Category: Transportation

Mark Harper – 2023 Speech on Improving Rail Services

The speech made by Mark Harper, the Secretary of State for Transport, in the House of Commons on 20 March 2023.

With permission, Mr Speaker, I wish to make a statement on the progress the Government are making in improving rail services for passengers.

Let me begin by saying how pleased I am that, today, members of the National Union of Rail, Maritime and Transport Workers at Network Rail have voted to accept a 5% plus 4% pay offer over two years. Seventy-six per cent. of members voted to accept the offer, on a turnout of nearly 90%, showing just how many of them wanted to call time on this long-running dispute.

From the moment I became Transport Secretary, the Rail Minister and I have worked tirelessly to change the tone of the dispute. We sat down with all the rail union leaders and facilitated fair and reasonable pay offers. Now, all Network Rail union members have resolved their disputes, voting for a reasonable pay increase and accepting the need for a modern railway.

But not every rail worker is being given that chance. Despite the Rail Delivery Group putting a similar fair and reasonable offer on the table on behalf of the train operating companies, the RMT has refused to put it to a vote. It refused to suspend last week’s strike action even to consider it. Such a lack of co-operation is disappointing—and what does it achieve? It deprives the RMT’s own members of a democratic vote, denies them the pay rise they deserve and, most importantly, delivers more disruption to the travelling public.

My message to the RMT is simple: call off your strikes, put the RDG offer to a vote and give all your members a say because it is clear from the vote today—the “overwhelming” vote, in the RMT’s own words—that its members understand that it is time to accept a deal that works, not only for their interests, but for passengers.

Let me turn to the steps we are taking to help passengers and fix the issues on the west coast main line. Members will know that rest-day working, or overtime, is a common way for operators to run a normal timetable. However, last July, drivers for Avanti West Coast, who overwhelmingly belong to the ASLEF union, simultaneously and with no warning stopped volunteering to work overtime. Without enough drivers, Avanti had little choice but to run a much-reduced timetable, with fewer trains per hour from London to destinations in the midlands and the north. Passengers, businesses and communities along vital routes up and down the west coast main line rightly felt let down, facing cancelled services, overcrowded trains and poor customer information. Put simply, it has not been good enough.

While the removal of rest-day working was the main contributing factor, my hon. Friend the Rail Minister and I repeatedly made it clear to Avanti’s owning groups, Trenitalia and First Group, that their performance needed to improve, too, because we should always hold train operators to account for matters within their control. That accountability should come with the chance to put things right. That is why my predecessor, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), extended Avanti’s contract by six months in October. She rightly set a clear expectation that performance had to improve—no ifs and no buts.

I am pleased to say that not only was Avanti’s recovery plan welcomed by the Office of Rail and Road, but it has led to improvements on the network, with weekday services rising from 180 to 264 trains per day, the highest level in over two years, and cancellation rates falling from around 25% to an average of 4.2% in early March, the lowest level in 12 months. Nearly 90% of Avanti’s trains now arrive within 15 minutes of their scheduled time, over 100 additional drivers have been recruited, reducing reliance on union-controlled overtime working, and it is very pleasing to see Avanti’s new discounted ticketing scheme benefiting passengers on certain routes.

As you would expect me to say, Mr Speaker, there is much more still to do to ensure that Avanti restores services to the level we expect and to earn back the trust that passengers have lost, but we should welcome those improvements and recognise the hard work undertaken to get to this point. The Rail Minister in particular has overseen weekly meetings on Avanti for months and kept hon. Members from both sides of the House regularly informed. He deserves credit, along with Avanti, for that turnaround.

October’s extension was not popular, least of all in parts of this House, but it was the right decision and Avanti is turning a corner. Its recovery so far has given me sufficient confidence to confirm that today we will extend its contract by a further six months, running until 15 October. However, that short-term contract comes with the expectation that it will continue to win back the confidence of passengers, with a particular focus on more reliable weekend services, continued reductions in cancellations, and improvements in passenger information during planned and unplanned disruption. My Department will continue to work closely with Avanti to restore reliability and punctuality to levels that passengers have long demanded and have a right to expect.

I realise some hon. Members will also want to hear about TransPennine Express. I will update the House separately about TransPennine Express ahead of the contract expiring at the end of May, but let me be clear: its current service levels are, frankly, unacceptable and we will hold it to account on its recovery plan. We have made it clear that, unless passengers see significant improvements, like we have on Avanti, all options regarding that contract remain on the table.

I spoke earlier about holding operators to account, but if we stand here and rightly criticise poor operator performance, we should also recognise that across the industry train operating companies have few levers to change it. Avanti, like others, relies on driver good will to run a reliable seven-day-a-week railway. Like others, it is at the mercy of infrastructure issues out of its control. In fact, seven separate infrastructure issues affected Avanti’s performance in the first week of March alone.

Outdated working practices and track resilience are why predictable calls for nationalisation wildly miss the point. Any operator would face those constraints and struggle to run a reliable service. Ideological debates about ownership are therefore a distraction, like wanting to paint your car a new colour when what it needs is a new engine. Only fundamental reform will fix rail’s systemic issues, which is what the Government are delivering, bringing track and train together under the remit of Great British Railways, taking a whole system approach to cost, revenue and efficiency, and freeing up the private sector to innovate and prioritise passengers. Having set out my vision for rail last month, very soon, I will announce the location of the headquarters of Great British Railways, another clear sign of the momentum we are building on reform.

We are getting on with the job of delivering a better railway. It is why we are finally seeing improvements along the west coast main line, as we continue to hold Avanti to account. It is why we are making progress on rail reform. It is why we will always defend the travelling public from unnecessary strike action. And it is why we will always play our part in resolving disputes in a way that is fair to rail workers, the travelling public and the taxpayer. Unlike others, I am not interested in pointless ideological debates about privatisation and nationalisation. The Government are focused on gripping the long-standing issues facing the industry for the benefit of its customers—freight customers and passengers—taking the tough but responsible decisions in the national interest, and building the growing, financially sustainable and modern railway Britain deserves. I commend this statement to the House.

