All 1 Debates between Stephen Hammond and Mark Spencer

Mon 27th Jan 2014

Nottingham to Lincoln Railway Line

Debate between Stephen Hammond and Mark Spencer
Monday 27th January 2014

(10 years, 3 months ago)

Commons Chamber
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Stephen Hammond Portrait The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)
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I congratulate my hon. Friend the Member for Newark (Patrick Mercer) on securing this debate, which provides a further chance for him and other hon. Members to put the case on their constituents’ behalf, as they did in a long meeting with me last week.

The issues that my hon. Friend raised have to be seen in the context of the wider challenges for British railways and the way in which the Government are tackling them. It is undoubtedly true that we face the challenges of success. To support a growing economy and more jobs, we need to meet increasing demand. Since privatisation, passenger numbers have doubled and freight traffic has risen by 60%. In the next five years alone, we expect a further 14% rise in passenger numbers and at least 4%, possibly more, in freight. There is understandable frustration among rail travellers, and we need to tackle the issues of congestion and crowding.

At the same time, we need to tackle the wider challenge of deficit reduction, and the rail industry, along with everyone else, has to play its part. We need to deliver better value for money for the taxpayer and the fare payer, and underlying costs must fall across the industry. To address these and other challenges we are seeing the most significant rail modernisation package for generations. Between 2014 and 2019, Network Rail will invest over £16 billion in improving our railways, having spent over £8 billion in the previous control period.

That includes a number of projects that will directly benefit Nottinghamshire and Lincolnshire. The £150 million Nottingham hub resignalling and station redevelopment programme, which is nearing completion, will improve reliability, reduce delays and create the capacity to cope with increasing numbers of passengers. Electrification of the midland main line, only guaranteed and delivered by this Government, is currently limited to the route between London St Pancras and Bedford, through to Nottingham, Derby and Sheffield, but it will transform the rail route between London, the east midlands and Yorkshire, offering reduced journey times, improved reliability and new trains.

The region will also benefit from the new “electric spine”—a high-capacity electric rail freight route connecting the east midlands with Southampton, making it much more attractive for firms to locate in the east midlands and getting more freight off the road. There have been renewals on the Doncaster-Lincoln-Peterborough line to improve safety, capacity, journey times and performance, and there is a £240 million fund for increases in capacity on the east coast main line, which will bring benefits. That is all before the introduction of new intercity express programme trains on that line, which will transform the journey experience. In addition, from 2018, completion of the Thameslink and Crossrail projects will significantly improve connections from this region to Heathrow. The Government’s rail investment strategy from 2014 to 2019 rightly focuses on strategic priorities for the network, but it will benefit the east midlands as well.

Mark Spencer Portrait Mr Spencer
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The Minister is making a powerful case for the amount of money that the Government are spending in the east midlands, but I hope he accepts that most of the projects that he mentioned are on north-south routes—it is on east-west routes that we face the challenge.

Stephen Hammond Portrait Stephen Hammond
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East-west is often a challenge across the country, and I am about to address that point.

I said that the Government’s rail investment strategy rightly focuses on the strategic priorities for the network but, in line with our localism agenda, it is right that local and sub-regional bodies, which are best placed to prioritise and fund investment for the needs of their areas and to support local economies, should come forward with their priorities. The rail industry did not identify the Lincoln-Nottingham route as one on which investment is a strategic priority for 2014 to 2019, so it was not included as requiring enhancements in the strategy. The strategy does however include funding for line speed improvements across the network and for improvements to level crossings. There is £300 million for journey time and performance improvements and £65 million to reduce the risk of accidents at level crossings. Network Rail will spend that in locations where best value for money can be attained. Decisions on the allocation of those funds could be influenced by a local capital contribution and a local assessment of need, which is usually headed up by local authorities and local enterprise partnerships. That is my point: localism and local authorities being able to influence and enhance the value of Network Rail’s investment programme.

Therefore, it is for Nottinghamshire and Lincolnshire county councils and the LEPs—D2N2 and Greater Lincolnshire—to determine whether investment and enhancement to services on this route to improve connectivity and support local economies is a priority for their strategic economic plans and should be included in a bid for funding to the local growth fund. The Government have committed to putting £2 billion per annum into the local growth fund from 2015-16 to 2020. Moreover, any subsidy requirement for the proposed additional service on the line would also need to be funded by the promoter, usually the local authorities, which would have to be in place for three years, after which the Department would consider taking on funding responsibility.

As I said last week in the meeting with my hon. Friends the Members for Lincoln (Karl MᶜCartney) and for Newark, the Government have set out this position very clearly, both to campaigners and to the local authorities concerned on a number of occasions. I reiterate, as I did to both of them last week, that so far the Department has received no comment from either Nottinghamshire county council or Lincolnshire county council. We have not seen a business case for the proposed investments and improvements. However, we have made it clear to both Nottinghamshire and Lincolnshire and the LEPs that we are willing to provide guidance and strategic advice. Neither of the two strategic enterprise partnerships has indicated that the scheme is a priority, and without support from those bodies, I regret to say that it is unlikely that much progress can be made in achieving the objective of improved services that Members have talked about this evening.