Britain’s Railways

With permission, Mr Speaker, I would like to make a statement about the future of rail.

The railway is one of the nation’s proudest and most enduring innovations. Almost 200 years ago the first line opened—the Stockton and Darlington in County Durham. Within decades, the railway’s iron web stretched across the nation, carrying trains that transformed our economy and society. From steam icons such as the Flying Scotsman and the Mallard, to the high-speed InterCity 125, which became the stalwart of Britain’s railway for 45 years, this country was built by the railway.

In the 19th century, rail helped to make us so productive and turned us into the workshop of the world, and rail powered our great Victorian cities and shaped our economic geography. Rail opened up vast, long-distance travel for ordinary people, transforming opportunity for the masses. Just as rail moulded our past, so will it shape our future. No other form of transport can bind the nation so effectively and help us to level up our country, bringing new jobs and investment to regions such as the north and the midlands, as we build back from covid.

However, for rail to play that key future role and reach its true potential, the industry requires radical overhaul. The Government are deeply committed to rail. We are spending tens of billions on modernising rail infrastructure, electrifying existing routes, updating signalling stations, renewing train fleets, building new lines, and making up for decades of underinvestment, but there are problems that investment alone cannot solve, such as too many delays, too much confusion for passengers, and different parts of the industry not working together.

The part-privatisation of the railway in the mid-’90s successfully reversed its long-term decline. Private sector involvement has seen passenger numbers more than double, rising more quickly than in most of Europe. Passenger travel is safer, and our country is better connected, with billions invested in new, modern trains and upgrading our stations—investment that would not have happened under nationalisation. However, the industry is fragmented, it lacks accountability, and it is lacking in leadership. The chaotic timetable change of three years ago this week demonstrated that point, as did the Government being forced to step in to take over failing franchises. Those are just some examples of how the railway was not working, and of how it was neglecting its greatest, most precious asset: the passenger.

Today I am proud to announce the beginning of a new start for the railway in Britain. It is the biggest shake up in three decades, bringing the railway together under a single national leadership, with one overwhelming aim: to deliver for passengers. The new public body, Great British Railways, will own the infrastructure, run and plan the network, organise the timetable, and set most fares. It will be one organisation, accountable to Ministers, to get trains running on time, make the customer experience as hassle-free as possible, and bring the railway into the 21st century, a single, familiar brand, with united accountable leadership.

We are going to sort out and simplify ticketing. Instead of having queues at stations for wads of paper tickets, we will roll out convenient, modern ways to pay and book—smartphones and contactless—and a new Great British Railways website for selling tickets across the network. We will welcome independents continuing to compete in the ticket retail market, particularly where they can grow new markets, recognising the value of private sector innovation. Pay as you go will be more widely accepted, and flexible season tickets will be introduced next month, saving money for an increasing number of people who do not commute five days a week. At the same time, “turn up and go” tickets, conventional season tickets and Britain’s comprehensive service will all be protected.

Although Great British Railways will manage the network, we must not ignore the contribution that the private sector continues to make. This is not renationalisation, which the Government continue to believe failed the railways. Rather, this is simplification. While Great British Railways acts as the guiding mind to co-ordinate the whole network, our plan will see greater involvement of the private sector. Private companies will be contracted to run the trains and services, with fares set by Great British Railways. It will work more like London buses and London Overground, delivered by private companies but branded as a single national service.

The operators will be rewarded for providing clean, comfortable, on-time services, and our reforms will unleash opportunities for them to innovate, helping us to change the way tickets are sold and the way data is used, so that passengers can plan their journeys more easily. These contracts will lower the barriers and bring in new entrants, including community rail partnerships and other innovative bidders operating on branch lines. That will make the competition process easier and will be good for taxpayers and passengers.

In England, we will work to bring the railway closer to those who use the services, and in Scotland and Wales, we will continue to exercise the current powers under devolution. Close collaboration with Great British Railways will help to ensure that delivery improves across the services and provides consistency for passengers across the country.

This is also about changing the culture of our railway. Covid has shown the very best of the railways. Ticketing staff, engineers, drivers, guards, cleaners, signallers, maintenance workers and timetablers have all played their part in keeping supplies, vaccines and essential workers moving, and for that we owe them a debt of gratitude. They have shown us what can be achieved when this industry comes together, and we want to strengthen that.

Simpler structures and clearer leadership will make decision making much more transparent and will remove the blame culture. There is far too much bureaucracy focused on establishing who is to blame rather than finding solutions. For example, all delays greater than three minutes have to be allocated to someone for financial penalties to apply. Until recently, under the delay attribution rules, when a train was delayed by being hit by a bird, who got the blame depended on the size of the bird. A small bird was the fault of a train company and a large bird the fault of Network Rail. Of course, trains are expected to withstand, say, a sparrow, a pigeon or maybe even a smallish duck, but not a swan or a goose.