21/03/2023
Gavin Newlands – 2023 Speech on the Revised Timetable for HS2

The speech made by Gavin Newlands, the SNP MP for Paisley and Renfrewshire North, in the House of Commons on 14 March 2023.

I almost feel sorry for the Minister—almost. Mr Speaker, you will know that the north of England has seen cut after cut not just to HS2, but to any real modernisation of its rail network, with HS2 to Leeds cancelled and Northern Powerhouse Rail cut to the bone. We on the SNP Benches have supported HS2 because we believe increased sustainable connectivity is to all our benefit. However, what we have now is a gold-plated commuter line of just over 100 miles for two cities in the south of this island, costing nearly £50 billion, while the rest of the country is expected to fight for scraps from the table.

Combined with the announcement of slashed funding for active travel, which leaves England, outside of Greater London, receiving less than £1 per person per year—30 times less than Scotland—that makes it clear that the Government regard transport funding outside the M25 as nothing more than a rounding error. Thankfully, we in Scotland have a Parliament and a Government investing in our rail network, investing in active travel and taking transport decarbonisation seriously, so can the Minister tell me in which decade high-speed rail will reach the Scottish border?

Huw Merriman

The Government are plainly not committed only to delivery between London and Birmingham, because the entire plan is predicated on a two-year rephasing of the parts going up towards Crewe from the midlands. Beyond that, up to Manchester, the indicative timeline does not change at all. The Bill Select Committee remains in place, as does its brief, so that commitment is there. It is not a commitment just to the south-east, and the hon. Member has certainly got that wrong. The £96 billion integrated rail plan is based solely on the midlands and the north, and that shows this Government’s desire to level up across the midlands and the north, as opposed to spending money in the south-east.

Active travel is not part of this urgent question, but £3 billion will be spent by this Government on active travel during this Parliament. There are levelling-up fund bids that go toward active travel. We are absolutely passionate and committed to the delivery of active travel, and that will continue, as will our delivery of HS2.

15/03/2023
Louise Haigh – 2023 Speech on the Revised Timetable for HS2

The speech made by Louise Haigh, the Shadow Secretary of State for Transport, in the House of Commons on 14 March 2023.

Eighteen months ago, the Government slashed Northern Powerhouse Rail, binned HS2 to Leeds and sold out the north of England. Here we are again: huge changes affecting billions in investment and jobs announced at 5 pm on Thursday—minutes before the House rose.

We now know why the Secretary of State was desperate to dodge scrutiny: I have a leaked document written by his most senior officials that blows apart his claims and lays bare the consequences of the decisions he has hidden from. His chief justification for the delays to HS2 was to “balance the nation’s books”, but his Department admits what he will not—that the delays themselves will increase costs. It admits that they will cost jobs and that construction firms could go bust; it cannot rule out slashing high-speed trains that serve Stoke, Macclesfield and Stafford altogether; and it suggests that HS2 could terminate on the outskirts of London until 2041.

Is it not time that the Minister came clean that this absurd plan will hit jobs, hurt growth and cost taxpayers even more? As his own officials ask,

“you have already changed the design once, which wasted money. What will be different this time?”

Even the Government have lost faith in this Government, and little wonder. Is there anything more emblematic of this failed Government than their flagship levelling-up project that makes it neither to the north nor to central London? Last year they crashed the economy, and once again they are asking the country to pay the price. Does this announcement not prove once and for all that the Conservatives cannot fix the problem because the Conservatives are the problem.

Huw Merriman

I thank the hon. Lady, but we obviously do not comment on leaked documents, certainly not documents that I have not been given. I say to the hon. Lady that it is an entirely responsible Government approach to balance the commitments we make—as I have stated, the transport commitments that have been set out to the House total £40 billion—and, indeed, to reflect on how the delivery of HS2 had been designed. It is also well within a responsible Government’s remit to consider the public spending pressures that there are right now, due to the help that this Government have given to those facing increased energy costs and the continued costs from the pandemic, and therefore the impact on the amount of borrowing. Over £100 billion is required each year, or it was last year, to service the overdraft, which is greater than the amount we spend on defence. It would be entirely irresponsible for any Government to look at all of its portfolio without those figures in mind.

However, I am very proud of what we are doing on delivering HS2. The construction of the Curzon Street station in Birmingham, which remains, as I have stated, is expected to create 36,000 new jobs. On the hon. Lady’s point about not levelling up across the country, the redevelopment of Piccadilly station in Manchester is expected to create 13,000 new homes. In London, the regeneration of Old Oak Common will contribute £15 billion over the next 30 years. Those are figures to be proud of, and we will deliver them.

I found it very helpful, at the end of last week, to discuss this with stakeholders from across the country—businesses, regional organisations, council leaders and Mayors on the route—who were all very supportive about what the Government are doing. They also have to run budgets—unlike the Opposition—so they understood the pressures that the country faces, and were absolutely delighted that this project will continue to be built.

15/03/2023
Huw Merriman – 2023 Statement on the Revised Timetable for HS2

The statement made by Huw Merriman, the Minister of State at the Department for Transport, in the House of Commons on 14 March 2023.

Although we notified the House first about Thursday’s announcement, I start by apologising for the timing of the written ministerial statement, which I accept was discourteous to Members and to you, Mr Speaker.

As part of the largest capital programme ever committed, the Transport Secretary last week confirmed more than £40 billion in transport investment over the next two financial years. This will enable the opening stage of HS2 to be delivered on schedule. By 2033, passengers and communities will benefit from high-speed rail services between new stations at Old Oak Common in London and Curzon Street in Birmingham, but the House will also be aware that we face significant economic headwinds. Record inflation caused by Putin’s illegal war and ongoing global supply chain issues have ramped up construction costs, making capital projects more difficult to deliver. It means we must make responsible decisions on which parts of our capital programme we can deliver within current budgets and timeframes.

While we remain committed fully to HS2, we will need to rephase the delivery options as part of the project due to inflationary pressures and the need to spread costs. Between Birmingham and Crewe, we expect to push back construction by two years, with an aim to deliver high-speed services as soon as possible after accounting for the delay in construction. We also remain committed to delivering HS2 services to Euston, but will take time to ensure an affordable and deliverable station design, which means delivering Euston alongside the high-speed infrastructure to Manchester. While HS2 Ltd and Network Rail continue work on developing HS2 east, we are also considering the most effective way to run HS2 trains to Leeds.

