King’s Speech Debate

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Department: HM Treasury
Monday 13th November 2023

(11 months, 3 weeks ago)

Lords Chamber
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Lord Faulkner of Worcester Portrait Lord Faulkner of Worcester (Lab)
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My Lords, I will speak about Britain’s railways and in doing so remind the House of my interests as chair of the Great Western Railway stakeholder advisory board, president of the Heritage Railway Association and co-author of three books on railways and politics which attracted favourable reviews from Members of your Lordships’ House, two of whom I am happy to see in their place this evening.

It is now well over five years and four Secretaries of State since Keith Williams was asked by the Government to conduct a rail review. He came up with a set of practical proposals which formed the basis of a White Paper in May 2021. It had the makings of a cross-party consensus which could survive a change of government. A transition team was set up and much work was done and expense incurred in preparing for fundamental changes on the railways, which were necessary because the franchising model was broken.

We were repeatedly promised legislation “when parliamentary time permits” to give statutory backing to the central proposal to establish a new body—Great British Railways—to provide a guiding mind over the railways’ various operations. Given how light on legislation is the gracious Speech, there would have been ample opportunity to introduce a short and largely uncontentious Bill in this final Session; or to pick up the suggestion I put to the Government on 12 July that the powers given by the Deregulation and Contracting Out Act 1994 would have allowed the Secretary of State, by means of a statutory instrument, to delegate some or all of his franchising powers and get Great British Railways up and running. But these opportunities have been lost, and all we are promised is a draft Bill. Failure to get GBR running means that the costs of operating the railway will continue to be higher than they need be, and the Treasury will go on strangling revenue growth, with the DfT micro-managing virtually every operational decision taken by the train operators.

Despite their best intentions, the civil servants struggling to cope with this situation frankly do not have the capability or capacity for this work. The management of the railways must return to the professional railway men and railway women whose hands have been tied by the present arrangements of annual contracts and whose expertise has been ignored for far too long.

Despite this negative background, growth and passenger demand is back. While business travel and commuting numbers are still down compared with those before Covid, leisure travel is booming and trains are full again, particularly on routes such as the east coast main line and Great Western. New figures from Hull Trains published last week showed a very strong recovery in journey levels, with 28% more people now travelling with that operator than before the pandemic.

This is good news, of course, as it is helping to reduce the need for car travel and flying, and thus is reducing the carbon footprint of these travellers. But please can we hear no more of the “war on motorists”, which I was surprised to hear the noble Lord, Lord Callanan, mention in opening the debate, and on which the noble Baroness, Lady Bennett of Manor Castle, poured scorn in her speech. We should remember that from May 1999 to July 2022, the cost of motoring fell by 19% compared with inflation, as measured by the RPI. Rail fares over the same period rose by 31%, and bus and coach fares by 102%.

Getting juggernauts off the roads should be a major priority. A reduction in lorry miles through the transfer of trunk haul to rail is necessary if our 2050 net-zero targets are to be met. Capacity is the constraint, and the abandonment of HS2 between Birmingham and Manchester is a huge setback, as it would have released train paths on the classic railway for the increase in rail freight which is required if these targets are to be met. The HS2 decision and the lack of ambition in attracting new business reminds me that we are in danger of returning to the days of the 1970s and 1980s, when the railways were told to plan for managed decline. The biggest opportunity for rail to play its full part as a sustainable part of the national transport network is therefore at risk of being delayed for many years or even lost altogether.

There is still much good will and affection towards our railways—although, sadly, not in all parts of the Government. Shortly, we will hear about the plans for the celebrations to mark the 200th anniversary of the first passenger railway, between Stockton and Darlington, which are being led by the noble Lord, Lord Hendy of Richmond Hill. This will help rekindle a national sense of pride, but it is deeply disappointing that rail did not rate a higher priority in the gracious Speech.