Passenger Railway Services (Public Ownership) Bill

Louise Haigh Excerpts

Consideration of Lords amendments
Tuesday 19th November 2024 Commons Chamber

[The Secretary of State for Transport (Louise Haigh)]

I beg to move, That this House disagrees with Lords amendment 1.

[Madam Deputy Speaker]

With this it will be convenient to discuss:

Lords amendment 2, and Government motion to disagree.

Lords amendment 3.

[Louise Haigh]

I am delighted that the Passenger Railway Services (Public Ownership) Bill has returned to this House. I thank Members of both Houses for their careful scrutiny, and I commend the collaborative, cross-party approach taken during the passage of the Bill to date. I place on record especially my thanks to the Rail Minister, Lord Hendy of Richmond Hill, and to Baroness Blake of Leeds for their valuable support and for leading the Bill so expertly through the other place. Three amendments were made there that we will seek to address today in this House.

Before I speak on the amendments, I remind both Houses that the Government were elected on a manifesto commitment to bring franchises for train services back into public ownership where they belong, in line with the wishes of a clear majority of the British public and in direct response to the failure of the previous Government.

Public ownership will end the gravy train that sees the taxpayer footing the bill for more than £100 million each year in fees to private operators, which ultimately benefits their shareholders, not passengers and not the taxpayer. It will allow us to strip out inefficiency and waste and will pave the way for the creation of Great British Railways, ending the fragmentation of the failed franchising system and bringing together responsibility for track and train under single, unified leadership with a relentless focus on those who use the railway. I made a statement to the House only last week setting out the early progress that we have made in fixing our railways. There is a long way to go in restoring public confidence and pride in our railways after years of failure, but the journey has begun.

I will briefly set out the Government’s position on the two non-Government amendments that were made to the Bill in the other place. Lords amendment 1 seeks to insert a purpose clause in the Bill and to require me to have regard to it. I am sure that the amendment is well intentioned, and I am delighted that after years of declining performance the Conservative party now recognises that reliability and punctuality actually matter to passengers. I am more than happy to reassure the House that improving the performance of the railways is at the top of my priority list, especially in view of the mess inherited by this Government. I really do not need a purpose clause to remind me of that. In my first few months in office, I have spent my time making sure that railway leaders pay much more attention to punctuality and reliability than they have in recent years.

As well as being unnecessary, Lords amendment 1 is misleading and potentially harmful, because it picks out improving the performance of passenger rail services as the sole purpose of the Bill. If that was really its sole purpose, the best thing we could do would be to cut train services from the timetable; the easiest way to make trains run on time is to run fewer of them. I hope that hon. Members on all sides of the House can agree that that would be absurd. Improving performance is of course a vital objective, but it is certainly not the only one. From saving millions of pounds each year in fees to private operators and stripping out inefficiency and waste to simplifying the arcane fares and ticketing system and making rail services more accessible, all those things and many more are priorities that we will address through public ownership and our wider plans for rail reform. The Government therefore cannot support Lords amendment 1, and I urge the House to oppose it.

In my opening remarks, I set out for the House the urgent need to deliver meaningful change. In view of that, the Government cannot accept amendment 2. The practical effect of the amendment would be to delay the programme of transfers into public ownership and prolong the failed franchising system that has inflicted so much misery on passengers. Delaying the transfers would mean deferring the benefits of public ownership, as well as the taxpayer having to pay millions of pounds more in fees to private operators. Clearly, the Government cannot accept that, especially given that we promised the electorate we would manage the transfer without unnecessary cost. The additional cost to the taxpayer is why the amendment triggers financial privilege, as the House will see on the Order Paper and as you have laid out, Madam Deputy Speaker.

I have also made it clear numerous times that this Government will not put up with the appalling standards of service previously tolerated for far too long. Passengers and our constituents deserve much better. I have heard loud and clear the calls for the poorest-performing services to be brought into public ownership first. I understand those calls and deeply regret that the contracts we inherited from the previous Government make it very difficult to do that, but sadly that is the position we must start from.

We have made it clear that we will bring services into public ownership as existing contracts expire, which will allow us to end franchising entirely within three years and, crucially, avoid the need to pay compensation for ending those contracts early. I assure the House that the Rail Minister and I are monitoring the compliance of train operators with their contracts like hawks. If an operator’s performance is poor enough to trigger a right to end its contract early, we will not hesitate to exercise that right and bring its services in-house at the earliest possible opportunity. We will continue to hold operators’ feet to the fire to ensure that they deliver better for passengers. Our plan to bring services into public ownership as existing contracts end is the right plan and the only responsible one. Lords amendment 2 would wreck that plan, and I urge the House to reject it.

Finally, the Government were pleased to table Lords amendment 3 in response to powerful contributions by Baroness Brinton, Baroness Grey-Thompson and others who spoke on behalf of the many disabled people who use our railways. I echo the Rail Minister’s comments in response to that debate. The railways have not done enough to meet the needs of disabled people. We simply must do better, and we will. Lords amendment 3 sends a very clear message by making it explicit in the Equality Act 2010 that publicly owned train operators are subject to the public sector equality duty.

Lords amendment 3 was accompanied by two verbal commitments by the Rail Minister, which I am happy to reiterate for the House. First, the Government will work with representatives of disabled passengers to develop

“an accessibility road map that will explain the actions we intend to take to improve things for disabled people or others requiring assistance in advance of GBR being set up.”—[Official Report, House of Lords, 6 November 2024; Vol. 840, c. 1550.]

Secondly, the Government will now fund the next phase of improvements to the passenger assist app, which is to be delivered in close collaboration with disabled passengers.

Lords amendment 3 was universally supported in the other place, and I am grateful for the constructive discussions that have taken place in relation to it. I am confident that we can continue to work across parties to improve accessibility on the railways, and I urge the House to support the Government’s position today.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State.

--- Later in debate ---

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Secretary of State to wind up.

[Louise Haigh]

I thank all Members for their important contributions. Let me start by echoing my hon. Friends’ frustration with the Opposition’s position. I sat for two and half years in the place of the shadow Secretary of State, the hon. Member for Orpington (Gareth Bacon), begging his predecessors who sat in my current seat to take action on performance on behalf of passengers, so forgive me, but I will not be lectured by the party that gave Avanti West Coast a nine-year extension. I will certainly not be lectured about putting ideology before the interests of passengers. This Bill is one step towards the biggest reform of our railways in decades. It will put passengers first, and I look forward to debating with all Members of this House as the railways Bill is introduced and passes through the House.

I appreciate the constructive way in which the hon. Member for Wimbledon (Mr Kohler) approached the debate. As I set out in my opening remarks, I am concerned about potentially perverse incentives. We have already published our six objectives for the railway in our “Getting Britain Moving” White Paper, which cover reliability, affordability, efficiency, quality, accessibility and safety. I hope that he and other Members will accept that those objectives adequately and comprehensively support the objective of putting passengers first.

I thank my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald) for his passionate defence of the Government’s position and his comments on the ideological position that the Conservatives have pursued. He exposed the huge flaws in their argument as they attempt to frustrate the Government’s progress on this important reform.

My hon. Friend the Member for Burton and Uttoxeter (Jacob Collier) gave a passionate account of the impact of the poor performance of the railways that we have inherited. It cuts entire communities off, and he outlined the importance of having an accountable railway system, which these reforms will deliver by having a single point of access to Great British Railways, through which Members across this House and, crucially, local people through their local leaders can hold the railways to account.

There were powerful contributions from my hon. Friend the Member for Gateshead Central and Whickham (Mark Ferguson) and the hon. Member for Guildford (Zöe Franklin) on Lords amendment 3, which will be transformative in ensuring that the railways are accountable under the public sector equality duty, that we lift our ambition and aspiration for our railways, and that passengers, particularly those with accessibility needs, are at the heart of this reform.

I am grateful to the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter), who spoke for the Scottish National party. I agree wholeheartedly that we are not going back to the ’80s or to British Rail—I am obviously far too young to remember it anyway. This is not Network Rail 2.0 or British Rail rebooted; this is an enormous once-in-a-generation opportunity for a new organisation with a new culture and a new ethos, bringing a genuinely new era for our railways. Finally, I thank my hon. Friend the Member for Derby North (Catherine Atkinson) for her consistent passion and contribution on behalf of the wider supply chain. I can happily commit that we will work with rolling stock manufacturers as part of our accessibility road map.

On that note, I ask the House to support the Government’s position by rejecting Lords amendments 1 and 2 and accepting Lords amendment 3.

Question put, That this House disagrees with Lords amendment 1.

Bus Funding

Louise Haigh Excerpts

Monday 18th November 2024 Commons Chamber

[The Secretary of State for Transport (Louise Haigh)]

With your permission, Madam Deputy Speaker, I will update the House on our plans for better buses in England outside London. When we talk about fixing the foundations of our country, our minds should turn to the nation’s most popular form of public transport, because nothing props up our economy more or better supports our society than the 3.4 billion passenger journeys carried by our buses each year. They are more than just taking people from A to B: they are a lifeline for young and old, in cities or towns, binding us to jobs, public services and opportunity. From trips to the shops or a doctor’s appointment to a job interview, buses shoulder the daily needs of Britain and, in doing so, underpin every single one of our national missions. That is why, come what may, this Government will always back our buses.

Like much of the economy, our inheritance is dire. Some 40 years of failed deregulation have turned many lifeline bus services into liabilities. Passengers are let down as they sometimes wait for hours for buses that do not turn up. Areas are cut off as operators prioritise more viable routes in town centres. Fares continue to rise, and nearly 300 million fewer miles are being driven than in 2010. None of this was inevitable or an accident, but all of it was down to choices—political choices—paving the way for decline and placing a ceiling on the ambitions of many, especially the poorest in society, who catch 10 times more buses than trains. Enough is enough.

This Government have chosen to back our buses and the millions who rely on them every day. In last month’s Budget, we confirmed more than £1 billion in funding to improve services, protect vital routes and keep fares down. Today, we are distributing that funding, which means more than £700 million for local councils to deliver bus service improvement plans and better meet local needs, and a further £243 million for bus operators, including funding a long-standing grant to drive down fares and drive up services.

In many places, this is record investment, and every region and authority in England will benefit, especially areas that are historically underserved, such as rural areas and small towns. Councils such as Leicester, the Isle of Wight, Torbay and Cambridgeshire will see unprecedented levels of funding for services. Routes that are at risk will be saved and passengers will see faster, more reliable journeys. We are also putting money into safer bus stops and more accessible passenger information so that our bus sector is fit for everyone. I am delighted that metro mayors have welcomed the announcement, with city regions such as Greater Manchester, West Yorkshire and Liverpool receiving some of the biggest allocations.

That is not all. We are committing over £150 million to cap bus fares at £3, ensuring passengers do not face a cliff edge of higher prices from next year, particularly in rural areas where buses are a lifeline. The current fare cap was only funded until 31 December, meaning that without the action we are taking, some fares would have risen by 80%. We were not going to let that happen. We are investing to keep fares down, putting money back in people’s pockets, and to provide more frequent services so that more people can get to more places at more times of the day.

Not only are we a pro-investment Government, we are a pro-reform Government. We will not hesitate to overhaul parts of the system that simply are not working for passengers. If that means changes to how we allocate resources, we will make them; if passengers’ needs are not being met, we will prioritise them; and if laws are needed, we will introduce them. We have called time on the way that bus funding has historically been allocated. Previously, the Government made councils compete for funding, wasting resources and delaying decisions. That was overly complicated, led to inconsistent funding, and created uncertainty for authorities and operators. We are taking a fundamentally different approach.

We have allocated funding based on local need, population, the distance that buses travel, and levels of deprivation. That puts fairness at the heart of future funding and ends the postcode lottery for bus services. It ensures taxpayer money goes to the areas that are most in need, where it will have the most impact and where passengers will most benefit. This is the first stop on our journey to support local areas to take back control of services and deliver better buses across the country.

Finally, we will introduce our landmark buses Bill in the coming weeks—the biggest shake-up of the sector for 40 years. This Bill will allow councils across the country to adopt franchising models, as in Greater Manchester and London. That means local leaders taking back control of services, ensuring that routes, fares and timetables are all geared towards local passenger needs. This model works. It has been over a year since buses were brought under public control in Greater Manchester. Since then, passenger numbers have grown, reliability has improved, and new 24/7 services have been introduced. Roads are now managed in a way that works for buses, meaning that unexpected congestion or unplanned roadworks do not leave passengers stranded. That is what power in local hands looks like. It is why we are simplifying the franchise process to ensure local leaders waste no time in driving improvements for passengers. We will also remove the ideological ban on publicly owned bus companies so that our buses can finally be run for the public, by the public.

I have said it before, and I will say it again: when it comes to our public transport, we are moving fast and fixing things. After years of decline, we are putting passengers back at the heart of our buses through record levels of investment and generational reform. Last month’s Budget sent the signal that, even in difficult economic times, this Government will never take our buses for granted, because we know that investing in buses means investing in people, in communities and in the future growth of our country. Better buses are just a few stops away.

I commend this statement to the House.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Secretary of State.

[Gareth Bacon (Orpington) (Con)]

I thank the Secretary of State for delivering her statement to the House, and for advance sight of it.

It was, of course, the last Government who provided £4.5 billion of funding to the bus sector since 2020 alone. Some £2 billion of that was allocated to support every single local transport authority in England to deliver their local bus service improvement plans, helping to support buses following the pandemic and ensuring more frequent, more reliable and cheaper bus transport across the country. Conservative Members are familiar with the need to properly fund bus services, but simply spending a bit more money will not necessarily improve outcomes. As such, we would welcome details on whether and how the Secretary of State can assure the House and the taxpayer that the money allocated today will actually go towards the improvement of bus services in the long term. How will she ensure that the money allocated today, and the bus service improvement plans that go with this investment, will remain aligned with any possible future franchising?

If the Secretary of State cannot give assurances on these points, there is a danger that the Government are taking short-term action that avoids facing complex long-term problems. Unfortunately, in the four months that this Government have been in office, that has been their approach to every single major issue they have faced so far. Whether it is the winter fuel allowance, the family farm tax or the increase to the bus fare cap, the Government seem at a loss as to why their policies are so unpopular, and why—only a few months into this Government—they are so deeply distrusted by the British public.

Governing is tough, and it requires taking real responsibility and considering the consequences of decisions before they are taken. For example, the decision to increase the bus fare cap from £2 to £3 will cost users more—[Interruption.] Wait for it. It will cost users more and—perversely—put at risk passenger services on certain routes, because it could counter-productively drive bus ridership down. Between 2022 and 2023, the £2 bus cap cut fares outside London by 7.4%, and the rate was 10.8% in rural and non-metropolitan areas in England. That is an example of a policy that worked, which is why the Government’s decision to increase the cap by 50% is such a disappointment.

The right hon. Lady, in defending her decision to hike bus fares, has been making the argument—she has done so again this afternoon—that the fare cap was to run only until end of the year. But as she knows full well—her Back Benchers can be excused for not knowing this—it is standard Government practice to set funding arrangements until a given date. She has guaranteed the £3 cap only until the end of 2025 and has made no commitment to extend it beyond that. She is also well aware that it was a Conservative party manifesto commitment to extend the cap and maintain it at £2 for the lifetime of this Parliament.