The Prime Minister promised to place trust and accountability at the heart of this Government. That means strengthening connectivity across the country while managing public finances effectively. It means never shirking the tough, but necessary decisions as we deliver on the people’s priorities to halve inflation, grow the economy and reduce debt.

Iain Stewart

I am grateful to you, Mr Speaker, for granting this urgent question. As Chair of the Select Committee, we feel that there was not enough detail on a number of areas in Thursday’s statement, so I would be grateful if my hon. Friend gave further detail.

First, my hon. Friend rightly references inflationary cost pressures in construction, which are affecting all sorts of projects up and down the country, but the written ministerial statement also referenced other “increased project costs”. What are they? Is he satisfied that HS2 Ltd has a grip on its finances? Secondly, the statement said that Old Oak Common to Birmingham will be finished “as soon as possible”. What does that mean? Is there a delay to the planned opening date?

Thirdly, what is the reason for the delay to the Euston to Old Oak Common section? Is it purely down to costs or are there other reasons for a redesign? A lot of construction work is happening at Euston now, so should the redesign not have been identified earlier? Finally, when can we expect to see further detail on HS2 east, the integrated rail plan and the Leeds route options? The industry and the public require—nay, demand—certainty on this. Can we be assured that this is the last delay to the project?

Huw Merriman

I thank my hon. Friend the Chair of the Transport Committee for his questions. I will provide some answers, but there will no doubt be further detail to discuss as we go through the session.

On my hon. Friend’s question about the increased project costs, they chiefly relate to the opening section of the line in phase 1, which is the part that is under construction at the moment. We are spending about £600 million a month on phase 1 construction, which is at its peak. He rightly talks about inflation; the Office for National Statistics shows that construction inflation is running at about 15%, which is why we have an issue with costs. He is right to say, however, that we need to bear down on costs. Yesterday, I met the chief executive of HS2 Ltd. I am delighted with the appointment of the chairman, Sir Jon Thompson, who has a background in finance. Certainly, it is within HS2’s requirements to ensure that, where we have inflationary pressures, it fills the gap by bearing down on costs.

My hon. Friend asked what finishing Old Oak Common to Curzon Street “as soon as possible” means. As I stated in my opening remarks, we expect that, by 2033, passengers and communities will benefit from high-speed rail services between those two stations. He asked about the reason for the Euston delay. Euston was always scheduled for delivery after the opening of phase 1, which is why we are prioritising Old Oak Common. We will not proceed with construction at Euston in the next two years, due to affordability and profiling issues, but we will use that time to work with partners to ensure an affordable and deliverable design.

My hon. Friend asks for detail on HS2 east, the integrated rail plan and the Leeds route study. I will be writing to him on the back of the integrated rail plan report this month and further information will be tabled in the six-monthly HS2 report, which is due in May. On the Leeds route strategy, it has been cleared by the Department and we expect it to be published soon.

My hon. Friend is right to say that the industry needs certainty, and I believe he asked whether we can be certain that this is the last change to the project. Although the pandemic and Putin’s illegal invasion of Russia were not anticipated, we expect these HS2 plans to be the plans that deliver it from London to Manchester.

15/03/2023
Andrew Adonis – 2023 Comments on HS2 Delays

The comments made by Andrew Adonis on Twitter on 10 March 2023.

A big mistake to delay HS2 north of Birmingham. It will add to costs and delay benefits. Also puts Manchester at huge competitive disadvantage to Birmingham for a decade or more. Birmingham will be barely half an hour from London by HS2, while Manchester will be more than 2 hours.

Birmingham will also have an HS2 connection directly into Elizabeth Line at Old Oak Common, whereas Manchester won’t (at Euston) which means onward journeys to West End, City and Canary Wharf will be far slower and more congested from Manchester.

14/03/2023
Mark Harper – 2023 Speech on Transforming Transport in the North

The speech made by Mark Harper, the Secretary of State for Transport, in Newcastle on 6 March 2023.

Introduction

It’s great to be here in Newcastle, in what is my first visit to the North-East as Transport Secretary. And let me start, first of all, by thanking Martin Tugwell for the invitation.

Transport for the North is a valued partner, a tireless champion of boosting connectivity across the region, both in public and in private. And your conference today will be a reminder, to anyone who needed it, that the success of the UK is increasingly tied to the success of the North of England.

And, to you Lord McLoughlin, or Patrick as I know you better, although frankly for the first large number of years that I knew him, he wasn’t called Patrick, he was called ‘Chief’, as we call the Chief Whip. It was a job he carried out so effectively overseeing party discipline. That it all but guaranteed my attendance here today. There seems to be a theme of former Chief Whips becoming former Transport Secretaries.

Like Patrick, I was part of the government that, almost a decade ago, actually launched the northern powerhouse. The idea that by pooling the region’s talent, leveraging its fantastic academic institutions, and connecting its great urban centres, we wanted to turn individually strong northern cities into a collective unit, that was greater than the sum of its parts.

It was an unashamedly ambitious target. And we knew it wouldn’t happen overnight.

Yet despite the turbulence of recent years – from a global pandemic to now a war on the continent of Europe – there has never been a question of our commitment to the North ever being placed on the backburner, as some have claimed.

In fact, we redoubled our efforts to boost connectivity, accelerate devolution and revive former industrial heartlands into new engines of economic growth.

The spirit of that original mission, which we launched 9 years ago, is still alive today. A fundamental belief that a better connected, well-funded, and strongly represented North of England. isn’t just essential for this region, but for the stronger economy the whole country needs.

Delivery

We all know the benefits of improved connectivity. The investment it attracts, the jobs it creates and the talent it retains. So even in this tough fiscal climate – where last November, the Chancellor had to make difficult, yet responsible, decisions to restore economic stability – we protected transport infrastructure spending across the North.

