(1 year, 1 month ago)
Commons ChamberMy right hon. Friend raises two separate points. One is about the reasons why there have been cost increases. Some of this was in place before the project was in construction—from planning and issues like that, which are worth looking at in the long term, although that will not help in this case. We have also seen significant cost increases, not least due to construction inflation over the past few years. However, this is not just about cost increases; it is also about the benefit reduction. One of the key parts of the business case for HS2 was that it was for business and business traffic. We have seen business rail use and commuter rail use halve post-pandemic because of the changed way in which people choose to travel. That has been an essential part of the decision, and that is why we have decided to change the way we spend the money—not to not spend it, but to spend it on transport investments closer to the way people live their lives. We think that is the right decision, notwithstanding the fact that I recognise that my right hon. Friend is disappointed by it.
The Government claimed that the decision to scrap most of HS2 was made due to rising costs, yet who was Chief Secretary to the Treasury and then Chancellor when the costs were spiralling out of control? The current Prime Minister. Not content with that failure, we now know that he also wasted a shocking £2.2 billion on the leg of HS2 that has just been cancelled. Secretary of State, does this entire fiasco not illustrate how little regard the Government have for taxpayers’ money?
No, not at all. Having no regard for taxpayers’ money would be deciding that a project was going to cost too much and deliver too little in benefits, and then continuing to spend taxpayers’ money regardless. This will not be welcomed by everybody and it was not the consensus view, but we have decided to cancel the second phase. By the way, this was about not just increased costs, but the combination of increased costs and reduced benefits, as I said in answer to my right hon. Friend the Member for Tunbridge Wells (Greg Clark). It was about the two things together, and we have decided to reinvest the money in alternative transport projects, which, by the way, have a higher return on investment and will therefore deliver a greater return to taxpayers. That shows exactly the opposite of what the hon. Member for Slough (Mr Dhesi) said—that we value taxpayers’ money and want to deliver the best return for taxpayers’ money, which is why we have made this change in how we are investing their hard-earned money.
(1 year, 7 months ago)
Commons ChamberWhen it comes to railway reform, the Conservative Government seem to know only two approaches—hike up fares and cut railways back to the bone. They are not content with slashing services, cancelling investment and reducing reliability: a leaked Network Rail report reveals that the Government want to cut funding to such a dangerous level that it will be unable to “operate, maintain and renew” tracks and bridges. On top of that, a £3 billion risk fund to help in emergencies such as severe weather will also be cut. Fewer repairs mean more obstructions, risking more delays and accidents and more compensation to private operators. Why are Ministers so passionately committed to making our railways less reliable and ever more expensive? Have the public not suffered enough already?
That was an extraordinary question, containing not a single fact. The Government have provided a record £44.1 billion settlement for Network Rail in control period 7—in English, that is between April 2024 to March 2029. Compared with the previous control period, that is a 4% increase in real terms when compared on a like-for-like basis, and an above-inflation settlement during a highly challenging fiscal environment. That demonstrates our continued commitment to running and maintaining vital railway infrastructure.
(1 year, 12 months ago)
Commons ChamberThere is no point in making promises to level up communities through transport if Ministers announce yet another punishing rail fare rise next month. A 3.8% rise, like this year, would mean £129 more for an annual season ticket between Chester and Manchester, and 8% would mean Swindon to Bristol commuters paying £312 extra. The retail price index figure—the usual figure used for rail fare rises—of 12.3% would burden Dover to London passengers by an additional £909 every year. Given that the rail recovery is fragile and given the Conservative cost of living crisis, does the Secretary of State agree with me that now would be the worst possible time for yet another brutal rail fare rise?
I am glad the hon. Gentleman raises that question because he flags up a very important issue. There are only two places that revenue can come from in the rail sector—the passenger, through the fare box, or the taxpayer. I am very well aware of the challenges facing people with the cost of living and inflation, but we also have to make sure that the cost does not fall on taxpayers, many of whom never use rail services. One of the things we will do as we are making this decision is to weigh up exactly those two things—the pressure on the passenger through the fare box but also the burden that falls on the taxpayer. We will balance those, and when we have made a decision, we will announce it in the usual way.