Not extending the £2 cap was not inevitable; it was a decision that the Government chose to make. Why do the right hon. Lady’s Government claim that they cannot afford to retain the £2 bus fare cap, which is making a real difference to the lives of passengers and the viability of public services across the country, and yet she can give hundreds of millions of pounds in additional funding here without any guarantee of success in improving service or delivery?

While I await the right hon. Lady’s answer, I have a theory. She is set on an undertaking—the ideological drive for bus franchising—and, make no mistake, it is ideological. Bus franchising does work in some places, but by no means will it work everywhere. The Government claim that they will not impose franchises everywhere, but there is a danger that her push for bus franchising will force local authorities into feeling that they are expected to undertake this ideological venture—one that they say they may well be unprepared and unequipped for—which would lead to a worse outcome for passengers. I call on the Secretary of State to make clear her answers to those questions and assure the House and the taxpayer that all the money allocated will be held to account in delivering real and lasting service improvement for passengers, whose interests should, of course, be at the centre of all decisions made by the Government.

[Louise Haigh]

I am grateful to the shadow Secretary of State for his questions, but I have to say that I will take no lessons from those on the Conservative Benches on good government. The approach to funding allocation is based on need, on deprivation, on population and on bus mileage, whereas his Government wasted millions of pounds in forcing areas to compete against each other, picking winners and losers, raising expectations and leaving some Tory-controlled areas such as Essex, where I was this morning, with absolutely nothing from the bus service improvement plan process. This formula and the funding allocated is a fair arrangement, ensuring that every area of the country gets the service levels it needs and can build the improvement plans that it wants.

I have to say that I will also take no lessons on ideology. For four decades, England outside London has experienced the failed deregulation of bus services, leading to a steady decline in passenger numbers. This funding is backed up by a once-in-a-generation reform to our bus policy, ensuring that we can deliver better bus services in every corner of the country, with public control backed up by funding and a Government who believe in buses.

[Rachel Hopkins (Luton South and South Bedfordshire) (Lab)]

I welcome the Secretary of State’s £9 million investment in the bus system across my constituency. Given the comments she has just heard, does she agree that it takes a Labour Government to really understand not just the cost but the value of public transport, and that our Labour Government are getting on with the job of delivering better buses for our communities?

[Louise Haigh]

I am grateful to my hon. Friend for her support. Not only are we ensuring record funding for the majority of areas in this country; we are pushing ahead with reform. There is no point throwing money at a broken system, as the previous Government were so content to do. I am delighted that we are able to deliver better bus services for the people of Luton.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Mr Paul Kohler (Wimbledon) (LD)]

I thank the Secretary of State for advance sight of her statement, which I warmly welcome. As she made clear, access to convenient, frequent and affordable buses is vital. They are critical to both employment and quality of life, particularly in rural areas. Sadly, however, too many parts of our country lack decent bus services, after years of Tory neglect. At a time when we desperately need economic growth, ensuring a comprehensive and affordable bus network is vital.

I congratulate the Secretary of State on securing the promised funding. However, we have some concerns. Uncertainty still surrounds how local authorities can seize the opportunities heralded in the promised changes to bus franchising. Furthermore, if, as the Secretary of State believes, buses are a lifeline for young and old, why is she hitting bus users with a 50% increase in fares? Polling commissioned by the Lib Dems and published last week showed that the hike will make a third of people less likely to use a bus, which will have a direct impact on individuals, communities, small businesses and high streets, and will hit the most disadvantaged in society the hardest. It would cost just £150 million a year to retain the £2 fare cap. Again, I ask her to reconsider.

I would like to ask the Secretary of State three specific questions. First, when will she publish the full impact assessment on the £2 bus fare cap, commissioned by her Department earlier this year? Secondly, will she guarantee that the new powers needed for local authorities to franchise bus services will be provided urgently, so that bus routes can be restored and new ones added as soon as possible? Lastly, although I welcome the change to the allocation process and the rejection of wasteful and expensive competitive bidding between councils, will she confirm that the new, more flexible system will not succumb to the temptations of pork barrel politics that we saw so frequently under the last Conservative Government?

[Louise Haigh]

I am grateful to the hon. Gentleman for those incredibly important questions. We have committed to publish the evaluation of the £2 bus fare cap shortly. We will introduce the better buses Bill in the coming weeks, which will allow every area of the country to avail themselves of the franchising powers and overturn the ideological ban on public ownership. My Department is also taking a much more proactive enabling role with local transport authorities, making sure that they have the capability and capacity to move to franchising. A significant amount of the funding settlement announced today is specifically for capability and staffing in local transport authorities.

Finally, on pork barrel politics, the reason behind today’s funding is that we are not in the business of picking winners and losers. We want to ensure that every corner of the country has the funding it deserves and the ability to avail itself of the style of buses that we have enjoyed in London for four decades.

[Laurence Turner (Birmingham Northfield) (Lab)]

Given that the Conservative party’s record was a 20% cut in the bus service operators grant, a 40p-in-the-pound cut in local bus funding, and 12,000 bus services cut between 2010 and 2023—a fall of more than half—does my right hon. Friend agree that some of what we have heard today is a bit rich?

[Louise Haigh]

My hon. Friend is absolutely right. We saw bus mileage and passenger numbers plummet under the last Tory Government. The hon. Member for Orpington (Gareth Bacon) talked about the funding that they provided, but they were throwing money at a broken system. This record funding for the majority of the country comes alongside massive reform so that we can give back control and deliver the better buses that every corner of the country deserves.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

Bus usage after the pandemic was beginning to recover in Worcestershire, thanks to the £2 bus fare and improvements to routes. We are campaigning in Malvern for a better and more regular bus service between Worcester and Malvern, including on weekends, and for the reinstatement of the X43 service. We hoped that we would be able to do that with some of the £209 million of High Speed 2 money that was indicated for Worcestershire. Could the Secretary of State clarify what has happened to that funding, and how it links to her statement?

[Louise Haigh]

I am very pleased to confirm that Worcestershire is receiving £9.4 million dedicated for local bus services, a £4 million increase on this year. Of that, £5.4 million is revenue funding and can absolutely be delivered for the kind of bus service that the hon. Lady outlines.

[Steve Race (Exeter) (Lab)]

I thank the Secretary of State on behalf of residents in Exeter and across Devon, who will be delighted with the £11.6 million of extra funding for our bus system. As I look around the Chamber, it is very clear who takes buses seriously and who does not. Devon and Torbay have already been given the powers to franchise and otherwise regulate bus services as part of the devolution deal signed off by the Government this year, yet Tory-run Devon county council has specifically said that it will not use those powers. Does she agree with me that Devon county council should take buses and passenger experience as seriously as this Government?

[Louise Haigh]

I am grateful to my hon. Friend. We know that franchising works; Greater Manchester went through the franchising process a year ago and it has already driven up revenues and passenger numbers. That has allowed Andy Burnham to step in and use that revenue to keep his own bus fare cap at £2. With the funding allocated today, local transport authorities can absolutely lower fares below the maximum of £3. I absolutely encourage areas that already have the powers to plan a bus network that is appropriate for their communities. The Department stands ready to work with Devon and Torbay to ensure that they can do that.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

The new funding for bus services in Somerset is welcome, but my constituents often tell me that they need bus-rail links to connect areas not served by train stations. Will the Secretary of State outline the exact conditions for what each tranche of money must be spent on, to allow the council to plan much-needed improvements to services in rural areas?

[Louise Haigh]

The way the formula has been designed explicitly benefits rural areas, because a third of the allocation is dependent on bus mileage; that is why a number of areas, including Somerset, have done much better out of today’s allocation than in previous years. We are removing the controls that were previously required. All the funding will have to be spent on buses, but we believe it is right that local transport authorities take those decisions themselves rather than being constrained by central diktat from Whitehall.

[Dr Lauren Sullivan (Gravesham) (Lab)]

I thank the Secretary of State for the £23 million for Kent county council. As a Kent county councillor—for a little bit longer—I have seen the ridiculous bidding wars and the hoops we have had to jump through for many, many years. Will the money be ringfenced for buses, while allowing Kent county council the flexibility to spend it on the KCC Travel Saver—a fantastic initiative to help kids get around Kent to local schools? Will the money facilitate that?

[Louise Haigh]

I am grateful to my hon. Friend for that important question. We have lifted controls on the funding from the Department. We think it is absolutely right that Kent county council should be able to decide where its bus money goes. The money will be ringfenced to ensure that it is spent on buses, but if areas want to spend it on providing concessions for younger people or care leavers, on buying new buses or on adding new services, that is entirely within its gift. It is right that Kent county council makes those decisions, rather than me.

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

Passengers in many parts of the country, including in my constituency, rely on cross-boundary bus services for shopping, visiting friends and family, and accessing vital public services. Too often, however, cross-boundary services can feel like a bit of an afterthought. Will the Secretary of State look at how funding mechanisms can be used to encourage passenger transport authorities to properly integrate those services, because community ties do not stop at county boundaries?

[Louise Haigh]

I am grateful to the hon. Gentleman for that important question, which I often hear. Cross-border services can be an absolute lifeline for people travelling out of area for work, and we can absolutely consider that issue as part of debate on the better buses Bill. I hope he will involve himself in that debate as it passes through the House.

[Andrew Lewin (Welwyn Hatfield) (Lab)]

It is a time of optimism for everyone who uses the bus in Welwyn Hatfield. First, after a long Labour party campaign we have doubled the frequency of one of the lifeline bus services to which the Secretary of State referred: between the urgent care centre at Queen Elizabeth II hospital and the Lister hospital. Secondly, we have heard today the announcement of £12.25 million for buses in Hertfordshire. I am hoping that my right hon. Friend can make it a hat trick, and confirm that local powers will be given to people in Hertfordshire to take buses back into public control.

[Louise Haigh]

May I begin by saying what an absolute joy it is to thank my hon. Friend the Labour MP for Welwyn Hatfield? He is absolutely right; I can confirm that the better buses Bill will extend powers to every local authority that wants to avail itself of franchising. Because we are well aware that not every transport authority in the country is in either London or Greater Manchester, the Department stands ready to work with those in more rural areas and with different types of transport authority, and to look at different models to give them the flexibility that will enable them to build a network that works for their communities.

[Ellie Chowns (North Herefordshire) (Green)]

I welcome the statement, and I particularly welcome the change in funding mechanisms—the move away from hoop-jumping, jam-jar funding to something that takes proper account of local needs; I hope very much that it will take proper account of rurality. However, I want to ask about another issue. Pensioners get free bus travel but children do not. In my rural constituency, the cost to people who do not fit the very narrow definition of those eligible for free bus travel is £1,000 a year. Is it not time to extend concessionary bus travel to children?

[Louise Haigh]

The hon. Lady is right, and that is one of the reasons why, throughout next year, we will be looking at the bus fare cap and considering whether we can extend a concession of some kind to young people. The point of the BSIP funding is that it can be used to deliver concessionary schemes as well. The hon. Lady should encourage her local authority to think about whether some of the revenue funding that has been allocated can be delivered for younger people.

[Zarah Sultana (Coventry South) (Ind)]

More than 62,000 people have already signed my petition on change.org to protect the £2 bus fare cap. One young person explained how rising fares made it increasingly difficult for them to get to college, while another described public transport as a vital lifeline against loneliness. Affordable public transport is essential not only to alleviating economic hardship, but to addressing the climate crisis. Instead of increasing the fare cap by 50% to £3 and costing ordinary people hundreds of pounds more each year, why do the Government not take a page from the book of Greater Manchester’s Labour Mayor, Andy Burnham, who has committed himself to maintaining the £2 fare cap to ensure that public transport remains accessible to everyone?

[Louise Haigh]

The combination of Andy Burnham having franchised powers and this transformational funding is the reason why he can keep the fare cap at £2 in Greater Manchester. The combination of this transformational funding and more powers for authorities in the rest of the country will enable them to keep fares low as well.

[Saqib Bhatti (Meriden and Solihull East) (Con)]

I was disappointed that the Secretary of State did not mention the west midlands a single time in her statement. My constituents across Meriden and Solihull East rely on buses to travel to jobs, job interviews and education facilities, and to attend medical appointments. Does the Secretary of State recognise that the most vulnerable people in my community, and those who need buses the most, will be hardest hit by the 50% increase in the bus cap?

[Louise Haigh]

This afternoon I was delighted to meet the Mayor of the west midlands, Richard Parker, to talk about how he is taking forward the bus powers in the west midlands. I was also delighted to announce the £50 million funding settlement for the west midlands, which will be transformational for the hon. Gentleman’s constituents.

[Mr Jonathan Brash (Hartlepool) (Lab)]

My constituents know that bus services are not good enough. We welcome the announcement of more powers and more funding for our area, but sadly the Conservative Tees Valley Mayor, Ben Houchen, has ruled out any exploration of giving the public control of bus services. Can the Secretary of State tell me how we can get around the bus blocker to ensure that there are decent bus services for Hartlepool constituents?

[Louise Haigh]

My hon. Friend is entirely right. Tees Valley has done very well out of today’s funding settlement, and I would encourage the Mayor to consider franchising options to deliver better bus services for the whole area. I can also confirm that through the better buses Bill we will be lifting the ideological ban on public ownership, so my hon. Friend can certainly consider working with his local authority to set up a publicly owned bus company if the Mayor does not choose to avail himself of those powers.

[Wera Hobhouse (Bath) (LD)]

My young constituents in Bathampton who attend Ralph Allen school have to put up with an atrocious service. They first have to go into Bath city centre, and then they have to take a second bus out again, halfway back to where they came from, to get to school; they often miss school because of the infrequency of the services, and they pay twice. A direct service would be cheaper, better and safer. Bath council wants to make services better and franchise them directly, but the West of England Mayor is preventing that. Will the Secretary of State please urge the Mayor to listen to west of England authorities and allow them to franchise services directly and bring buses back under local control?

[Louise Haigh]

With her example, the hon. Lady describes exactly what franchising is designed to provide: the ability to design the services that people rely on and ensure that schoolchildren have a direct route to school. I would encourage all our mayoral colleagues to take forward franchising.

[Emma Foody (Cramlington and Killingworth) (Lab/Co-op)]

For 14 years, the last Government failed communities with a lack of investment in our bus services, leading to fewer services, reduced timetables, increasing unreliability and, ultimately, less control. In 2023, in my area alone, tens of millions fewer bus miles were travelled than in 2010. Does the Secretary of State agree that our towns, villages and rural areas depend on our buses, and that the almost £24 million announced for the North East combined authority will turn the page for my community, which was let down so badly by the previous Government?

[Louise Haigh]

My hon. Friend is absolutely right. Particularly in rural areas, buses simply are not good enough. Entire towns and villages are cut off, with no bus service before 9 am or after 5 pm, and that leaves people with their ambition completely curtailed. I am really pleased to have been working with Kim McGuinness, the Mayor of the North East, to ensure that, through the better buses Bill, we speed up the franchising process and make available to her as quickly as possible the powers to deliver better buses for my hon. Friend’s constituents.

