I draw Members’ attention to my entry in the Register of Members’ Financial Interests as a district councillor for East Cambridgeshire.
The outline business case for the Ely area capacity enhancement scheme shows that for every £1 invested, there will be a return of £4.89—so you may wonder, Madam Deputy Speaker, why we need a half-hour debate on what is so obviously a great scheme. Yet successive Governments have failed to deliver the scheme. There have been feasibility studies, consultations and task groups aplenty; funding was even promised just in time for the 2024 election, but we could all see at the time that the many promised schemes totalled far more than the money available, so I was not surprised when the incoming Labour Government acknowledged that the outgoing Conservative Government had not put funding in place for the project. The sum of £500 million is a lot of money to find, but it would deliver almost a quarter of a billion pounds in return, so I hope that the Government will commit to the funding soon.
The outline business case was submitted in March 2022, after which progress was held at a red signal, where it remains to this day. I was disappointed that the Ely junction project was not one of the projects progressed in the spending review, but I have been heartened by the Department of Transport’s responses to my written questions, in which Ministers recognise the undeniable benefits of the scheme. The Ely area capacity enhancement scheme would upgrade the railway to allow more trains to run through Ely, to improve connectivity and reliability for passenger services and to meet the demand for more rail freight between the port of Felixstowe, the west midlands and the north.
The hon. Member is making an important speech, and I strongly support what she is doing. Would she agree with me that the enthusiasm for East West Rail now makes the case for doing the works on Ely junction even stronger?
I absolutely agree. This gives us a real opportunity to sort out quite a lot of network issues in Cambridgeshire. I would be delighted if we could resolve them all; that would make a significant difference to rail in the area.
The scheme would support sustainable, long-term economic growth. The upgraded junction would increase resilience in our transport network. There is currently a single lead junction, which means that a failure in that section has the effect of practically stopping all rail traffic. Without the upgrade, if there is a failure, the other Peterborough track keeps working for a while, but the other lines, including Ely’s, quickly fill up with stuck trains. Ely station is beautiful and the staff are great, but it is still frustrating to see the notices of delayed and cancelled trains building up as we wait for our own delayed train. Progressing the upgrade would allow us to strengthen the resilience of this network and mitigate the risk of any future bottlenecks.
The environmental benefit of the Ely junction upgrade is clear. Through upgrading rail freight capacity and increasing the number of journeys possible, we can take tens of thousands of freight journeys off the road and put them on to rail. Fewer lorry journeys mean not only less congestion, but fewer road accidents. Provisional figures for the first six months of this year show that there were 4,116 road casualties who were occupants of lorries—almost one accident involving a lorry every hour—and I am sad to say that 42 of those were fatal. Taking these lorries off the road can only improve safety, given the clear danger to their drivers and other road users.
The hon. Lady is making an important case for upgrading Ely junction. Would she agree that alongside that, as per Network Rail’s business case, we need to upgrade the Haughley junction in my constituency, so that we can realise the many benefits of moving freight on to the rails from the port of Felixstowe and through the east to the midlands?
I agree that Haughley junction is also very important to making the scheme deliver its full potential.
Fewer lorries will also help to protect the crumbling roads in my constituency, which struggle with the wear and tear placed by heavy goods vehicles travelling along them every day. That could save considerable expense in road maintenance and extend the life of those roads. The project is estimated to take 98,000 lorry journeys off the road every single year, and to cut car journeys by 376,000. When that is added to the capacity for more passenger rail services, it is estimated to reduce carbon emissions by 1.7 million tonnes of carbon dioxide over 60 years, and reduce congestion on our roads by 5.6 million hours every year. In the context of the urgent need to protect our environment and planet, that is a substantial impact.
England’s Economic Heartland and Transport East co-produced the “Keeping Trade on Track” document, estimating the upgrade would result in an extra six freight trains per day to and from the port of Felixstowe—the equivalent of over 450 lorries, stretching over six miles every single day. For people who know the area, that is the distance on the A14 from the Quy junction to the east of Cambridge to the M11 junction to the west of Cambridge. I have to say that some mornings it feels like all 450 of them are on that stretch of road in front of me.
On that basis alone, the scheme has strong grounds for approval, but the name of the scheme does not give the full context to show just how important it is not only to Ely, but to the whole UK. If approved, it allows for an additional 2,900 extra freight services operating to and from Felixstowe port every year. Those freight services do not stop in Cambridgeshire. Some 70% of containers go from Felixstowe to the midlands, the north of England and Scotland—and, of course, the other way, too. And that is not all. Expanding capacity through the Ely junction upgrade will free up much needed capacity elsewhere.
