Public Spending: Inheritance

Debate between Rachel Reeves and Ian Lavery

Monday 29th July 2024 Commons Chamber

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

During the last Parliament, the Government paid substantial amounts to the train operating companies to make good their losses during a prolonged period of industrial dispute, causing mayhem and causing chaos to the general public. At the same time, the train operating companies paid huge dividends and they also paid their executives massive increases in bonuses. Can my right hon. Friend say how much this actually cost the British taxpayer, and can she ensure that this never ever happens again?

[Rachel Reeves]

Yes, page 5 of the “Fixing the foundations” document that we have published today sets out the pressures on public spending. On rail services:

“Pressures have emerged on rail finances, primarily due to the weaker-than-expected recovery in passenger demand”,

as well as the cost of industrial action, have led

“to a pressure of £1.6 billion”

in this financial year alone.