on which there are empty spaces, considering all the costs that over-provision would entail. We must ensure that services are balanced to meet the challenges.

In the constituency of my hon. Friend the Member for Carshalton and Wallington, off-peak and peak passenger use remains below pre-pandemic levels. The September 2022 timetable change saw the Monday to Friday off-peak and weekend service from Carshalton to London Victoria via Mitcham Junction reduced from four trains per hour to two. Those changes were made in response to our requirement for operators to balance capacity and demand. The weekday peak service remained at four trains per hour. There are no timetable changes in May 2023, but the Epsom to London Bridge route via Carshalton Beeches and Wallington service will now predominantly run as a four or five-carriage formation off-peak on weekdays and weekends, reflecting demand. Weekday peak services will continue to operate with eight or 10 carriages, to meet higher demand.

Let me turn to the performance of the operator. After some significant challenges in December, which were associated with continued driver availability constraints and high levels of annual leave, I am pleased to see that cancellations have reduced significantly this year, especially in recent periods. GTR retains a considerable focus on continuing that improving trend and delivering the reliability that customers expect and deserve. My Department is working closely with GTR, and as my hon. Friend might expect, closely monitors levels of short-notice cancellations and service delays. Any decrease in performance in those areas can negatively impact the management fee that the train operator receives.

My hon. Friend rightly expects closer working between the operator and Network Rail. GTR and Network Rail collaborate on plans for future investment, maintenance and operation of the railway in the area. Indeed, since I have been appointed, I have insisted on having meetings with both Network Rail’s regional director and the head of the train operator, so that I can hear about their integration at first hand. The Department actively encourages closer working to improve the overall experience for passengers.

My hon. Friend rightly asked about infrastructure upgrades, including the Brighton main line upgrade programme. Of course, I understand the desire for an update on the Croydon area remodelling scheme, which seeks to address capacity constraints in the Croydon area. As he will be aware, following the autumn statement and the more recent Budget, we are reviewing the rail network enhancements pipeline, which is our programme for investment in future rail. In the economic context, it is more important than ever that the enhancement schemes that we take forward are affordable, and respond to the changes in demand for travel that I described. We are taking the proper time to ensure that schemes in the portfolio reflect those priorities. We will make the outcome public once the work is complete, thereby confirming the status of schemes across England and Wales, including the Croydon area remodelling scheme, so I ask my hon. Friend to give us a little more time before we update him.

My hon. Friend also asked about digital signalling, which I am very excited about. A programme is being rolled out on the London North Eastern Railway, on the east coast. I have seen the work that has been undertaken, and have worked alongside those who are delivering it. The efficiencies that it will bring are incredibly exciting. Network Rail is considering conversion to digital signalling on the Brighton main line as part of its renewals process for control period 7; I will bring him further news on that front as and when we have it.

My hon. Friend rightly talks about how we can help those with mobility issues to access the railway. We want a railway network that provides disabled people with improved opportunities for work and leisure travel. Indeed, we want to help all those who struggle to get on the railway, including parents with children in buggies, so that the railway, rather than the car, is a choice for them. The Department is very proud to support the Access for All programme, which has provided step-free accessible routes at over 220 stations, and smaller-scale access improvements at 1,500 more stations. All available Access for All funding has been allocated to projects until March 2024, but we are assessing over 300 nominations with Network Rail for stations for future awards. I am pleased to say that those include a nomination for Carshalton Beeches station, in anticipation of further funding becoming available beyond 2024. I expect to make an announcement regarding successful schemes later this year. I hope that my hon. Friend will bear with us as we assess his scheme, and I wish him well in that regard.

With respect to the larger-than-usual gap between the platform and the front of the train at Hackbridge station, which my hon. Friend mentioned, I can report that Network Rail is actively considering a full renewal of the platform, which would come in a few years hence. That would reduce the gap. I hope to bring him more news, and I thank him for bringing that to our attention. I can assure him that we are looking at the issue with Network Rail.

Finally—this is not in the rail portfolio, but it is right for me to respond for the Department for Transport—my hon. Friend made his views on the ULEZ expansion clearly known. I thank him for bringing the matter to Parliament and to the attention of the Government. All I would say is that if I were Mayor of London, which would be unlikely given that I am an East Sussex MP, I would not expand the ultra low emission zone, particularly given the financial impact on drivers and visitors to London, as my hon. Friend said. I will continue to use my role to work with him, and across Government, to ensure that the Mayor of London is held accountable for any decision that he makes. I am aware, as I know many Londoners and many people just outside London are—I am one of them, as I have mentioned—that cash barriers around London will have an impact on London as a whole and businesses in London. My hon. Friend makes the point well.