I congratulate the hon. Lady on securing the debate. I very much support the case she is making. Given that the previous Government, in October 2023, did secure funding for this, it is deeply regrettable that the Labour Government have cut it. Does she agree that if we are to unlock the growth potential of Cambridgeshire as a whole and in particular Fenland, and to connect that to Cambridge’s growth potential, we need Manea, March and Whittlesea stations to be better able to connect to the economy in Cambridgeshire?
I agree. One of the big advantages of the scheme would be twice as many trains on that route. That would be a huge benefit to everyone along the route.
This is a truly national project, with national benefits. Since coming to office, the Government have been very keen to stress their growth credentials and they continue to search for a silver bullet to grow the economy quickly. Ely junction is not a magic bullet, but it can certainly help the Government on their quest. As I said, the scheme has a £4.89 cost to benefit ratio, returning £4.89 in benefits for every £1 invested. But that does not even reflect the full picture and the growth opportunities centred on Cambridge, Peterborough and, as we have heard, the Oxford-Cambridge growth corridor, so the real economic impact is likely to be significantly higher.
Let me give some examples. The Rail Freight Group says that the rail route through Ely is underperforming due to its capacity limitations, and that the upgrade would be an essential first step to achieving a positive outcome for the UK economy. Freightliner says that the junction is one of the principal bottlenecks restricting growth of rail freight volumes from Felixstowe, and that the wider economic benefits will be felt as far as Scotland, the midlands, Wales and the north of England. As I said, this is a truly national project, with national benefits.
England’s Economic Heartland has spoken to the freight industry, which has said that there is significant unmet demand for increased levels of rail freight. Maritime Transport said that it has identified a strong demand from both importers and exporters, which see the environmental benefits in their supply chains using rail over road. The Eastern Powerhouse, chambers of commerce and the east of England all-party parliamentary group have all backed the scheme too. The rail industry, rail operators, the maritime sector, the freight sector, local government and elected parliamentarians are all backing the scheme—a remarkably strong show of support. We also have hundreds of commuters waiting at stations for trains delayed by faults around Ely junction.
I am grateful to the hon. Member for Ely and East Cambridgeshire (Charlotte Cane) for securing this important debate on the Ely area capacity enhancement programme—EACE. I want to recognise her tireless advocacy on behalf of her constituents, rail passengers and freight operators across the region on a matter that affects many rail users, in one way or another.
As the hon. Lady said, the Ely area plays an essential role in our national rail network. It is a gateway for freight from the port of Felixstowe—one of Britain’s largest container ports—and is a key connector for communities across East Anglia and beyond. The hon. Member is absolutely right to highlight the constraints at Ely, which limit passenger capacity and hold back the full potential for rail freight growth in the east. Indeed, East Anglia is one of the fastest-growing parts of the country and this Government are extremely ambitious for the future prosperity of the region. Rail will continue to play a vital role in supporting new housing, unlocking jobs and strengthening sustainable freight links. The hon. Lady rightly highlighted the potential environmental benefits of moving freight from road to rail and, indeed, the safety benefits.
I thank the hon. Member for Ely and East Cambridgeshire (Charlotte Cane) for securing this debate. As she said, there is a lot of support for this scheme across the political spectrum, and it has been on the books for a very long time—as a good indication, the number of years she just mentioned is longer than I have been alive. Can the Minister confirm that the Government recognise the huge growth that the scheme could unlock not only in my region of Cambridgeshire, but more broadly across the country, and that we therefore want to bring it forward as soon as the financial situation will allow?
My hon. Friend is a great champion for growth in his constituency and his region. I can assure him that this scheme is in the pipeline of future rail enhancements and will be reconsidered as further funding becomes available.
The Minister seems to be citing a lack of funding as the reason for the scheme not being funded, but when I spoke to the Rail Minister in his previous role as chair of Network Rail, it was a priority for Network Rail. Can the Minister confirm from the Dispatch Box that schemes with a worse benefit-cost ratio were funded in the spending review? In other words, did the Government choose to fund transport schemes with a lower BCR over funding the Ely junction?
The BCR is, of course, one of the things that is considered, but wider strategic issues are always brought to bear. It is just one of the tests that is considered. I would not for a moment suggest that this scheme does not have a good BCR.
