HS2 Cancellation and Network North

Liz Saville Roberts Excerpts

Wednesday 17th January 2024 Westminster Hall

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Diolch yn fawr iawn, Cadeirydd; it is a pleasure to serve under your chairmanship, Mr Davies.

I congratulate the hon. Member for Stoke-on-Trent South (Jack Brereton) on securing this debate. He mentioned the slogan “gain or pain”. The slogan for HS2 in Wales has become “The great Welsh train robbery”: it is a rip-off. It will be interesting to see what the scrapping of the Manchester leg of HS2 means for Wales. Scotland and Northern Ireland will continue to receive billions of pounds in Barnett consequentials from the remnant of the HS2 project from London to the English midlands; Wales, of course, will not see a single penny in direct consequentials from this project.

We recently heard the HS2 executive chair’s jaw-dropping admission that the cost of HS2 has ballooned to £66 billion. That means that Wales is now losing out on £3.9 billion in much-needed funds. I ask the Minister directly to outline why he thinks there is any argument for cross-UK equality while Wales is short-changed to the tune of £3.9 billion. What reasons can he give for not treating Wales in the same way as Scotland and Northern Ireland? Just think what £4 billion could do for Wales’s transport infrastructure, particularly in rural areas where bus services have been run into the ground for years.

Extra funding within Wales, managed within Wales, would not just benefit passenger services but allow us to develop freight opportunities, which would in turn strengthen our economy—just as the original railways did in 1804, with Richard Trevithick’s pioneering locomotive in Merthyr Tydfil and the slate exports from my own county of Gwynedd.

There is also the matter of the £36 billion that has been reallocated from the scrapped phase 2 of HS2 to Network North projects. Again, there is no clear indication whether Wales will receive full Barnett consequentials for money that is spent on services in England through Network North. There can be no excuse for denying Wales full funding on those. Will the Minister outline exactly what compatibility factors and quantum of consequential funding Wales will receive from English Network North projects?

The Government promised, with great fanfare, to pursue the electrification of the north Wales main line, yet the current £1 billion pledge is, at the very least, 50% below what is now estimated to be needed. The figure is based on a business case made nearly 10 years ago; costs now are likely to be north of £1.5 billion.

I ask Opposition Front Benchers whether they are content with Welsh rail being permanently underfunded in this way. If they form the next Government, will they commit to fixing this broken funding mechanism? Do they accept the principle that HS2 is an England-only project, and that Wales is owed full consequential funding? The Welsh Labour Government already do, and there is cross-party agreement on this in the Senedd. Will Opposition Front Benchers here be at odds with their colleagues in Wales?

The billions owed to Wales could be invested to reverse some of the savage cuts made to bus services, which of course also result from Westminster austerity. Over the past 15 years, rural bus services in Wales and England dropped by 52%. In my county of Gwynedd, bus service frequency has dropped dramatically, with change in service frequency measured in trips per hours between 2010 and 2023 dropping by 50.5%. The Confederation of Passenger Transport has estimated that a further 15% to 25% of all bus routes in Wales will be at risk of cuts or significant amendment over the coming year.

It is clear that the UK Government’s boastful rhetoric on transport funding is at odds with people’s real life experiences in our communities. The Government must match their rhetoric with action and commit to full funding from HS2 to Wales.

--- Later in debate ---

[Huw Merriman]

I am not going to give way because I am going to come to the hon. Lady shortly. I want to refer to the points that my hon. Friend the Member for Stoke-on-Trent South raised on the local causes. He said that he is delighted with the decision on Meir station—I was delighted to join him up at Meir to see the site— and since then, he has been really successful in his campaign. That project aims to provide a new station in the town of Meir on the existing Crewe-Derby line, and it was awarded initial funding to develop a strategic outline business case as part of the first round of the restoring your railway ideas fund. The full business case is expected to be submitted in July of this year, and decisions on further funding for the project will be made within the context of the broader programme. As he knows, his station is mentioned in Network North; we are committed to it.

My hon. Friend mentioned Stoke and Leek, and a bid to reinstate the railway line between Stoke-on-Trent and Leek has been made to the restoring your railway programme. The proposal examines the potential for six intermediate stations on the route, and the Network North announcement included the intention to progress the Stoke-Leek restore your railway scheme to delivery. I am grateful to him for all his work on that.

