Urban Transport: Future Funding

Trudy Harrison Excerpts

Thursday 31st March 2022 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Trudy Harrison)]

It is a pleasure to serve under your chairmanship for the first time, Mr Sharma. It is also a pleasure to respond to the hon. Member for Sheffield South East (Mr Betts) because, as has already been said, his commitment to his area, and the work that he has done with the South Yorkshire bus review, really is commendable, particularly as there were around 5,900 respondents to the review. We very much appreciate the ambition for improving transport in his area, and particularly the commitment to public transport. He set out really effectively the challenges, benefits and opportunities, and I am certainly committed to creating a future transport system that works for everyone everywhere.

I note the envy expressed by the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) of my role. I can only say that much of the work is devolved and I would welcome more collaborative working with him on this subject and particularly on decarbonisation and the future of transport, because the climate sees no boundaries. I am sure that, where Scotland is exceeding, we can learn lessons right across the UK, and that many lessons can be learned from other parts of the UK as well, so I reiterate that willingness to continue to work together.

We would also like to see safer streets, smoother journeys and better infrastructure to help create a cleaner, quieter, less congested transport system, and we recognise the part that public transport and active travel will play in that regard. Ahead are major environmental challenges that we need to meet head-on, as has been discussed, and we have set really high ambitions. They range from the Government’s commitment in 2019 to achieving net zero by 2050, through to the announcement in 2020 of the phasing out of petrol and diesel cars in recognition that that is where the bulk of emissions in the transport sector come from, the publication of the transport decarbonisation plan in July 2021 and, just last Friday, to put more flesh on the bones of that, the publication of our electric vehicle infrastructure strategy.

I think that we have covered the breadth of transport systems during this debate. Let me focus on buses and public transport. The pandemic has meant that travel demand across local transport networks has changed with the emergence of new travel patterns, while the sector is continuing to deal with the ongoing effects of the pandemic and financial challenges remain. The Government understand the importance of local transport networks. That is why we have supported the bus, tram and light rail sectors through a variety of emergency and recovery grants, totalling almost £2 billion. Furthermore, we have negotiated an extension to the current recovery funding packages, providing more than £150 million in extra support to the local transport sector.

In March 2021, we published England’s long-term national bus strategy, and we have set out a bold vision for bus services across the country. At the Budget, we announced £1.2 billion of dedicated funding for bus transformation deals, and that is part of £3 billion of new spend on buses over this Parliament. We will announce more details on how the funding will be allocated very soon. With regard to zero-emission buses, there are currently nearly 2,000 zero-emission buses on the roads, and we have £198 million to support 943 zero-emission buses. We remain committed to supporting the introduction of 4,000 zero-emission buses, with more than £535 million of funding available in this Parliament to support climate ambitions, improve transport for local communities and supply high-quality green jobs.

The hon. Member for Sheffield South East referenced what is happening in his community with ITM Power, one of the leading hydrogen providers. That is exactly what we are looking for for aviation, maritime and rail. For aspects of the transport system that cannot easily be electrified, we will be looking to hydrogen as one solution. I look forward to an upcoming visit to ITM. I would welcome his joining me on that visit.

[Mr Betts]

I thank the Minister for that invitation. I am very hopeful that I can come with her on the visit. To go back to the £3 billion in improvement funding, she has just said that £1.2 billion, I think, will be allocated shortly. A ministerial “shortly” does not always happen very quickly, but anyway, it will be shortly. Is she therefore saying that the rest of the £3 billion has not been spent on the covid measures, that £1.8 billion is left and that authorities will be able to bid for that in the course of this Parliament?

[Trudy Harrison]

Let me provide the exact detail on the millions and billions—how they have been allocated already and how they will be allocated—in much more detail in writing, because I do not want to get that wrong and I am not the Minister for buses. If the hon. Gentleman will allow me the time to provide a more detailed response, I will make sure we get it absolutely spot on.

I have set out our commitment to buses, but the hon. Gentleman has also referenced the importance of light rail, which is a lifeline for communities right across the UK and offers a particular advantage for decarbonisation as we look towards the future of transport. Later this year, I very much hope, we will bring in legislation that will provide further opportunities for self-driving vehicles and the future of transport using technology. During the pandemic, the Government allocated over £250 million in funding to support six light rail operators and local transport authorities in England outside of London. From April 2022, we will provide over £100 million of additional support to the bus, light rail and tram sector for six months—the trials that the hon. Gentleman mentioned. There will be a decision imminently.