Improvements to East Anglia’s rail network will benefit not only local passengers, but communities and businesses across the midlands and the north. I commend the collaboration shown by local partners, councils, industry and residents who have come together to present a united voice behind the scheme.
However, it is important that we address the funding position directly. On 8 July, the Secretary of State updated Parliament on which road and rail infrastructure schemes will progress following the spending review; as the hon. Member for Ely and East Cambridgeshire is aware, the EACE programme has unfortunately not been allocated funding at this stage.
As the hon. Lady rightly noted, the previous Government committed to a range of major schemes in their October 2023 Network North announcement, knowing full well, with a general election on the horizon, that there was no funding to deliver them. That, unfortunately, included the Ely area capacity enhancement. I recognise and share the frustration that has caused locally, and this Government are determined to ensure transparency regarding the future of this programme. We are committed to delivering infrastructure with the greatest benefit to passengers, freight and the wider economy as quickly as possible and within a fully funded and deliverable programme.
I appreciate that it is disappointing for the hon. Lady and the many supporters of this scheme, but it is not the end of the story—I want to be absolutely clear on that point. We fully recognise the strategic importance of the Ely area capacity enhancement programme, which is why, as I said in response to my hon. Friend the Member for North West Cambridgeshire (Sam Carling), we remain committed to supporting its place in the pipeline of future rail enhancements, and the programme will be kept under active review and considered carefully as further funding becomes available.
It is wonderful that East West Rail is coming, but my constituents need to be able to get to it in Cambridge, which is why we need the upgrade at Ely junction.
The hon. Lady has made a compelling case for Ely junction and the wider Ely area capacity enhancement scheme. It is about ensuring that it is affordable and deliverable, which is precisely why we are keeping it in the pipeline for when further funding is available. We inherited terrible economic pressures and, in the Department for Transport, billions of pounds of schemes that were simply unfunded, which I am afraid is the position with the Ely area capacity enhancement scheme.
Let me finish by thanking the hon. Member again for securing this debate and for the passion with which she continues to champion the Ely area capacity enhancement scheme. I understand the disappointment that she and other stakeholders have expressed following the spending review earlier this year, but I hope that I have reassured her that the Government recognise EACE as a key strategic enhancement, that we see clear value in its future delivery, and that we will continue to work constructively with regional partners as we consider how and when best to take the programme forward.
The case that the hon. Member and others have articulated this evening and on many other occasions will remain central to ensuring that when future funding becomes available, the scheme will be well placed to progress. I look forward to continuing that dialogue and to unlocking the full potential of rail passengers and freight in the Ely area, and indeed wider Cambridgeshire, in the years ahead. My noble Friend the Rail Minister has notified me that he will be happy to meet her to discuss this further.
Question put and agreed to.
6:40 pm
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Currently, freight trains from Felixstowe use the great eastern main line and north London line to access routes to the north and midlands, using the growing Thames ports. If Ely junction is approved, the demand for Felixstowe freight trains to use the north London line would be reduced and those would then be available to the London ports. Ely is mentioned in the strategies of Transport for London, Transport for the North and Midlands Connect, showing the benefit the scheme can have for those areas. Transport for the North said that its region will benefit by having access to a rail freight terminal that could result in extra freight trains from the south-east to the north. Transport East has told me it is keen to see improvements, as the project would benefit Norfolk, Suffolk and Greater Essex. England’s Economic Heartland chairs the Ely taskforce, a group of local authorities, industry groups and rail operators, all of whom are desperate to have a clear pathway to the upgrade finally being progressed.
At a time when the Government need to do more to encourage people to use public transport, approving the Ely junction upgrade would stimulate an extra 277,000 rail passenger journeys per year. Network Rail estimates that the proposals would see the doubling of passenger services on the Ely-to-King’s Lynn and Ipswich-to-Peterborough routes. The logic is simple: if we deliver more rail services, passengers will have not only more choice, but more opportunities to travel by rail. A higher-quality, higher-frequency passenger rail service can only encourage more passengers to choose public transport over car journeys, which benefits commuters and the environment.
In previous written questions, I have asked the Department to name a specific sum that it would cost to provide Network Rail with the funding needed to undertake detailed planning for the Ely junction upgrade, but I have not yet received an answer. Can the Minister provide the sum today? Stakeholders are very frustrated that we have to wait until the next spending review in the eternal hope that the scheme will finally be progressed. My constituents have been waiting for 25 years for this project. They, and businesses, have gone through reviews, reports, summaries and investigations, and countless proposals have been produced.
