Local Transport Authorities and Mayors: Financial Support

Welcome, Secretary of State.

May I start by saying it is very good to be here? I wish you, Mr Speaker, and the House staff a happy new year, and I wish the Aviation Minister, my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane), a happy birthday.

He will not want to be reminded of his age. [Laughter.]

In the Budget, the Government confirmed more than £1 billion of funding to support bus services, an additional £200 million for the city region sustainable transport settlements for eligible mayors, more than £650 million for local transport outside the city regions, a £500 million increase in local highways maintenance, and £485 million in capital funding for Transport for London.

I begin by welcoming the Secretary of State to the Dispatch Box for her first question time. She brings great experience of working to bring transport authorities together. My constituency of Worsley and Eccles suffers from regular serious rush-hour congestion. How can she support transport authorities in urban areas to work with neighbouring authorities to ensure a strategic approach is taken across commuter belts to alleviate congestion?

I thank my hon. Friend for his kind words, and I assure him that the Government are committed to improving local transport across individual local authority boundaries. We have provided more than £1 billion in funding to the Greater Manchester combined authority in his area, which takes a strategic approach to managing transport across its region. My right hon. Friend the Deputy Prime Minister has also set out ambitious measures in the recent “English Devolution” White Paper to support more joined-up running of local transport networks, which people rely upon every day.

I welcome the Secretary of State to the Dispatch Box, and say happy birthday to the Aviation Minister. Buses in my constituency are not adequate and the situation has been made worse since the £2 fare cap was lifted. Local authorities in Bath want to improve the situation. They want to franchise bus services themselves, but their hands are tied by the Labour West of England combined authority Mayor, who refuses to do so. What should local authorities such as Bath do?

The Government stepped in to ensure that bus fares would not explode at the beginning of this year, when the £2 fare cap that the previous Government legislated for ran out. In the worst-case scenario, costs on some services could have increased by 650%, and it was important that we took that action to ensure such fare rises were avoidable. I advise her local authority to work through any issues with the regional mayor. It is vital that we see transport authorities of all types collaborating to ensure that we have good, high-frequency, high-quality bus services for local people to go about their daily lives.

May I also welcome the Secretary of State to her place? It is a delight to see her there. I wonder if she might help me. In circumstances where a mayor does not want to embrace the opportunities of the Bus Services (No. 2) Bill and fully re-regulate, as in the Tees Valley, will she give some consideration to providing a power in forthcoming legislation for the public to overreach that? Will she consider that option?

A number of options are outlined in the Bus Services (No. 2) Bill, which had its Second Reading in the other place yesterday, including franchising options, enhanced local bus partnerships and municipal ownership of bus companies. While my hon. Friend’s suggestion is not currently in the Bill, I gently point out to him that there would have to be an authority to let contracts, including with private providers. While I am happy to explore options, we need to think through the practicalities of suggestions such as his.

Cullompton and Wellington railway stations were two of the most advanced of all the programmes in the restoring your railway fund. The existing local transport authorities have already invested in getting us to the stage of a full business case, with a high benefit-cost ratio of 3.67. Can the Secretary of State confirm that this programme is in no way disadvantaged compared with those transport authorities in urban areas that have mayors?

We consider business cases for rail enhancements fairly, and no undue advantage would be given to the areas that the hon. Gentleman suggested. I was fortunate in my first couple of weeks in this job to visit the opening of the Northumberland line, which provides services up to Ashington. I know what an invaluable difference the improved connectivity on the rail network can provide. I would be happy to talk to him about his schemes.