King’s Speech

Lord McLoughlin Excerpts

Wednesday 20th May 2026 Lords Chamber

[Lord McLoughlin (Con)]

My Lords, it is a pleasure to follow the noble Lord, Lord Bradshaw, and to acknowledge his expertise and his dedication to the rail industry. When I saw that I had been drawn to speak after him, I knew that, by the time we came to that part of the debate, we would be on the transport section. I am grateful to the noble Lord for being the first speaker to take us into transport as far as the Loyal Address is concerned.

The Government put GBR in their manifesto, so it was obviously going to happen. It is interesting to note that, since privatisation and franchising of the railways, there was a Labour Government for 14 years, who decided to stick with the system that they had inherited. I think they decided to stick with that because they knew that it was working. Prior to privatisation, there were 700 million passenger journeys a year on our railways. During the period of privatisation, that figure went up to 1.7 billion. That was pre the pandemic. We saw private investment taking in the railways. I remember when I first got elected that the last place anybody would want to spend any time was St Pancras station. It was a dump. It was awful. It lacked investment. It lacked investment because nobody was investing in the railways. If you are competing against the health service and education for public sector money, and you want to put money in the railways, guess which comes last? It is the railways. I raise my concern about that and what may well happen. I am sure that, in the new utopia that we will get as far as GBR is concerned, we will see no delays and everything will be fine in the future—well, in your dreams, and in the Government’s dreams. It is a great pity that they will not be using the expertise of getting private investment in.

As a Secretary of State for Transport, I saw the detail that was gone into when a new franchise was coming up for renegotiation, the extra services that were lobbied for by local Members of Parliament and the like. That was encouraging, and more services were provided. I worry about the conglomeration of it all as to whether we will get that sort of dedication into those individual services; I am sure it will happen.

I want also to make a reference to HS2. It disappoints me immensely that we have got ourselves into such a mess on that project. Yesterday, the Secretary of State said that she was angry. She singled out four Prime Ministers. Not surprisingly, no Prime Ministers of the Labour Party were singled out, just Conservative Prime Ministers. So I had a look at the original Command Paper that was given to Parliament in 2010. Who was it signed by? The answer is Gordon Brown and Andrew Adonis—the noble Lord, Lord Adonis, as he is now. Who started this project? The Labour Party started it.

How did we get it so wrong? How has it been possible for such an important national scheme to have gone so wrong, and been deliberate? It is not the first time railway projects have gone wrong. The Command Paper is still a relevant document, and a very good one. On page 12, it says:

“The West Coast Route Modernisation Project cost £8.9 billion”


—let us not forget that this was 2010—

“and took almost a decade. It delivered fewer benefits than originally envisaged and caused serious disruption to travellers and to business, at a significant economic and social price in addition to the cost of the project itself”.

Getting rail infrastructure right, as the Minister knows probably better than most, is not something that happens overnight. It takes time, and a commitment over a longer period.

There are other Bills in the gracious Speech. I want to give the Minister one possible quick win: when it comes to the highways finance Bill, how about a clause saying that any utility company that has traffic lights on roads over the weekend, particularly A roads, has to pay £50,000 a day to leave those traffic lights in position over that weekend? I am pretty sure that, if there was such a charge on them, they would get them down fairly quickly over those weekends and that motorists would be very pleased indeed. They are growing like mushrooms, like we have never seen before.

--- Later in debate ---

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, it is an honour to be closing today’s debate on behalf of His Majesty’s Government. I extend my thanks to His Majesty for his gracious Speech and to all noble Lords for their thoughtful contributions, except perhaps for the last one, which I shall mostly ignore.

I begin by echoing what my noble friend Lady Merron said in her admirable opening speech. She set out clearly and concisely the scope of the Government’s programme for the second Session in the areas of health, housing and transport. I am grateful to her not only for her clarity but for being a valued friend and colleague, as is the Minister for Housing, Communities and Local Government here on the Front Bench.

As my noble friend Lady Merron was in relation to health, I am immensely proud of the progress this Government have made in laying the foundations for better public services, particularly in transport. Transport and the railway have been my life’s work, so it is a privilege to be part of the biggest transformation of the railway in over 30 years. We have also enabled a quiet revolution in bus service provision through the Bus Services Act and opened real opportunity for British innovation with the Sustainable Aviation Fuel Act. I am grateful to all noble Lords for their contributions on these Acts.

I was wondering yesterday and the day before how my noble friends closing these debates would cope with so many varied contributions, and now I have to do the same. I will do my best, but I am reassured that noble Lords who have spoken with such knowledge and passion will raise all their points in the passage of the Bills that are in the King’s Speech.

