Zero-emission Buses

Simon Lightwood Excerpts

Tuesday 21st May 2024 Westminster Hall

[Simon Lightwood (Wakefield) (Lab/Co-op)]

I am pleased to serve under your chairmanship, Mr Rosindell, and to respond to this debate on behalf of the official Opposition. I extend my sincere thanks to the Backbench Business Committee for facilitating this debate, and to the hon. Member for North Antrim (Ian Paisley) for securing it. The hon. Member is a vociferous and passionate advocate for UK manufacturing—not just for Wrightbus in Ballymena, which is in his constituency, but for all bus manufacturers across the United Kingdom; for that I thank him.

This is a vital issue, and it is right that we have had the opportunity today for such robust discussion. I place on record my thanks to the excellent, insightful contributions that we have heard from colleagues throughout this debate, including the hon. Member for Milton Keynes South (Iain Stewart), Chair of the Transport Committee. I share his desire for a vibrant zero-emission bus fleet in the UK, with the majority manufactured on these islands, and I agree on the need for fair competition and that the true cost must be highlighted. I also thank him for his mention of the end-of-life processes for those buses and how those should also be taken into consideration.

I am afraid the hon. Member for Strangford (Jim Shannon) had me at lemon drizzle cake—I would love to sample that—but he also made the important point about the significant capacity for UK manufacturers to expand their capabilities, given the right conditions and the certainty that they need. The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) raised the real importance of recognising social and environmental benefits when awarding those grants. I thank all hon. Members for their contributions.

Labour knows that decarbonising the transport sector is essential to achieving net zero. Decarbonising what is now the single largest source of the UK’s carbon emissions will be no easy feat, but Labour is crystal clear that with those challenges come enormous social and economic opportunities. Across road, rail and bus there are immense opportunities for secure, high-skilled green jobs to power our next industrial revolution. With bus being by far the most utilised mode of public transport, zero-emission buses are central to that.

Across the UK, operators and local transport authorities are already taking great strides to decarbonise their fleets, meaning that demand for zero-emission buses will only continue to rise. However, it is clear that the flagship decarbonisation scheme known as ZEBRA, which was announced with much fanfare two Transport Secretaries ago as part of bus back better, continues to be woefully off-target.

Bus back better promised 4,000 new zero-emission buses on the road, but it also promised to set a date for ending the sale of new diesel buses in the UK. Neither of those promises have been met. The Government continue to dither on the phasing-out date, leaving both manufacturers and operators in the dark. In July 2023, the previous Transport Minister—the right hon. Member for North West Durham (Mr Holden)—promised that a response to the DFT’s consultation would be forthcoming “within months”. Well, almost 12 months later, it is still the case that no Transport Minister is able to tell us on what date they will mandate the end of new diesel bus sales. The current Minister with responsibility for roads and local transport, who is here today, told the House in response to a written parliamentary question in January this year that more information would be provided “in due course”. Almost five months on, we are none the wiser.

In the absence of leadership on this issue from the Government, large operators have resorted to setting their own targets. National Express has committed to operating only zero-emission buses by 2030, and Go-Ahead, First Bus and Stagecoach aim to have fully decarbonised fleets by 2035. Although that is commendable, the continued silence from the Government on the end date for diesel bus sales will doubtless have the biggest impact on smaller and more rural bus operators.

The parameters of the Government’s consultation, which was launched back in 2022, could see a date for phase-out set “between 2025 and 2032”. Operators and manufacturers alike need certainty from this Government. It feels like a profoundly short-sighted, anti-business stance for the Government to refuse to grant that certainty, leaving it up to the sector to guess whether the phase-out could be as soon as next year or in eight years’ time.

As I mentioned, bus back better also pledged 4,000 zero-emission buses. I regularly quiz the DFT on the latest statistics about the roll-out of zero-emission buses funded by ZEBRA. The most recent statistics, which I was able to obtain last month, show that just 313 are on the road and 1,053 have been ordered using ZEBRA 1. That means that to date the Government have achieved barely a quarter of ZEBRA’s potential. The successful bidders in the next phase of ZEBRA—ZEBRA 2—were announced back in March, funding a further 955 zero-emission buses. But even if every single one of those buses is somehow on the road by the end of this Parliament, the Government will still fall considerably short of their target. Even the Chair of the Transport Committee said last year that “it seems increasingly unlikely” that the Government will meet their target.

Despite bold steps by operators, local transport authorities and manufacturers, it is clear that we have a long way to go before we decarbonise our bus sector. I would be grateful if the Minister could tell me exactly how many zero-emission buses he thinks he will be able to deliver on the road by the end of this Parliament. For the UK’s leading bus manufacturers—Alexander Dennis, Wrightbus and Optare, or Switch—the ambition and appetite for zero-emission buses is an enormous opportunity. Our bus manufacturing sector directly employs 3,500 staff across the UK and supports a further 10,000 across the supply chain.