Take major roads. Across the region, we’ve invested £2.5 billion in the Strategic Road Network over the past 3years. Including upgrades to the Newcastle-Gateshead Bypass, improvements to the A63 at Castle Street in Hull, and just last year, completing the £110 million A1 Scotswood to North Brunton scheme. These will not just increase safety and connectivity, but reduce congestion, which acts as a drag on our economy.

But we’re also giving people alternatives to the car.

Our National Bus Strategy, and I agree about the importance of buses – around twice as many journeys are made by bus than rail. Our National Bus Strategy transfers greater control over fares and timetables to local authorities, while giving operators the freedom to invest and innovate.

And it’s working. Because not only have I welcomed the North-East’s and North of Tyne’s Bus Service Improvement Plan, today, I can confirm they will receive £118 million this year to deliver improved services for passengers.

Now our commitment to buses stretches across the region, and indeed across the country. Last month, I extended both the Bus Recovery Grant and the £2 Fare Cap, which continues our support for a sector that’s still recovering from the pandemic.

Here in the North-East, we’re also delivering a better railway with services on the East Coast Mainline bouncing back after the pandemic, with LNER the fastest recovering operator over the last 18 months. We’ll soon roll out single-leg pricing for tickets across the LNER network, giving passengers more flexibility in how they travel.

And with the new Azuma Intercity Express Trains having been built in Newton Aycliffe, passengers in the North-East are riding on trains built in the North-East.

But that’s not all. Open access operators such as Lumo are providing greater choice in this city, by making use of extra capacity on the network. And on the Tyne and Wear Metro, passengers will soon ride on a new fleet of modern trains, thanks to an investment of over £300 million from my department.

But today, I am delighted to put right an historic wrong that’s lasted for 60 years. I can confirm we will reopen the Northumberland Line next year, making available the necessary funding that will build 6 new stations across the route. Connecting towns such as Ashington and Blyth to Newcastle, and breathing new economic life into those communities, delivered in partnership with Northumberland Council.

Now, across the North, local leaders have long called for more ambitious rail infrastructure spending, as was touched on – and this government has answered that call.

And I think it’s worth saying that any government has to be honest. Easy promises to get applause at events and conferences like this around the country, are not credible if people don’t have plans to pay for them. Ministers also have a duty to the taxpayer to set out well thought-through, costed promises.

This government is committed £96 billion Integrated Rail Plan that we set out, which will deliver high speed rail to Manchester and transform journeys across the Pennines. And work is already underway. Like between Church Fenton and York, which includes some of the busiest stretches of railway in the North. A combination of electrification, track replacement and modern signalling will lead to faster and more efficient journeys for passengers. Which is part of the major upgrade to the 70-mile Trans-Pennine route. Which is a central government commitment that surpasses what we spent on Crossrail.

However, one thing is obvious. Even with that investment, the single biggest investment since the creation of the railways right here in the North-East. That will be quickly forgotten if operators can’t deliver services aren’t up to scratch.

If passengers are regularly let down by industrial action, as a result of the unions refusing to put reasonable pay offers to their members. The Rail Minister, Huw Merriman and I have made it clear to the relevant Managing Directors that services on Avanti West Coast and Trans-Pennine Express routes must improve. It’s good to see Avanti weekday services are starting to improve, but there is more to do so passengers don’t face unacceptable levels of disruption of the past 9 months.

But also, if trade unions continue to reject pay offers, and refuse to undertake reforms, that are accepted in any modern industry, then it will be impossible to provide consistent and reliable services for passengers. It is not up for debate, about privatisation or nationalisation, it’s about building a modern railway which works as one coherent system in partnership.

Patrick spoke about my George Bradshaw address, and that was about partnership between the state doing that part of the job that it needs to do, and the private sector doing its part to get more passengers back on the railway. It’s about improving the passengers’ experience, and if we don’t do that and get more revenue, that’s the only way we will build a sustainable and long-term railway, which isn’t at the mercy of antiquated working practices that prevent a reliable 7 day a week railway or hold us back from creating resilient infrastructure.

Reform won’t just benefit passengers and freight customers, but also the workforce, who want to be part of a growing and sustainable industry, and it’s only that that can fund the pay rises that they expect. Almost the entire industry recognises the need to move forward, including the TSSA, whose members recently accepted a 5% plus 4% pay offer over 2 years.

It’s a great sadness that the RMT have refused to put that same offer to their members, seemingly intent on thwarting the modernisation of the railways. My message to them is simple: reconsider, a best and final pay offer has been made, your members deserve the final say, let them make that decision in a referendum.

Devolution

Now, I’ve spoken about what we’re delivering for the North, but just as important are the powers we’re devolving to the North. Over 75% of the region is now covered by devolution deals, including the North-East, which will form a new Mayoral Combined Authority under a single Mayor, and with a £1.4 billion settlement to fund local priorities.

You don’t need to look far to see what a determined and empowered Mayor can achieve. Ben Houchen has revived Teeside International Airport from the brink of closure. And opened the largest freeport in the country, which will attract investment and jobs. What Ben and others are doing across the North is important to me. Not just because as a small and big ‘c’ conservative, I’ve long championed the principle of more power in local hands. But because as a constituency MP in rural Gloucestershire for almost 20 years, I empathise with those who feel that Whitehall doesn’t always understand the transport needs of local communities. It touched on the needs of rural communities, for example, to make sure we’ve got transport that fits our needs.

So whilst central governments must always ensure value for money for the taxpayer, I firmly believe more decisions should be made by local people, in local areas, and for local needs. So, through the Levelling Up Fund and Sustainable Transport Settlements, we’ve made over £3 billion in funding available for regional leaders to transform local transport, according to their priorities. That will lead to upgrades to the Sheffield Supertram, more cycling and walking schemes in the Tees Valley, and better bus routes between Leeds and Wakefield.

But even the idea of a central government pulling the strategic levers from London feels outdated. That’s why we’ve set up Treasury North in Darlington. The National Infrastructure Bank and a Department for Transport office in Leeds, all clear signs that this Government is putting northern people and businesses at the heart of how this country is run.

Decarbonisation

Finally, let me mention how transport is delivering the sustainable economic recovery the country needs.