Longton station is another that I visited with my hon. Friend. That original station project includes public realm, cycle hub, waiting shelters and accessibility improvements. The council has faced a number of challenges in relation to cost pressures, delays and technical issues. The estimated cost of the Longton project is now forecast at £3.5 million to £4 million, compared to £1.1 million at the time the funding was awarded. We are committed to working with Stoke-on-Trent City Council—Network Rail has entered into a development services agreement, and the council has indicated that the project is forecast to complete by September 2025. On junction 15, which my hon. Friend mentioned, improvements are being developed and delivery would be on a similar timeline as improvements to the A50. Those are all subject to a supportive business case.

On a point mentioned by my hon. Friend the Member for Lichfield (Michael Fabricant), I can assure him and my hon. Friend the Member for Stoke-on-Trent South that HS2 will be delivered with a branch to Handsacre near Lichfield. In the absence of phase 2a, Handsacre remains the only connection between the high-speed infrastructure and conventional rail. I can confirm that work is being undertaken to assess the options to enhance the railway in the Handsacre area, to support train services and capacity, making use of the £500 million set aside in Network North. I can give my hon. Friend the Member for Lichfield that reassurance, which he can pass on to our fantastic Mayor of the West Midlands, Andy Street.

I will turn to the other contributions—none from Labour MPs because they did not make any. I will start with my right hon. Friend the Member for Suffolk Coastal (Dr Coffey) and thank her for again championing the Ely and Haughley capacity enhancement project. That will increase freight trains from 36 to 42 trains a day from the port of Felixstowe, allowing trains to go into the midlands, rather than further south. Network North has confirmed its support. It is a project that I have long championed but we have been unable to put on the list due to HS2 spend. Because of this decision, we now can. The next steps are for a full business case, and we are engaging with the Treasury. I take my right hon. Friend’s point about getting back the Network Rail team on the Haughley preparation work project. That is something that we are looking at in the Department, and I thank her for her points.

I will turn to other contributions. My hon. Friend the Member for Lichfield, in addition to his other intervention, referred to funding for the cross-city line. Perhaps I can point him towards the city region sustainable transport settlements and the local integrated transport settlements, which are two funds from Network North. As well as the list of projects we have committed to deliver, we are also committed to deliver money on a devolved basis, so that local transport authorities can determine on which projects they want to spend their money.

For example, an extra £1 billion has been put into the city region sustainable transport settlements fund for the west midlands, which takes it up to £2.64 billion, allowing the west midlands to make its own choices, because there is devolution within this programme. My hon. Friend the Member for Stone (Sir William Cash) mentioned the case for new stations, showing their business case worth. He is absolutely right regarding Stone, and we hope that will be the case for Meir. I also want to thank him for his work with Trevor Parkin, and for the time he took to drive me through his constituency, so that I could see the impacts that he talked about.

My right hon. Friend the Member for South Staffordshire (Sir Gavin Williamson) asked me to go away—in the most polite terms, I am sure—and assess the west coast main line timetable. I am happy to do so and will write to him. I hear his call for more pothole funding for his roads. Every hon. Member will have seen money given to them for pothole funding. It is essential that it is spent well, and I hear his call that more should be spent.

I now come to the contribution from the hon. Member for Bath (Wera Hobhouse), which I found extraordinary. She made the case for HS2, and, of course, I agree. That is why we are delivering 140 miles of it. I find it extraordinary that I was delivering leaflets in Chesham and Amersham for the Conservative party, talking up the project on similar lines to hers, yet the entire Liberal Democrat campaign in Chesham and Amersham was to run down HS2 and call for it to be cancelled. I have no issue with individual Members campaigning against HS2 because they always have done, but for a party in a by-election to focus its entire campaign on cancelling a project only to then stand here and talk it up—sorry, only a Liberal Democrat could do that.

The leader of Plaid Cymru asked what HS2 does for Wales. The reality is that it was always an England and Wales project, which is why with Network North we are allocating £1 billion to the electrification—

[Liz Saville Roberts]

Will the Minister give way?

[Huw Merriman]

I will not give way. We are allocating £1 billion to electrification in north Wales, and we will now further that business case.

I will give my hon. Friend the Member for Aylesbury (Rob Butler) the assurance he sought. We spoke about the two road projects, and I will take that back for consideration. He has my commitment. I drove through Aylesbury last Saturday, and he knows I know it well.

I am also looking forward to visiting my hon. Friend the Member for Leigh (James Grundy) next week.

We have a plan and we know what the plan is, though people may disagree with it. My challenge to the Labour party is: what is its plan? Will it go ahead with HS2? If not, will it commit to some of these amazing projects across the country that the HS2 funding will deliver?