Once a train has collided with said bird, it creates an industry for debate, argument and litigation. Network Rail and train operators currently employ a stunning 400 full-time members of staff known as train delay attributors, whose sole job is to argue with each other about whose fault the delay is. There is even a national attribution board—a sort of supreme court for the railway—which looks at these disputes and, in one case recently, had to rule on whether a pheasant is a small or large bird. It is completely bonkers. This is the sort of thing that will end. As soon as possible, under our reforms, everyone, including the train operators, will be tasked to work towards common goals and manage costs. We will create a more financially sustainable railway, saving money for the taxpayer. Rail services will be better co-ordinated with each other and better integrated with trains, buses, bikes and trams.

This new plan for the railways, three years in the making, is not about ideology. I am more interested in fixing problems, getting things done and creating the public services that people want. This plan is therefore about delivering for passengers—an ambitious but common-sense blueprint for a more customer-focused, more reliable and growing railway. As we head towards the 200th anniversary of rail’s inception, the network faces perhaps its biggest challenge with the collapse of passenger numbers during covid. This new rail revolution will restore trust and pride in Britain’s railways, secure it for the long term and ensure that it plays just as formative a role in our future as it has done in our past. I commend this statement to the House.

May I start by thanking the Secretary of State for Transport for an advance copy of the statement, together with the report that was issued earlier this morning? It is two and a half years since the Williams review was first commissioned, and the very fact that Williams was commissioned at all shows that the state, the travelling public and those excluded from the railways because of accessibility have been given a poor deal.

While much has changed through the network due to covid, what the Secretary of State has announced today was pretty much what was recorded in The Daily Telegraph last November. If that is the case, will he confirm why did he not make the announcement back in November, when it was reported in the national press?

Taking the announcements in turn today, the Secretary of State said that control of the infrastructure and the contracting of train operations will be given to this new arm’s length Government-owned body, with private firms bidding for concessions with an agreed profit margin built in. Can the Secretary of State confirm whether a publicly owned provider will be able to bid for these concessions on a level playing field? Will he also confirm whether the operator of last resort will continue to exist? If so, will it be brought fully back in-house?

It has been reported that the Treasury is demanding cost cuts of between 10% and 20%. There is concern that rather than seeing increased investment, the real driver behind bringing all this together is more about disguising painful cuts. Any talk of cuts in funding, such as the £1 billion funding cut to Network Rail that we have already seen, will have a direct impact on jobs, our regions and vital maintenance and upgrade works. Does the Secretary of State know how many jobs could be lost with a reduction of 10% or 20%, and what it might mean to each of our regions? The head of Network Rail, Andrew Haines, and its chairman, Sir Peter Hendy, are to be tasked with drawing up the processes and structures of the new Great British Railways. What date have they been given to report back?

I am grateful to the hon. Gentleman. I have to say that I sympathise, because I appreciate that it must have been difficult to take in a report of 114 pages in the time available. Skimming through it and coming up with questions will have been difficult, and I therefore understand why he asked some questions that are answered fully in the White Paper itself. Less understandable and harder to fathom is how it was possible to put out press comments about the content of the White Paper last night before it was even seen, including a lot of points already covered in the White Paper, and therefore rather misfiring in direction. Let me try to pick through some of the questions asked.

Why two and a half years? As I mentioned, the breakdown in the timetable took place three years ago this week. Keith Williams was appointed to carry out the review, which he has done at no cost to the taxpayer, I should mention, and brilliantly. There was this thing called covid, and we went into the second and third lockdowns in November, so it was perfectly proper to wait until we had a clear indication and for the vaccine to be deployed before coming to the House with the full report. That also enabled us to bring that report up to date with what is actually happening in the running of those rail services.

The hon. Gentleman asked about the operator of last resort and whether it will still exist. The answer is in the report: yes, very much so. As he knows, I already effectively run Northern and the east coast mainline through the operator of last resort. It is not about disguising cuts of any type. He keeps coming back to £1 billion of control period 6 rail funding. Because of covid, operators were unable to spend the money, but they will have that money to spend in the next period. None the less, we have ongoing one of the biggest ever rail transformation programmes, if not the biggest.

The timescales for change are all in the White Paper, and the good news is that we will get going on this immediately. The hon. Gentleman will notice that the bottom left-hand corner on the front of the White Paper says “CP 423”, which means that it is command paper 423, which means that we can get on with it, and we are doing that from this moment. A very good example of that is flexi-tickets. He says that there is not enough detail. I am pleased to let the House know that that detail will all be available on 21 June, and that they will go on sale on 28 June. If he takes the time to look in the notes to editors at the back, he will see a large number of examples of what fares will be. These will save people money in each circumstance if they are travelling two or three days a week.