The Prime Minister has reiterated our commitment to the 2050 net zero target – both through words and action. We now have departments of state dedicated to net zero, to science and innovation, and in the case of the DfT to transport decarbonisation. It means, right across Cabinet, decisions are being made to drive green growth.

For transport, the source of most emissions is our roads. So, to support the rising popularity of electric vehicles, I’ve announced £56 million in public and industry funding to ensure local authorities can transform the availability of charging infrastructure. And this includes funding for nine local authorities in the North, such as Durham and Sunderland.

We’re cleaning up buses too. The City of York and West Yorkshire authorities will be able to introduce over 30 new British made zero emission buses, thanks to a share of a £25 million investment I announced last week.

However, we cannot overlook the North-East’s critical role in this future of clean travel. Look at what’s happening in Teesside, thanks to DfT funding, its Transport Hub is exploring how we use hydrogen to power some of our heaviest forms of transport.

And industry is taking note, with BP and Protium already announcing plans for large scale green hydrogen production in the area. And with Port Clarence and Wilton International set to be the sites of new Sustainable Aviation Fuel production plants.

This very corner of the country is powering a new green industrial revolution, 200 years after powering the first one.

Conclusion

So, increasing connectivity for the North. Devolving more power to the North. And decarbonising our economy, led by the North. That is our commitment to this region.

And we cannot afford to fail. Because to grow the economy, to deal with the cost of living, and to win the race to net zero: the UK economy must fire on all cylinders.

And it will be this government, led by the first Conservative Prime Minister from a northern constituency for over half a century, armed with a historic electoral mandate from the North, that will build on the foundations laid over the past 9 years, ensuring the North’s best years aren’t consigned to history, but actually lie ahead.

Thank you.

07/03/2023
Rachel Hopkins – 2023 Parliamentary Question on UK Automotive Exports

The parliamentary question asked by Rachel Hopkins, the Labour MP for Luton South, in the House of Commons on 9 February 2023.

Rachel Hopkins (Luton South) (Lab)

What steps she is taking to help increase automotive exports.

The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)

The Department is working across Whitehall and with industry to secure export-led investment as the sector makes the transition to zero-emission vehicles, including new electric vehicle models, along with battery gigafactories and the electric vehicle supply chain. We have a dedicated export support system throughout the UK in the shape of our international trade advisers, ensuring that the automotive industry is the country’s biggest single exporter of goods, exporting nearly 80% of vehicle production—about 6% of the UK’s total exported goods.

Rachel Hopkins

If we are to continue to drive British automotive exports, it is critical that automotive businesses such as Vauxhall in Luton can make the transition to manufacturing electric vehicles effectively. The rules of origin from 2024 onwards highlight the need to attract the wider electrified supply chain to the UK as soon as possible. How is the Minister working with the automotive sector to expand our domestic electric vehicle supply chain—especially in respect of batteries—to avoid any future tariffs when rules of origin come into effect?

Ms Ghani

The hon. Lady will hopefully find some comfort in the fact that I have many meetings with the Society of Motor Manufacturers and Traders and have met the automotive sector multiple times to deal with this issue. We are very much aware of the rules-of-origin issue, which is why we are investing so much in batteries. In particular, the Faraday battery challenge is a £541 million project to help us to develop new battery technologies. I have mentioned already that I was in Cape Town to deal with the diversification of access to critical minerals in supply chains to ensure that we can process them and manufacture here.

Mr Richard Bacon (South Norfolk) (Con)

Would the Minister like to congratulate Group Lotus in my constituency, which exports more than 70% of its car production? Would she like to take the opportunity to come to Hethel to see the new Lotus Evija supercar, which can do nought to 180 mph in nine seconds?

Ms Ghani

I am not sure that I can speak as far as that car goes, but I am more than happy to come to Hethel to visit Group Lotus. The amount of progress that has been made by experts, academics and scientists when it comes not only to zero emission vehicles but to speed is remarkable.

10/02/2023
Lee Waters – 2023 Statement on Rural Transport in Wales

The statement made by Lee Waters, the Welsh Deputy Minister for Climate Change, on 8 February 2023.

Wales’ rural communities make up around a third of our population, and are spread across all parts of the country. Providing access to sustainable, safe and reliable public transport is vital not only to achieving our climate change goals but to help people access the services, employment, cultural and education opportunities to enable them to thrive.

I was pleased to be able to host a series of round tables with local authority leaders and transport experts from across Wales at the end of last year to discuss our plans in more detail, and would like to thank them for helping to shape our approach.

We recognise that the transport needs of communities in rural Wales will be different to those in more urban areas, and it is important to work with those communities to plan the types of public transport services they will need. It can’t be a ‘one size fits all’ solution; each community has its own requirements and challenges that will impact what works best for the people that live, work and visit them.

I was heartened to see the focus on rural transport in the North Wales Transport Commission, who identified the need to prioritise schemes that demonstrate better handling of key rural-to-rural connections. It recommends that new and more sustainable travel options such as car clubs, car sharing, cargo cycles, e-scooters and e-cycles. It also suggested effective workplace travel planning should be considered, an essential step in enabling people to think and act differently about the way they travel.

Llwybr Newydd – the Wales Transport Strategy – sets out our approach to developing a series of pathways centred on topics which are of strategic importance. They cut across different modes and sectors and are designed to pull together our commitments and plans on these topics in a way that allows people to easily track the progress both we as Welsh Government are making along with our local, regional and national delivery partners.

It is vital that we seek to find sustainable public transport models which are both tailored to the needs of rural communities, but also interface with more urban transport networks so that people can travel from urban to rural areas and vice versa with as little friction as possible.

Our Rural Pathway takes a hub-and-spoke approach. It will help those in the most isolated communities better access their local village or town. From there they will have a wider range of public transport and active travel choices to travel locally or to connect them to their nearest transport interchange for longer journeys.

The development and delivery of our rural pathway is already underway. We will be submitting a proposal shortly to the UK Government’s Union Connectivity Fund to develop plans to increase capacity along the Cambrian and Heart of Wales rail lines, and in doing so increase cross-border connectivity.

Working with Sustrans, our e-move pilot has shown the potential of free medium-term e-bike and e-cargo bike loans to support local communities. We will continue to develop out long-term approach to support people to take advantage of e-bikes for local journeys across Wales, including support for them to purchase them.