[Llinos Medi (Ynys Môn) (PC)]

The Barnett formula comparability factor calculates how much money each devolved nation receives as a consequence of UK Government spending in England. Wales’s comparability factor for transport is now 33.5%, compared with 95.6% for Scotland and Northern Ireland. Can the Secretary of State confirm whether this unfair funding arrangement applies to the new bus funding, and will she say how much Wales would receive in cash terms if it had the same percentage share of funding as Scotland and Northern Ireland?

[Louise Haigh]

I will take away the hon. Lady’s specific question about the percentages and write to her, but I was pleased to meet Ken Skates, the Welsh Transport Minister, just a few weeks ago to talk about the Welsh Government’s own ambitious plans for bus franchising across Wales. They are learning the lessons from Greater Manchester and London, and ensuring that every constituent in Wales will be able to benefit from better buses.

[Fred Thomas (Plymouth Moor View) (Lab)]

What a fantastic day for every person in Plymouth who uses the bus! We strongly welcome the Secretary of State’s announcement that £4.5 million will be invested in our buses over the next couple of years. She said that that represents an investment not just in buses, but in people and communities. That is fantastic to hear. Does she agree that today’s announcement represents the Labour Government investing in Plymouth?

[Louise Haigh]

I am very happy to confirm that we are investing in Plymouth, Plymouth’s people and Plymouth’s buses. Buses are an enormous engine of social justice, because, as I said earlier, the most deprived rely on them the most. I am afraid that is why they have been so badly neglected in this place for so long, but that will absolutely turn around under this Labour Government. Buses are my priority and this Labour Government’s priority.

[Steff Aquarone (North Norfolk) (LD)]

I refer the House to my entry in the Register of Members’ Financial Interests: I am a member of Norfolk county council.

I am pleased that £15 million of the new funding will be heading to Norfolk to support our rural bus services, but the model for running buses in Norfolk is broken. We need a service that works for everyone, not just routes to and from the city and the occasional shopping bus. Will the Secretary of State assure me that this money will not just disappear into county council coffers or route subsidies, but instead help build the proper public transport network that North Norfolk needs?

[Louise Haigh]

The hon. Gentleman is absolutely right. Under the current system, money has been thrown hand over fist at operators, which have cherry-picked the most commercially viable routes, leaving local authorities to step in to subsidise the lifeline routes that people rely on. The benefit of areas being able to move to a franchised system, or indeed to set up their own publicly owned bus company, is that they can cross-subsidise properly across routes, and ensure that public money is spent in the best way and that we design routes and networks that really work for local communities.

[Alice Macdonald (Norwich North) (Lab/Co-op)]

On Friday I met members of the 17th Norwich scout group as part of UK Parliament Week, and they had lots of questions on transport. They are particular concerned about the reliability and availability of buses. Could the Secretary of State expand on how today’s announcement will support young people and how we can ensure that their voices are heard in this important conversation?

[Louise Haigh]

It is particularly important that we encourage young people on to buses, so that they can develop better behaviours and carry on using buses throughout their adult lives. I am delighted that we can confirm an additional £1.2 million in revenue funding for Norfolk. That revenue funding will be available to Norfolk to enable it to add additional services and improve the reliability and frequency of its local buses.

[Steve Darling (Torbay) (LD)]

I would like to acknowledge the significant investment in my constituency and say how welcome this will be after Torbay’s first “bus back better” bid came back empty from the Conservatives. One of the issues that has led to significant cuts in our bus services is the recruitment of bus drivers. Can the Secretary of State advise us on how the Government plan to enhance the opportunities for the recruitment of bus drivers so that this money can be put to good use?

[Louise Haigh]

Torbay is a fantastic example of an area that has done well out of this funding settlement but was treated appallingly by the previous bus service improvement plan funding process. The hon. Gentleman is right to say that the recruitment of bus drivers is an issue that has plagued certain parts of the country, and we are working closely with the Department for Work and Pensions, through its “Get Britain Working” White Paper, to ensure that we can address recruitment and retention issues in the bus sector.

[Jim Dickson (Dartford) (Lab)]

Just a few short weeks ago, when the new bus franchising arrangements were announced in this place, Conservative Members said that it would never work without funding attached. Now we have our answer, and the £1 billion of funding nationally and the £23 million of funding for Kent, which has already been mentioned, are hugely welcome and will certainly be a big boost for my residents in Dartford and also a big boost to our efforts to kick-start growth in the Thames estuary. Does the Secretary of State agree that boosting connections between our rural areas and our towns is vital to increasing access to jobs?

[Louise Haigh]

My hon. Friend is absolutely right. I get very frustrated in the transport policy space because we often think of investment only in big infrastructure as a mechanism by which to achieve growth, but buses are essential to delivering growth in local communities. They connect people to jobs, to opportunities, to education and to each other, so they are not only a massive engine of growth but one of the most important engines of social justice available in transport policy terms.

[Claire Young (Thornbury and Yate) (LD)]

Many of my rural constituents have commented that the level of the bus cap is irrelevant when there are no buses to use, so I welcome the extra funding today, but does the Secretary of State agree that it should be directed to ensuring a minimum level of service for all users rather than increasing the frequency of services in urban areas that are already well served, as has happened previously in the west of England?

[Louise Haigh]

The hon. Lady is absolutely right. The biggest barrier to people getting the bus is the absence of a bus in lots of communities, and that is why we have directed this significant level of funding into communities to ensure that it is invested in local bus services. The benefit of moving to franchising means that we avoid adding more and more operators and more and more services to commercially viable routes, and that we can design a network that means that more areas and communities are served by the timetables and levels of service that they deserve. This is exactly what she addresses, and it will allow a minimum level of service that every area can expect.

[Chris Vince (Harlow) (Lab/Co-op)]

May I take this opportunity to thank the Secretary of State for visiting the best town in the country, Harlow, this morning? I want to personally welcome the £17.8 million of funding for bus services in Essex, which is hugely important. Does she agree that the hidden benefit of improving our bus service in Essex will be to tackle social isolation, which is a particular issue in more deprived areas where there is no reliable bus service?

[Louise Haigh]

I was delighted to be in Harlow with my hon. Friend this morning to announce record levels of investment for Essex, another area that was badly underserved by the previous Government. Someone mentioned earlier that bus passenger numbers have been increasing since covid, which is true, but concessionary levels are still far below where they were before covid. I am afraid that potentially highlights the real issue of social isolation, and the hidden issue of older people not being able to access public transport. Only by delivering reliable, accessible bus services can we tackle social isolation and give older people the service they deserve.

[Mr Gideon Amos (Taunton and Wellington) (LD)]

The £6 million funding for Somerset is clearly welcome, although it is much less than was needed, considering that Somerset was rated as having the worst county bus service in the country. I particularly welcome the ending of the lottery that sets one community against another. Will the Secretary of State congratulate the Somerset bus partnership volunteers who, working with my Liberal Democrat colleagues now running Somerset council, prevented the previous Conservative county council from closing the park and ride, got night buses going and have begun a new transport hub since the bus station in Taunton was closed as a result of Conservative privatisation?

[Louise Haigh]

It sounds like the Somerset volunteers are doing a cracking job. I am very happy to congratulate them and to welcome the £6.8 million of funding announced for Somerset today.

[Mark Ferguson (Gateshead Central and Whickham) (Lab)]

Under the last Government, the number of miles travelled on bus routes in the north-east fell by 30%, but that number also measures the region’s aspirations unfulfilled, the opportunities lost and the job interviews and family events that could not be attended. I very much welcome the near £24 million of funding given to the north-east in this announcement. How will the Secretary of State work with mayors such as Labour’s Kim McGuinness to ensure that the aspirations and opportunities of people in Gateshead are given flight by this announcement?

[Louise Haigh]

My hon. Friend is right that the 30% cut to his bus services is absolutely shocking. Behind every one of those cuts is a human story of opportunity and ambition curtailed. I have been working closely with Kim McGuinness on speeding up the franchising process. Under the current legislation, Andy Burnham took six years to bring a single bus service under public control, despite having been elected twice in that period on a mandate to do so. We want to ensure that we drastically speed up the process and reduce the cost to local transport authorities and mayoral authorities of getting to franchising, so that the money can be spent effectively on local bus services.

[Helen Morgan (North Shropshire) (LD)]

Shropshire is one of the worst-served counties in England for public transport, having lost 63% of its bus miles since 2015, compared with a national average of about 19%. A person in Market Drayton who wants to get to the closest hospital in Telford, which is a 20-minute car journey, is looking at a five-hour round trip on the bus. We have only one service operating between Oswestry and Chester on Sundays. I am afraid that I was therefore quite disappointed by Shropshire’s £2.5 million revenue allocation in this round of funding. Will the Secretary of State meet me to learn about the huge transport challenges we face in Shropshire, and to see if we can do better?

[Louise Haigh]

I am delighted to confirm that Shropshire’s resource departmental expenditure limit allocation is £3.1 million, so the hon. Lady has already had a further £600,000 out of today’s statement.

[Amanda Martin (Portsmouth North) (Lab)]

The Government’s biggest reform to England’s bus system in 40 years sees the people of Portsmouth having power put back into the hands of our communities. Today’s funding, the cutting of red tape and the ending of the postcode lottery will ensure that bus routes are where they are needed, allowing everyone to access work, medical appointments and social life. Can the Secretary of State inform people in Portsmouth North how the funding award and the landmark buses Bill—soon to be tabled—will support these welcome changes to truly put people first?

[Louise Haigh]

I am grateful to my hon. Friend for standing up, for Portsmouth and its people, as she always does. Today’s funding settlement will be ringfenced towards buses to ensure that Portsmouth gets both the level of funding it needs and, crucially, the flexibility and control to deliver it where it is needed most. Portsmouth will be able to avail itself of the powers we will announce in the coming weeks to take back control of its bus services and to deliver routes, services and fare levels that are right for the people of Portsmouth.

[Josh Babarinde (Eastbourne) (LD)]

A few hours ago, I marched with Eastbourne residents such as Jodie Atherton, and Eastbourne businesses such as DB Domestics and the Rosy Lee café in Seaside, against Conservative-run East Sussex county council’s car-crash bus service improvement plan, after the council failed to adequately consult residents or properly model the impact of the plan. Will the Secretary of State review East Sussex county council’s catalogue of failure in this area, and will she introduce safeguards to ensure that community voices are at the heart of any bus service improvement plan that the money she has announced today will fund in my patch of Eastbourne?

[Louise Haigh]

The hon. Gentleman raises some important points. It is right that local people have the mechanisms and ability to hold their local authorities to account. One such mechanism that we will introduce through the better buses Bill is a local network safeguard, which will ensure that the voices of communities and constituents are at the heart of any changes to local bus networks.

[Connor Naismith (Crewe and Nantwich) (Lab)]

I strongly welcome my right hon. Friend’s statement. Some £5.4 million will be delivered for buses in my area, which is a significant increase in real terms on previous years. When I met the chief executive of my local chamber of commerce, he said that the biggest barrier to growth in our area was poor public transport. Does my right hon. Friend agree that this investment, as well as the Government’s proposed reforms, are crucial if we are to break down barriers to opportunity and grow our economy?

[Louise Haigh]

My hon. Friend makes an important point. This Government have put improving public transport at the heart of our priorities in order to deliver growth and allow people to access opportunity. Colleagues from across the House will recognise the picture he painted because, time and again, they will hear that the biggest barrier many businesses face to widening their labour market and ensuring people can access opportunity is poor local transport. That is why we are so delighted to announce this transformational funding.

[Sarah Gibson (Chippenham) (LD)]

I welcome the Secretary of State’s statement today that every region of England and Wales will benefit, especially rural areas and small towns. In Chippenham, large agricultural industries based in the countryside are currently having to find private transport themselves to get shift workers in and out of their businesses. The further education college has had to cap its hours because the last bus leaves so early that students cannot continue to follow a proper day’s work. This is a real problem for growth and skills in my rural constituency. Will the Secretary of State ensure that those counties that are not currently part of a wider mayoral system get the funding they need?

[Louise Haigh]

Colleges and large employers that use shift workers are two of the institutions that often raise with me their frustration about local bus services. The problem with the current system is that nobody has the ability to require operators to run services according to timetables or shift timings. The move to franchising will allow local areas to design such services and ensure that buses run when shifts finish or colleges open or close. The new funding formula model will ensure that rural areas get the funding they deserve.

[Ms Polly Billington (East Thanet) (Lab)]

My right hon. Friend will not be surprised to hear that I welcome the £124 million settlement for the south-east and the £23 million settlement for Kent, which represents the biggest proportion of any allocation in the south-east. It is striking that in the past 14 years there have been 20% fewer bus miles in Kent because of the last Tory Government. Will she join me in challenging Tory-run Kent county council to use this money and the powers offered to it by this Labour Government to make better buses services for places such as East Thanet?

[Louise Haigh]

My hon. Friend is a true champion for the people of Kent, and this is a record investment in them and their bus services. The area was badly underfunded by the previous Government and Kent lost out repeatedly in the bus service improvement process. The funding will help to deliver better bus services, but if Kent county council chooses to avail itself of the powers that will come its way as a result of next month’s better buses Bill, then that will be the moment when it can deliver a public transport network and better bus services that serve all Kent constituents.

[Jim Shannon (Strangford) (DUP)]

I welcome today’s statement. Will the Secretary of State commit to ensuring that funding will go to UK-based bus manufacturers, such as Wrightbus in Northern Ireland, which are reliable and efficient, and whose clean-energy buses meet the needs of customers as well as our environmental obligations? How will she ensure that we support the best of British?

[Louise Haigh]

I was delighted to announce half a billion pounds of investment in Wrightbus just a few weeks ago. Those buses will make their way around the country and are fully electric—cleaner, greener, and providing a better service for passengers. We will announce some measures shortly to encourage investment in UK-manufactured buses. We have already announced the establishment of an expert panel in order to ensure that buses ordered in this country are built in this country.

[Jonathan Davies (Mid Derbyshire) (Lab)]

I warmly welcome the announcement that over £40 million will be coming to the East Midlands combined authority, which covers Derbyshire and Nottinghamshire, for investment in our local buses. I know that Mayor Claire Ward and other local leaders will spend that money very effectively. Does the Secretary of State agree that this is an opportunity for people to get ahead in work, leisure and their social interactions, and will help us to get to net zero?

[Louise Haigh]

My hon. Friend is right that this is a massive moment for the east midlands, with the new mayoral authority and this record level of funding for bus services. Of course the authority will go into the 2027 city region sustainable transport settlements round. Buses are an enormous opportunity to meet all our missions. That is why I am pleased to work across Government on our mission boards to ensure that buses contribute to both our growth mission and, crucially, our net zero mission.

[Sarah Coombes (West Bromwich) (Lab)]

Buses are essential in my constituency, which is why I am grateful to the Government for the £50 million invested in the West Midlands combined authority area. When operators cut services, such as the 46 bus that goes through Hamstead in my constituency, it is devastating for the community. After decades of failed deregulation, I am grateful that the Government are turning the page. Does the Secretary of State agree that it is much better for local leaders to have control over local bus services?