Those companies are world-class, trailblazing manufacturers producing some of the most advanced zero-emission and ultra low emission buses anywhere on the globe. Not only are their products world-class, but they are vital employers, contributing millions to the UK economy. I regularly meet them and they frequently tell me about their fantastic apprenticeship schemes and training and upskilling programmes. But under the Government’s approach to decarbonising the bus sector, those companies are at risk.

Research undertaken by Labour and—commendably—by the office of the hon. Member for North Antrim shows that 46% of the money spent by the Government on funding ZEBRA 1 has been used to purchase buses built outside the UK. The Minister will be aware that in addition to recent reports of more Chinese buses being procured, funding from ZEBRA has already been used to procure hundreds of Chinese Yutong buses. In last week’s Transport questions, I told the Secretary of State that it had emerged that a major UK operator was preparing to procure tens of millions of pounds-worth of buses, not from Wrightbus, ADL or Optare, but from China.

Labour is realistic about the fact that, as demand for zero-emission buses increases globally, competitive manufacturers will be involved in the supply chain. However, we are at a crossroads. Britain under the Tories risks losing the global race for the clean industries of the future, losing jobs overseas and betraying communities across the country. The hon. Member for North Antrim is right to question whether taxpayer-funded schemes to support the introduction of zero-emission buses should be delivered in a manner that helps UK bus manufacturing industries more. We must remember that the Government have refused to adopt a full-scale industrial strategy since 2017. We should make no mistake: the lack of a strategy from the Government is putting home-grown bus manufacturers at risk. Alexander Dennis tells me that, with enough joined-up thinking from the Government, the company could spool up production to meet demand, but, in the absence of certainty, it may have to reconsider its future in the UK.

[The Parliamentary Under-Secretary of State for Transport (Guy Opperman)]

I am listening to the hon. Member’s speech with interest. I want to clarify one point before I address the Chamber. Is the Labour party’s approach to continue to be part of the World Trade Organisation agreement on Government procurement rules made in 2012? Surely that goes to the heart of the debate.

[Simon Lightwood]

I do not agree with the Minister’s assertion. As others have said, the debate is about highlighting and acknowledging the important social and environmental benefits that UK manufacturing brings to these shores.

UK bus manufacturers are in a profoundly frustrating position when they should be leading our green transition. Support for them has not been sufficiently integrated into the national bus strategy from the start. It is a damning metaphor for the Government’s attitude that the front cover of the “Bus Back Better” document shows an image of a bus manufactured by BYD, a Chinese company.

Labour will always back British industry. A Labour Government will act as a strategic industrial partner, setting out clear priorities to provide the certainty that businesses and investors need to solidify the UK’s position as a leader in clean industry. That extends across the EV supply chain. Labour will accelerate domestic battery-making capacity with a national wealth fund to part-finance the new gigafactory capacity that we will need to support the green transition. Not only will that create thousands of good, green jobs in the supply chain and add billions to the UK economy, but it will provide the certainty that UK bus manufacturers desperately need to continue to play a leading role in the UK’s decarbonisation.

I will finish with a few questions for the Minister. On the battery supply chain, what is he doing to ensure that, as demand for electric bus batteries rises, so too does our battery manufacturing capacity? There are billions of pounds-worth of growth to be unlocked if Ministers get this right. The Government’s battery strategy is a welcome first step, but we are already behind the curve, and the scale of ambition in the strategy does not currently match the scale of the challenge we face to reach 100 GWh of capacity by 2030.

What steps will the Minister take to support UK bus manufacturers, in respect of everything that has been discussed today? In a similar Westminster Hall debate in 2022, the then Transport Minister, the hon. Member for Copeland (Trudy Harrison), was asked the same question. She said that she would look into going

“further to understand how we can support British-built buses.”

She went on to say she would explore the factors

“that may help to encourage competitive bids from UK firms”.—[Official Report, 5 July 2022; Vol. 717, c. 290WH.]

I would be grateful if the Minister updated us on whether that work has progressed, and whether he considers the current procurement regime sufficient to back British industry when it comes to bus manufacturing.

Labour stands ready to embrace the green transport revolution and knows that zero-emission buses are essential to that. The UK has a world-class bus manufacturing sector that can, with the right policies from the Government, deliver millions of pounds-worth of economic growth by leading the transition. We need more action from the Government to ensure that our home-grown bus manufacturers can continue to thrive.