The new Sherpa service in Snowdonia, which sees electric busses minimising the use of cars within the National Park, is already providing new opportunities for local residents and visitors to see Snowdonia in a new and greener way. It is an approach which we will take and look to roll out in other areas of outstanding natural beauty and national parks across Wales.

Buses are the backbone of our public transport service. They carry three times as many passengers as trains, getting people across Wales to work and school, allowing us to meet family and friends, and offering a key lifeline for people in Wales who do not have access to a car. Our Bus Reform legislation will enable us to deliver a bus system which is governed and designed to serve the public interest, not just those routes which are commercially viable.

As well as new technologies, new service models will play an important part in allowing people to access public transport in a way and at a time that best suits their needs. Our Fflecsi pilots have shown that demand-responsive travel can provide a more flexible and adaptable service, with particular success in rural communities. We will examine the findings of this pilot carefully and embed them into our rural pathway framework for regions across Wales to exploit.

Electric car clubs also offer a new way of looking at car usage; both for those who want to use their car less, or may only use it some of the time, and for people who may struggle to afford the high cost of running a car. We are working in partnership with Powys County Council, Transport for Wales, and a range of partners to look at how we can increase provision of community-based car clubs.

Community transport is an important part of our transport system in Wales, supporting vulnerable people to access essential services. We will, through Transport for Wales, work with our Community Transport partners to look at ways we can best support both the people who use this vital service and those who give their time to run it.

We understand the importance of the strategic road network for rural Wales. Our roads are important assets and must be maintained. They also play a vital part in enabling modal shift to active travel and public transport. We will shortly publish the report from the independent roads review plus our position on the future of road investment to ensure that projects we fund are aligned to the delivery of our transport strategy ambitions and priorities.

Our delivery pathways also provide a framework to support the development of Regional Transport Plans, which will be developed for North, West, Mid and South East Wales by the regional Corporate Joint Committees (CJCs). It will allow each region to easily identify the different range of interventions they could make, and how they can implement them in a way that is consistent with Llwybr Newydd. These will be live frameworks, being updated as we test and develop new and innovative services and infrastructure solutions.

We are literally taking a Llwybr Newydd – a new path. The Wales Transport Strategy sets out a new way of thinking that places people and climate change at the front and centre of our transport system. This is something that we have to do; if we are going to protect the lives of our children, we need to achieve net zero by 2050. And in order to do that, we need to both change the way we travel, and rewire the system so it supports us to do this. Our rural pathway is one of many steps on the journey to achieve this.

09/02/2023
Lee Waters – 2023 Statement on North Wales Transport Commission’s Progress

The statement made by Lee Waters, the Welsh Deputy Minister for Climate Change, on 26 January 2023.

I welcome this report from the North Wales Transport Commission. A significant amount of evidence-gathering and analysis has been undertaken and I thank the Commission for providing such detailed consideration of the transport issues facing north Wales.

I met with Lord Burns and the Commissioners while they were in Bangor and was struck by their enthusiasm and commitment to making real change happen as a result of this work.

The Commission’s Progress Statement identifies its emerging thoughts and identifies where the opportunities are for a better transport system, focusing on where we can make it easier for everyone to travel more sustainably.

We hear a lot of discussion about longer-distance routes and car journeys. However, the Commission’s analysis shows that the majority of journeys made in the region are short in length and to the same or neighbouring area. These are the trips that are suited to walking, cycling or public transport and this is where improved public transport and active travel networks can make modal shift more achievable and appealing – giving people good opportunities to change how they travel for local, everyday journeys.

Lord Burns will now lead a period of engagement with stakeholders to test the findings of the report before submitting their interim and final recommendations.

In the meantime, the Welsh Government is moving ahead with action to enhance connectivity across north Wales, and I will shortly be providing members with an update on progress with the north Wales metro; but I am pleased that the Commission has already identified some of this work as a priority for improved public transport to key employment and development sites. This includes planned improvements for connectivity to HS2, direct services between Wrexham and Liverpool and the new station at Deeside.

I have asked the Commission to also consider the resilience of access to and from Ynys Mon in light of the recent closure of the Menai Bridge.

I look forward to receiving further reports later this year. The Commission is keen to hear people’s views, and I would encourage responses from all with an interest in the issues raised and the potential solutions.

The report can be found here: https://www.gov.wales/north-wales-transport-commission-progress-statement-january-2023

09/02/2023
Mark Harper – 2023 Keynote Speech on the Future of the Railways at the George Bradshaw Address
The speech made by Mark Harper, the Secretary of State for Transport, at the Institute for Civil Engineers in London on 7 February 2023.
Good evening and thank you to Andy Bagnall and his team at Rail Partners for organising this event and for inviting me to deliver what is my first rail speech since becoming Transport Secretary.

What a fantastic setting this is, surrounded by reminders of Britain’s glorious engineering history and Bradshaw in whose name we meet today (7 February 2023). Whose timetables brought order to the chaos of the Victorian network is as much a part of rail’s story as Stephenson, Brunel and others honoured throughout this building.

I would also like to pay tribute to Adrian Shooter who sadly passed away in December. Over the past 30 years, few have played a bigger role in the growth and modernisation of the railways and I’m sure he’s missed by many a friend and colleague here today.

I realise I’m the second Transport Secretary to give this prestigious address. And I’m pleased to see Patrick in his seat. But me and Lord McLoughlin, Patrick as we all know him, or chief as I used to call him, have a bit more in common. We both hail from working class backgrounds: my dad a labourer, his a coal miner. We both grew up in historic railway towns: Swindon in my case and Stafford in his. And we were both promoted from the whips office to running the Department for Transport. Though admittedly, he was a bit faster than me I spent an interlude on the backbenches.

Now, 6 years may not seem like a long time but, as Andy says, during that period we’ve since left the EU, emerged from a global pandemic, had 2 general elections and my party may have had one or two changes in leadership. Yet the more things have changed outside the railways, the more they seem to have stayed the same inside.