[Louise Haigh]

My hon. Friend is right: cutting services such as the 46 has real-world implications for people attempting to access work, see their friends and family, or get to the local high street. Having a franchised system under the Mayor, Richard Parker, will mean that he has control. He can contract out the 46 service and require an operator to run it. At the moment, when an operator cuts a service we have no say or control over that, which is what leads to those terrible real-world consequences.

[Madam Deputy Speaker (Caroline Nokes)]

I thank the Secretary of State for coming to the Chamber personally to give that statement.

NATS Technical Failure: CAA Report

Louise Haigh Excerpts

Thursday 14th November 2024 Written Statements

[The Secretary of State for Transport (Louise Haigh)]

The Civil Aviation Authority has today published the final report of the independent review, led by Jeff Halliwell and an expert panel, into the NATS technical IT failure of 28 August 2023. I would like to express my gratitude to the panel for its work.

In its final report, the panel has recognised that several factors contributed to the technical failure and that it is unlikely that the same unique set of circumstances would ever occur again, and that if they did, due to the actions already taken by NATS, the outcome would be different. While I am pleased that actions have been taken since the incident, it is critical that we ensure that consumers have confidence when travelling; that possible disruption is minimised; that there is resilience in the system; and that air passengers are informed of their rights should something go wrong.

The report estimates that over 700,000 passengers were impacted, with the total cost of the technical failure to industry and air passengers likely to have been between £75 million and £100 million.

The panel met with a wide range of industry stakeholders, including NATS, airlines and airports, international operators, and the Department for Transport. It has reached the conclusion that all relevant parts of the aviation sector need to work together better in the future when responding to major events such as the NATS technical failure.

The panel makes a total of 34 recommendations for future improvements for NATS (12), CAA (11), airlines/airports (6) and the Government (5) to respond to and deliver on.

The five recommendations that the Government have been asked to consider relate to improving consumer protections for aviation passengers, including giving the CAA additional powers and mandating alternative dispute resolution for all airlines operating in the UK.

The CAA will be responsible for monitoring delivery against the panel’s recommendations for all parties. It is important that progress is made and that actions taken deliver better outcomes for the consumer. I have therefore asked that the CAA produces a report in six months’ time to provide an update on the progress made in response to each of the 34 recommendations set out in today’s publication.

Air passenger rights are a priority for my Department, and we will look to introduce reforms when we can to provide air travellers with the highest level of protection possible.

[HCWS221]

East West Rail

Louise Haigh Excerpts

Thursday 14th November 2024 Written Statements

[The Secretary of State for Transport (Louise Haigh)]

East West Rail supports this Government’s mission to kickstart economic growth and productivity right across the Oxford-Cambridge region by providing easier and faster regional connectivity, opening up access to employment and skills training, and supporting new housing developments. By 2050, East West Rail is set to boost the Oxford-Cambridge regional economy by £6.7 billion every year.

The Oxford-Cambridge region is home to a number of research and development hubs across a variety of highly skilled and highly productive sectors, such as life sciences research at the Cambridge biomedical campus. East West Rail would provide these vital sites with the connectivity they need to increase their access to the talent pool and allow the region to compete better on the global stage, supporting up to 28,000 jobs in Cambridge alone.

East West Rail will also be crucial to ensuring that planned housing developments in the region are well connected, by joining newer settlements and housing to established conurbations in Cambridge, Bedford, Oxford, and Milton Keynes.

The first stage of East West Rail from Oxford to Bletchley and Milton Keynes is currently in delivery and will open in 2025. The Budget confirmed the acceleration of works on the Marston Vale line, ensuring that East West Rail services will run from Oxford to Milton Keynes and Bedford from 2030.

The next stage of the scheme is a non-statutory consultation, which will go live on 14 November 2024, and be followed by a statutory consultation, and then a development consent order application. This consultation will feature proposals on:

The new services and stations that will be provided by East West Rail for people living in the Oxford-Cambridge region;

Battery/overhead electrification as the baseline traction solution for the railway;

Options for how stations and services should be provided for the Marston Vale line (Bletchley-Bedford);

Redevelopment of Bedford station to address increased service levels and improve the passenger experience;

The closure of Bicester London road level crossing and other proposals related to level crossings;

The alignment of the railway and new east coast main line interchange station at Tempsford;

A new station at Cambourne and potential alterations to other stations along the line of route, including in the Cambridge area;

Options in the Oxford area to accommodate additional services.

The Department for Transport will also be issuing safeguarding directions for East West Rail today to protect land from conflicting development. I am placing a copy of the safeguarding directions in the Libraries of both Houses.

Taking forward these next steps for the East West Rail scheme reinforces this Government’s mission to kickstart economic growth and connectivity to unlock access to the skills, education, and jobs needed to deliver national growth and individual prosperity. The Department for Transport will work collaboratively with cross-Government partners, including the Ministry of Housing, Communities, and Local Government, to ensure a joined-up approach to growth and development in the region.

[HCWS222]

Rail Performance

Louise Haigh Excerpts

Monday 11th November 2024 Commons Chamber

[The Secretary of State for Transport (Louise Haigh)]

With permission, Mr Speaker, I shall make a statement about rail performance. I welcome the shadow Secretary of State for Transport, the hon. Member for Orpington (Gareth Bacon), to his place. I am sure the Opposition will be interested in what we have to update the House about this afternoon.

After 14 years of neglect, our inheritance was a railway that was failing its passengers, with cancellations at a 10-year high and punctuality that is consistently inconsistent across the network. Back in 2015, cancellations represented around 2% of all services, but thanks to our inheritance of extraordinary failure, that doubled to 4% when the last Government left office. The situation is holding back our economy, stifling our businesses and making life miserable for passengers. That is why, as part of this Government’s public service reform agenda, we are pushing ahead with the biggest overhaul of our railways in more than 30 years. I am grateful to you, Mr Speaker, for this opportunity to update the House on the progress we are making.

As Members will be aware, the Passenger Railway Services (Public Ownership) Bill is making its way through the other place. It will allow the Government to give three months’ notice to the first private train operating company to be taken into public ownership, which we will announce as soon as Royal Assent has been achieved. No one has ever pretended that public ownership alone is a silver bullet. The people impacted by delays and cancellations, who can no longer rely on the train to get where they need to, do not care who owns the trains—they care whether they are working or not. Under the model we inherited, no one could argue that they were working, so we will soon launch our consultation setting out plans for unification across the railway.

As part of that, Great British Railways, as the single directing mind, will plan services on a whole-system basis, to better deliver for passengers and freight customers, unlock growth and provide the services a modern, efficient railway should. That will lay the groundwork for the introduction of the railways Bill, later this Session, which will establish Great British Railways and end the fragmentation that has hampered our railways for over 30 years of privatisation.

But we do not want to wait for legislation. The Government are already making improvements and taking steps to deliver reform across the railways. I have appointed Laura Shoaf as chair of shadow Great British Railways, bringing together Network Rail, the publicly owned train operating companies and my Department to drive better integration now. Working with operators already in public ownership, we are seeking to drive savings by eliminating duplication and deliver the improvements that passengers want, such as allowing tickets to be accepted across those TOCs in public ownership during disruption.

Shadow GBR gives us the tools to assess the structure of the timetable, question resource plans and review performance measures and targets. We are using those tools to unlock the punctuality and reliability that passengers deserve across the country. For example, Southeastern is now performing much better. Its cancellations are low, with its punctuality ranking among the top five operators contracted to my Department, and that level of service will increase by 44 additional trains per day when the timetable is updated in December. That is what shadow Great British Railways is delivering now.

We are demonstrating what integration between track and train can deliver for passengers. Take those who rely on Euston station, for example. Indecision on HS2 left passengers with fewer platforms and greater overcrowding, victims of the so-called “Euston dash”. Convening Network Rail and train operators at Euston in the interest of passengers is an excellent example of the benefits that our reform agenda can achieve. Euston now not only has an integrated station management team, but a 100-day plan of rapid improvements that puts the interests of passengers first and individual organisations second. Platform announcements are made earlier, crowding has been reduced and, yes, the advertising screen has been temporarily switched off.

Delays and cancellations were not the only inheritance. For two years, strike followed strike, and disruption followed disruption, in the longest industrial dispute on our railways. I have made it my priority to get around the table, reversing the previous Government’s antagonistic approach by resetting industrial relations and settling the pay disputes that saw the country grinding to a halt. I am working with the sector to speed up training and accelerate the driver recruitment pipeline, which will reduce the railway’s reliance on rest day working agreements and lower the burden on taxpayers. Settling this saga allows us to move forward with long-overdue negotiations on workforce reform, bringing our railways into the 21st century. That is what moving fast and fixing things looks like.

We are putting passengers first and, today, I can inform the House that since the resolution of the LNER driver dispute, we have seen green shoots emerging, with the number of LNER cancellations falling. Not only have cancellations due to a lack of driver resource dropped to near zero as a direct consequence of getting around the table with unions, but revenue is £15 million higher for the recent rail periods this year versus the same periods last year. Overall cancellations are down from 7% to 5%, and LNER has run 100 more train services in the last four weeks than in the comparable period last year.

Elsewhere, passengers will see a tangible impact on reliability on Northern Rail trains. Thanks to our agreement on rest day working, hundreds more driver shifts have been covered this weekend, cutting cancellations now and in the long run. At TransPennine Express, operator-caused, on-the-day cancellations averaged around 2% in the last year, compared to 5% in the year before it was taken into public ownership. On CrossCountry, we took immediate steps to implement a remedial plan to reduce its cancellations and get services back on track. Its reduced timetable has brought greater stability, and I expect even greater reliability in the long term as the full timetable returns today.

Those are early signs of what happens when a Government get a grip and put passengers at the heart of decision making. Resetting industrial relations is already having a direct impact on better services, but it will take time to pass all the benefits on to passengers. We have to be clear-eyed about the problems, but we are committed to full transparency. I can announce today that we will be fully transparent with passengers by displaying performance data at stations to demonstrate how the railway is working and to allow the public to hold us to account as we deliver change. That is important, because the railway is a promise—a promise to passengers from the moment they buy a ticket that the train will arrive on time, as the timetable says.

While there are encouraging signs, I am not naive to the reality that passengers will see only a broken promise so long as the departure board shows trains delayed and services cancelled. That is why I have approached the situation with the urgency it demands, including focusing on performance today; bringing together industry to make it clear that improvements that can be made now must be made now; and using every tool at our disposal to drive improvements as fast as possible.

At the same time, the root of the problem grows deeper. Decades of muddled decision making have left the railway fragmented. We have tolerated an unworkable system of track in one organisation and trains in another for decades too long. This Government will turn the page on that chapter of fragmentation. I have wasted no time in kick-starting the long-term reform that our railway desperately needs. We have wasted no time in bringing train operating companies under public ownership. As today’s figures show, we have wasted no time in getting around the table with unions and making change happen now. That is what moving fast and fixing things looks like, and I commend this statement to the House.

[Gareth Bacon (Orpington) (Con)]

I thank the Secretary of State for her statement and for sharing an advance copy. I agree that rail performance is a key concern to passengers throughout the country, and it is a fair criticism to say that several operators have consistently underperformed. That is why, when we were in government, we took action to improve performance on our railways, investing more than £100 billion to operate and enhance our railways since 2010, and electrifying more than 1,200 miles of track—compared to just 63 miles under the last Labour Government.

I am glad that the Government are taking forward the framework offered in the previous Conservative Government’s Williams-Shapps review. Having a more joined-up rail network should indeed deliver key improvements. However, it is disappointing that the Government have progressed with their plans for the effective nationalisation of the rail operators by ending private rail operator franchising, despite all the evidence pointing to the fact that that will be contrary to the aim of improving rail performance.

We know that while in some cases it has been necessary in the short term to bring rail operators into public control, it has not made the difference in performance that the Government would have us believe. It takes only a cursory glance at passenger rail performance statistics to see that some of the rail operators operating under public control have done little or nothing to improve cancellations or delays in relation to other operators. For example, the Secretary of State mentioned TransPennine Express and a decrease in cancellations since the operator was taken into public ownership, but she made no reference to delays. Data from the Office for Rail and Road show that in the four years prior to the train operator coming under public control, passengers faced an average of 8,130 delay minutes per month. From period 2 of 2023-24, when the operator was brought into public ownership, up to period 4 of 2024-25, average monthly delays have increased by 1,677 minutes, to 9,807 a month. In addition, for the year ’23-24, data shows that train operators run by private companies in England had an average on time rate of 64.36%. For train operators in public control, by contrast, the average was 57.7%—a difference of just under seven percentage points.

Public ownership is not the panacea that the right hon. Lady claims, so it is disingenuous for the Government to argue that wholesale public control of rail operation will do everything to improve performance, particularly for operators that are already performing well. Under the Government’s plans to end private rail operator franchising, the first contracts set to expire and be picked up by the Government are some of the highest performing franchises. The Government risk making the mistake of taking credit for comparatively strong performance, which will occur not as a result of their measures but as a result of the successes of the previous private franchising. That would mean the Government drawing the wrong conclusions from their actions, and it would have implications for future decision making.

It should be appreciated that the role of open access operators has been one of the greatest success stories within our rail network. It is therefore incumbent on the Government to provide greater clarity to the sector on how their plans for the rail network will impact on open access operators. It is also essential that the Secretary of State finally clarifies the long-term plan for rolling stock under the Government’s measures.

I appreciate that in Labour’s brave new world, all decisions are reflected through the ideological prism of “public good, private bad”, but there is a fundamental risk that the Government are taking ideological action to the long-term detriment of rail performance. Among our counterparts in Europe, it is widely acknowledged that rail privatisation has been successful in increasing passenger numbers, encouraging investment and controlling costs. In Italy, for example, prices have reduced by 31%, and Austria has witnessed a 41% increase in service frequency. There is a serious risk that the Government’s plans will take us backwards on those key areas without offering any promise of improvement on performance, or improved journeys or fares for passengers.

We all fully acknowledge the difficulties facing our railways, and nobody should accept poor performance —we have, unfortunately, seen that in some areas of our network—but merely enacting demonstrative but counterintuitive measures designed to communicate action is no substitute for making measured and pragmatic choices. For example, the Government and the Secretary of State have chosen to offer inflation-busting pay rises with no working practice reform in exchange. Without substantial working practice reform, it is deeply unlikely that the cost of the pay deals will be offset by improved performance, and the failure to introduce working practice reform will mean continued performance difficulties on our railways.

Can the Secretary of State offer a guarantee today that ending private rail franchising without implementing working practice reform will lead to demonstrably improved performance? If she cannot offer that guarantee, the Government should shelve the ideology and take a step back to pause and examine whether their package of measures will truly improve rail performance. It surely makes more sense to learn from the performance statistics; to understand from the experience of the continent and our past the improvements that the private sector can bring; and to prioritise the practical over the ideological.