I hope that my hon. Friend has been reassured by the information that I have been able to give him, and that he can see the Government’s ambition to improve journeys for passengers and create a better, more modern railway industry that delivers good value for money. He is a real champion for his constituents, so I am sure that he will continue to engage with me, stop me to talk to me at every opportunity, and hold further debates. I thank him for this debate.

Question put and agreed to.

Oral Answers to Questions

Huw Merriman Excerpts

Thursday 20th April 2023 Commons Chamber

[Dan Jarvis (Barnsley Central) (Lab)]

8. What steps his Department is taking to help deliver major rail infrastructure improvements in the north of England.

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

We remain committed to delivering the integrated rail plan, which, as the Chancellor confirmed in the autumn statement, includes HS2 and delivering the Northern Powerhouse Rail core network. We are also delivering on the multibillion-pound TransPennine route upgrade between Manchester, Huddersfield, Leeds and York, which represents a bigger central Government commitment than Crossrail in London.

[Dan Jarvis]

The Department set up the Northern Transport Acceleration Council to put rocket boosters on rail upgrades in the north, but three years on we are no closer to high-speed rail services between Sheffield and Leeds, there are no more trains on the Hope Valley line and NTAC has not met in full since May 2022. Does the Minister think that the appropriate governance arrangements are in place to enable effective decision making?

[Huw Merriman]

Yes, I do. The delivery speaks for itself in terms of what is being done. In recent months, I have been up to visit the team on the TransPennine route upgrade. With 76 miles of rail line, 23 stations, 6 miles of tunnels and 285 bridges or viaducts being upgraded, it is a vast engineering project. From next year, electric trains will be able to run between Manchester Victoria and Stalybridge. I remind the hon. Member that there was a grand total of nine miles of electrification under the last Labour Government in 13 years. We are also delivering the Northumberland line, HS2 all the way to Manchester and various other projects. It is about delivery rather than talking.

[Wendy Morton (Aldridge-Brownhills) (Con)]

When it comes to rail infrastructure improvements, the opening of a train station in Aldridge would be a huge boost, providing connectivity to the north of England and beyond. We are currently working on a business case. As soon as that comes forward, can we expect a speedy response from the Minister?

[Huw Merriman]

My right hon. Friend has met me to champion the cause of the new station at Aldridge. I can give her an assurance that as soon as that business case comes through, we will make a very fast decision. I will continue to work with her and Mayor Andy Street in delivering more improvements for her constituents.

[Helen Morgan (North Shropshire) (LD)]

I am proud to support an application to reconnect Oswestry with Gobowen in my constituency, using an existing railway line that has been closed for a number of years, and we submitted an excellent bid in September. Can the Minister update me about when we will hear the outcome and, ideally, whether he will be supporting the bid to restore the connection between Oswestry and Gobowen?

[Huw Merriman]

The restoring your railway programme is delivering on eight lines, and another 32 lines have business cases or are at other stages of progress. I am happy to write to the hon. Lady and provide detail about the specific project she mentions, but in my view the restoring your railway programme has been a great success.

[Sara Britcliffe (Hyndburn) (Con)]

We have some vital projects going on across the north and in Hyndburn and Haslingden, such as the improvements at Accrington rail station; Lancaster County Council’s levelling-up fund bid, which—apologies, Mr Speaker—is focused solely on east Lancashire; and the bus service improvement plan. But other schemes are needed, such as Access for All at Oswaldtwistle and Church, work at Rishton station and the reopening of the Rawtenstall-to-Manchester line. Will the Minister meet me to discuss those projects? Will he visit Hyndburn and Haslingden to see why they are desperately needed?

[Huw Merriman]

I should be delighted to visit. Taking a leaf out of Michael Portillo’s book, I am hoping to do my own great British railway journeys over the summer. I very much hope to meet my hon. Friend while doing so. Since 2006, Access for All has delivered step-free access to 220 stations. The programme has been a great success, and I am pleased to say that the stations that my hon. Friend mentions are within the portfolio of the 300 stations that we are currently assessing.