Patrick’s 2016 Bradshaw Address was a passionate call for a more flexible, more accountable and more joined-up railway. That still rings true today, as do the reflections of previous Bradshaw speakers. Lord Hendy’s case for a whole system railway in 2018. Keith Williams, a year later, with his relentless and right focus on passengers and even Rick Haythornthwaite’s warning at the inaugural Bradshaw Address in 2011 of a disillusioned public not trusting the way our railways are run. Those all sound eerily familiar.

So, I’ve spent my first few months in this job listening to the experts, indeed to many people in this room, drawing on my experience in government and many years in business, to understand what’s holding back meaningful change and how we move forward.

Modernisation

There’s clearly a lot of frustration in the industry. There’s a widespread desire to end the sense of drift. By moving on from re-diagnosing the industry’s ills to getting on with fixing them. The government’s policy is clear. The Plan for Rail has already been announced to the House of Commons in May 2021 so delivering that policy, moving from the words to action that is my priority.

Because the railways, quite frankly, aren’t fit for purpose. We’re mired in industrial action, which lets down passengers and freight customers down. And historically unable to deliver major improvements at good value for the taxpayer. Britain is yearning for a modern railway that meets the needs of the moment. One reliable enough to be the 7-day-a-week engine for growth businesses expect. Nimble enough for post pandemic travel, whilst allowing more flexibility for freight and efficient enough when public spending is rightly scrutinised like never before.

The railways need fundamental reform and that is what we will deliver. And what I will try to set out this evening is how we re-energise that process. Freeing reform from the sidings and getting it back onto the mainline.

Context

But first, I must provide some important context. In putting an end to last year’s unwelcome political and economic turbulence this government promised to be straight with the public about the difficult choices ahead. We set out a plan to restore economic stability and that plan is working.

We’ve seen a significant settling of the market, we’ve reassured investors, calmed the markets and strengthened the currency. It’s a strong base from which to deliver the Prime Minister’s 2023 economic priorities: halve inflation, growing the economy, and reducing debt.

It is testament to this industry’s huge economic potential that even amidst a challenging fiscal climate we gave full backing to the £96 billion Integrated Rail Plan.

The largest single investment ever made in our railways will take HS2 from Euston to Manchester. Northern Powerhouse Rail across the Pennines. East West Rail between Oxford and Cambridge. And that has the Chancellor’s full support.

We’re not wasting any time. In December, I saw the huge construction effort underway at the site of Curzon St Station in Birmingham. It will be the first new intercity terminus built since the 19th century. Attracting tens of thousands of jobs and sparking housing and commercial regeneration across the city.

Broken model

Don’t take my word for it go and talk to Andy Street and you’ll get a very passionate case about the transformation that HS2 is bringing to his city.

But we risk wasting that future infrastructure spending if our railway model is stuck in the past and thanks to Keith’s painstaking work, we know what the underlying issues are. A fragmented structure that quickly forgets the customer. Decision making with too little accountability, but with too much centralisation. And a private sector rightly criticised for poor performance but with too few levers to change it. An industry in “no man’s land” as Andrew Haines correctly described it in his Beesley lecture.

And in the end it’s rail’s customers that suffer. Like on the East Coast Mainline, where passengers still await the full benefits of billions of pounds in taxpayer investment and years of infrastructure upgrades. I know this first hand. As a backbench MP, when I was trying to get a Sunday train from my constituency to London, I remember constantly refreshing the First Great Western timetable to find half the trains weren’t running. Like many passengers, I had no choice but to give up and take the car instead.

Andrew, who was then running First Group, probably remembers my rather irate emails from the station platform, interrogating him about why the service was so unreliable. Four months into this job, I now know why. I possibly owe him an overdue apology. It wasn’t entirely his fault. Because Sunday services are essentially dependent on drivers volunteering for overtime. Which means, despite best efforts, we can’t run a reliable 7-day-a-week railway on which customers can depend. It’s why I and the Rail Minister, Huw Merriman, have been clear throughout this period of industrial action that modernising working practices must be part of reform.

Pandemic impact

Finally, the pandemic has made a bad problem worse, a lot worse. Thanks to hybrid working, an economic model dependent on 5-day commuting is out of date. Take season ticket sales, which are at just 28% of pre-COVID levels.

Unsurprisingly, and you don’t need a chartered accountant like me to tell you this, the impact on the industry’s bottom line has been stark. Revenue is around £125-175 million lower each month and costs keep rising year on year.

Any other industry would have collapsed years ago but the railways have only survived because of the taxpayer and the public purse. The source of over 70% of income over the past 2 years at a cost of £1,000 per household. I won’t mince my words: operating the railways is currently financially unsustainable and it isn’t fair to continue asking taxpayers to foot the bill. Most of them don’t regularly use the railways. Including plenty of my constituents in the Forest of Dean.

But they find themselves subsidising an industry that delivers only 1.5% and 2% of all journeys that are taken by the public. That disproportionately serves commuters in the south-east and whose funding comes at the expense of other vital transport upgrades. At a time when sacrifices are being made across the economy we must be aware of the trade-offs when it comes to public spending and remind ourselves, as Patrick rightly said in his address, that the Department for Transport isn’t the “Department for the Railways”.

So, we have a broken model. Unable to adapt to customer needs and financially unsustainable. Left untreated, we will drive passengers away with poor performance, that will lead to fewer services, that will drive more passengers away and so on and so on. Only major reform can break that cycle of decline and Keith’s blueprint is the right place to start. So yes, we will create a more customer focussed and joined up railway. But we want to go further, I want to go further, and actually enhance the role of the private sector. Not just in running services but in maximising competition, innovation, and revenue growth right across the industry. Which the benefits of the private sector has delivered time and again.

Customers

Let me start, however, with customers. To raise revenue, we must instil a customer first culture. That means reliable services, comfortable journeys and accessible stations. But it also means tackling the issue which tops passenger lists of biggest concerns, which is fares and ticketing. With 55 million fares available how can anyone feel confident they’re getting the best value for money? Ticketing should be hassle free, something you barely have to think about. Which is why, today, I can confirm the extension of Pay-As-You-Go ticketing, with 52 stations across the south-east set to be completed this year including on Chiltern, London Northwestern, and C2C services.