Let us go to the Chair of the Transport Committee.

I welcome the statement, the White Paper and indeed the birth of Great British Railways. We look forward to the Secretary of State giving more detail to the Select Committee on Transport this Wednesday with Keith Williams. In the meantime, let me ask about page 56 of the White Paper, which deals with passenger service contracts, promising:

“Revenue incentives and risk sharing”.

How will that work to ensure that the private sector continues to invest in a way that it has done over the past 20 or so years, when it doubled passenger numbers? Page 71 talks of “New flexible season tickets” allowing eight days’ travel in a 28-day period. Does that equate to 28% of the cost that passengers would expect to pay and therefore make it an incentive to travel in our new world?

I am grateful to the Chair of the Select Committee and I look forward to coming before the Committee on Wednesday. I hope I will get a bit more chance to expand on some of these subjects. When Keith Williams and I were looking at the role of the private sector, we very much looked at what was happening in London with Transport for London: the way the buses, London Overground and the Docklands Light Railway are all run by private enterprises and how they bring something more than would have been available if the state was simply running all those services. The incentives for such enterprises will be to run good, efficient, trains, on time—clean trains, with wi-fi; these are things that passengers want—to carry on innovating and to bring their private ideas and capital, while allowing Great British Railways to set the overall picture. I do not want to disappoint my hon. Friend on the flexi tickets; the 28 days does not refer to 28%, but I can tell him that, fortunately, every ticket will be cheaper than buying a season ticket when people are travelling now, in a more flexible world, perhaps two or three days a week. These tickets will be warmly welcomed by the travelling public, as people start to go back to work.

I, too, thank the Secretary of State for advance sight of the statement. I have to report that, yet again, although there was consultation during the initial review, there has been no discussion of the actual plan with the Scottish Government. As for the so-called “Williams-Shapps” plan, it will be interesting to see how quickly it is renamed the “Williams plan” if it does not work. Although there are elements to be welcomed, I am afraid that it amounts to a real missed opportunity, with the Tories’ continued belief that the private sector knows best and yet more money flowing out of the system and into shareholders’ pockets.

By contrast, the Scottish Government have committed to taking ScotRail into public ownership. Will the Secretary of State confirm that nothing in this plan prevents the Scottish Government from doing so? I am disappointed but wholly unsurprised to see that the advice given by the former Rail Minister Tom Harris to devolve Network Rail to Scotland has been ignored. Moreover, the plan states:

“Dedicated station management teams will be created locally within regional divisions of Great British Railways to manage stations, land and assets.”

Will the Secretary of State confirm whether that results in GBR taking on the management of some Scottish stations and taking it out of ScotRail’s hands? How will the plan to roll station improvement funds into a central accessibility fund affect current relationships between Transport Scotland and the Department for Transport and annual bids for Access for All money? The plan also contains zero mention of international connections and Eurostar, which is a big omission, given the potential collapse of Eurostar. The plan document for GBR contains lots of nice pictures but not a single one has been taken outside England, which is indicative of a plan that fails to recognise the need to devolve more power to the devolved Administrations. Despite all the noise and rhetoric around the Government’s 10-point plan, the document contains just one page out of 116 on rail electrification. It says that the Government will announce further English electrification programmes, but we have been here before and their track record is utterly woeful. So when will this plan be announced? Will passenger service contracts be compulsory?

I wish to correct a couple of things that the hon. Gentleman said. There has been extensive discussion with the Scottish Government at official level about all of this, so they have been very much briefed. I am sorry that they have not briefed him along the way, as that would have been helpful. I know that he approaches this subject with tremendous dogma as if our railway lines do not interconnect, when they do, or as if the only way through this in the case of ScotRail is to nationalise it. We just take a much more open view about the best way to run a railway. First, the lines happen to connect England and Scotland together. Secondly, we have said in this White Paper that we are happy not only to have this national body, Great British Railways, involved, but to have competition from the private sector or, indeed, an operator of last resort, the public sector. We just have a much less ideological view of all of this. I think it is about trying to juxtapose his very ideological views with this much more straightforward plan to do what is right for the passenger that is causing him quite a lot of his confusion.

The hon. Gentleman mentioned numerous different issues. For example, he said that, on the international side of things, Eurostar was in trouble. He may not have spotted it, but Eurostar was refinanced just last week. He asked about the transport decarbonisation element of it. He may have missed the answer that I gave to the hon. Member for Oldham West and Royton (Jim McMahon) a moment ago, but the transport decarbonisation plan is referenced in the White Paper, because it is due out very shortly and will tackle those issues in a great deal of additional detail.