[Louise Haigh]

I am grateful to the shadow Secretary of State for acknowledging that we provided the statement in advance, and I suggest that next time he reads it before he responds. He will have heard me say that public ownership is not a silver bullet, hence why we are setting out a substantial package of reforms. As I also mentioned, that includes substantial workforce reform, including developing training policies—that is one of the ways in which the recruitment of drivers has been really held back—and reducing reliance on rest day working agreements.

The shadow Minister might also want to check the latest statistics on TransPennine Express. It had the largest increase in punctuality of any operator contracted to my Department, including all those in private ownership. We have been clear that open access should continue where it does not abstract revenue from the overall network and where there is capacity. There have been good examples, such as Lumo and Grand Central, and we are very happy to continue working with them. We will publish a long-term rolling stock plan in due course.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Chair of the Transport Committee.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

The Transport Secretary’s statement is hugely welcome. Bringing privately owned train operating companies into public ownership as well as setting up GBR will inevitably add to her Department’s workload, so what preparations is she making to manage that additional workload?

[Louise Haigh]

I am grateful that my hon. Friend is concerned about my work-life balance—so am I. We are staffing up the operator of last resort, as it is currently known—we will shortly change its name, as it will no longer be the operator of last resort—and the Department has significantly increased its capability. Under the previous Administration, no one in government took responsibility for the running of the railways. We are taking a very deliberately different approach and, as passengers-in-chief, we will ensure that both the operator of last resort and the Department are sufficiently staffed up to manage the quick and successful transition of franchises into public ownership.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Mr Paul Kohler (Wimbledon) (LD)]

I thank the Secretary of State for advance sight of her statement. I also welcome the new shadow Secretary of State, the hon. Member for Orpington (Gareth Bacon), to his position.

The Lib Dems welcome the Secretary of State’s statement that performance is improved, and commuters and businesses are relieved that industrial action has been curtailed. It is disappointing, however, that the unions were not required to agree any meaningful improvements to productivity as part of the settlement. Clearly, we are not yet out of the woods—or perhaps I should say the tunnel. Under the Conservatives, delays, cancellations and overcrowding became commonplace. Last year, more than 55,000 rush hour trains were either partly or fully cancelled—a 10% rise on the previous year, and the worst of any year since 2019. Although the latest news is welcome, there are many miles left to go on this journey. The Government’s policy of nationalisation is, as the Secretary of State herself concedes, no silver bullet. Earlier this year, the Office of Rail and Road found that four of the eight least reliable operators, with the highest cancellation rates, were public, while the three most reliable operators, with the lowest cancellation rates, were private.

I have three questions for the Secretary of State. First, what steps is she taking to ensure that the worst, rather than the best, private operators are nationalised first? Secondly, where a private operator’s performance is of a higher standard than that in the public sector, will she consider extending its contract? Finally, given the still shocking level of accessibility on much of the network, will she urgently provide an update on when the stalled Access for All programme will be back on track?

[Louise Haigh]

To confirm, we are working with the trade unions at the moment on productivity improvements. We are clear that some of the practices in place on the railways are not acceptable or fit for modern and efficient railways. In the pay deal, there was a side letter and agreement to work through training improvements, and we want to ensure that that is delivered. The previous Government’s approach meant that they not only failed to deliver any workforce reform improvements, but presided over the longest industrial dispute in our railways’ history, costing the taxpayer and passengers hundreds of millions of pounds.

The hon. Gentleman is right to point out that cancellations are high in the publicly owned TOCs. That is a result not least of the fact that the ones that are in public ownership were already the worst performing, and we need to look at how they have improved under public ownership. The real benefits will be brought about under Great British Railways, when we will be truly able to integrate track and train and deliver those improvements. We will set out the schedule for bringing the private TOCs into public ownership once Royal Assent has been given to the Passenger Railway Services (Public Ownership) Bill, but the right balance must be struck between performance and return for the taxpayer, because we are spending hundreds of millions of pounds in dividend payouts and management fees.

The hon. Gentleman is absolutely right to mention the Access for All programme and accessibility, which has not been good enough under Network Rail. I am happy to write to him about specific stations in the programme.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

Everyone is praising my right hon. Friend to the heavens now that High Speed 2 will end at Euston. She is welcome to Old Oak Common in my constituency any time to have a look-see at progress there. However, can she help to fix the daily delays that constituents are facing on Crossrail? West Ealing and Acton Main Line are getting a worse service than they were before all this. We want to build, build, build, but people in new homes need to be able to travel.

[Louise Haigh]

The day when everyone is praising me to the heavens on HS2 is one I look forward to. As my hon. Friend knows, brand-new Elizabeth line trains are on order; the Mayor of London was awarded a £485 million capital settlement in the Budget partly for those trains, which are being produced at Alstom in Derby. That will significantly reduce the overcrowding and delays that she talks about. The Department works with the Mayor of London very closely on addressing those delays.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

I thank the Secretary of State for coming to the House and updating us, because it gives her an opportunity to correct the record. She may have inadvertently misled the House at the last Transport questions about the Birmingham to Hereford line and West Midlands Railways’ performance. Back in May, a terrible one in 10 of those services was being cancelled, but by October when Transport questions took place, one in six Birmingham to Hereford services was being cancelled. Will the Secretary of State commission her officials to talk to representatives from West Midlands Railways about that line, and find a way to move fast and fix that service?

[Louise Haigh]

Either the Rail Minister or I will of course seek to meet representatives of West Midlands Trains to address its performance.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Select Committee member Laurence Turner.

[Laurence Turner (Birmingham Northfield) (Lab)]

The shadow Secretary of State said that we should pay attention to performance statistics. The figures that I have obtained from the Department show that over the past seven years, there was a 35% increase in temporary and emergency speed restrictions on the network. The Secretary of State has a difficult inheritance, but can she set out for us the work that she is doing to refocus the industry on the hard graft of understanding, maintaining and improving our crumbling infrastructure?

[Louise Haigh]

Shadow Great British Railways brings together the Department, Network Rail, and those operators that are already in public ownership to look at integration and ensure that our investment in the network delivers improvements for passengers as quickly and efficiently as possible. That work will absolutely cover maintaining the network, and we will set out how we will do so in the next control period, as we look towards the second phase of the spending review.

[Layla Moran (Oxford West and Abingdon) (LD)]

I welcome the gusto with which the Secretary of State approaches her work, and in particular her motto, which is “Move fast and fix things.” Has she spoken to Network Rail recently? Its motto seems to be “Move slow and break things”, at least in Oxford, given the way it has mismanaged the Oxford train station upgrade. For the second Christmas in a row, businesses along the Botley Road will not be open. We have a meeting later this week with those businesses, and I have asked for a meeting with the Rail Minister, but he seems too busy. Would the Secretary of State give me just a moment of her time, so that I can work with her on how we can move forward? This is not acceptable, is it?

[Louise Haigh]

I completely empathise, and agree that the situation in Oxford is not good enough. The hon. Lady’s characterisation of Network Rail is partly why it is being abolished as we establish Great British Railways. I will of course meet her to discuss how we can improve the situation.

[Rachel Hopkins (Luton South and South Bedfordshire) (Lab)]

I welcome the Transport Secretary’s comments today, and her emphasis on good industrial relations in the rail industry. Why does she think that this Labour Government were able to work with trade unions such as ASLEF to end the national strikes, improving services for passengers within weeks of taking office, when the previous Conservative Government were unable to do so over several years?

[Louise Haigh]

The truth is that the previous Government deliberately provoked and prolonged that strike, the longest in the history of our railways. They budgeted for a pay settlement not far off where we landed, and that pay settlement has already paid for itself through increased revenue and improved services for passengers.

[Greg Smith (Mid Buckinghamshire) (Con)]

Chiltern Railways was absent from the Secretary of State’s statement, but when it comes to rail performance, for my constituents —both those on the Chiltern main line and those on the Aylesbury branch—daily overcrowding is a reality, with passengers often being left on the platform. Given that the previous Government stepped up, with a commitment to ensuring that Chiltern got more rolling stock to tackle the overcrowding challenges, will the Secretary of State make it a double priority to get Chiltern those extra trains and end this overcrowding?

[Louise Haigh]

The hon. Gentleman is absolutely right. Chiltern was the worst-performing operator last year, in terms of the reduction in punctuality, which further makes the case for public ownership. The previous Government made lots of commitments, few of which were funded, but I will take that question away and determine where the rolling stock order is.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Select Committee member Catherine Atkinson.

[Catherine Atkinson (Derby North) (Lab)]

I welcome the Secretary of State’s success in ending national industrial disputes as a first step to delivering better services for rail passengers. Does she agree that the establishment of Great British Railways in Derby represents a further positive step in getting Britain moving again? Can she update the House on the governance framework for shadow Great British Railways, and how it will work with stakeholders on functions such as producing a business plan?

[Louise Haigh]

I was delighted to be in Derby recently to confirm that the headquarters of Great British Railways will be in that rail city. I am also delighted that, as I say, Alstom is manufacturing the new Elizabeth line trains, as a consequence of funding awarded in the Budget. Shadow GBR is really important for engaging with stakeholders and, crucially, putting passengers at the heart of developing a new culture—and a new organisation, in Great British Railways. It has the expert chairing of Laura Shoaf, who brings substantial planning and transport experience from her time as chief executive of West Midlands combined authority.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Select Committee member Rebecca Smith.

[Rebecca Smith (South West Devon) (Con)]

It has recently been brought to my attention that in Great Western Railway, which serves my constituency in Devon, drivers do not have contracts that ensure a seven-day-a-week service—the contracts do not include Sundays, so trains are regularly cancelled. In fact, four trains were cancelled yesterday, so one lady had been forced to catch the first train today instead. What plans does the Secretary of State have to equalise driver contracts under Great British Railways, to ensure that routes such as Paddington to Devon are fully staffed seven days a week, so that she can fulfil her promise to passengers?

[Louise Haigh]

The hon. Lady is absolutely right, and unfortunately that is the picture across too much of our railways. The workforce terms and conditions are simply not fit for purpose. Part of our inheritance is that we do not have a workforce that can deliver a modern and efficient railway. We are working with Great Western Railway to address that egregious issue, and we will come back to the House shortly to set out our progress.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Select Committee member Dr Scott Arthur.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

I thank the Secretary of State for her statement, and for the leadership that she is showing to get our railways back on track—sorry for the pun. I am pleased that she mentioned LNER and Lumo, which do a fantastic job of connecting Edinburgh and London, and of providing a stress-free alternative to flying. When she first took up her post, she was clear that she wanted HS2 to get a grip of costs. Does she feel vindicated, given the reports over the weekend of more than £100 million being spent on a single structure, despite some of those involved saying that they were not aware of the need for it?

[Louise Haigh]

It was extraordinarily frustrating to see the news of the obscene amounts of money spent on that structure to do with HS2. That happened under HS2’s previous leadership. We are resolving this by bringing in Mark Wild imminently to lead the organisation, and we are also resolving issues around cost control and governance through James Stewart’s governance review of HS2. These things happened under the previous Government, and fortunately the electorate resolved that issue for us on 4 July.

[Tim Farron (Westmorland and Lonsdale) (LD)]

After a weekend of cancellations at Windermere, Oxenholme and elsewhere, will the Secretary of State have a word with Northern Rail, to remind it that it is meant to run a rail service on a Sunday? Will she also speak to Avanti —many hon. Members may agree with me on this and have the same experience—because services from London Euston to Glasgow Central are habitually stopped at Preston, even when the track is clear all the way to the Scottish border and beyond? It harms my constituents at Oxenholme, and those in Penrith, Lancaster and Carlisle.

[Louise Haigh]

I have routine conversations with Northern Rail, as the hon. Gentleman would imagine. The most recent was on Thursday. We facilitated a new rest day working agreement with it, which has significantly reduced driver cancellations, but there is an outstanding issue with conductors; there is a very similar situation with Great Western. In parts of Northern Rail, particularly in the north-west, Sundays are not included in the working week. That has led to an unacceptable amount of cancellations, which we are working to resolve. I will raise the issue of stopping at Preston with Avanti separately.

[Sally Jameson (Doncaster Central) (Lab/Co-op)]

Doncaster has a long and historic relationship with the railways; we are home to both the Mallard and the Flying Scotsman. The financial sustainability and success of rail are critical to our local economy, so can the Secretary of State update the House on the net cost of the solution that she brokered to end the strikes?

[Louise Haigh]

My hon. Friend is absolutely right. The strikes were costing us £20 million a day in lost revenue. That is aside from the economic impact of people coming off the railways and not making journeys to work, to see friends and family or to visit other towns and cities. Settling the pay disputes that were pervading our railways has already paid for itself.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

What lessons has the Secretary of State drawn from rail networks in other countries about rail performance and safety, given that many of them are now automated? Will she make herself a heroine in the south-west by dealing at long last with the notorious Tisbury loop, west of Salisbury, which has added inestimable time to rail journeys to the far south-west? The situation could be resolved at very little cost.

[Louise Haigh]

I will look into the issue for the right hon. Gentleman. It may be that the Rail Minister has to make himself a hero; I will ask him to meet the right hon. Gentleman to discuss the matter.

[Mr Luke Charters (York Outer) (Lab)]

They say that money doesn’t grow on trees, but apparently it flies out the window for £100 million bat caves. Does my right hon. Friend agree that HS2 should apologise for its fur-brained scheme? How can we quickly learn the lessons to ensure good taxpayer value for money as HS2 continues?

[Louise Haigh]

I was absolutely horrified, on entering the Department, to learn that there had been no routine ministerial oversight, in any sense of the word, of HS2 for some time. We immediately established a cross-ministerial taskforce, comprising me and the Treasury, to oversee HS2’s costs. I have written to the chair to make it clear that, beyond safety, his first and abiding priority is to bring down costs. I have commissioned a governance review, led by James Stewart. We will look at the structure of HS2 Ltd, which has been too much at arm’s length, and too free to spend taxpayers’ money for too long.

[Wera Hobhouse (Bath) (LD)]

GWR, which serves my Bath constituency, has been performing in the most disappointing way, to say the least. Especially on Sundays, cancellations and delays are the new norm. Engineering works are among the problems, but the train driver shortage is the biggest problem. What exactly will resolving what the Secretary of State calls the rest day working issue mean for my constituents? When does she expect them to see tangible change?

[Louise Haigh]

The problem across the entire railway is that we do not have sufficient drivers or staff, so too many parts of the railways are reliant on rest day working agreements. We should not have to rely on people volunteering to come on shift in order to run a Sunday service, but unfortunately that is the case at Great Western Railway. We will not be harmonising contracts or terms and conditions at Great British Railways, as we have established, but we need to get drivers and conductors on modern terms and conditions that reflect the railway that we need. We are attempting to address the specific issue at Great Western Railway; as I say, we will come back to the House soon with an update on progress.

[Jim Dickson (Dartford) (Lab)]

At a recent meeting with me to discuss rail improvements for my constituents, the chief executive of Southeastern—a nationalised company, as has been confirmed—was able to confirm that additional services between Dartford and central London are due to commence in December, as the Secretary of State mentioned. Can she outline any additional welcome improvements to services in the south-east, or other parts of the country, to which we can look forward?

