Economic Growth

Economic growth is this Government’s top priority, and a reliable, well-connected transport network is critical to driving prosperity. That means delivering local priorities in places such as Huddersfield and Hyndburn, including through West Yorkshire’s £830 million city region sustainable transport settlement and the local transport grant for Lancashire combined county authority.

The Government have rightly prioritised rail as a key factor in the future viability of our transport infrastructure. There exists in Hyndburn an outstanding opportunity to create a freight rail terminal that would fit with the Department for Transport’s targets for increasing rail freight capacity by 75%. The proposal also adds value in increasing east-west rail freight capacity, which must currently pass through Manchester. Sadly, no progress was made on this under the last Government. Does the Secretary of State agree that a north-west freight strategy should be a priority, and will she meet me to explore the potential of this as a priority project in the north-west?

My hon. Friend is right to highlight the importance of rail freight, and I am clear that with a reformed railway, we must do more to shift freight from the roads to rail. I am keen that Network Rail works collaboratively with industry to develop terminals where there is either current demand or the potential for future growth. If there is viable interest in developing this land, my officials and Network Rail would be happy to engage with interested parties.

I welcome the funding commitments for transport in Huddersfield, including rail upgrades to the Penistone line and the trans-Pennine route, which are very much needed. However, during a coffee morning with residents last week, the main issue discussed was the reliability of bus services and the need for integrated transport. Can the Minister outline how she is supporting our West Yorkshire Mayor in ensuring that transport-led economic growth includes bus services and is felt across all neighbourhoods and communities in Huddersfield?

I am not surprised to hear that buses are top of the agenda for my hon. Friend’s constituents. Reliable, affordable bus services will be essential for so many of those she represents, and I was particularly delighted to see the successful launch this week of Mayor Tracy Brabin’s Weaver bus network. The Government are investing £36 million in West Yorkshire’s buses. That is in addition to the £830 million we are spending in the region to improve local transport infrastructure and the rail investment we are making as part of the trans-Pennine route upgrade.

The Secretary of State knows that High Speed 2’s central purpose is to deliver economic growth, but she knows, too, that it is taking far longer and costing far more to deliver than anyone expected. Given that projects of the scale of HS2 require parliamentary approval, is it not important that Parliament has accurate estimates of how much the project will cost and how long it will take to deliver? Will she commission a properly independent and thorough review of why the budget for HS2 has increased so often and the timetable has expanded so often?

I will be providing updates to the House on the emerging cost position and opening window. As the right hon. and learned Gentleman will know, this Government have appointed a new chief executive of HS2, Mark Wild, who is conducting an ongoing review. We have also reintroduced ministerial oversight, which was sorely lacking under the Conservative party’s leadership. I recognise that this is an important issue, and we are doing all we can to deliver the rest of this railway at the lowest reasonable cost to the taxpayer, so that people can enjoy excellent rail services in the future.

The Transport Secretary recently refused to commit to keeping the £3 cap on bus fares outside London beyond the end of this year, leaving many in rural areas worried about how much more they will end up having to pay to get to work. Residents across my constituency have already seen vital routes scrapped or scaled back, holding back economic growth. Can the Transport Secretary explain what support will be made available to not only keep rural fares down but restore lost services?

The hon. Lady will know that this Government stepped in to prevent soaring bus fare increases, given the last Government’s decision to only fund a bus fare cap until the end of last year. [Interruption.] Opposition Members can chunter, but the truth of the matter is that it was fantasy money, and the money was not allocated to fund that bus fare cap. We are in an ongoing process, through the spending review. I appreciate the importance of affordable, reliable bus services, and we will do all we can to ensure that people can continue to enjoy the bus network that they need.

I call the shadow Minister.

Greater Anglia supports economic growth in the east of England with modern, quiet, fast trains, paid for by £2 billion of private sector investment. Its service is the most punctual in the country, it is popular with its passengers, and it is run so efficiently that instead of costing the taxpayer, it pays money into the Treasury. It is currently train operator of the year. Greater Anglia knows that nationalisation is coming, and it has offered to extend its operations to allow the Government to focus on the worst performing operators first. Why did the Government refuse? Is the Secretary of State focused on improving the lives of passengers, or is it an ideological determination to put the unions back in charge of the railways?

I really do not know how many times I have to say this to the hon. Gentleman. I met him a couple of days ago, and I explained that our process for bringing train operating companies into public ownership is designed to offer best value for money to the taxpayer. We will not be buying out failing private sector operators by breaking contracts early. He is right to say that Greater Anglia provides an excellent service, and I am confident we will build on that when it comes into public ownership in October.

Perhaps the Secretary of State did not understand the nature of the offer from Greater Anglia. It was not expecting to be bought out; it was offering to continue its current arrangements for a couple of years. In a previous answer, the Secretary of State said to me that the benefit of rail nationalisation will be the £150 million of efficiency savings. Let’s see how that is going. Her first nationalisation will be South Western Railway in two weeks’ time. That new service will need trains, yet The Telegraph has revealed that inept contract negotiations by her Department, where there was no effective competition, mean that the cost of re-leasing the same trains is increasing by £250 million over five years. Are those the efficiency savings she had in mind?

The up to £150 million of savings that the taxpayer can enjoy as a result of train operating companies coming back into public ownership are the saved management fees that we are currently paying to private sector operators, and efficiencies will be delivered on top of that. On the substantive issue that the hon. Gentleman raises about South Western Railway, the cost of renewing rolling stock leases has been fully and properly budgeted for, with successful commercial negotiations recently concluded. The franchising process under his Government saw some “buy now, pay later” deals done on rolling stock, where costs were always expected to increase. I think that approach was deeply dubious, but that was the short-termist, ill-thought-through approach of his Government, and we are now having to clear up that mess.