[Mr Betts]

Is that sooner than “shortly”?

[Trudy Harrison]

Imminently is shorter than “in due course”. I wish I could tell the hon. Gentleman today—[Interruption.] That was not a note confirming that I can tell him right now, sadly, but if he holds his patience a little while longer, we will be able to provide information on the total package of support and how much money will be available for light rail.

We have set out a wide range of ambitions and commitments across all modes of transport during this Parliament. The levelling-up fund, which is worth £4.8 billion for the UK, will invest in local transport infrastructure such as bypasses and other local road schemes, bus lanes and railway station upgrades. As a result of the 2021 spending review, successful bids from round 1 of the levelling-up fund will see £1.7 billion invested in 105 local infrastructure projects across the UK. That funding, which is to be spent by March 2025, includes over £77 million awarded to authorities across the north. For example, Liverpool city region will receive £37 million to deliver high-quality segregated walking and cycling routes in some of the region’s most deprived areas.

The hon. Member for Paisley and Renfrewshire North also referenced active travel. I have to disagree with him; we are spending six times the amount of funding on dedicated cycling and walking infrastructure. The Prime Minister’s Gear Change plan is possibly one of the greatest health interventions that this Government have made. We have established Active Travel England; we are developing an interim board, and we will make sure that future cycle infrastructure aligns with LTN 1/20, to ensure that cycle infrastructure is fit for purpose and of the highest quality. That will be happening right across the country, making sure that it is as relevant for villages—which is important to me, because I live in one—as it is for towns and cities. The Prime Minister has set out his ambition that by 2030, half of all journeys in towns and cities will be walked or cycled. That is commendable, and I am delighted to be the Minister leading on that ambition with colleagues and partnerships right across the country.

The Department has recently published our integrated rail plan for the north and midlands, which sets out that £96 billion will be spent—the biggest ever single Government investment in Britain’s rail network. In January 2020, the Government pledged £500 million for the Restoring Your Railways Fund to start reopening lines and stations to reconnect smaller communities, regenerate local economies and improve access to jobs, homes and education. I have heard the request from the hon. Member for Sheffield South East that we consider light rail in some of these areas rather than heavy rail, and I know he has met with my colleague in the Department, my hon. Friend the Member for Aldridge-Brownhills (Wendy Morton), who is the rail Minister. We have heard those requests and they make a lot of sense.

[Mr Betts]

I appreciate this is not the Minister’s area, but the rail Minister has helpfully agreed to meet me specifically about the Barrow Hill scheme. I wondered whether at some point the Department is going to publish a review of the Tram Train pilot and indicate how it sees it being rolled out across the country in general.

[Trudy Harrison]

Absolutely. We would not do these pilots if they were not about learning lessons and publishing those lessons learned. The Government cannot do this on our own; we depend on our partners, our arm’s length bodies, our executive agencies, local authorities, local communities, businesses and, in particular, the private sector and transport operators to ensure that we get this right. I am absolutely confident that that will be the case. When I write to the hon. Gentleman, I will be sure to include the timeline I expect for that publication.

On city region sustainable transport settlements, we will deliver £5.7 billion of investment so that city regions can upgrade local transport to boost growth, level up and decarbonise transport, with £3 billion going to city regions across the north to support a number of transport interventions, including tram and light rail. Some £570 million has been allocated to the South Yorkshire Mayoral Combined Authority to improve schemes such as the renewal of the Supertram network across Sheffield and Rotherham.

I have already talked about the integrated rail plan, and I will reflect briefly on roads. The issue has not been discussed specifically in this debate, but we need to recognise that cyclists use roads, and that roads are fundamental to much of our decarbonisation, which is why we are to invest £24 billion in England’s strategic road network. That substantial package will benefit strategic roads around the country, including in the north.

On walking and cycling, I have already set out Active Travel England’s priorities, which are being drawn up, and the Prime Minister’s ambitions. Statistics show that 68% of journeys are less than five miles, which is why we have launched our ambitious plans to boost walking and cycling in England. For the 2021 spending review period, £710 million of new dedicated funding for walking and cycling was announced. That, taking other funding streams into account, delivers the £2 billion of funding for walking and cycling over this Parliament to which I referred.