Before I talk about the Bills themselves, I will address a variety of other matters raised by noble Lords today. I start with the noble Lord, Lord Butler, who spoke widely and wisely, particularly about the Civil Service. I am delighted that he commended the new Cabinet Secretary and his views on impartiality are, of course, supported. The noble Lord, Lord Kakkar, spoke about the peerage removal Bill. We will take careful note of what he said tonight and when he speaks on the Bill itself.

My noble friend Lord Jordan spoke about accidents and, while I cannot say that we will take up his argument about an approach across government, he can rest assured that individual parts of government take this subject extremely seriously. My noble friend Lady Jones of Whitchurch spoke widely about the huge desirability of industrial harmony through dialogue and partnership. I echo that and, in terms of the progress on the railway towards Great British Railways, we will pursue it, and I am pleased that she welcomed the new arrangements in social care.

The noble Baronesses, Lady Jones of Moulsecoomb and Lady Young of Old Scone, raised the absence of the environment from the subjects for debate. I cannot account for that, but this Government are very serious about this subject. Let me give three examples: the pursuit of net zero, the vigorous action by my noble friend Lady Hayman of Ullock on farming and the environment, and the pursuit of more freight by rail are all individual examples of the Government’s care about the environment in the future. I will ask my noble friend Lady Hayman to write to the noble Baroness, Lady Jones, further on that subject.

My noble friend Lady Linforth raised clean air in public spaces for kids. Again, I defer to my noble friend Lady Hayman of Ullock on that subject.

The noble Lord, Lord Robathan, made a wide-ranging speech on various subjects. He raised antisemitism, and I cannot believe that he cannot see a very strong response from this Government to the recent outrages to the Jewish community.

The noble Baroness, Lady Walmsley, spoke passionately about food standards. The Government thank her for her work in this area. I therefore hope that I have covered most of the subjects raised that do not really appear to be covered by the main subjects of this debate today.

Moving to health, this Government have already taken serious action on waiting lists. They are down by half a million and the number of people waiting less than 18 weeks for planned care is now at 65.3%, up from 59%. Ambulances responding to strokes and heart attacks are arriving 5 minutes faster compared to last year and we are meeting our manifesto commitment to recruit an additional 8,500 mental health staff, three years early. That is a foundation which we are not yet satisfied with, but it is a reasonable start.

The objectives of the NHS Bill have been debated in many contributions today. My noble friends Lady Nargund and Lady Ritchie of Downpatrick both fully supported the Bill. Others took a view that care needed to be taken about how this huge change, the abolition of NHS England, should be done—in particular, the noble Baronesses, Lady Shawcross-Wolfson and Lady Bray. We also note the important points made by the noble Lord, Lord Kakkar, on this subject. It is a large step, and this Government are committed to doing it wisely, carefully and properly.

My noble friend Lord Babudu and the noble Baroness, Lady Shawcross-Wolfson, talked about prevention, which is important and one of the principal features of the Government’s policy. The noble Lord, Lord Kamall, and the noble Baroness, Lady Watkins, talked about the connections between health and place. As it happens, the Secretary of State for Health in the other place is making a major speech on this tomorrow.

There was a lot of discussion about the single patient record, data security, careful use and comprehensiveness. The noble Baronesses, Lady Bray, Lady Tyler and Lady Walmsley, the noble Lord, Lord Patel—who was particularly helpful—and my noble friends Lady Pitkeathley and Lady Nargund all supported it. We listened with interest to the noble Lord, Lord Dodds, on the experience of Northern Ireland. My noble friend Lord Davies talked about the particular circumstances about Palantir. We are reviewing the federated data platform contract in advance of the break point. The single patient record is different: it will be supplied through contracts with multiple suppliers with no single supplier dominating. No decisions have been made about who those will be.

My noble friend Lady Donaghy and the noble Lord, Lord Black of Brentwood, talked about osteoporosis and the fracture liaison services. The Government are committed to rolling out fracture liaison services everywhere by 2030, and my noble friend Lady Merron is well prepared to respond to any new issues in that respect.

My noble friend Lord Winston talked about egg freezing. I am singularly unqualified to deal with this subject in any practical way, but my noble friend Lady Merron has listened very carefully to everything he said and has committed herself to write to him.