[Louise Haigh]

We will see 44 additional trains per day on the new timetable from Southeastern. CrossCountry restored its full timetable today, and we hope to see new timetables from TransPennine Express in the coming weeks. We have procurements out for TransPennine Express and Southeastern, I believe, so my hon. Friend will see new rolling stock in due course.

[Lincoln Jopp (Spelthorne) (Con)]

People can only go so far out of London into the Spelthorne constituency on their Oyster card; they have to buy a train ticket for the last couple of stops. This anomalous situation means that major employers such as BP and Shepperton Studios send buses up the line to pick up their workers to do a day’s work. The Secretary of State will soon be the proud owner of South Western Railway, Transport for London and Great British Railways, so can she please make herself an absolute hero in Spelthorne and get it into the Oyster zone?

[Louise Haigh]

The Mayor of London is the owner of Transport for London, but we can absolutely work together to see whether anything of that nature can be achieved. I see no reason why we cannot make progress on that issue.

[Alistair Strathern (Hitchin) (Lab)]

Commuters at Arlesey and Hitchen stations in my constituency are driven to despair by the shocking state of Thameslink services, with delays and cancellations an all too frequent feature of everyday commutes. I welcome the urgency with which the Secretary of State is starting to tackle the long-term causes, from industrial disputes to fragmentation. In the interim, will she meet me to discuss how we can push Thameslink to do more to make sure we finally make these delays and cancellations a thing of the past?

[Louise Haigh]

I am grateful for those comments. Govia Thameslink had an improvement of 3% in its cancellations on last year, but it is still falling behind on punctuality. I am happy to meet my hon. Friend to discuss what more we can do.

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

I welcome the Secretary of State’s update on how the UK Government are following in the Scottish Government’s footsteps by nationalising train operating companies, but Labour cannot claim to be nationalising the railways while leaving the trains in private hands. Even with the passage of her Bill, profits will continue to flow out of our railways to rolling stock companies, some based in tax havens, rather than be reinvested in services and infrastructure, and consequently in performance. Will the Secretary of State set out when she plans to bring forward proposals to nationalise the rolling stock companies and bring the railways back into public hands in their entirety?

[Louise Haigh]

One of the purposes of this reform was to save the taxpayer money, and bringing operators into public ownership as their contracts expire means there will be no compensation. We will also be saving the money currently leaking out of the system through dividends and management fees. It would not be fiscally prudent in the current environment to spend billions of pounds on nationalising the rolling stock, so we will continue the current arrangement whereby private finance is leveraged into rolling stock companies.

[Peter Swallow (Bracknell) (Lab)]

My constituents are reliant on a train line between Reading and Waterloo that has seen no improvements to frequency or journey times since the 1970s, so they will warmly welcome the steps the Secretary of State has outlined today to launch a consultation setting out plans for unification across the railway. Does she agree that a modern railway system is an essential step in getting our economy growing?

[Louise Haigh]

I absolutely agree. For too long, passengers have not been able to rely on the railways, and it has driven people off them. We see in the latest Transport Focus data that people are gradually starting to feel more confident in using the railways, but we have a long way to go to turn the tide on the last 14 years of failure.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

Improved rail performance is of course welcome, but my constituents in Somerton and Langport are not served by the railway at all. A family in Curry Rivel recently wrote to me; they are over half an hour away from the nearest train station, leaving them isolated from the train line. Will the Minister outline any plans she has to connect my constituents in rural areas to the railway?

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[Louise Haigh]

We will be setting out a long-term infrastructure strategy in spring next year, working with the Ministry of Housing, Communities and Local Government and colleagues across Government to ensure that we are unlocking the transport infrastructure that will be of benefit and allow us to meet our housing targets but also improve rural connectivity. My Department is also reforming how we do appraisals to ensure we maximise our investment in transport infrastructure for economic growth and to tackle socioeconomic inequality.

[Mr Mark Sewards (Leeds South West and Morley) (Lab)]

I welcome the Secretary of State’s decisive action to end industrial action, get the railways moving again and unlock the barriers to economic growth that we absolutely need to sweep away to get this country growing again. It is particularly welcome to hear about the green shoots of recovery and the improvements in LNER’s performance. However, passengers at Morley train station tell me that the services are still unreliable, so can the Secretary of State update the House on what she will do to improve the reliability of the train services running through Leeds South West and Morley and the rest of the UK?

[Louise Haigh]

LNER’s reliability has improved in the past year, but I am not naive and do not think we are there yet; these are only the green shoots of recovery. The real improvements from these reforms will come when we can truly integrate track and train. LNER and the east coast are a perfect example of where the previous system was failing. Billions of pounds were spent on upgrading the east coast main line, but with absolutely no improvement for passengers. By integrating track and train, we can ensure that those upgrades to the east coast main line are fully realised for passengers and that the timetable and service from LNER are improved.

[Lisa Smart (Hazel Grove) (LD)]

My constituents have to rely on two of the most unreliable train operating companies: Northern and TransPennine Express. Too many of them are having to drive to get to work on time or get a taxi to get back in time for after-school club. When does the Secretary of State think my constituents will have the confidence to go back to using the train, rather than relying on an app on their phone?

[Louise Haigh]

The hon. Lady is absolutely right. Northern and TransPennine Express serve my constituency as well, and some of the most deprived parts of the north of England. Performance has not been good enough. TransPennine in particular has seen insignificant improvements since it was brought into public ownership, but neither operator is where it needs to be. We are working closely with them as a priority through the operator of last resort, not only to drive efficiencies, but crucially to drive performance. I was struck when I met Network Rail and some of the managing directors of the worst-performing operating companies that they made it clear that the previous levels of performance had simply been tolerated and accepted as normal across the industry. They are under no doubt that under this Government, that level of performance will no longer be tolerated.

[Josh Fenton-Glynn (Calder Valley) (Lab)]

My constituents in Calder Valley are also sick of the performance of Northern Rail. In July, the Department for Transport issued a breach of notice to Northern Rail, because of its underperformance. Northern Rail’s chief operating officer said that performance was “not good enough”. Will my right hon. Friend confirm that she will prioritise getting Northern Rail back on track?

[Louise Haigh]

We can hear from the House how much of an impact the levels of service on Northern Rail are having. Andy Burnham texts me every Monday about the performance on Northern trains, so I can assure my hon. Friend that it is a priority.

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

Earlier this year, Avanti West Coast services on the north Wales main line had on-the-day cancellations of more than 20%. Its timetable is yet to return to pre-covid standards, and there were no direct connections with London on Saturday. Given that the Avanti West Coast contract runs to 2026, what is the Secretary of State doing to ensure a reliable mainline service for the people of north Wales?

[Louise Haigh]

My views on Avanti’s performance are well known, I think. The right hon. Lady is absolutely right that it has not been acceptable. Shockingly, the way that national rail contracts were written under the previous Government means that Avanti has not defaulted. It is on a remedial plan to drive improvements, and we have seen a small increase in punctuality, but it still has a long way to go. We are watching over Avanti like a hawk to make sure that if it does default, it can be immediately brought into public ownership.

[Josh MacAlister (Whitehaven and Workington) (Lab)]

I extend my thanks to the Secretary of State and the team for the early action they have taken to improve the reliability of the network. My constituents struggle with two lines. One is the Cumbrian coast line, on which I ask the Secretary of State for any update on the ongoing conductors’ dispute. That is adding to a lack of reliability in the system for those in Whitehaven and Workington and elsewhere. I spend too much time—far too much time—on Avanti West Coast services, which gives me the opportunity to speak to constituents who cannot use the wi-fi, because it is highly unreliable. It is a big issue for productivity, so will the Secretary of State raise that with Avanti when she meets its representatives?

[Louise Haigh]

Wi-fi is one of the examples of passenger experience that we are clear needs to be delivered through Great British Railways. I take East Midlands Railway, and the wi-fi is even worse on that line. I would be happy to raise that issue with Avanti. We are in the process of attempting to facilitate an agreement with Northern on the conductor issue that my hon. Friend mentions in the north-west, which has the most egregious example of working terms and conditions being outside of a normal working week.

[Max Wilkinson (Cheltenham) (LD)]

I join the chorus of those talking about GWR’s shocking Sunday service. Its timetable is a work of fiction akin to “Chuggington”, which I often watch with my daughter. Were that the only problem that my constituents faced, we might be able to look past it. However, the lack of carriages on trains home on a weekday is a huge problem—my hon. Friend the Member for Tewkesbury (Cameron Thomas) recently used some choice language about it, which I urge hon. Members to look up online; I will not report it in the House. We often find that there are only half the carriages that we need to get home. I recently stood by the loo for 90 minutes until Stroud, which was an unpleasant experience shared by many others on the train. What will the Secretary of State do to reassure me that GBR will solve that problem?

[Louise Haigh]

Again, the current fragmentation of the network means that we have dozens of different types of rolling stock across the network, all procured by different operators at different times, which are not interoperable between operators and cannot be moved around the network precisely when there are issues such as those that the hon. Gentleman described. With the establishment of Great British Railways and a long-term rolling stock strategy, we can procure fewer types of trains and start to move them around. I will take away the specific issue of short-form trains on Great Western Railway and write to him about what action can be taken.

[Mr Richard Quigley (Isle of Wight West) (Lab)]

rose—

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[Andrew George (St Ives) (LD)]

I welcome the Secretary of State’s statement, and particularly the sentiment about putting passengers first and getting a grip. Those who are served by Great Western, which runs to south Wales as well as down the main line to Penzance in my constituency—Great Western has already been heavily criticised this afternoon—will be aware that we are getting none of the benefits of HS2 but a lot of the disruption as a result of the work at Old Oak Common. Will the Secretary of State meet those Members of Parliament who are worried about the prospect of six years of sometimes severe disruption to their services to see whether we can minimise the impact?

[Louise Haigh]

I am conscious of the disruption that will be experienced by passengers coming from the south-west. We are putting in place plans so that trains can come into Euston rather than Paddington, but it is undeniable that there will be substantial disruption during the Old Oak Common works. I or the Rail Minister will be happy to meet colleagues who are affected.

[Madam Deputy Speaker]

I call Richard Quigley—honesty goes a long way.

[Mr Quigley]

Thank you, Madam Deputy Speaker; I truly am grateful. I was going to say that my train was late, but that would not actually be true. [Laughter.]

Speaking of my right hon. Friend being a heroine, finding a solution to the Isle of Wight ferries issue would result in our erecting a bronze statue on the seafront in Cowes. Does she agree that the Conservatives’ failed experiment with rail privatisation has caused passengers misery and cost millions? What will she do to make things better?

[Louise Haigh]

I am grateful to you, Madam Deputy Speaker, for allowing my hon. Friend to ask a question. I thought he would mention the ferries as well—he also texts me often about the ferries. I am grateful for his point. The new model will deliver not only better services for passengers but a far better settlement for taxpayers, who have been ripped off under the previous model for far too long.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State very much for her statement. She has been clear that transparency for passengers will be achieved by displaying performance data. How do the Government intend to ensure that, as well as knowing whether their local line is not doing well, passengers know that their taxes are being used not simply to pay rail staff higher wages, but to get trains to reach their destinations in a time-effective and cost-effective way?

[Louise Haigh]

The purpose of displaying performance data at stations is to give passengers certainty and transparency about the state of the railways, but Great British Railways will also be far more accountable than under the current system. At the moment, to hold the railways to account, there is a complicated mix of responsibility between Network Rail, the train operating companies and the Department for Transport. Great British Railways will provide a single point of access to the railways for politicians and for communities, and we will be able to ensure that the organisation is single-mindedly delivering for passengers.

National Bus Fare Cap

Louise Haigh Excerpts

Tuesday 29th October 2024 Written Statements

[The Secretary of State for Transport (Louise Haigh)]

In his pre-Budget Speech on Monday 28 October, the Prime Minister confirmed that single bus fares will be limited at £3 until the end of 2025, as part of more than £1 billion to be invested in buses.

The current £2 cap on single bus fares had been due to come to an end on 31 December 2024. Under the plans of the previous Administration, funding for the current cap on bus fares had been due to expire at the end of 2024. From 1 January 2025 through to the end of December 2025, we will introduce a new single fare cap at £3 to ensure millions of people can access affordable bus fares and better opportunities all over the country. This will particularly benefit passengers in rural communities and towns, and will save passengers up to 80% on some routes.

The cap means no single bus fare on routes included in the scheme will exceed £3, and routes where fares are less than £3 will only be allowed to increase by inflation in the normal way, so that some fares will remain below £3. The fare cap will help millions access better opportunities and promote greater use by passengers.

We are providing funding of over £150 million to enable the introduction of the cap. This is part of a £1 billion funding boost for buses which will be set out at the Budget to help local areas deliver high-quality, reliable bus services and protect the vital routes that so many people rely on. Improving the reliability and number of services and routes is essential to encouraging more people to use buses.

Buses are the engines of economic opportunity across the country. Our bus revolution and new buses Bill will give every community the power to take back control of their services, improve the reliability of services and turn the page on four decades of failed deregulation.

[HCWS172]

Motor Insurance

Louise Haigh Excerpts

Wednesday 16th October 2024 Written Statements

[The Secretary of State for Transport (Louise Haigh)]

Today the Economic Secretary to the Treasury and I will co-chair the first meeting of a new cross-Government taskforce on motor insurance.

Motor insurance is an essential, not a luxury. It is vital to accessing economic opportunities, and this Government are committed to ensuring drivers are treated fairly.

This Government are committed to tackling increases in motor insurance premiums—which have risen at far higher rates in the UK than in other comparable economies. While motor insurance is a complex market, the Government want to ensure that it works well for the drivers it serves.

The taskforce, which will be attended by Ministers from several Departments and by the Financial Conduct Authority (FCA) and Competition and Markets Authority (CMA), has a strategic remit to set the direction for Government policy in this area. It will identify the drivers behind rising premiums and will agree short-term and long-term actions for Departments that can contribute to stabilising or reducing premiums, while maintaining appropriate levels of cover.

The taskforce will evaluate the impact of increased insurance costs on consumers and the insurance industry, including how this impacts different demographics, geographies and communities.

While all drivers have struggled with rising costs, it is important to recognise the particular pressures on specific groups that face barriers to accessing fair and affordable motor insurance. This includes ethnic minorities, those on lower incomes, and elderly and young drivers. This taskforce will therefore have an additional focus on those groups.

The taskforce’s first meeting will also be attended by representatives from the motor and insurance industries, consumer champions and other relevant groups.

Improving access to appropriate and affordable insurance is key to supporting people’s financial resilience and wellbeing, and making sure they can benefit fully from this Government’s wider economic agenda of inclusive growth and breaking down the barriers to opportunities. I look forward to updating the House on the taskforce’s progress on these matters in the coming months.

[HCWS143]

Oral Answers to Questions

Louise Haigh Excerpts

Thursday 10th October 2024 Commons Chamber

[The Secretary of State for Transport (Louise Haigh)]

Nowhere is the Tory legacy of transport failure more obvious than in the legacy we have been left on High Speed 2, with costs allowed to run completely out of control, communities ignored, and misery for passengers baked into the plans. My Department is working with the rail industry to minimise disruption during the construction of Old Oak Common station, including through a £30 million investment in mitigations that will allow services to continue to operate during the disruption.