Ticket prices should also be fairer but often there is little difference between the cost of a single or a return. Operators are often unable to significantly reduce prices on quieter services. So, after LNER’s successful single leg pricing trial we’ll extend it to other parts of the LNER network from the spring and then carefully consider the results of those before extending more widely. It means a flexible single fare will always be half the cost of the equivalent return – giving passengers more flexibility and better value. This is not about increasing fares, I want passengers to benefit from simpler ticketing that meets their needs.

We’re also going to learn from the aviation sector and better manage capacity as well as raise revenue by trialling demand-based pricing on some LNER services too.

Yet, passengers aren’t the industry’s only customers. Carrying tens of billions of pounds worth of goods we cannot overstate rail freight’s untapped potential for green growth. So I intend to create a duty to ensure the new industry structure realises that potential with a dedicated Strategic Freight Unit tasked with creating better safeguards, more national coordination and, later this year, listening to what was said earlier, setting a long-term freight growth target.

Structure

However, turning towards customers requires us to turn away from the current industry structure. So, we will establish Great British Railways, or GBR. As we prepare for that, we’ll pick up the pace of reform. I am pleased to announce that the winner of the GBR HQ competition will be revealed before Easter. And by the summer, we will respond to the consultation on GBR’s legislative powers.

The industry has long called for a guiding mind to coordinate the network so GBR will be responsible for track and train, as well as revenue and cost. Which means finally treating the railway as the whole system it should be rather than a web of disparate interests that it’s become. Passengers won’t longer face the excuse-making and blame-shifting of years past. Instead, GBR will be wholeheartedly customer-focussed. Serving as the single point of accountability for the performance of the railway and crucially, following ministerial direction, the GBR Transition Team will develop the guiding long-term strategy for rail which we will publish later this year and I hope will provide strategic direction to the sector.

Yet there remains a lot of misinformation about GBR. So let me tackle some of these myths head on.

This is not going to be Network Rail 2.0, nor a return to British Rail. Taking politics out of the railways is the only way to build a truly commercially led industry and, for me, that is non-negotiable. That’s why GBR will be an arm’s length body ensuring a balanced approach to both infrastructure and operations. With both sides getting a seat at the table and both sides delivering an efficient, high performing railway for customers.

The role of ministers is to provide strategic direction and be accountable to Parliament. It is not the role of ministers to pore over operational decisions. For example, I shouldn’t need to approve whether a passenger train ought to be removed from the timetable to allow a freight train to run instead, as I was doing earlier today. That will be left to industry experts in 5 regional GBR divisions working in partnership with regional bodies such as the Greater Manchester and the West Midlands Combined Authorities.

Similarly, we can’t take the other extreme view. Public oversight of our critical infrastructure is needed. Especially to support those passenger services that don’t turn a profit, yet still play an important economic and social role. That’s why we need a pragmatic partnership between state and industry, harnessing the necessary oversight of the state. With the dynamism, innovation and efficiency of the private sector.

This integrated model works, and not just with the railways. That was how we achieved one of the quickest and most successful COVID vaccine rollouts in the world, and its what we need to do in the railways.

Private sector offer

Which brings me to the final area of reform. To enhance the role of the private sector, which I see as central to the future of the railways. Under privatisation and thanks to a resilient and world class supply chain, passenger numbers doubled to 1.75 billion by the eve of the pandemic. With private sector investment in rolling stock reached nearly £7 billion over the past 10 years.

I don’t want to turn my back on that commercial expertise. The National Rail Contracts and current overcentralised approach are temporary, a short-term fix that has helped steer the industry through the pandemic and this will be phased out.

I want the private sector to play its most important role in our railways yet. To reinvigorate the sector, drive innovation and most importantly, attract more customers to the railway. It will do so in partnership with GBR. GBR will help set the right commercial conditions across several key areas.

There will be new Passenger Service Contracts that will balance the right performance incentives with simple, commercially driven targets. But they won’t be a one-size fits all approach. In the past, we know some operators took on more financial risk than they could handle. So, now that risk will sit where it is best managed and that includes with operators, but only where it drives the best outcomes for passengers and taxpayers. We shouldn’t be afraid to let managing directors of train operating companies actually manage and direct their operations. Which is not what they’re able to do at the moment.

We’ll also open up railway data and systems, whilst lowering barriers to entry for the industry. For ticketing, that means a more competitive retail market and I will welcome new players to spur more innovation and give passengers the services they need.

We will expand commercial opportunities around land and property near stations. In Japan, rail companies take full advantage of these investments, generating even more income for the railways and we should look to do the same.

And finally, we will support more open access services where it benefits passengers and taxpayers. We’ve seen this work well with Hull Trains and Grand Central as well as with Lumo on the East Coast Mainline. All offering passengers greater choice and more direct links. Open access operators will play an important role in the industry’s future, especially as we grow new markets and make best use of spare capacity on the network.

Conclusion

Let me finish by saying that despite being the second Transport Secretary to deliver this address I’m probably the first to be given a biblical nickname. Modern Railways Magazine described the rail industry as waiting for “Moses Harper to come back from the mountain with tablets of stone.” Whilst I’m, of course, flattered by that comparison, unlike Moses, I do plan to live long enough to reach the promised land of rail reform. And whilst my words this evening have not been divinely inspired they do have the full support of the Prime Minister and the Chancellor, which, in politics, is the next best thing.

As a whole government, we are pressing ‘go’ on rail reform. Day-to-day work will be ably led by the Rail Minister, Huw Merriman, who’s here tonight and has long championed the need for a reformed railway, including when he was chairman of the Transport Select Committee. He will provide the stability and leadership needed, while also giving the industry freedom to deliver meaningful change and I hope you will all rise to the challenge:

to put customers first

to realise the benefits of GBR

to help enhance the role of the private sector

Because only then can the railway earn the public trust it needs to grow.

As we look ahead to the industry’s 200-year anniversary in 2025, this is our chance to resurrect some national pride in our railways. A chance to harness the political will that is there, the economic imperative and I believe the industry buy-in to build the modern railway Britain deserves.

It’s a chance we cannot waste.
08/02/2023