[Mr Speaker]

You will need better coloured trousers if you are doing that.

--- Later in debate ---

[Jane Hunt (Loughborough) (Con)]

T6. Barrow and Sileby train stations in my constituency are currently in need of vital improvements to make them more accessible to passengers. Can the Minister please provide me with an update on when the Access for All scheme will reopen for applications and whether there are any other pots of funding available for accessibility improvements in the meantime?

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

The Department commissioned station nominations for Access for All in May of last year and is currently assessing more than 300 stations that were put forward. They include Barrow-upon-Soar and Sileby. I hope to be in a position later this year to announce the successful projects.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

If the Minister’s Portillo-style tour of the railways takes him north of the border, will he reflect on the eye-watering track access charges paid by ScotRail and the eye-watering disruption caused to ScotRail services by problems with that track? Is it not just common sense that train tracks as well as train services should be fully devolved to Scotland?

--- Later in debate ---

[Jeff Smith (Manchester, Withington) (Lab)]

In February and March, nearly a quarter of TransPennine Express services were cancelled, continuing a pattern that has been going on for more than a year. In the north, our economy and our residents are suffering as a result of TransPennine’s failures. Surely there cannot be any question of rewarding those failures with a contract extension.

[Huw Merriman]

Every week I review the figures and performance related to TransPennine Express. It has been said before that those figures are not good enough; there has been some improvement, but they are still not good enough. As the Prime Minister and my right hon. Friend the Secretary of State have informed the House, the contract expires on 28 May 2023. We have made clear that all options are on the table and a decision will be announced in the House shortly.

[Rob Roberts (Delyn) (Ind)]

Recommendation 7 of Sir Peter Hendy’s Union connectivity review says that the north Wales main line should get good connectivity with HS2 and electrification. Given that the massive white elephant of HS2 no longer comes anywhere near north Wales, can the Minister confirm that at least the Government will be proceeding with the electrification of the north Wales main line and give us an idea of when that might happen?

Small Businesses in Railway Arches

Huw Merriman Excerpts

Wednesday 22nd March 2023 Commons Chamber

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

It is a pleasure to serve under you in the Chair again, Madam Deputy Speaker, and I congratulate the hon. Member for Dulwich and West Norwood (Helen Hayes) on securing this debate on small businesses in railway arches. As she has said, small businesses are the lifeblood of the UK economy, providing jobs and driving innovation. I am pleased that the railway supports those businesses through high-quality accommodation in railway arches. In the hon. Member’s constituency alone, there are 300 arches in use by businesses, ranging—as she has mentioned—from mechanics to retail and food. I would just like to add that I am very sorry indeed that her constituents—the mechanics she mentioned—are not able to be here due to the timing of the debate. I am sure they will be able to watch and see that they have been well represented by the hon. Member, and I hope they will note my response with interest.

To help improve the state of the railway arches and fund improvements to the railway, Network Rail sold leases for many of its railway arches to the Arch Company Ltd —or Arch Co, as I will refer to it. As part of that sale, Network Rail sold over 5,000 properties on 150-year leases, generating over £1.4 billion, which was invested back into the railway. As the hon. Member for Dulwich and West Norwood has set out, running a business in a railway arch is not always plain sailing, and I am aware of some issues that have occurred in her constituency that Network Rail has engaged with her on.

While arches offer businesses access to affordable property in prime locations, they remain part of the railway. Network Rail will sometimes require access to undertake safety-critical maintenance work. Network Rail is aware of the need to balance the safe and efficient operation of the railway against the needs of Arch Co’s tenants. To help businesses remain trading, Network Rail tries to examine vacant arches, working closely with Arch Co to understand vacancies and planned refurbishment programmes. On occasion, access will be required to undertake safety-critical arch examinations in tenanted arches. Network Rail works with Arch Co and its tenants to undertake examinations at times that will be less disruptive to the individual businesses, including trying to work outside of business hours and working around tenants’ fixtures and fittings.

Since it acquired the leases, Arch Co has been engaged in what it calls Project 1000—its plan to invest £200 million to bring 1,000 empty and derelict spaces into use by 2030. Arch Co plans to create space for 1,000 businesses, supporting approximately 5,000 jobs in urban areas in England and Wales, including major works in London, Manchester and Leeds.