[Jayne Kirkham]

Our railway in the south-west is too slow, too fragile and too expensive. Does the Transport Secretary agree with me and colleagues across Cornwall, the south-west and Wales that this new HS2 station will mean slower and more disrupted journeys? Will she meet me and a delegation of south-west MPs to discuss mitigation of the legacy she has inherited from the last Government to ensure that the south-west does not suffer now and in the future because of that disruption?

[Louise Haigh]

I am grateful to my hon. Friend for rightly raising these issues. I will be delighted to meet her to discuss the mitigations. Efforts will be made to minimise the impact on passengers, including trains terminating at either Ealing Broadway or Reading, but we will work with her to monitor and minimise disruption for her constituents.

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

Traffic delays at level crossings in Egham, Addlestone and Chertsey are punishing my constituents, and engineering works and diversion routes just make that worse. Will the Secretary of State meet me to discuss how we can mitigate and improve our level crossings, especially during these engineering works?

[Louise Haigh]

I fully appreciate the implications of Network Rail engineering works, and the construction and maintenance of level crossings in particular. I will happily pass on the hon. Member’s request for a meeting to the Minister for Rail in the other place.

[Mr Speaker]

I call the shadow Minister.

[Mr Speaker]

Order. I am sure that question must be related in some way to Old Oak Common. I think we need to be more descriptive when asking such questions. Secretary of State, answer as you wish.

[Louise Haigh]

I am happy to answer that question, Mr Speaker. The two-year industrial dispute cost the taxpayer £25 million a day every time the Tories oversaw a strike day. The reforms that they pursued cost taxpayers hundreds of millions of pounds. We have since settled the national pay dispute and localised disputes on London North Eastern Railway and CrossCountry, leading to improved passenger services across the country.

[Jake Richards (Rother Valley) (Lab)]

3. What steps she is taking to improve road safety.

[The Secretary of State for Transport (Louise Haigh)]

Every death on our roads is a tragedy; for too long, they have been treated as an inevitability. The safety of our roads is an absolute priority for this Government. Since the general election, the Department has begun work on a new road safety strategy, the first in more than a decade, which will support our mission to build an NHS fit for the future.

[Jake Richards]

Last week, I met South Yorkshire police to raise the issue of speeding and in particular the phenomenon of boy racers, which is a problem across my constituency, particularly in Broom, Sitwell and Whiston, as well as along the A57 around the Todwick roundabout. That was a constructive meeting, but what steps are the Government taking to clamp down on this dangerous problem?

[Louise Haigh]

I applaud my hon. Friend for raising this important issue. I know the blight that such antisocial behaviour and speeding has on communities, particularly in areas like the one he represents. A key part of our safer streets mission is to take back our streets, and the Government will give police the powers they need to seize illegal, dangerous and antisocial vehicles and take them off the streets for good, so that they can quickly be crushed. We are working on delivering the road safety strategy, the first in over a decade, to reduce antisocial behaviour, injuries and tragic deaths on our roads.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

In Hinckley, we have one of the most bashed bridges in Britain; it gets hit every two weeks on average. It is on the A5, which also has some black spots for accidents and pinch points. Will the Secretary of State arrange for a meeting between me and the Roads Minister, the hon. Member for Nottingham South (Lilian Greenwood), to talk about how we can get through the improvements that have been looked at for the last few years to ensure that our bridges are not hit and that we do not have black spots on the A5?

[Louise Haigh]

I am grateful to the hon. Member for raising that important issue. It is clear, with stats like those, that it needs some attention. I am sure that my hon. Friend the Roads Minister will be happy to meet him.

[Jacob Collier (Burton and Uttoxeter) (Lab)]

Between 60,000 and 90,000 vehicles pass through the A50/A500 corridor every single day, but the road is slow and unreliable, with average rush hour speeds below 20 mph. The road is a daily nightmare for residents of Uttoxeter and the surrounding areas, and serves as a significant barrier to economic growth. Will the Minister commit to meeting me in Uttoxeter to see for herself the upgrades that are needed?

[Louise Haigh]

I fear I may be filling up the diary of my hon. Friend the Roads Minister, but I am sure she would be happy to meet my hon. Friend the Member for Burton and Uttoxeter (Jacob Collier) to discuss the road in question.

[Wera Hobhouse (Bath) (LD)]

Road safety is one of the main reasons why young people do not cycle, and that is particularly true in cities such as Bath, where the historic infrastructure makes it difficult. What will the Government do to help young cyclists in particular by making roads safer in Bath?

[Louise Haigh]

I am grateful to the hon. Lady for raising that point, and it sits at the heart of our ambition to develop the new road safety strategy. The previous Government pursued poisonous culture wars against road users of all descriptions. We are determined to take back streets for pedestrians, cyclists and drivers, and that will be at the heart of our new ambition for the road safety strategy.

[Mr Speaker]

I call the shadow Minister.

[Greg Smith (Mid Buckinghamshire) (Con)]

Road safety is inextricably linked to the state of our roads. [Interruption.] Government Members might want to wait. New polling suggests that surface conditions on major roads are getting worse, risking more accidents. Will the Secretary of State confirm—a yes or no answer will suffice—whether her Government will maintain the previous Conservative Government’s commitment to £11 billion in road repair budgets?

[Louise Haigh]

I was fascinated to know how Opposition Front Benchers would approach their legacy when raising questions today. The legacy we have been left includes a maintenance backlog of billions and billions of pounds on our local roads. It is one of the biggest issues facing people across the country, and our manifesto committed us to repair and prevent up to a million potholes a year.

[Nigel Huddleston (Droitwich and Evesham) (Con)]

4. If she will meet stakeholders in the midlands to discuss plans to build the midlands rail hub.

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[Bambos Charalambous (Southgate and Wood Green) (Lab)]

6. What steps she is taking to reduce driving test waiting times.

[The Secretary of State for Transport (Louise Haigh)]

Practical driving test waiting times remain far too high after the previous Administration failed to reduce them, limiting would-be drivers’ access to opportunities. I have met the chief executive of the Driver and Vehicle Standards Agency and driving test examiners, and I have instructed my officials to work at pace to identify solutions to this pervasive problem.

[Bambos Charalambous]

I welcome the fact that the Secretary of State has met the chief executive of the DVSA to discuss urgent solutions to the sky-high driving test waiting times. According to the latest statistics, the waiting time in the Wood Green driving test centre in my constituency was 18.64 weeks. Will my right hon. Friend confirm that this issue is a top priority for the Government, so that my constituents can be reassured that driving test waiting times will be drastically reduced?

[Mr Speaker]

Order. Can I just say to Members who have been here a long time, please speak to the Chair? They should be speaking through a third party, not directly. I am trying to take some of the anger out of it. Please work with me on that.

[Louise Haigh]

I am very grateful to you, Mr Speaker, as I am to my hon. Friend for raising that important question. He is absolute right. Average waiting times at the Wood Green centre currently sit just above the national average. The measures that the DVSA is already taking to reduce waiting times include conducting tests outside regular hours, at weekends and on public holidays, and continuing to deploy examiners from areas with lower waiting times. That is in addition to producing additional examiners across the country in areas where waiting times are highest. We will soon set out to the House further steps by which we will bring down waiting times further.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State very much for that response. Waiting times for tests continue to be a problem. What assessment has been made of the knock-on effect that could occur with the validity of theory tests should delays in practical tests remain and not improve?

[Louise Haigh]

I am very grateful to the hon. Member for raising that important issue. I will take it away and write to him.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

7. What discussions she has had with the Maritime and Coastguard Agency on maritime safety breaches which occur outside UK territorial waters but within the exclusive economic zone.

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[Mrs Emma Lewell-Buck (South Shields) (Lab)]

17. What steps she is taking to help improve local bus services.

[The Secretary of State for Transport (Louise Haigh)]

The state of the country’s bus services is too often unacceptably poor after more than a decade of neglect and decline. Politicians in my position have neglected them for too long, and it shows. In September we moved fast and announced transformative new measures to make it quicker and easier for every local authority in England to have London-style control over its bus services.

[Paul Davies]

Public transport is crucial for rural communities, connecting residents to essential services. However, between 2011 and 2023 England saw a 20% reduction in bus services, with a 28% per capita decrease when the figure was adjusted for population growth. That decline has had a severe impact on rural areas such as my constituency, leaving many residents isolated and struggling to gain access to education, employment, healthcare and social activities. Can the Secretary of State tell me how the better buses Bill will improve the position for my constituents?

[Louise Haigh]

I am aware of the premium that my hon. Friend places on public transport. Indeed, I have campaigned along with him, in his beautiful constituency. I am delighted to confirm that we will introduce a new buses Bill this year to give local leaders the tools that they need to ensure the delivery of high-quality bus networks, putting decision making into their hands and seriously accelerating the franchising process.

[Mary Kelly Foy]

Bus services in the city of Durham are an absolute headache for my constituents. Buses are often 45 minutes late in villages such as West Drayton. The Labour Mayor of the North East and I want to crack on and deliver our manifesto promise to bring buses back into public control. Can the Secretary of State assure me that the better buses Bill will allow us to enfranchise buses sooner rather than later, and will she meet the Mayor and me discuss the bus situation in Durham?

[Louise Haigh]

I am grateful for my hon. Friend’s question. The better buses Bill is designed exactly to help authorities such as the North East combined authority. I have met the Mayor, as has the Under-Secretary of State for Transport, my hon. Friend the Member for Wakefield and Rothwell (Simon Lightwood), who has responsibility for local transport, on a number of occasions to discuss how we can ensure that the franchising process is sped up so that we can deliver better bus services much more quickly for my hon. Friend’s constituents. I am sure the local transport Minister would be delighted to meet both my hon. Friend and the Mayor.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

My right hon. Friend knows that when the previous Government axed over 1,000 bus routes, local communities were completely ignored. As she rebuilds our bus network, can she assure me that the better buses Bill will make provision to fully include local voices, not just the voices of those in elected positions?

[Louise Haigh]

I am grateful to my hon. Friend, who has put her finger on exactly the problem with the system across the country at the moment. For too long, we have allowed private operators to pick and choose whatever routes and services they want, with no say whatsoever for local people or local leaders. The better buses Bill is at the heart of our bus service reforms, and it will give local people a proper say on the routes and services that they absolutely depend on.

[Ben Obese-Jecty (Huntingdon) (Con)]

In my constituency of Huntingdon, eight villages receive no bus services whatsoever, including Molesworth, where we will shortly see a half a billion pound investment in upgrading and expanding our defence infrastructure at RAF Molesworth. Given that franchising will potentially be introduced in Cambridgeshire and Peterborough, will the Secretary of State meet me to discuss how we can guarantee that our rural villages are given the focus they urgently need?

[Louise Haigh]

The hon. Gentleman has made the case for franchising. It is totally unacceptable that entire villages are cut off, without the bus services that they absolutely need. That denies people the opportunity to move around their area and get to work or education opportunities. The Mayor of Cambridgeshire and Peterborough is pursuing franchising. We are supporting him in those efforts, and we will make sure that villages such as those in the hon. Gentleman’s constituency are properly included in the franchising process.

[Mr Speaker]

I call the shadow Secretary of State.

[Helen Whately (Faversham and Mid Kent) (Con)]

I wonder if the right hon. Lady can see the irony in the fact that the new bus system that she is so excited about introducing is broadly the same as the train system that she is busy dismantling. The simple truth is that without funding, the Government’s plan will not make struggling bus services viable or affordable for passengers. What has helped is our £2 fare cap, which has saved millions of people money and helped to keep local buses going, especially in rural areas. Does the Secretary of State agree that the £2 fare cap has been a good thing and, crucially, is she going to keep it?

[Louise Haigh]

The hon. Lady is absolutely right to suggest that the underfunding of bus services over a decade has led to the cancellation and scrapping of thousands of bus routes across the country, and passenger numbers have fallen over the last 40 years. We are committed to consolidating funding and ending the “Hunger Games” style process that the previous Government oversaw, which pitted authorities against each other and created winners and losers.

[Clive Jones (Wokingham) (LD)]

12. What steps she is taking to promote walking and cycling.

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[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

18. Whether she has had discussions with the Chancellor of the Exchequer on increasing capital investment in transport.

[The Secretary of State for Transport (Louise Haigh)]

As the Chancellor set out in her statement, this Government inherited a £22 billion fiscal black hole, including billions of pounds of underfunded and unfunded transport projects. We must fix the foundations of the economy, so I am reviewing capital expenditure in transport to ensure that every penny is spent responsibly, to get the best value for money, and to ensure that our investment powers growth in every corner of the country.

[Graham Leadbitter]

The Secretary of State will be aware of the ambitions of Scotland and the other devolved nations when it comes to major capital transport schemes. However, she will also be aware of the swingeing cuts made to capital budgets by the previous Tory Government, while construction inflation has risen to eye-watering levels. Will she ensure that capital funding for transport projects is substantially increased to enable work on vital connectivities to progress at pace?

[Louise Haigh]

I have met the Scottish Transport Minister, Fiona Hyslop, and look forward to a constructive working relationship with her. The hon. Gentleman will appreciate that spending commitments are a matter for the spending review, but those negotiations and discussions are ongoing.

[Jim Dickson (Dartford) (Lab)]

As a result of under-investment in the lower Thames crossing project, Dartford residents face a noxious cocktail of bad air quality and disruption, living as they do near the hugely over capacity Dartford crossing. Will my right hon. Friend consider making representations to the Treasury to ensure that the lower Thames crossing, which is a vital infrastructure project, is funded?

[Louise Haigh]

The decision around the development consent order for the lower Thames crossing is a quasi-judicial one. I am afraid I am unable to comment further than my written ministerial statement this week.

[Ian Lavery (Blyth and Ashington) (Lab)]

19. If she will take steps with Cabinet colleagues to ensure the provision of ringfenced funding for local authorities to deliver publicly-controlled bus services.

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

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Transport (Louise Haigh)]

I pledged to move fast and fix things, and that is exactly what my Department is doing. Not only have we ended the longest ever national strike on our railways, saving the taxpayer millions and boosting our economy, we have passed a landmark Bill through this House to bring rail services back into public hands after decades of failure and fragmentation. We are taking back control of buses by providing new powers to deliver control to every community in England. We have taken a step closer to greener flights, with a new sustainable aviation fuel mandate. Just yesterday, I announced new measures to strengthen working rights at sea and prevent a repeat of the P&O Ferries scandal ever happening again.

Transport is powering the crucial work of repair and renewal. It underpins each of our national missions, from economic growth to clean energy, and under this Government it will serve working people, wherever they live.

[David Simmonds]

My constituent, Frederick Cooksley, was sent a fine by the Mayor of London for breaching the ultra low emission zone rules, despite driving on a road where the ULEZ does not apply, which provides access to a very important hospital in my constituency. Will she prevail upon her colleague the Mayor of London to ensure, unlike Mr Cooksley, who had to challenge at great length to get his money back, that everyone who has been issued a fine in error for driving on a road where the rules do not apply is automatically refunded?

