Transport: Investment Plans

Lord Tunnicliffe Excerpts

Thursday 30th March 2023 Grand Committee

[Lord Tunnicliffe (Lab)]

My Lords, I too thank my noble friend Lord Berkeley for securing this debate. Bus networks across England are fundamentally broken, and railway operators are breaking records for delays and cancellations. The Statement on 9 March does not solve this. In fact, there was no mention of buses at all. The bus network is used by twice as many people as use trains, yet a lack of reliability across England is holding back the economy and causing misery for millions.

I therefore begin by asking the Minister: does she agree that this is a result of Britain being the only country in the developed world where private bus operators set routes and fares with no say from the public? Fares have consistently risen twice as fast as wages since this Government came to power. While we can all recognise the value of the £2 bus fare cap in England, its time-limited nature, and the fact that many providers have chosen not to take part in the scheme, means that it falls far short of expectations.

Only a new system that gives local communities a say over routes and fares can make the network fit for the future. Mayors across England have been using their devolved powers and funding to bring down the cost of living and put more money in people’s pockets. With greater authority, they could achieve so much more. Will the Minister therefore bring forward new legislation to devolve further powers across England, put the public back in control of the public transport they depend on and end the ideological ban on municipal bus companies?

I was chairman of London Buses for two years, during which time I came to realise what buses mean. More than any other form of transport, they are engines of social change. They carry the old, the young, the poor and the weak. We should be debating not profit but the value they bring to communities, in particular their weakest parts.

On the future of the railways, the Government have again rewarded failure by handing Avanti West Coast an extension. It is the worst-performing operator on the rail network, but its problems are not isolated—TransPennine Express has caused misery across the rail network, with dozens of cancellations every day. After more than a decade of this Government, railways in the north and the Midlands are broken.

Despite fares rising, performance remains unacceptable and promised investment is not being delivered. The scaling back of Northern Powerhouse Rail, coupled with the scrapping of the eastern leg of HS2, is a betrayal of the promise made to the north. This scheme alone could have sparked a rail revolution and created tens of thousands of jobs. Given that the Government based their decision not to go ahead with Northern Powerhouse Rail on seat capacity and time savings, will they now commission that independent assessment so that the north can finally get the rail network it deserves?

Among the minor updates and tinkering in last month’s Statement, the most significant announcement was the confirmation that HS2 is delayed and set to cost the taxpayer even more. This latest announcement appears to confirm that HS2 trains will stop at Old Oak Common for up to 10 years. Is the Minister aware that the Government’s own review and assessment found that this would evaporate time savings, detonate the business case, overwhelm the Elizabeth Line and cost £30 billion in growth?

The railway has now been in chaos, to a greater or lesser extent, for at least a decade. We need to grip its challenges. The Government have a plan with Great British Railways. It seems to me that it is the only plan in town, so why cannot we get ahead with it, to a position where we can hold a single body to account for the railways and their improvement?

A £1 billion cut to the active travel budget was confirmed as part of the announcement, as well as the mothballing of major roadbuilding schemes. What assessment have the Government made of the impact of this on rail and buses? Does the Minister expect that it will increase demand?

The piecemeal announcements on 9 March fall far short of people’s ambition for buses and rail. We need the Government to put passengers back at the heart of our railways and bus networks and build the infrastructure fit for the century ahead, unlocking jobs and growth. I hope the Minister will reflect on the comments made during this debate and that the Government will reassess their investment plans.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, I am very grateful to all noble Lords who have contributed. As ever, I will reflect carefully on those contributions. I am grateful to the noble Lord, Lord Berkeley, for once again giving noble Lords the opportunity to discuss buses. It is a subject close to my heart, and I think we all agree that we want the same thing; we are dealing with how, on the pitch that we are on, we can achieve the sorts of services that we would like to see.

Let me start by commenting on the announcement on 9 March. Essentially, the £40 billion set out in that Statement was the capital investment for transport over the next two financial years. Sometimes it is easy in transport because the figures get very big very quickly, but it is a significant amount of money that we are going to invest in our transport systems—that is across all modes—and it does not include the further funding that is committed for revenue support in terms of the services as well.

I shall try to focus my reflections today on rail, both high-speed and traditional, and local transport. I accept that there were some comments on active travel and roads, the responses to which I may put in a letter after the debate—certainly, the figure given for the reduction in active travel funding I just do not recognise.

When we restated the amount of funding that will be forthcoming in the next two financial years, we did so in the face of two quite significant challenges. The first is the overall decline in the number of passengers on the railways and on buses, as well as a change in the nature of travel, because fewer people are going to work —indeed, we have seen a welcome rise in the amount of leisure travel taking place. The second is financial. There has been significant inflation within the construction sector. That is not a homogeneous situation; some things are inflating at a higher rate than others, and it is time to reflect on the impact of that inflation and to consider how we can de-risk the investments that we want to make.

The Transport Secretary’s statement set out which sections of HS2 the Government are prioritising to deliver as planned and which sections need to be rephased to take into account that inflationary pressure on the cost base. Cost estimates for each phase of the programme will be published. His announcement clearly requires officials to work through the consequences with HS2 and the supply chain to firm up the information that we have.

[Lord Tunnicliffe (Lab)]

Does the Minister have data for that publication?

[Baroness Vere of Norbiton (Con)]

The six-monthly updates will continue to be laid before Parliament as they have been previously. We will of course endeavour to put in every single update as much information as we have at that time. We will not have all the information immediately, because various things will be worked through at a different time.

We confirmed that the first stage of HS2 will be delivered as planned between Old Oak Common and Birmingham Curzon Street by 2033. Sometimes, I am mildly disappointed by the noble Baroness, Lady Randerson, making comments such as “serious doubt about the project” and “unlikely to go beyond Birmingham”. I am not sure where such observations have come from, because we have been quite clear in our plans.

On the rail system more generally, as the Secretary of State said during his Bradshaw address,

“operating the railways is currently financially unsustainable and it isn’t fair to continue asking taxpayers to foot the bill”.

We have to be very careful about the costs, thinking particularly about the depressed revenue that we are seeing at the moment.