Similarly, the noble Lord, Lord Mott, spoke about cancer and maternity services. My noble friend Lady Merron listened to that carefully too and is acting on it already. Lastly, the noble Lord, Lord Mawson, talked about his Bromley-by-Bow experience—as a matter of coincidence, he has shown me around that very thing—and it is an obvious long-term experience for government to take an interest in.

On health and local government, the first thing to say is on the Social Housing Bill. The Government believe that everyone deserves to live in a decent, safe, secure and affordable home. The Bill will provide much- needed social housing stock, give affordable housing providers the clarity and confidence they need to build more social homes, and better protect tenants who are victims of domestic abuse by providing them with greater security and stability. The Bill delivers on the manifesto commitments to prioritise the building of new social rented homes and to better protect our existing stock.

A number of noble Lords supported the concept of the Bill, but, unsurprisingly, there was some criticism of it. I can tell the noble Baroness, Lady Eaton, that the proportion of people in rented accommodation is stable and has been since 2013-14. There has been a 3% increase in available homes in quarter 1 of 2026, and buy-to-let loans have increased by 14% in a year. Therefore it is not evident that there is a reduction. The noble Lord, Lord Bailey of Paddington, talked about stamp duty but did not explain where the £11 billion that it would cost to abolish it would come from. The Government are working with the Mayor of London on an emergency housing package to enable rapid delivery of what London needs.

The noble Lords, Lord Young of Cookham, Lord Best and Lord Truscott, and the noble Baronesses, Lady Shah and Lady Watkins, commented on various aspects of leasehold reform. I am confident that, when the Bill comes forward, they will have much to say during its passage. The Government believe the Bill is moving in the right direction to deal with what a number of noble Lords this evening have described variously, up to scandalous. The right reverend Prelate the Bishop of Chelmsford is right that people are entitled to a home and that young people are entitled to have the certainty of knowing where they are going to live. There are powerful arguments for housing reform and I hope that she is convinced that the Government will move in the right direction.

The noble Baroness, Lady Thornhill, referred to social housing. My noble friend remarked that the £39 billion that the Government have allocated to that subject will certainly help provide it. She also referred to SME builders. The £16 billion National Housing Bank, started on 1 April, includes provision for financial support and loans for SMEs in the housing market.

The noble Lord, Lord Best, spoke powerfully about all aspects of the Bills that are being brought forward. I am sure he will make valuable contributions to the discussion of them when they arrive.

I move on to the four transport Bills. The Railways Bill will deliver on the Government’s manifesto. I was enormously encouraged by hearing from the noble Lord, Lord Bradshaw, who all of us with any connection with the railways admire and respect. As somebody who was there when the railways were nationalised in 1948, he has pretty good experience of what is going on. He is right that running railways is a job for railway people. The intention of this Bill is not, as it is wrongly characterised, to give any more powers to the Secretary of State—both the Secretary of State and I want less power—because the railway deserves to be run by people who understand how to make it work better, which is what passengers want.

I have the greatest respect for the noble Lord, Lord McLoughlin. However, we are not starting from where he would like us to be but from where are at the moment. The railway needs an injection of vigour to get better reliability, drive up patronage and drive down costs. That has been seriously absent in the railway post Covid, even though it is run by allegedly vigorous private sector operators.

My noble friends Lady Dacres and Lady Wilcox talked about the benefits of transport investment. They are right that transport is not an end in itself. Transport is the means by which you create growth, jobs and homes. The noble Baroness, Lady Dacres, talked about the Bakerloo line extension to Lewisham. It is up to the Mayor of London to make the case and I know that he will do so. She talked about long-term finance. This Government have given that mayor the first long-term financial settlement for some considerable time, so that he can both spend the money better and decide where it should go.

My noble friend Lady Wilcox talked about it in terms of Wales. This Government have put over £400 million of railway investment into Wales, creating new stations in south Wales and better services in north Wales. That is an example of working together to create benefits throughout Great Britain. I am very pleased to join my noble friend Lord Faulkner of Worcester in congratulating the Talyllyn Railway on its 75th anniversary in preservation—it was the world’s first preserved railway—which is great. He also talked more substantively about encouraging freight, which the Government are extraordinarily keen to do. Freight will form a part of the Railways Bill and a commitment will be made to freight growth in the railway. He also referred to the new service between Bristol and Oxford. That is an example, post Covid, of getting towards the new era and working collaboratively to produce new services. I am sure that Great British Railways will produce more of them.