[Louise Haigh]

I am sure the Mayor of London will have heard that question. We will pass on issues around fining on roads where the ULEZ does not apply.

[Jen Craft (Thurrock) (Lab)]

T2. At best, the proposed lower Thames crossing offers only a short-term mitigation to the problem of congestion at the Dartford crossing, but will have a significantly detrimental environmental and quality-of-life impact for my constituents and feels counterintuitive to the Government’s net zero ambitions. Given that, what steps will the Secretary of State take to consider the potential for investment in cross-river public transport, including the KenEx tram scheme—

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[Helen Whately (Faversham and Mid Kent) (Con)]

After just 100 days, this is already one of the most anti-growth Governments in history, from investor-scaring taxes to the right hon. Lady hitting the brakes on our transport infrastructure pipeline, with Northern Powerhouse Rail, the Midlands Rail Hub and road upgrades across the country all on hold. Growth requires investment and investment requires confidence. Will she give some to the businesses looking to invest, to the contractors waiting to get started, and, crucially, to the communities that so badly need these upgrades?

[Louise Haigh]

I wonder whether the hon. Lady has spoken to any businesses or infrastructure providers over the past 14 years who have suffered appalling uncertainty and a lack of confidence. Her Government presided over billions of pounds of waste and failure in the delivery of infrastructure and have cost our economy hundreds of billions of pounds.

[Helen Whately]

I was expecting the right hon. Lady to say something along the lines of “wait for the Budget”, or “wait for the spending review”, as we have heard many times during this question session. However, she did not wait for the Budget to give unions a massive pay rise, to re-announce our plan to get HS2 to Euston, or to signal billions of pounds for a new HS2-light. If she can make those decisions before the Budget, surely she can confirm that every penny of investment that we had committed to transport through Network North will continue to be invested in our country’s transport infra- structure.

[Louise Haigh]

The hon. Lady can wait for the Budget!

[Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)]

T3. Dangerous driving is a major concern, particularly following a serious crash in my constituency last week. With West Midlands police committed to Vision Zero, what additional support is the Department for Transport providing to help local enforcement and campaigns to tackle speeding and other dangerous driving behaviours?

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[Mr Paul Kohler (Wimbledon) (LD)]

I congratulate the Secretary of State on saying recently that it is ridiculous for HS2 to end at Old Oak Common. Can she confirm whether funding for the work necessary at Euston station has now been secured and what she is doing to reverse the Tories’ equally absurd decision to end the northern leg at Birmingham?

[Louise Haigh]

I am grateful to the hon. Gentleman for his comments. As I said earlier, nowhere is the legacy of the previous Government more pertinent than the mess in which they left HS2. Even under their disgraced plans, Euston was always going to be part of the position on HS2, and we will shortly be making a full announcement about the future of HS2 and, crucially, about its cost controls.

[Mary Glindon (Newcastle upon Tyne East and Wallsend) (Lab)]

T7. I am pleased to hear that the Secretary of State has said that, unlike the previous hapless Government, she will prevent another scandal such as the sudden sacking of 800 P&O ferry employees two years ago. Will she please outline what steps she intends to take to stop anything like that ever happening again?

[Louise Haigh]

I am very grateful to my hon. Friend for her question. The previous Government took two-and-a-half years after the P&O ferry scandal to do nothing. In fewer than 100 days, we are bringing forward legislation that will prevent such a scandal ever happening again, and we are working with operators who employ properly in this space and the trade unions to bring forward protections on rostering as well.

[Sir John Whittingdale (Maldon) (Con)]

T4. The A12 is the major artery between London and the east coast, yet it is already busier than most motorways and suffers from horrendous congestion and delays. Will the Minister therefore press ahead with the widening scheme, which is at an advanced stage, and without which the Government’s projected growth targets and housing targets simply will not be met?

[Lauren Edwards (Rochester and Strood) (Lab)]

T8. Eurostar services have not called at Ashford or Ebbsfleet international rail stations since the pandemic, with Eurostar stating that it will not resume services for some years. That is having a really detrimental impact on businesses and residents in my constituency, and more broadly across Medway and Kent. Will the Secretary of State meet me, other interested MPs and representatives from the Kent and Medway economic partnership to discuss options to restore this vital rail service and help to boost economic growth in the region?

[Louise Haigh]

I am grateful for my hon. Friend’s important question. We share her and her constituents’ disappointment in the commercial decision by Eurostar to cease services. We hope to see a reinstatement, either by Eurostar or another operator, in the future, but I will meet with her, other MPs and local stakeholders to continue discussing this matter.

[Clive Jones (Wokingham) (LD)]

T5. Government allocations to local highway authorities for road maintenance have been frozen since 2016, with no funding for new roads since 2012. My constituency has lost over half its funding. Will the Minister urgently investigate how road maintenance funding for local authorities can be restored?

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[Siân Berry (Brighton Pavilion) (Green)]

T6. Has the Minister’s capital portfolio review properly considered the health, social and equalities aspects of value for money, and will it therefore recommend cancelling more road building schemes from the previous Government in favour of a real long-term boost to local authority active travel funding?

[Louise Haigh]

The capital review and our assessment of the transport appraisal guidance are absolutely considering how we can capture better the wider implications of transport infrastructure funding. We are committed to working with Active Travel England and ensuring that all investment involves consideration of how we can better promote active travel and public transport use, but we are committed to road building as well.

[Sojan Joseph (Ashford) (Lab)]

The deployment of Operation Brock to queue freight lorries heading to Dover on the M20 caused huge disruption and inconvenience for residents and businesses throughout my Ashford constituency. Ahead of the introduction of the new EU entry/exit system, will the Government work with the French Government, local authorities, the port of Dover, and Eurotunnel to minimise delays and ensure that Operation Brock is used only as a measure of last resort?

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[Marsha De Cordova (Battersea) (Lab)]

One of the final acts of the last Tory Government was to cancel Access for All funding for Battersea Park station in my constituency, despite there being a costed plan in place with the local authority. The funding has been promised for more than a decade. Will the Minister meet me to discuss how we can get the project back on track and finally make Battersea Park station step-free?

[Louise Haigh]

I am grateful to my hon. Friend, who has been campaigning on this issue since the moment she set foot in this House. I would be delighted to meet her to see how we can take forward this important project.

[Victoria Collins (Harpenden and Berkhamsted) (LD)]

Local people in Harpenden and Berkhamsted are already blighted by noise from Luton airport, and are highly concerned about the proposed expansion to almost double passenger capacity. What assessment has the Minister made of the compatibility of the expansion with the views of the Government’s own advisers, the Climate Change Committee?

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[Matt Rodda (Reading Central) (Lab)]

Twenty-five years ago, two trains collided just west of Paddington station, in what was one of worst rail accidents of recent times. Thirty-one people lost their lives and many more were injured. Will the Secretary of State join me in paying tribute to all those who were affected by the Paddington rail crash?

[Louise Haigh]

I commend my hon. Friend for his bravery in recently speaking out about his personal involvement in that tragic crash, and I thank my hon. Friend the Member for Kensington and Bayswater (Joe Powell) and my officials for attending the commemoration last weekend. I join my hon. Friend the Member for Reading Central (Matt Rodda) in paying tribute to the families of the victims and to all those heroes who responded on the day.

[Luke Taylor (Sutton and Cheam) (LD)]

Residents in my constituency have been in contact about services at Worcester Park, which have been cut dramatically over the past few years, as has already been alluded to by my hon. Friend the Member for Wimbledon (Mr Kohler). One resident complains that prices have gone up by 20% in the past five years, and that the last train has been brought back from almost 1 am to before midnight. This is not only throttling London’s night-time economy, but causing issues for local residents who choose more sustainable transport. Will the Minister explain when we can expect to see improvements in services following renationalisation, which may begin as early as next year?

[Louise Haigh]

The hon. Member has outlined exactly the kind of issues that we seek to address through the public ownership reforms and the creation of Great British Railways. The Department is already working with operators that are in public ownership and those that are not yet, such as Southern, to ensure that the decisions that they make are properly joined up with Network Rail and that we can start driving improvements immediately.

[Rachael Maskell (York Central) (Lab/Co-op)]

As a result of a failure in regulation, the cross-border taxi trade is undermining the high standards set by local taxi companies and black cabs. What is being done to improve regulation, and will the Minister meet me to discuss the situation in York?

--- Later in debate ---

[Daniel Francis (Bexleyheath and Crayford) (Lab)]

I pay tribute to the “Rights on Flights” campaign for the work that it is doing to improve accessibility, particularly for wheelchair users. What steps is the Secretary of State taking to improve aviation accessibility for disabled people?

[Louise Haigh]

I met the “Rights on Flights” campaign early on after becoming Secretary of State. We will set out our plans to address the major issue of aviation accessibility shortly.

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

The last Conservative Government ringfenced funding to the West Midlands Combined Authority for the delivery of a train station in Aldridge. Can the Secretary of State confirm that that is proceeding as planned and will be delivered by 2027, or has she signed away our ringfenced funding in favour of a wider Transport for West Midlands budget in order to support the Labour Mayor’s ideologically driven plan for bus nationalisation?

[Louise Haigh]

The West Midlands Mayor’s plan for bus services across the west midlands are predicated on delivering better bus services and transport across the region as a whole. We will look into where the funding is for the Aldridge train station.

[Martin Vickers (Brigg and Immingham) (Con)]

I welcome the Secretary of State’s decision to approve the new roll-on, roll-off shipping terminal at Immingham. However, as she will be aware, it will put more pressure on the local road network, particularly the A180. Will she bring forward improvements to the A180, particularly the removal of the concrete surfaces? Long term, we really need the A180 to be upgraded to motorway status.

[Louise Haigh]

I have heard all about the A180 from the hon. Gentleman, and from my hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn), so I know about the issues that it is causing his constituents. We will write to him with a National Highways update.

[Manuela Perteghella (Stratford-on-Avon) (LD)]

The town of Stratford-upon-Avon is one of the most visited locations in the UK, yet for many years we have not had a direct train to the capital. What steps is the Secretary of State taking to fix the lack of capacity in Chiltern Railways so that my constituents and visitors can travel directly and sustainably to and from London?

[Louise Haigh]

That sort of service and provision is exactly what the reforms around Great British Railways are designed to address. Decisions around infrastructure and operations will be made together so that we can deliver services that make sense for the hon. Lady’s constituents, for visitors and for the economy as a whole.

[Richard Foord (Honiton and Sidmouth) (LD)]

One hundred and fifty parishes in Devon wrote to Devon county council last year asking for 20 mph zones, but only six were successful. Those that were not successful were told that they could pursue the measure through so-called “community self-delivery.” My constituents think, “But this is what we pay our council tax for.” Does the Secretary of State understand that?

[Louise Haigh]

I am very grateful for the hon. Gentleman’s question. It is absolutely my position that if local residents want to design and support local measures around speeding and road safety, they should be supported to do so by their local authorities.

Planning

Louise Haigh Excerpts

Monday 7th October 2024 Written Statements

[The Secretary of State for Transport (Louise Haigh)]

This statement confirms that it is necessary to extend the deadline for a decision on the application by National Highways under the Planning Act 2008 for the A122 (Lower Thames crossing) development consent order.

Under section 107(1) of the Planning Act 2008, a decision on an application must be made within three months of receipt of the examining authority’s report, unless the power under section 107(3) is exercised to extend the deadline, and a written ministerial statement is made to Parliament announcing the new deadline.

The examining authority’s report on the Lower Thames crossing development consent order was received on 20 March 2024. The current deadline for a decision is 4 October 2024, having been extended from 20 June 2024 by way of a written ministerial statement dated 24 May 2024.

The deadline for the decision is to be further extended to 23 May 2025 in order to allow more time for the application to be considered further, including any decisions made as part of the spending review.

The decision to set a new deadline is without prejudice to the decision on whether to grant the application development consent.

[HCWS110]

Bus Retrofit Performance Report

Louise Haigh Excerpts

Thursday 12th September 2024 Written Statements

[The Secretary of State for Transport (Louise Haigh)]

Today, I am providing an update regarding the retrofitting of buses with selective catalytic reduction—SCR—technology to reduce emissions of nitrogen oxides.

Through a series of trials between 2013 and 2015, the previous Government explored the potential of reducing emissions or improving fuel economy in older buses and other large vehicles through a range of retrofit technologies. Retrofitting SCR technology was found to be the most effective in reducing the levels of NOx emitted from older buses. Allowing for some variation based on the Euro standard of the retrofitted bus, the reduction of NOx using SCR technology in trials averaged around 90%.

The clean vehicle retrofit accreditation scheme—CVRAS—was launched in 2017 to accredit retrofit technologies that could reduce NOx emissions from buses to close to Euro VI levels. Between 2017 and 2019, £64 million was allocated to the clean bus technology fund for bus upgrades and retrofits. A further £31 million was provided to local authorities in the Government’s NO₂ programme. Approximately 9,000 buses in England have been retrofitted with CVRAS-accredited SCR technology.

In 2021, the Government were made aware of new evidence from Scotland suggesting that real-world emission reductions from retrofitted buses were lower than expected. In 2022, a roadside monitoring campaign was commissioned to measure NOx emissions from retrofitted buses in three areas in England, which reported in early 2023. The findings were similar to those in Scotland. Government funding for bus retrofits was paused in April 2023 while further research was carried out to understand the causes of poor performance and assess the scope for improvement.

The research was overseen by the Department for Transport and the Department for Environment, Food and Rural Affairs chief scientific advisers, assisted by an external independent expert group. Today I have placed the bus retrofit performance report, containing the findings of this research, in the Libraries of both Houses. The performance report was commissioned by the Government and finalised in November 2023. In the interest of transparency, I am releasing the report today.

The report concludes that the real-world performance of bus retrofit SCR technology is highly variable, achieving 80% to 90% NOx reductions in some cases, but having a minimal effect in others. There is an average 11% reduction in NOx emissions overall from retrofitted buses, compared with non-retrofitted Euro V buses, which is significantly lower than the 80% reduction anticipated.

The research shows that a number of contributing factors can lead to poor performance, including the incorrect functioning of retrofit systems, the condition of bus engines and low catalyst operating temperatures. Based on these findings, I am announcing today a permanent end to further Government funding for retrofit and the closure of the clean vehicle retrofit accreditation scheme to further accreditations.

Moving forward, we will work with bus operators and retrofit suppliers to encourage a step change in the monitoring and maintenance of retrofit systems to get the best possible performance from the retrofitted buses currently in service. This will include ensuring that buses are providing live data showing retrofit performance, so that operators and depots can prioritise and target essential maintenance on the poorest-performing buses. Providing this data will be a condition of the buses remaining on the list of CVRAS-accredited vehicles.

Air pollution is the biggest environmental threat to human health, and this Government recognise the need to take preventive public health measures to tackle the biggest killers and support people to live longer, healthier lives. We will continue to work closely with the relevant local authorities to identify alternative measures to deliver compliance with legal NO2 limits in the shortest possible time.

[HCWS97]