As we invest in local infrastructure and make changes to the transport sector, we will work in partnership with local transport authorities and operators to achieve the best outcomes for all transport users. We are updating local transport plan guidance to support local transport authorities to bring their plans into line with Government priorities. The Department will publish additional guidance on quantifiable carbon reductions in local transport, in line with our commitments in the transport decarbonisation plan, to make that a fundamental part of local transport planning and funding.

The hon. Member for Paisley and Renfrewshire North also discussed the charging network. In the electric vehicle infrastructure strategy, we referred to a revolution that will work for everyone, everywhere. We already have in excess of 30,000 public charge points in the UK, of which more than 5,400 are rapid. We have a plan to ensure that we will guarantee at least six rapid chargers in excess of 150 kW at all 114 motorway service areas in England. That is in addition to the hundreds of thousands of charge points already installed on driveways, with many more hundreds of thousands to come. We recognise that we need at least 10 times the number of charge points across the country to support the revolution from a fossil fuel transport system to a decarbonised one.

[Mr Betts]

I did not talk about electric vehicles, as this debate is about public transport, but as the owner of one myself, I know the frustration of not having enough charge points to go to and therefore having to work out a route. The Minister mentioned rapid charging. When I get to a charging point, often it is not that rapid because the grid does not deliver sufficient power. It is a point I have raised with the Transport Secretary before, which he accepted. Will the Government take that up with the grid? Until it gets that right, someone can turn up to a charging point and find that charging takes three or four times as long as it should, which is incredibly frustrating.

[Trudy Harrison]

I am delighted that the hon. Member has given me the opportunity to talk more about how we are rolling out the electric vehicle infrastructure strategy. It is not just about the number of chargers; we recognise that a broken charger is as much use as a chocolate fireguard. That is why we are mandating that there is open data, 99% reliability by charge point operators, transparent pricing, and the ability to pay by contactless, rather than having to download yet another app.

On generation and connection, we are working with Ofgem and identifying the ways in which we can secure reservations, particularly for motorway service areas, where we will need to future-proof with a “dig once” approach, particularly as we look forward to the introduction of heavy goods vehicles using battery-electric technology.

We recognise that we need a lot more chargers, particularly in areas outside of London. We recognise the need for reliability, which will be mandated for charge-point operators. We also recognise that people need to know where chargers are and when they are available. That is all being mandated, and we are bringing forward further legislation later this year.

We are working with Ofgem, National Grid, the distribution network operators across the country and, most importantly, local authorities, because they are our greatest partner in ensuring that a consistent charge point infrastructure is available for people who do not have driveways. We must be able to say, “No driveway is no problem”. That is why we have funds available for homeowners, businesses, local authorities, motorway service areas and purchasers, with plug-in grants across cars, vans and heavy goods vehicles. Our ambition is matched only by the financial incentivisation we are providing to people to make the most of the transition.

[Gill Furniss]

Like the Minister, I am more familiar with this matter than with buses—I am not a bus person. I want to ask about VAT rates on community charging. At the moment, it is just 5% VAT for people with a drive and 20% for people who charge their cars in the community. Not that I want the debate to go on much longer because I have a train to catch, but I have reservations about how community charging can be done. A lot of people I have spoken to say that chargers could probably be fitted into lamp posts. How will we do that on “Coronation Street”-type streets, where we are trying to discourage people from parking on pavements? Are people going to form a queue? Is there going to be a street brawl if someone has been parked next to a lamp post for a long time? I see chaos abounding if we do not get this right first time, so I welcome the Minister’s views on the matter.

[Trudy Harrison]

That point requires a longer debate; I would welcome the opportunity to talk more about it. In the first instance, I recommend that the hon. Member look at our recently published electric vehicle infrastructure strategy, because much of how we will do that is in there. We are also working with pioneers and inventors; in this country, we have shown time and again that we are up for the challenge. This is a nation of innovation that is abundant with engineers who find solutions to some of the grand challenges that we face. I have every confidence that we will find solutions to these difficulties. Some of that is set out in the electric vehicle infrastructure strategy.

We are working with organisations such as Motability to ensure that we have an inclusive revolution that works for everyone, everywhere. Through the initiatives I have described, it is clear that we are supporting local areas to drive forward the improvements they need, while moving towards a greener and more prosperous future. This Government are determined to create a great, green transport network that is available to everyone, everywhere, and that spreads opportunity and prosperity to all.

Once again, I thank the hon. Member for Sheffield South East for allowing me the opportunity to respond to this interesting debate, in which Members from across the House have demonstrated the importance of public—and, indeed, all—transport.