The high-speed rail Bill described in the gracious Speech is currently headed the High Speed Rail (Crewe-Manchester) Bill. The noble Lord, Lord Moylan, is right that it was put forward by the previous Government. However, since the previous Government summarily cancelled phase 2a of HS2 between Birmingham and Manchester, the Bill has languished. It is now being reactivated because, contrary to what he said, the Government are funding Northern Powerhouse Rail. In fact, this is the first plan for railways for the north of England that is properly funded. Part of that Bill is necessary to create the new line between Manchester and Liverpool.

In the meantime, the trans-Pennine upgrade, which is funded and in delivery on time and on budget, will improve connectivity across the Pennines. On improvements east of the Pennines, the railways in Yorkshire will come sooner because they do not need new railways. There is a credible plan for the whole of Northern Powerhouse Rail. I am very happy to take the noble Baroness, Lady Pidgeon, through the plans to describe precisely what they are. They are funded and there is a considerable amount of money in this spending review to move forward with them.

My noble friend Lord Berkeley and the noble Lord, Lord Moylan, referred to HS2. The Secretary of State for Transport in the other place made a Statement about HS2 yesterday. It is a scandal. I am sure that my noble friend Lord Berkeley can be satisfied that he did tell us that it would cost a lot of money. But I am not sure he told us that the thing had been hideously mismanaged by a series of Governments and management boards of HS2. That is the lesson to be learned: not to not do these schemes but to do them properly. The trans-Pennine upgrade is one example of a scheme that is being done properly and on time.

It is not true that Britain cannot do these things. What is true, as the review recently set out, is that you should be slow to start these projects, decide what they are and then be quick to build them. This one was the other way around. The specification was obviously done by zealots. Part of it is incapable of being delivered because it is so technically advanced. That was wrong when it started and we are having to put it right now.

The highway financing Bill is not a bureaucratic Bill, contrary to what the noble Lord, Lord Robathan, said. It is a perfectly decent proposition about how to fund the Lower Thames Crossing and other future major road schemes. The noble Baroness, Lady Pidgeon, is right that there has to be genuine value for money for taxpayers. We are not proposing to do anything at all like Thames Water, for very obvious reasons, and there is absolutely no doubt that during the passage of the Bill we will debate why the regulated asset base is right for this class, as the noble Lord, Lord Moylan, pointed out.

The noble Lord, Lord Moylan, is right to say that the civil aviation Bill, which has a number of powers, including much better powers for consumers, replaces EU legislation. He has pointed out to me on numerous occasions recently in dealing with statutory instruments that the powers to do that run out very shortly, and this Bill is necessary to replace them. We will debate to what extent it is desirable or necessary to have the Civil Aviation Authority making some of the rules when we get there. The Government’s view is that it is quite reasonable to delegate some of these powers to a competent authority, leaving some others to the authority of the Secretary of State.

I am very pleased that the noble Baroness, Lady Pidgeon, raised micromobility. This House has debated micromobility, e-scooters and the like a number of times in the last nearly two years now. Although it did not feature in the gracious Speech, it is our intention to consult before the end of this year on what we will do about micromobility. The noble Baroness knows the range of different sorts of regulations there are throughout Europe. We have shared that information with her, and indeed I hope with others in your Lordships’ House. If we have not, I am very happy to share it. There is a huge divergence of views about how to regulate these things, so we need to properly consult on them before we get there.

The noble Baroness, Lady Pidgeon, referred to the draft taxi and private hire Bill, which was in the gracious Speech. I take this opportunity to pay tribute to her for our collaboration to make the relevant part of the English Devolution and Community Empowerment Act serve the immediate purpose of better regulation of taxi and private hire out-of-area working. That really is not enough, so this draft Bill, which will need a lot of discussion because circumstances vary throughout the United Kingdom, is absolutely necessary.

I am tempted to respond to the noble Lord, Lord Moylan, on a couple of his points because, well, why not? He referred to the £2 fare cap, but what he did not say is that the previous Government instituted it but did not fund it much past the election date—

[Lord McLoughlin (Con)]

How has Andy Burnham managed to fund it, then, in Manchester alone?

[Lord Hendy of Richmond Hill (Lab)]

The process by which bus franchising was established in Manchester was absolutely tortuous, although he was enabled to do it. The purpose of the bus services Bill is to make it easier to do, but the results are spectacularly good.

I have not been watching the clock. My time is up. I should say that my noble friends Lady Merron and Lady Taylor have listened carefully to the whole debate, as I have, and they will be as well placed as I am to take forward all the issues raised by noble Lords. The gracious Speech marks the next phase in our plan to deliver national renewal across housing, health and transport. This Government are putting better public services first. We have promised to do what these Bills set out and we will do that.