Network Rail has worked closely with Arch Co to agree standardised designs that streamline landlord consent processes and minimise risk to the railway. This has allowed Arch Co to accelerate its enhancement programme and support its tenants in the arches to evolve and meet current market demand. Network Rail prioritises the undertaking of arch examinations during the refurbishment process to minimise disruption and enable tenants to maximise trading periods between examinations.

I know that the hon. Member has campaigned for the protection of those owning businesses in the arches. Network Rail seeks to support businesses that are disrupted by its works. It will cover rent payments for the period of disruption and will look to return arches in an improved condition. Further support from Network Rail to cover additional costs incurred by tenants is considered on a case-by-case basis.

While Network Rail and Arch Co work hard to ensure that businesses can return to their arches, there are exceptional occasions when businesses may have to leave permanently. No tenants have been permanently removed from the arches since February 2019, and any tenant facing removal would be entitled to a statutory compensation element, depending on the terms of their lease. Where possible, Network Rail will work with Arch Co to identify suitable alternative accommodation within either Network Rail’s or Arch Co’s portfolio. To support effective business planning for tenants of arches, Network Rail access is subject to a minimum of either 60 business days’ or six months’ notice, dependent on the nature of the access. Network Rail and Arch Co try to give more than the minimum notice period, and the 12-month forward rolling plan for arch examinations and specific communications plans is much more the case for larger projects. In emergency circumstances, Network Rail has the right to immediate access where prior notification is not possible. Network Rail liaises with the businesses and Arch Co to keep them updated in such circumstances.

When Network Rail transferred its leases to Arch Co, rent arrangements, protections and notice periods were transferred unchanged. That included all provision for rent reviews, with any increases tied either to market level or the retail price index. Before and since the transfer of the arches to Arch Co, many neighbourhoods where railway arches are situated saw dramatic regeneration, increasing the value of properties. Even during this time, very large increases in rent have been an exception. I note the points made by the hon. Member, but with the arches having been transferred from Network Rail to Arch Co, some of the matters she has raised are a matter for Arch Co.

To support those whose leases were transferring, Network Rail and Arch Co worked with tenants to develop a tenants charter, which commits Arch Co to being an accessible and responsible landlord, providing environments to help its customers to thrive, working with its customers and creating positive social and economic impact. If the hon. Member feels that that tenants charter has not been accorded to, I will of course look at the requirements on Network Rail from that tenants charter to assist her and her constituents.

The hon. Member also referred to Atlantic Road. I have positive memories of the time I spent working in Brixton. I spent five years as a youth centre staff manager and trustee for two youth centres on Coldharbour Lane, and I used to walk past the arches that she talked about. I want to see for myself—not just for those reasons—the issues that she talked about on Atlantic Road. I would be pleased to join her in her constituency, meeting her constituents and business owners on Atlantic Road so that I can see and hear for myself.

In conclusion, I thank the hon. Member for securing this debate. It has raised a number of key issues that show how important it is that small businesses in the UK have access to safe, reliable and affordable premises. Railway arches represent an excellent opportunity for those businesses to get affordable premises in prime locations, and I hope I have demonstrated Network Rail’s commitment to work alongside tenants where access is required. I hope I can find out more when I join the hon. Member, if she will have me, in her constituency to see for myself.

Question put and agreed to.

HS2 Ltd and Local Community Relations

Huw Merriman Excerpts

Thursday 16th March 2023 Commons Chamber

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

I thank my hon. Friend the Member for Meriden (Saqib Bhatti) for securing this debate and my hon. Friend the Member for Stone (Sir William Cash) for his contribution.

I grew up in a part of the country where both HS2 and East West Rail are under construction, and indeed, I shall be in that town this weekend again. I therefore fully recognise the change and upheaval that HS2 can bring to the communities that it passes through, represented by my hon. Friends and by Members across the House. As construction approaches its peak, so too does the level of disruption, and I appreciate that road closures, lorry movements and noise are now a lived reality for many people. I want to see HS2 Ltd leave a positive legacy for communities. Communities should be appropriately consulted, responded to efficiently and objectively, involved in plans and informed about the works affecting them.

When things go wrong, which happens from time to time, efforts should be made to learn from mistakes and come back with better solutions. My hon. Friend the Member for Meriden mentioned his constituents Mr Stephen Fletcher and Mr Iain Smith. I will write to him and ensure that the matter is investigated. Where matters need to be dealt with in their favour, we will do just that.