I can reassure the hon. Gentleman that Great British Railways will carry on running the infrastructure side of things, but there is nothing in the White Paper that reverses or changes the devolution picture: the Scottish Government will carry on running ScotRail as they see fit. None the less, we do have to recognise that we all need to work together. I normally hear him say exactly that, because our constituents need to travel around and they do not really care about all of the insider detail. They just want a railway that works, which is why he should be welcoming Great British Railways and this White Paper today, because we will get a railway that works.

May I start by welcoming my right hon. Friend’s statement today? The people of Stoke-on-Trent North, Kidsgrove and Talke elected me on a pledge to better connect places such as Milton via the Stoke to Leek line, which I hope will reopen under my Restoring Your Railway Fund bid. I also want to ensure that railways and stations are responsive to the needs of local communities, such as providing Access For All upgrades and car parking, which is happening at Kidsgrove, thanks to Joan Walley from 2015, and I hope to see it replicated at Longport railway station. Will my right hon. Friend confirm that, as part of these reforms announced today, our railways will be more responsive to local community needs and work for every part of our United Kingdom?

I can most certainly provide an absolute assurance to my hon. Friend, who, I have to say, has been an incredibly doughty fighter on behalf of his Stoke constituency. He mentioned the Stoke to Leek line. I know that he has spoken to the Minister of State, Department for Transport, my hon. Friend the Member for Daventry (Chris Heaton-Harris) and I know that he has an application into the third round of the Restoring Your Railway Fund application, which is enormously popular across the House. That is getting rid of the damage that Beeching did to our railways in this country under British Rail and it is good to see this Conservative Government opening it up again.

Passengers in Luton North will be concerned by reports that the Chancellor is planning to cut our railways. After 15 years of Access For All funding, it is truly shocking how many stations, including Leagrave in Luton North, remain inaccessible to wheelchair users, those with mobility issues, and parents like myself with pushchairs. Under this review, will the Secretary of State accelerate Access For All funding so that passengers with access needs in Luton North can have proper and equal use of our railways?

I do agree, but we have a fundamental issue here: our railways were built by the Victorians, who did not have any kind of disability discrimination legislation at the time. Many of the stations are far less accessible than we would want to see, which is why we have the Access For All fund, with which the hon. Lady is familiar. I always encourage people to bid for it. There is no prouder moment than when I go round the country with my fellow Ministers to open up stations that are now accessible to people in every kind of way, and I encourage her to apply for that. I have to say that the Chancellor would be pretty surprised to hear the hon. Lady talk about his “cuts” to our railways. He has just put £12 billion into keeping them running over the past year due to covid.

I welcome any reform that puts passenger interests at the heart of the railway, but may I say to the Secretary of State that what passengers in Alfreton and Langley Mill want is for their direct link to London each day to be retained and not scrapped by East Midlands Railway? Can he confirm that, under his new structure, those sort of decisions about where trains stop and how often will be for the new Great British Railways Company and not for the individual franchisee or operator to make?

My hon. Friend illustrates the problem with the setup that we have at the moment, where each individual railway company bids for its own bit of the track—its own path. We are not using the railway as efficiently as we should, so we cannot run as many services as we should. I can absolutely confirm to my hon. Friend that all decisions on direct links to London will be made by Great British Railways in the future. I should have pointed out to the House that this is a multi-year upgrade to our railways. It will take time to provide fully, as the White Paper explains, and it will require primary legislation. However, we will get on with the main parts of it today, so from today, things will start to improve.

I welcome the review and the statement from the Secretary of State. My constituents will particularly welcome the news about flexible season tickets, which will be of huge benefit to commuters right across London and the south-east, particularly those who might be thinking of working from home more once all the covid restrictions are lifted. I am a bit concerned about what protection there will be for commuters from the undue hiking of rail fares. How will Great British Railways be prevented from imposing disproportionate fare increases on commuters?

I most certainly welcome the hon. Lady’s welcome for the White Paper. It is great to hear that she thinks that flexi-tickets will help her constituents; I think that they will, as work patterns evolve post covid. I can provide her with the reassurances that she is after, because today’s announcement of Great British Railways does not change how fares have been capped up to now, and all those regimes will remain in place. I think there are great benefits coming down the road—down the line, actually—for her constituents.

I welcome the commitment to making our railways more passenger-focused and, indeed, resisting Opposition Members’ calls to go back to the bad old days of nationalisation. My right hon. Friend will know, however, that my constituents suffer at the hands of the railway that we do not want, HS2, while the railway that we do want, East West Rail, lacks a firm commitment to the important connectivity of the Aylesbury spur. As a key strand of this review is passenger-focused connectivity, will he fully commit to the Aylesbury spur?