The business case has been made. We know the arguments and the benefits. We also know the financial situation that the Government find themselves in. What my constituents, businesses, and the rail, freight and maritime sectors need is clarity and a clear route forward. Will the Minister commit to asking the Rail Minister for a meeting with Network Rail and me to agree how we can deliver the Ely junction upgrade? At least then we could all be on the same platform, going in the same direction.
I am sure that, deep down, the Government support the scheme; I am confident that they understand its merits. But the Minister needs to understand that the scheme has been in varying states of limbo for 25 years now. The Minister has heard in this debate the support for the scheme from across the House, which shows how important the scheme is to our region. It is time to set Ely junction on track to fulfil the potential we all know it has, and to deliver economic growth for Ely and East Cambridgeshire—and for all the UK.
As the hon. Member for Ely and East Cambridgeshire pointed out, the scheme has a strong business case. Indeed, EACE would increase freight capacity from 36 to 42 daily trains to and from the port of Felixstowe, which would deliver huge benefits including supporting the economy, cutting emissions, reducing HGV congestion on roads like the A14 and strengthening our supply chains; the passenger benefits would also be substantial, delivering more reliable journeys and supporting growth across the region from Norwich and Ipswich to Cambridge and beyond.
I want to recognise, as the hon. Lady set out, the powerful and united voice of local and regional stakeholders, including Transport East, England’s Economic Heartland, local authorities, ports and freight operators, and indeed MPs from across the political spectrum. My hon. Friend the Member for Cambridge (Daniel Zeichner) brings great knowledge and experience to this debate. The hon. Member for Ely and East Cambridgeshire herself has been vocal in championing this investment, and of course that local support strengthens the case for future funding.
The Rail Minister recently met the Mayor of Cambridgeshire and Peterborough to discuss how the Ely programme could support housing and economic development in the east of England, and the potential for raising third-party funding to support the scheme. Given the strong local support for the scheme, and the real development and growth opportunities it could unlock across the region, it is important that all sources of funding are fully explored. But I am sure the hon. Member for Ely and East Cambridgeshire will recognise that any private finance or alternative funding proposals would need to demonstrate value for money to the public sector.
As the hon. Lady may know, 44 level crossings would need to be upgraded or closed to deliver the increased capacity envisioned by EACE. I note that it has been suggested in the media that the cost of upgrading Ely North junction has ballooned from £25 million in 2012 to almost £500 million, but let me be clear that that is not the case. As one of my officials put it, this is like comparing apples with deck chairs, as the Ely area capacity enhancement scheme comprises a much wider series of interventions, including upgrades to bridges, signalling and Ely station itself, as well as additional track and the upgrading and closure of level crossings, alongside the Ely North upgrades that were announced in 2012.
That is likely to be one of the most challenging and costly aspects of the scheme, particularly the planning consent, and securing local agreement to ease the delivery of these works on level crossings could radically reduce the cost of the scheme. The Rail Minister has asked the mayor to work with local highways authorities to explore how the required works around level crossings could be simplified or rationalised.
As we have observed, the investment case for EACE is strong. However, no development work has taken place on the scheme since it was closed by the previous Government in 2022. Upgrading the business case, including revised cost estimates, demand forecasts and benefits assessments, would be a positive first step in bringing the programme forward.
The Rail Minister has recently written to the mayor suggesting that he meets the chief executive of Network Rail to discuss how the EACE programme’s business case could be updated, and the mayor’s office would be well placed to co-ordinate other stakeholder engagement with Network Rail on that update. To that end, I encourage the hon. Member for Ely and East Cambridgeshire and other hon. Members to continue engaging with the mayor. It would also be important to time any business case updates to align with the potential release of funding at future spending reviews.
While we consider how best to progress EACE, I reassure the hon. Lady that Cambridgeshire is already benefiting from significant rail investment. The new Cambridge South station is forecast to open in June 2026, improving access to new housing and one of the most important life sciences campuses in the world. The Government have also reaffirmed their commitment to East West Rail serving Cambridge and allocated £2.5 billion of funding for the next stages of the project at the last spending review.
Investment in East West Rail demonstrates Government support for enhanced connectivity across the Oxford-Cambridge corridor, and that project can enable up to 100,000 new homes and is expected to boost the regional economy by £6.7 billion a year by 2050.