Perhaps I may focus on the two matters that were brought up with regard to fixed structures, and indeed the roads. First, I recognise my hon. Friend’s concern about the design of the Balsall Common viaduct and the process that HS2 Ltd has gone through to develop it. As I said in my letter to him, which he referenced, I am keen to ensure that the process of engaging local communities in the design of the project’s key elements, such as the viaduct, is working well. I am aware that HS2 Ltd has held a number of well-attended engagement events and briefings with local people and their representatives as the design has progressed over the year. Although I am assured by HS2 Ltd that the viaduct has been carefully designed to reflect its environmental context and position, I have also heard—as the House has heard from my hon. Friend—that the engagement feels like an explaining rather than a listening event.

I am keen to put on the record that good community ideas and suggestions must be heard and worked upon. That is not only good to ensure that the community receives the legacy that they want, but it is polite. It is important to note that the options considered as part of the design process are constrained by certain factors, such as the structural performance requirements of a high-speed railway. My hon. Friend has made unfavourable comparisons with the design of another HS2 viaduct further south in Colne Valley, which I visited some weeks back. HS2 Ltd stresses that it is a different type of structure in a different context. However, like me, HS2 Ltd will have heard my hon. Friend’s call for the viaduct to fit with the local area and character. The schedule 17 application for the design of the Balsall Common viaduct was submitted in January, and the decision currently rests with Solihull Metropolitan Borough Council. I will await its decision with interest, as I know will my hon. Friend.

Let me turn to the matters raised on Waste Lane and Kelsey Lane and the appeals. I note my hon. Friend’s concerns about the use of lorry routes in Balsall Common. The inspector has made a recommendation to Ministers on the appeal, and the issue is now being considered by Ministers in my Department and in the Department for Levelling Up, Housing and Communities. We anticipate a decision in the coming weeks. In the meantime, my hon. Friend will understand that it would not be appropriate for me to comment on the case, although I can say that the House has heard his views on the appropriateness of Waste Lane and Kelsey Lane.

Turning to community engagement concerns, including the matters referenced by my hon. Friend the Member for Stone, the Department takes the monitoring of HS2 construction seriously. HS2 Ltd and its contractors are held to account by the independent construction commissioner, the HS2 residents commissioner and the Department for Transport’s team of independent construction inspectors. I met the HS2 construction commissioner in February, and the residents commissioner before that, to discuss current issues affecting communities and to better understand how HS2 Ltd and its contractors are responding to those challenges. Regular reporting is just one of the ways in which we monitor and proactively assure not just the cost and efficiency of the project, but how HS2 is being delivered. HS2 Ltd and its contractors are rightly required to comply with exacting environmental requirements, including a comprehensive code of construction practice, which specifies measures to minimise the full range of impacts that any construction project has on affected people and communities, as well as all the undertakings, assurance and environmental commitments contained in the HS2 Acts.

Effective communication with affected parties is also crucial. I thank my hon. Friends the Members for Meriden and for Stone for giving examples of when we do not always get it right but we need to do so. I am committed to making sure that issues are resolved as quickly as possible and lessons are learned for the future.

My hon. Friend the Member for Stone delivered a litany of concerns on behalf of his constituents. He has asked for a rocket to be delivered. I am not sure I will be arriving in his constituency in a rocket, but I will come. He has asked me to see whether these matters can be rectified. I know, working in partnership with him, that we have every chance of doing a better job, if he feels that job is not being done at the moment. I look forward to visiting him and his constituents.

To conclude, I will continue to work as Rail Minister with hon. and right hon. Members and others in the community on making sure that we get the delivery of infrastructure projects right. I want HS2 to be an example to other transport projects, not just in what it delivers, but in the way it is delivered, and I recognise that that means making improvements, learning from experience and changing how we operate in order to become better, and I am committed to HS2 Ltd doing that. Limiting construction impacts in the first place should be a primary concern for all working on HS2, but so should treating people and places with the respect they deserve and ensuring that any impacts are mitigated or avoided when not required.

I thank my hon. Friends the Members for Meriden and for Stone for this debate. It is vital that we continue to discuss our transport projects openly and transparently and that all hon. and right hon. Members use this Chamber to press me to ensure that their constituents are represented, as has happened here today.

Question put and agreed to.